Nichirei GroupCSR Report 2023

NICHIREI CORPORATION

Contents

Contents
CONTENTS
Message from the President...

2

GovernanceCompliance/Internal Control... 197... 210

Risk Management... 216

Stakeholder Engagement... 222

Report Archives... 234

ESG Navigation... 236

ESG-related Policies... 238

ESG Data... 239

External Review... 279

External Initiatives... 286

Corporate GovernanceNichirei Group Materiality
Material Matters...

KPIs for Material Matters...

9

Process for Identifying Material Matters

...

12

DX Strategy

...

19

A History of Creating Value

...

22

Value Creation Process

...

26

Nichirei’s Business Model and Advantages

...

27

Resolving Social Issues through Our Business

...

28

4

Environment
Environmental Management

...

57

Climate Change (TCFD)

...

63

Climate Change(Decarbonization and the Elimination of CFCs)

...

70

Initiatives for Water Resource Conservation

...

85

Initiatives for Biodiversity Conservation

...

88

Waste Management and Chemical Substances Control ...
...
Initiatives in Products and Services

91
96

SocialCreating new value in food and health...

Strengthening food processing and production
technology capabilities; enhancing logistics services... 108

Supply Chain Management to Achieve Sustainable
Procurement

99

Providing Safe Products and Services... 115... 131... 137

Occupational Health and Safety... 154

Human Rights

Cultivating Human Resources and Improving
Work Satisfaction
Health Management... 161... 1851

Message from the President
Message from the President
We will help resolve social issues through ourbusiness and achieve a sustainable society.

The Nichirei Group conducts its daily business based on its mission of "Focus on Lifestyles, and Provide True Satisfaction"and its vision of "We will continue to support good eating habits and health by leveraging our state-of-the-art
manufacturing practices that optimize nature’s bounty, along with our leading-edge logistics services." We recognize that
our mission and the reason for existence is to continue to create and provide valuable products and services that meet theneeds of the world and satisfy our customers.
The global environment is changing in the food supply chain due to the effects of climate change, the pandemic crisis, andother factors that are constraining procurement, production, and logistics around the world. Under these difficult
circumstances, what contribution can the Nichirei Group, which plays a role in the social infrastructure, make toward therealization of a sustainable society?

We recognize that this question is of great concern to society.

In order to keep building a sustainable food supply chain, the Nichirei Group will continue to manufacture products thattake advantage of the natural abundance while carefully protecting the rich natural environment and food resources, andwill actively promote activities to achieve carbon neutrality. We will also make sincere efforts to address human rights
issues and labor problems based on the premise of coexistence and co-prosperity with our business partners andstakeholders. In order to achieve these goals, the Nichirei Group established the "Nichirei Group Sustainable Marine ProductProcurement Guidelines" and the "Nichirei Group Sustainable Palm Oil Procurement Guidelines" in April 2023, based on the"Sustainable Procurement Policy." We will work together with our suppliers and business partners to build a sustainable
food procurement and sustainable supply chain by sharing our values and understanding of these guidelines as well as ourown efforts.
Since its founding, the Nichirei Group has grown through businesses that solve various social issues. We will continue topromote sustainability management with the aim of maximizing corporate value by balancing social value and economic
value. Through sustainability management, we aim to realize a sustainable society and solve social issues and to realize asociety of well-being in which employees of the Nichirei Group, all stakeholders of the Nichirei Group, and people aroundthe world can live healthy lives with smiles on their faces.
We appreciate your continued support.
April, 2023

Kenya Okushi
Representative Director,
President＆Chief Executive Officer2

Nichirei Group Materiality

Nichirei Group Materiality
Material Matters...

4

KPIs for Material Matters...

9

Process for Identifying Material Matters

...

12

DX Strategy

...

19

A History of Creating Value

...

22

Value Creation Process

...

26

Nichirei’s Business Model and Advantages

...

27

Nichirei Foods Providing New Value in Frozen Foods throughDevelopment Capabilities for Reproducing the Flavor of Meals
Made by Professional Chefs -Honkaku-Itame Cha-Han-

...

28

Nichirei Logistics Group Helping to Reduce Traffic Congestion and
CO₂ Emissions by Introducing an Innovative Logistics System-Cross-Docking Business-

...

30

Nichirei Fresh Procuring Food through a Sustainable Regional Agricultural andLivestock Cycle Project -Junwakei Chicken-

...

33

Nichirei Foods Contribute to the development of local communitie
and grow by meeting “clean label” demand

...

35

Nichirei Foods A Chicken Processing Factory That Uses
the Entire Chicken (Thailand)

...

39

Nichirei Logistics Groupand Delivery System

SULS: Next-generation Transportation

...

41

Nichirei Logistics Group

Truck Loading Dock Reservation System

...

44

...

46

Nichirei Fresh Conserving Biodiversity on the Yellow Sea Coastthrough a Clam Fishery Improvement Project

...

49

Nichirei Biosciences

...

53

Resolving Social Issues through Our Business

Nichirei Fresh

Inochi-no-Mori-Project

Development of Companion Diagnostics

3

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

4Material Matters
In 2020, the Nichirei Group identified five material matters and set a vision for each of them in order toachieve

its long-term management goals for 2030. We are conducting sustainability management that

achieves both

the resolution of social issues and business growth by addressing these material matters.

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.
Nichirei Group Material
Matters

Creating newvalue in food*1and healthCreate newmarkets andcustomervalue bytaking on
challenges
outsideexisting
businessareas in bothfood andhealthVision for
2030

Group Measures
Allocate resources to
R&D to investigate
health, the global
environment andDiscover the
potential ofmaterials andcooling power
to contribute to
the future of
the Earth andpeople’s mental
and physicalhealth throughfood

diversifying customer
value, as well as tomarketing
Develop products andservices and convey
information to address
people’s mental andphysical health and theglobal environment
Establish mechanisms
to create and cultivate
value in new fields andconduct innovation

Group KPIs for
FY2031

Sales of products
and services thatcreate added value
for people’s
mental andphysical healthand the global
environment:¥140.0 billion
People provided
with information
for good eating
habits and health(total number ofpeople peryear): 200 million

activities

Strengthening
foodprocessing
andproduction
technology
capabilities;
enhancinglogistics
services

Furtherrefine corecompetencies
in food
processing,production
and logistics
to resolve
social issues
and improve
profitability
throughcompetitive
advantages
in global
markets

Ability togenerate cash
improved byconcentrating
management
resources oncore businesses

Promote capacity
expansion, work process
innovation, reduction ofenvironmental impact anddevelopment of businessfoundations throughproactive capital
expenditures in theprocessed foods andtemperature-controlled
logistics businesses

Overseasbusiness has
become a newpillar of
earnings

Accelerate overseas
expansion by securing andtraining global humanresources, cultivating
partner companies,
conducting M&A and other
means

5

EBITDA margin:
12%
EBITDA CAGR: 7%
or higher

Overseas sales
ratio: 30%

Applicable
SDGs

Nichirei Group Material
Matters

Vision for
2030

Group Measures

Group KPIs for
FY2031

Rate ofAll raw
materials andingredients areprocured fromsuppliers andpartnercompanies thatcomply with the
Nichirei Group
Supplier Codeof Conduct andSupplier
Guidelines.

Realizingsustainablefood
procurement
and a circular
economyResolving
various social
issuesrelated to the
supply chain,
which is thefoundation of
our business,andcontribute tosustainablefood
procurement
and therealization ofa circular
economyprocurement fromsuppliers andOEMs that comply
with the Nichirei
Establish a supply chain
with consideration forhuman rights and theenvironment and conduct
due diligence

Group Supplier
Code of Conduct
and Supplier
Guidelines: 100%Rate ofimplementation of
ESG due diligencefor main raw
materials andmajor suppliers:
100%
Rate of attendance
for the SDGs
educational
program aimed atrealizing a circular
economy: 100%(all employees)
Rate of waste

Promoting acirculareconomy bycreating new
businessmodelsrecycling at allsites: 99%
Work to conductsustainable resource
procurement and help torealize a circular economy

Procurement ratioof sustainablemarine products inaccordance withthe guideline:
100%*2
Procurement ratioof MSC and ASC
products: 50%*2

Procurement ratioof sustainable
Palm oil (RSPO) :100%*2
Improvingresilience ofwater resources
through anunderstandingof water-related
risks

Identify water-relatedrisks through risk
assessments at all sites
and conserve water

6

Conduct regularwater-related risk
assessments at allsites, as well as inconservation
activities and the
BCP

Applicable
SDGs

Nichirei Group Material
Matters

Climatechangeinitiatives

As a foodand logistics
companythat isgreatlyaffected byclimatechange, wewill workwithstakeholders
to counter
globalwarming andreduceenergyconsumption
throughout
the supply
chain

Vision for
2030

Group Measures

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

Reduce CO₂ emissions perunit of production andutilize renewable energy
at food factories andlogistics centers, anddisclose information basedon the TCFD
recommendations

Elimination of
CFCs
progressing at
production andlogistics
facilities as a
global warming
countermeasure

Replace all refrigerants
used in freezing andrefrigerating equipment
in Japan with naturalrefrigerants
Switch to naturalrefrigerants overseas asnecessary, based on onsite confirmation
I ntroduce a Group-wide
engagement survey* tomonitor theeffectiveness ofmeasuresEstablish a personnel
system that enables
Group employees tochoose work styles

Securing anddeveloping adiverse arrayof human
resources

Secure anddevelop adiversehuman
resources
and foster an
inclusive
corporate
culture toachievesustainablegrowthDiverse humanresources withvariouscharacteristics
and skills,
maximizing
their potential
to improve theirjob satisfaction
and support thesustainablegrowth of theGroupaccording to their career
outlook and contributes
to productivity
improvement
Establish and provide
support for applicationof rules* Engagement survey: A surveythat shows degree ofunderstanding of andresonance with theManagement Philosophy andindependent involvement in
the organization (jobsatisfaction)

Promote communication
activities and impartiallyprovide learning
opportunities in order tocreate a work
environment andcorporate culture inwhich employees arehealthy, lively andsatisfied with their jobs

7

Group KPIs for
FY2031

Reduction in CO₂emissions: 50%(Compared with
FY2016; Scope 1
and 2 in Japan)

Rate of conversion
to naturalrefrigerants
Production
equipment(Japan): 100%
Logistics (Global):
75%

Ratio of female
directors andfemale Audit &Supervisory Board
members(HD*): 30% or
higherRatio of femaleline managers(HD*): 30% or
higher* HD: Nichirei
Corporation (Holding
Company)

Double investment
in human
resources by
2030** Compared with theaverage annual
investment in humanresources in FY2019FY2021

ApplicableSDGs

*1 The vision for 2030, Group measures and Group targets and KPIs for FY2031 for material matter 1, “Creating new value in food and health,” wererevised by the Board of Directors of Nichirei Corporation on July 18, 2023.
*2 For material matter 3, “Realizing sustainable food procurement and a circular economy,” in April 2023 the Nichirei Group established procurement
guidelines for marine products and palm oil, which are important food resources underpinning its business activities, and added related Group targets
and KPIs.

8

KPIs for Material Matters
KPIs for Material Matters
In 2021, we set Group targets for 2030, consisting of measures and KPIs for initiatives for the Group’s material matters.
Medium-term Business Plan Compass Rose 2024, which began in FY2023, sets Group KPIs for FY2025 as milestones on theroad to 2030, as well as measures and quantitative targets for the holding company and each operating company. We aim
to achieve our targets by continuously monitoring KPIs and carrying out the plan-do-check-act (PDCA) cycle.

Nichirei Group
Material Matters

Creating newvalue in food andhealth*1

Group Targets(KPIs)FY2023Results

FY2024Plan

FY2025
Targets

FY2031
Targets

Sales of products
and services thatcreate added value
for people’s mental
and physical healthand the global
environment¥46.4
billion-¥60.0
billion¥140.0billionPeople provided
with information forgood eating habits
and health (total
number of people
per year)
EBITDA margin

Nichirei
Foods
Nichirei
Fresh
Nichirei103
million--

200 million

8%

9%

10%

12%

EBITDA CAGR
Strengthening
food processing
and production
technology
capabilities;
enhancinglogistics services

Main
OperatingCompanies
Involved(Holding
Company)

Nichirei
Foods

Note: FY2022 figure is
CAGR for FY2020FY2022. FY2025
figure is CAGR for
FY2023-FY2025.
FY2031 figure is
CAGR for FY2026FY2031.

5%

Overseas sales ratio

20%

7%

7%

7% or
higherNichirei
Logistics
Group
Nichirei
Fresh

21%

9

20%

30%

Nichirei Group
Material Matters

Realizingsustainable foodprocurement andresources
recycling

Group Targets(KPIs)FY2023Results

FY2024Plan

FY2025
Targets

FY2031
Targets

Rate of procurementfrom suppliers andOEMs that comply
with the Nichirei
Group Supplier Codeof Conduct andSupplier Guidelines

Supportrate 89%(main
domestic
suppliers
and
OEMs)

Support rate
100%
(main
domestic
suppliers andOEMs)

Supportrate 100%(main
domestic
andoverseas
suppliersand OEMs)

Procurement
rate
100%

Rate ofimplementation of
ESG due diligencefor main raw
materials and major
suppliers

Domestic
meat andpoultry25%(main
suppliers
and
OEMs)

Domestic
meat andpoultry 50%(main
suppliers andOEMs)

Domestic
meat,
poultry,
andmarineproducts
100%(main
suppliersand OEMs)

100%

Rate of attendance
for the SDGs
educational program
aimed at realizing acircular economy

-

Start
educational
program100%(managers
or above)

100%
(all
employees)

Rate of waste
recycling at all sites

99%

99%

99%

99%

Procurement ratio ofsustainable marine
products inaccordance with the*2
guideline

91%

95%

100%

100%

Procurement ratio of
MSC and ASC
products*2

19%

19%

32%

50%

100%
(book
and
claim)

100%(book andclaim)

100％(book andclaim)

100％(certified oil)

Conduct in
FY2024

Conduct
regularwaterrelated risk
assessments
at all sites,
as well as inconservation
activities
and the BCP

Procurement ratio ofsustainable Palm oil(RSPO)*2* Certified Palm Oilmeans RSPO certified
Palm Oil (Mass Balanceand Segregation)

Conduct waterrelated risk
assessments at all
sites

Main
OperatingCompanies
Involved

Nichirei
Foods
Nichirei
Logistics
Group
Nichirei
Fresh
Nichirei
Biosciences-

Conduct asurvey using
a simplequestionnaire
format10

Nichirei Group
Material Matters

Climatechange initiatives

Group Targets(KPIs)FY2023Results

FY2024Plan

FY2025
Targets

FY2031
Targets

Reduction in CO₂emissions(Compared with
FY2016; Scope 1
and 2 in Japan)

-25％

-27%

-30%

-50％

Nichirei
Foods

Rate of conversion
to naturalrefrigerants
Production
equipment in Japan

56%

Rate of conversion
to naturalrefrigerants
Logistics (Global)

58%

60%

62%

75%

13%

13%

20% orhigher

30% orhigherRatio of female
directors and female
Audit & Supervisory
Board members
（HD*）

69%

Ratio of female line
managers （HD*）
Investment in
human resources(Compared with theaverage annual
investment in
human resources in
FY2019-FY2021)

80%

100%

Nichirei
Logistics
Group* HD：Nichirei
Corporation (Holding
Company)

Securing anddeveloping adiverse array ofhuman resources

Main
OperatingCompanies
Involved

15%

18%

20%

30%

Nichirei
Foods
Nichirei
Logistics
Group
Nichirei
Fresh
Nichirei
Biosciences

1.2 times

1.5 times

1.7 times

2.0 times

Nichirei(Holding
Company)*1 The vision for 2030, Group measures and Group targets and KPIs for FY2031 for material matter 1, “Creating new value in food and health,” wererevised by the Board of Directors of Nichirei Corporation on July 18, 2023.
*2 For material matter 3, “Realizing sustainable food procurement and a circular economy,” in April 2023 the Nichirei Group established procurement
guidelines for marine products and palm oil, which are important food resources underpinning its business activities, and added related Group targets
and KPIs.

11

Process for Identifying Material Matters
Project Organization for Identifying Material Matters
With the representative director and president responsible for execution, two projects (Materiality and Climate change
scenarios) were working concurrently from September 2019 and June 2020. We conducted repeated considerations while
linking information from both parties.
The project to formulate the materiality was led by the executive officer who is the general manager of Strategic Planning,
and was examined by members of the Board of Directors and all corporate officers, including executive officers.
The climate change scenario project was led by the executive officer who is the director, and who serves as the managing
director in charge of the environment. This was done according to advice from experts and the framework recommended
by the TCFD. The reviews themselves were conducted mainly with Technology Management staffers in charge of theenvironment, as well as each Group company’s Strategic Planning department and the managers undertaking environmentrelated activities.

12Project 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.
2

Identifying social issues (risks and opportunities)

After identifying our stakeholders, we delineated social issues from future and global perspectives.
3

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 are focused on minimizing damage to corporate value.
4

Mapping material matters

We mapped material matters that would require proactive and reactive steps, and in November 2019 we held initialdeliberations on the details of mapping during the Nichirei Group Strategy Committee meeting, at which we usually discussoverall management strategies.

135

Creating drafts

We created separate drafts for those issues that would require a proactive or reactive approach.
6

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

14

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)
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.

15

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 among target
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.

7

Integration and Narrowing-down

Based on opinions received from experts, we integrated and narrowed down material matters as proactive or reactive.
8

Finalizing the draft

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

16

Identifying Material Matters
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.

17

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.

* Revised as "Realizing sustainable food procurement and a circular economy" in 2021

18

DX Strategy
DX Strategy
For the Nichirei Group, DX involves data technology-driven business transformation activities linked to its five material
matters. We began implementing DX initiatives in FY2022.

Organizational Structure for Promoting DX

19

Overview of DX Strategy
To raise the awareness of employees, we will launch a new portal site focusing on our DX activities and conduct DX training
for each Group employee to acquire digital literacy. By promoting DX throughout the Group, we will help to innovate
existing work, generate new work and resolve supply chain issues, among other benefits. Through these measures, we aim
to realize the Nichirei Group Vision.

Development of Education for Digital Transformation (DX)

Value Creation DX
We will utilize data and digital technology to create new businesses that contribute to good eating habits and a longer
healthy life expectancy, and to offer a more valuable experience for customers. Through initiatives that go beyond our own
industry, we also aim to build new ecosystems and work to monetize them.
Production/Logistics DX
We will work to implement automation using IoT, AI, robotics and other methods, and for overall optimization to linkfactories and warehouses in areas such as ascertaining production volume at factories and incoming, outgoing and storage
volume at refrigerated warehouses. We will also work to achieve optimal equipment operation and maintenance thatmobilizes our factory and warehouse management know-how, and to conduct all-inclusive control of multiple sites.
Sustainability DX
We will work to create a sustainable supply chain by collecting, managing and analyzing information on the sustainability of
our suppliers and all other parties involved in the supply chain.
Human Resources DX
We will deploy the right human resources to the right places in the Company. At the same time, we will improve work
efficiency by promoting cooperation with external human resources.

20

Management Base DX
We will collect, manage and analyze internal and external data to be converted into valuable information, and provide that
information to management in a timely manner for speedy decision-making.

Nichirei Group Conducts Digital Human Resource Development Training for All Employees, Aidemy
Offers "Aidemy Business" as Training Tool (Only Available in Japanese)21

A History of Creating Value
History of the Nichirei Group22

Establishing a Temperature-controlled Logistics Network

23

Nichirei’s History in Frozen Foods

24

Marine, Meat and Poultry Products Business25

Value Creation Process26

Nichirei’s Business Model and Advantages

27

Resolving Social Issues through Our Business

Nichirei Foods

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.

28

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 to establish a three-stage stir-fry manufacturing method. In
the first stage, the rice is coated 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 stir-frying, and in the third
stage, the final frying is completed. This new process enhanced thedeliciousness of Honkaku-Itame Cha-Han.

Commitment to Raw Material Quality
We use 100% first-class rice from Hokkaido for the main ingredient of HonkakuItame Cha-Han.
First-class rice has fewer cracked hulls, is less sticky when cooked, and has a
non-sticky texture even when prepared in a microwave. It also features uniformsized grains 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 that applies
the skills of professional chefs

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Resolving Social Issues through Our Business

Nichirei Logistics Group

Helping 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.

30

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 business tailored
to a variety of business types including general merchandise stores, supermarkets, convenience stores and restaurant
chains.

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 a processing
and packaging service called Process Centers. Process Centersprovide rigorously temperature-controlled, one-stop services
within a single XD Center ranging from processing meat, poultry
and marine products to weighing, packing, packaging, labelingand delivery.
In addition to reducing workloads at stores, centralizing theprocessing work reduces the storage space required forinventory, thus enabling larger sales spaces.

31Value Provided
Helping to improve customer operating efficiency and reduce CO₂
emissions through total services that include sorting, delivery anddistribution processing

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Resolving Social Issues through Our Business

Nichirei Fresh

Procuring Food through a Sustainable Regional
Agricultural and Livestock Cycle Project -Junwakei
ChickenSocial Issues
Improving Japan’s self-sufficiency for animal proteins
Improving Japan’s 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 the numberof chickens shipped. Avian flu, which has spread repeatedly in Japan andabroad 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.

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.
33

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.

Value Provided
Providing chicken meat with consideration for resource recycling,food sustainability and animal welfare
Introductory video on Specific JAS sustainable chickens andeggs (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 (OnlyFirst Specific Japanese

Available in Japanese)

Agricultural Standards (JAS)certification given to a poultry
product for sustainability

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Resolving Social Issues through Our Business

Nichirei Foods

Contribute to the development of local communities
and grow by meeting “clean label” demandSocial Issues
Poverty
Educational issues
Agriculture that takes the local environment into consideration
Nutrition and health of local residents
Supplying Clean Label Raw Materials and Ingredients
The number of clean label*1 products launched in the global market in 2021
was up 16% compared with 2017, mirroring growing consumer concerns
about food safety. As this trend is expected to continue, stable growth ispredicted in the market for clean label raw materials. As one response, there
is an increasing need for using acerola powder, which is rich in natural vitamin
C, to maintain food quality and for other applications.
*1 A new trend, primarily in the United States and Europe, that refers to food prepared using
simple raw materials and ingredients with easy-to-understand labelling. This concept is
described with terms such as additive-free, natural, organic, and non-GMO.

■Increase in Clean Label Products Launched in the Global Market

Poverty and educational issues are notable in Brazil, which is our main production area. Nichirei Foods’ acerola businesshelps create jobs for local residents.

35

Initiatives
A Pioneer in the Acerola Business
Nichirei was one of the first companies to introduce acerola to Japan, with the launch of Acerola Drink in 1987 and otherinitiatives. We started the acerola raw materials business on a large scale in 1990, and established a Brazilian subsidiary,
Nichirei do Brasil Agricola Ltda. (Niagro), in 1991. This subsidiary became directly involved in operating a plantation and a
juice processing facility, and also began selling acerola juice products in the United States and Europe.
Building Relationships of Trust with Contract Farmers
Niagro distributes seedlings to co-growers free of charge, and its employees personally provide guidance on planting forstable cultivation and harvesting of high-quality fruit with guaranteed traceability. Niagro purchases the entire crop,
ensuring a stable income for co-growers and improving their cultivation skills. Through these initiatives, Nichirei Foods isable to provide a stable supply of high-quality products to customers worldwide.
Sustainability Initiatives
Niagro operates an environmentally friendly acerola business, and supports the development of the local community
through job creation and contributions to the region.
1. Building Relationships of Trust with Co-growers
Supply of seedlings free of charge, support for agriculture throughcultivation guidanceContract farming with purchase agreements ensures stable income forfarmers
Continuous technical support through regular workshops

2. Contributions to the Region
Support for childcare facilities for poor families (providing acerola juice,repairing facility equipment, etc.)
Creation of jobs through internships for students, etc.
Provision of dental exams for employees and co-growers

3. Consideration for the Environment
Reduction of water consumption through technical guidance for efficientirrigation
Environmentally friendly industrial wastewater treatment using
microorganisms
Effective use of pomace from juice production as feed for livestock andfarmed sea bream (tai ), and acerola seed extract
Installation of solar panels on factory rooftop

36

Sustainability Assessment from an External
Organization
In a sustainability survey by EcoVadis2 in 2023,
Niagro received its first Platinum rating, the highest
level, placing it in the top 1% of companies surveyed,
based on its ongoing initiatives in the four survey
categories—Environment, Labor and Human Rights,
Ethics, and Sustainable Procurement. In the 2023

Labor and human rights training for employees

rating, Niagro was recognized in particular for its
ongoing efforts with respect to labor and humanrights.

EcoVadis Sustainability
Assessment Ratings

2016–2020

2021, 2022

2023

SilverGold

Platinum*2 A global institution that provides sustainability and supply chain assessments. As of June 2023, it has evaluated over 100,000 organizations andcompanies in 200 industries and 175 countries.

Nichirei do Brasil Agricola Ltda (NIAGRO) received its first “Platinum" rating in the EcoVadis
Sustainability Survey in 2023

Value Provided

37

Providing the Diverse Value of Natural Vitamin C, Not Just for Juice
Acerola as a Clean Label Raw Material

New Acerola Powder Production Line Established

Grown primarily in countries such as Brazil and Vietnam,

To meet demand for acerola powder, which is attracting

acerola generates a large amount of natural vitamin C—

interest as a clean label raw material, Niagro added aabout 34 times more than that found in lemon juice—so

new production line, which began producing acerola

that it can withstand the intense tropical sunlight.

powder in June 2023. Since Niagro only handles the

However, another characteristic of acerola is that theacerola fruit it purchases from its co-growers, traceability

natural vitamin C decreases as the fruit reddens andis guaranteed for the entire amount used to produce theripens. Therefore, it is harvested early while it still

powder. Niagro will nurture acerola powder into a newcontains a large quantity of natural vitamin C, andbusiness pillar in addition to acerola juice.

processed into acerola powder. Acerola is currently the
only food ingredient that is rich in natural vitamin C andcan be produced on an industrial level. It is widely usedin supplements, mainly in Europe and North America, andas a clean label raw material for bakery goods, processed
Niagro’s new factorymeat products and other food products. Demand foracerola powder is expected to grow as the market forclean label raw materials continues to expand.

Integrated Report 2023 Helping to Resolve Social Issues through Our Business38

Acerola powder

Resolving Social Issues through Our Business

Nichirei Foods

A Chicken Processing Factory That Uses the Entire
Chicken (Thailand)Social Issues
Food Waste:
Thigh and Breast Meat Are Only About 40% of Total
WeightFried, sauteed or prepared in various other ways,
chicken is ubiquitous in daily dining. Thigh meat is themost popular part of the chicken in Japan, but it only
accounts for about 20% of the whole bird by weight.
Breast meat, which is popular in the United States andEurope, also only accounts for about 20%.
On the other hand, non-meat parts such as bones andfeathers account for more than 40%, and become waste
if they cannot be utilized. Devising processing and sales
channels for well-balanced use of the entire bird isnecessary to avoid food waste from carefully raised
chickens.

Initiatives to resolve social issues
Establishment of a Joint Venture with a Major Poultry Processing Company in Thailand (2008)
Demand for chicken continues to increase worldwide, and Japan is one of the world’s leading chicken importers, with
consumption far exceeding domestic production.
Aiming for stable procurement of raw materials, in 2008 Nichirei Foods established GFPT Nichirei (Thailand) Company
Limited (GFN), a joint venture with a major Thai poultry processing company (GFPT Group). As a joint venture, GFN utilizes
the functions of the GFPT Group for fully integrated processing from raw materials to finished products. Under the system,
live chickens from poultry farms that use only the best feed and breeding stock are brought in, slaughtered and cut, thencooked, frozen and packaged at a directly connected processing plant.

39

Systematic, Effective Use of the Entire Chicken
In addition to facilitating stable procurement and production of safe and reliable raw materials, GFN essentially eliminates
food waste by using the entire chicken in various ways. GFN considers effective uses and sales channels for each part, fromthe meat to the head, feathers and blood, then adds value and sells those parts (see the figure below). For example,
feathers are processed and sold for use in feed for farmed fish; bones, intestines and heads are processed and sold as raw
materials for pet food; and feet are sold in China, where demand for this part is strong.
Aside from product quality, consideration for the environment and human rights is also important, especially in Europe, towhich breast products are exported. GFN focuses on initiatives such as creating a comfortable working environment andanimal welfare, and has acquired ISO 14001 and other international certifications.

Our integrated measures for safety and reliability, from utilizing GFN Group functions to raise chickens from breeding stock
to production at GFN, have earned a positive response from customers in Japan and elsewhere. The factory has no conceptof waste when it comes to raw materials. Fully using all resources reduces not only food waste but also environmental
impact. Moreover, expanding business by increasing the number of value-added products leads to returns to the local
community and provides employment. GFN will continue working to address a variety of social issues through a sustainable
chicken business.

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Resolving Social Issues through Our Business

Nichirei Logistics Group

SULS：Next-generation Transportation and Delivery
SystemSocial Issues
The Logistics Industry’s 2024 Problem: A Shortage of Truck Drivers and Long Working Hours
Long working hours have become the norm for truck drivers. In addition to long distances, drivers must contend withfactors such as dwell time at logistics facilities and incidental non-driving work that they have been subcontracted to do,which has become standard business practice in the industry. The 2024 Problem for logistics refers to such issues, which
the shipping and logistics industry must address from April 1, 2024, when Japan’s Work Style Reform Act imposes a
mandatory limit of 960 hours of driver overtime per year to improve the working environment.

41

Initiatives to resolve social issues
SULS：Next-generation Transportation and Delivery System
SULS is an acronym for S&U Logistics System, in which “S” stands for speedy, sustainable and solution, and “U” stands forutility, usability and user experience. By synergizing the advantages of Nichirei Logistics Group, we will generate speedy,
sustainable logistics solutions and provide utility, usability and superior user experience to our customers and society.

Using SULS to Build a New Transportation and Delivery Platform for Temperature-controlled Logistics
SULS was initially introduced for transportation and delivery among the Nichirei Logistics Group’s facilities in Tokyo, Nagoya
and Osaka, with plans for a nationwide rollout in stages. We will continue to support our customers’ supply chains throughthe evolution of our temperature-controlled logistics’ transportation and delivery operations into higher-quality, moresustainable formats.

42

Expected Effect

The start of operation of Atsugi Gateway in April 2022 improved load factor by consolidating west-bound cargo. With thebenefits of SULS switch centers and gateways, it is now possible to transport cargo between the Kanto and Kansai regions
using one-day return trips.
Initiatives in FY2024●Expansion of Transportation and Delivery Network●Expansion of Gateway Functions (Trunk-Route Relay)(Trailers)
The start of operation of Kansai Gateway will enable eastbound cargo transport to achieve a similar effect as west-

By increasing the number of detachable, large-capacity

bound cargo transport from the Kanto region.

trailers (from 19 to 34), we will increase SULS operationin the Tokyo-Nagoya-Osaka area, and expand it beyond
this area.

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Resolving Social Issues through Our Business

Nichirei Logistics Group

Truck Loading Dock Reservation System
Social Issues
Truck Dwell Time at Distribution Centers
Truck drivers are forced to wait for long periods of time at distribution centers due to the inability to unload and load cargosmoothly. This dwell time has become a social issue. The main reason for the long dwell time and on-duty work hours isthat, especially during busy periods, there are periods during the day when the distribution centers’ processing capacity
cannot keep up with the numerous vehicles entering and leaving due to the bottleneck created by the limited number ofloading docks. In addition, it is burdensome for distribution centers to keep track of when each vehicle will be unloading or
loading, because trucks from many shippers come and go, making it difficult for the center to coordinate operations withdrivers in advance.

Initiatives to resolve social issues
Truck Loading Dock Reservation System to Alleviate or Eliminate Dwell Time
In October 2017, Nichirei Logistics Group began operating a truck loading dock reservation system to alleviate dwell time oreliminate it entirely. The system allows truck operators (the shipper or shipping company) to reserve a desired time forloading or unloading trucks, in line with the loading and unloading time slot framework at each distribution center. As aresult, it is no longer necessary to line up and wait.

44

Introduction at 30 Locations throughout Japan
Confirmation of shipping companies and orders was previously performed by distribution centers after the truck arrived.
However, the truck loading dock reservation system enables shipping companies to send the bill of lading, invoice and otherdetails about the cargo to distribution centers ahead of time. Advance confirmation allows smooth assignment of trucks toloading docks upon arrival. In FY2021, we introduced this system at 30 locations nationwide.
For distribution centers where the reservation system has been steadily operating, dwell time, which had been two hours ormore for about 70% of trucks before complete introduction of the system, was reduced to less than one hour for 97% oftrucks. Meanwhile, the system has reduced both the number of trucks waiting late at night and early in the morning andthe number of trucks parked around the distribution center. It has also alleviated the burden of reception duties by reducing
the frequency of calls to confirm loading dock arrival time.

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Resolving Social Issues through Our Business

Nichirei Fresh

Inochi-no-Mori-Project
Social Issues
Environmental Disruption and Impact on Biodiversity from Intensive Shrimp Aquaculture
Shrimp farming requires large plots of land. In many Asian countries, wide areas of mangrove forests, which buffer theeffects of tsunamis and strong winds, have been cut down to make way for artificial ponds for shrimp farming, a practicecalled intensive aquaculture.
In addition to affecting the ecosystems of birds, fish and small animals, this practice results in contamination of soil, local
rivers and the sea by runoff containing the antibiotics and drugs in formula feed. Such marine pollution has become a social
issue.

Initiatives to resolve social issues
Inochi-no-Mori-Project
The Inochi-no-Mori-Project is a joint mangrove planting project started in 2006 by Nichirei Fresh, a local shrimp supplier,and Tarakan City in Kalimantan, Indonesia to reduce environmental impact from local shrimp farming and enable
sustainable procurement of safe and reliable shrimp.
A portion of the proceeds from this extensive shrimp aquaculture, which has been practiced in Indonesia for hundreds ofyears, is donated to a fund for systematic mangrove planting in ponds that have been abandoned after intensive
aquaculture, in local parks, and elsewhere. We are currently expanding our activities into Java and Sumatra in cooperation
with local suppliers.

46

Extensive Shrimp Aquaculture
A traditional shrimp farming method in Indonesia, extensive aquaculture makes use of the natural topography. A small
number of juvenile shrimp are released into a pond larger than 10 hectares that is surrounded by berms and mangroves.
No feed is given, and the shrimp grow by eating plankton from the sea. As a result, impact on the soil is low, diseases
peculiar to shrimp are less likely to spread, the shrimp grow larger, and electricity is not used during the cultivation period.

47

Mangrove Planting
The mangrove planting that started in Tarakan City,
Kalimantan in 2006 has expanded to the islands ofJava and Sumatra. We have been planting for 15
years, reaching a total of approximately 380,000
mangrove trees in 2021. The soil and ecosystem inand around Tarakan City have been recovering as
planting has spread.

Inochi-no-Mori-Project activity reports(Only available in Japanese)

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Resolving Social Issues through Our Business

Nichirei Fresh

Conserving Biodiversity on the Yellow Sea Coastthrough a Clam Fishery Improvement Project
Social Issues
Sustainability of Ecosystem of Tidal Flats That Nurture Asari (Japanese Carpet Shell Clams)
Approximately 60% of Japan’s supply of asari is imported from China,*1and the natural bounty of the Yellow Sea coast, amajor production area for these clams, supports Japanese cuisine. However, the tidal flats have been disappearing becauseof factors including coastal land reclamation due to rapid urban development, while overfishing has also become a problem.
These problems have led to concerns about a decrease in clam stocks and the impact on the natural environment in which
the clams are produced. Consequently, it became necessary to take action to preserve the richly productive wetlands of the
Yalu Estuary.

*1 As of 2019.

49

Initiatives to help resolve social issues
Asari Fishery Improvement Project for Sustainable Production and Supply●Environmental and Biodiversity Study in Yalu Estuary Region
Nichirei Fresh Inc. began handling asari from China in 2006 as a premium ingredient. The environment of the Yalu Estuary,
where these clams are produced, is changing day by day, so we have been studying issues such as the shrinkage of clam
beaches caused by land reclamation for development and the impact of agrochemicals used in saltwater farming on theclams. In the Yellow Sea Ecoregion Support Project, carried out by the World Wide Fund for Nature (WWF) from 2007 to2014, a study was conducted on the ecological connections among migratory birds, regional fishing and benthic organisms.
Based on the results, the WWF submitted recommendations to the government of China on conservation of biodiversity andpromotion of sustainable fisheries.

●Launch of Fishery Improvement ProjectIn 2011, Nichirei Fresh and the WWF began exchanging information on asari in the Yalu Estuary, and in 2015 agreed on theidea of conserving the biodiversity of the Yellow Sea through promotion of sustainable production and consumption ofmarine products.
Nichirei Fresh explained to clam processing company Dandong Taihong Foodstuff Co., Ltd. the significance of the Marine
Stewardship Council’s (MSC) fishery certification,*2

which is given only to sustainable fisheries, even though suchcertification was not well-known in China at the time. Nichirei Fresh gained Dandong Taihong Foodstuff’s understanding,and strongly committed to achieving the WWF’s sustainable clam fishery. The two companies then launched an asari*3

Fishery Improvement Project (FIP ) in the Yalu Estuary on the Yellow Sea coast in 2016.
The FIP is a project to make step-by-step improvements to the clam fishery, with the goal of meeting three principles thatserve as the criteria of the MSC certification program: 1) Sustainable fish stocks, 2) Minimal environmental impact, and 3)
Effective management. Based on the issues identified in the preliminary review, a survey revealed that the clam fisherycould potentially have an impact on the ecosystem, and following discussion of a fishery management plan, improvements
were made to the clam fishery, including promoting appropriate management over the medium to long term.
There were times at the start of the project when things did not go smoothly. However, numerous consultations were heldamong those concerned, and the project was carried out tenaciously.

50

●Acquisition of MSC Certification
As a result of the FIP, the clam fishery underwent MSC assessment in January 2020, and certification was acquired
following completion of the assessment in September 2021. Certified clam fisheries are recognized as sustainable fisheries
that consider the rich natural environment of the Yellow Sea coastal region.
The Yalu Estuary asari fishery is the first in China to obtain MSC certification. It was made possible by the FIP, acollaborative effort by everyone involved in the supply chain in China and Japan linking the process from the fishinggrounds to processing and the commercial product.
*2 A certification program that recognizes properly managed sustainable fisheries that consider aquatic resources and the coastal environment.
*3 This FIP ended in April 2019.

Highlight and Future Developments●Japan Sustainable Seafood AwardAt the fourth Japan Sustainable Seafood Awards held in October 2022, this project, “Acquisition of MSC Fisheries
Certification for Japanese Carpet Shell Clams through a Fishery Improvement Project on the Yellow Sea Coast in China,”
was honored as a Champion in the collaboration category. The award was shared by the four entities that collaborated in
the project: Nichirei Fresh Inc., Dandong Taihong Foodstuff Co., Ltd., WWF China, and WWF Japan.

The 4th Japan Sustainable Seafood Award

51

●Working toward Expansion of MSC-Certified Products
Nichirei Fresh will continue to promote both conservation of biodiversity and sustainable production of marine products, andwill work toward the expansion of MSC certification for asari products.

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Resolving Social Issues through Our Business

Nichirei Biosciences

Development of Companion Diagnostics
Social Issues
How to Deliver Optimal Treatments for Cancer Patients
In the past, patients diagnosed with the same type of cancer were all given the same treatment. In recent years, though,advancements in biomarker research have led to the discovery of gene mutations involved in the initiation and progressionof cancer, and therapies targeting those genes and proteins created from them (molecular targeted therapies) have beendeveloped. Compared to conventional anti-cancer drugs that also act on normal cells, molecular targeted therapies offer
advantages including minimizing side effects. However, since these treatments are unlikely to be effective in patients who
do not have the target gene or protein, in vitro diagnostics (companion diagnostics) have been developed to accurately
diagnose whether the patient is a suitable candidate for treatment with the molecular targeted therapy before treatment
begins.

53

Initiatives to help resolve social issues
Development, Manufacture and Supply of Companion Diagnostics*

In cancer treatment, pathological diagnosis is performed on tumor tissue collected from the patient. A thin specimen, sliced
from the tumor tissue, is examined by a pathologist to obtain critical information about the cancer. This information is thenused to determine a treatment plan. An important testing technique widely used in pathological diagnosis isimmunohistochemical staining, which enables the detection and visualization of specific substances, such as proteins, in thespecimen. A specialized reagent is required to perform immunohistochemical staining, and Nichirei Biosciences is one of the
few companies with the technology to develop and manufacture that reagent. Based on this technology, the company
develops, manufactures and supplies companion diagnostics. In 2019, Nichirei Biosciences acquired and made a subsidiaryof U.S. company Pathcom Systems Corporation, which develops and manufactures equipment for automating
immunohistochemical staining, to further strengthen its capabilities in companion diagnostic development.
* An in vitro diagnostic agent used for testing to determine whether a patient is a suitable candidate for a specific therapy, in order to maximize thetherapy efficacy and safety[Principle of Companion Diagnostics] Application of Proprietary Technology to Immunohistochemical Staining
Nichirei Biosciences developed a proprietary amino acid polymer reagent called Universal Immuno-enzyme Polymer. The
use of this reagent enables the detection of proteins or other biomolecules (antigens) through antibodies that bind to themspecifically. Applying this reagent to immunohistochemical staining, a technique used in pathological diagnosis, makes it
possible to detect and visualize antigens in the pathological tissue sample. This reagent has been commercialized for
immunohistochemical staining, and also applied to a companion diagnostic product.

54

Expected EffectConventional Diagnosis and Treatment

Using Companion Diagnostics in Medical PracticeEven in the same type of cancer, there are

The emergence of molecular targeted therapies has enabled patientspatients who have different types of geneto select a therapy according to each one’s gene mutations, andmutations, but until recently, a one-size-

therapies with relatively mild side effects are now possible.

fits-all treatment regimen was

Companion diagnostics have become an essential test for accurately

implemented, using drugs with mechanisms

choosing patients who can be expected to benefit from a specificthat suppress the active proliferation ofmolecular targeted therapy, as well as patients who are unlikely tocancer cells.

benefit.

Future Developments
The market for molecular targeted therapies continues to expand, and development of molecular targeted therapies andother treatments targeting specific gene mutations and proteins is expected to increase. Possessing unique technologies
applicable to development of companion diagnostics, Nichirei Biosciences will contribute further to the advancement of
personalized medicine in cooperation with academia and partners who develop therapies.

Integrated Report 2023 Helping to Resolve Social Issues through Our Business

55

Environment

Environment
Environmental Management

...

57

Climate Change (TCFD)

...

63

Climate Change (Decarbonization and the Elimination of CFCs)

...

70

Initiatives for Water Resource Conservation

...

85

Initiatives for Biodiversity Conservation

...

88

Waste Management and Chemical Substances Control

...

91

Initiatives in Products and Services

...

96

56

Environmental Management
Basic Philosophy
The Nichirei Group formulated the Nichirei Group Environmental Policy under the following theme: “If the Nichirei Group is
to pass on to future generations the natural abundance that is the source of food and good health and to continue providing
freshness and good taste—together with its stakeholders, it must use its superior products and first-class logistics network
to reduce the environmental impact of its business activities throughout the entire supply chain and help create asustainable society.”
The Nichirei Group Environmental Policy focuses on three priority issues: climate change initiatives, promotion ofsustainable recycling, and symbiosis with nature. For climate change initiatives, we recognize that food and logistics
companies are greatly affected by climate change. We are implementing the following initiatives as part of our low-carbon
policies.

The Nichirei Group Environmental Policy/The Nichirei Group Biodiversity Policy

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 Managers Meeting, which meets eight times a year.
The Committee determines the environmental protection strategies and policies of the entire Group based on the content
and progress of company initiatives and shares social trends on the environment. The Representative Director andPresident serves as the chairperson of the Sustainablity Committee, with executives and presidents of operating companies
making up the rest of the Committee membership.

57

■Group Sustainability Committee Activities in FY2023
Number ofmeetings

4
Renewable energy portfolio policy
Current status of Scope 3 CO₂ emissions
KPIs for material matters and TCFD disclosure in Integrated Report 2023

Main agenda
items

Human rights issues
Supply chain management to achieve sustainable procurement
Establishment of new procurement guidelines for sustainable marine products and palm oil
Initiatives for the material matter “Securing and developing a diverse array of human resources”
and human capital disclosure
Progress on KPIs for material matters and FY2024 targets

Environmental Management＞Group Sustainability Committee

Targets
Medium-term Targets and Results■Group Medium-term Environmental Plan Targets
Group Medium-term Environmental Plan Targets (FY2023‒FY2025)
Rate of waste recycling at all sites

99%

Water-related risk assessments at all sites

conducted in FY2024

Reduction in CO₂ emissions (compared with FY2016; Scope 1 and 2 in Japan)-30%

Rate of conversion to natural refrigerants Production equipment in Japan

80%

Rate of conversion to natural refrigerants Logistics (Global)

62%

Nichirei Group Medium-term Environmental Plan Targets

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.

58

*Applicable Worksites
The scope of the Nichirei Group (in Japan), which accounts for more than 99% of the environmental impact, is tabulated.
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 (40), 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 (3)Nichirei Biosciences
Global Innovation 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 Electric Power Companies ofJapan 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 (affiliatedfactories 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.

Press Release: Establishment of Long-Term Environmental Goals and Endorsement of TCFD
Recommendations(Only Available in Japanese)

KPIs for Material Matters59

● Nichirei Group CO₂ Emission Trends

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

60

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 environment-related
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.

61

In-house Environmental Education
Name

Sustainability Education

Content
Aiming to ramping up sustainability management by implementing position-based
study sessions and education & training programs for all revels of employees since
FY2023.

Sustainability Education

Environmental e-learning

Held since FY2010 for all employees.
Focuses on such pressing issues as prevention of global warming, resource
recycling, and biodiversity.

e-learning

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 Urabandai

Hands-on training for employees was held on company-owned land in the
Urabandai region of Fukushima Prefecture between FY2014 and FY2017. There
they help eliminate the Signal crayfish, a specified foreign organism, as well as goon hikes in forests surrounding company land.

Hands-on training to support
the Cypripedium macranthos anendangered orchid, in the townof 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 protectionof the Cypripedium macranthos.
Participating in activities to protect the allows one to experience the difficulty of
restoring the balance of nature once it has been destroyed.

Hands-on training (Biodiverse
forests)

As part of the Good for lunches! Good for the forest! Program which protects
biodiverse forests, Nichirei Foods hold a hands-on nature training program for
employees in forests it supports.

Status of Environment-related Incidents, Legal Violations
In FY2023, 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

62

Climate Change（TCFD）
Basic Philosophy
Addressing Climate Change (TCFD)
The effects of climate change are becoming increasingly serious and climate change is considered to be a contributing
factor in the frequent abnormal weather patterns and natural disasters that we see currently. The Nichirei Group’s businessbenefits from nature. Therefore, in addition to its importance as a social challenge, we see climate change as a potential
threat to business continuity.
In June 2020, the Nichirei Group expressed its support for the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) and announced its participation in the TCFD Consortium. The Group has positioned climatechange initiatives as one of the material matters it identified for achieving its vision for 2030. As such, we are actively
promoting initiatives to help resolve social issues related to climate change.
In addition to appropriately responding to risks posed by shifts in the external environment caused by climate change, wewill consider several scenarios in which climate change could give rise to business opportunities, and conduct timely
disclosure.

63

Management System
In April 2022, the Nichirei Group established the Group Sustainability Committee, which formulates sustainability strategies,
including initiatives related to climate change, and manages the progress of those strategies. Chaired by the representative
director and president of the holding company, the committee comprises the director and executive officer responsible for
implementing climate change strategies, all other officers, including outside directors and outside Audit & Supervisory
Board members, as well as relevant personnel from the strategic planning and sustainability divisions of each operatingcompany. Climate change-related strategies and targets deliberated and reviewed by the committee are reported to theBoard of Directors of the Nichirei Group by the director and executive officer responsible for climate change initiatives.
Strategies, targets and plans are reviewed as appropriate.
Furthermore, in April 2022, to respond to a wider range of sustainability issues, including climate change, we establishedthe Sustainability Management Division within the holding company.
The Group Sustainability Committee also deliberates the details of various scenario analyses that have been conductedsince 2019. The latest disclosure includes content deliberated at a committee meeting held on July 25, 2023.

Environmental Management＞Group Sustainability Committee

KPIs for Material Matters

Initiatives
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.

64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.

Climate Change Scenarios in Relation to Water-Related Risks Arising from Abnormal Weather

FY2022 Climate Change Scenario

FY2021 Climate Change Scenario

Climate Change Scenarios for Rice and Chicken Procurement

Climate Change Scenarios for Rice and Chicken Procurement

65

Climate Change Scenarios for Shrimp Procurement
Business

Risks

Reduction of agricultural and dairy
production, and steep rise inpurchase prices due to deterioration

ChickenGeneral abnormal weather

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

Rice

ShrimpFoods
Business

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
Commonin quality

1.5℃
scenario

Increased cost for measures forconverting to renewable energy andequipment electrification, eliminationof emissions

Environmental
countermeasures within
the supply chain

Curtailment of transactions; higher
cost of measures such as themaintenance of global certifications
Damage to refrigerated warehouses

Baseline
scenario

General abnormal weather

and logistics centers
Difficulty securing human resourcesin disaster risk areas

Logistics

Opportunity loss caused by the slow
1.5℃
scenario

Low-carbon policies

66

increase of investment in naturalrefrigerants and the slow adoption oftechnological platforms such as
electrical and low-carbon vehicles

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

Increased environmental
awareness
Baseline
scenario

Logistics

General abnormal weather

Modal shift
1.5℃
scenario

Increased environmental
awareness

Develop and expand demand for products created using
sustainable raw materials
Increase in sales thanks to customer base expansion achieved
through strengthened disaster countermeasures and resilience
Cost reduction achieved through a modal shift that improvestransportation efficiency
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.

Risk and Opportunity Analysis for Shrimp Procurement●Items Assessed
Survival rate* and body length (= weight) of adult shrimp in the main production areas (11 locations in total) in the top
three countries from which Nichirei Fresh procures shrimp (Indonesia, Vietnam and Thailand).
●Areas Assessed●Measurement Parameters

67

●Assessment Outcomes (Climate Change Scenario RCP 8.5)
Risks

Opportunities

Impact of physicalchanges(Current scenario)

Survival rate of late stage larvae (juvenile
shrimp) decreases by up to 30% comparedwith 2020

Shrimp body length increases by up to 30%
compared with 2020

Impact intransition scenario

Increase in production and procurement costs
due to carbon price transfers

Response to changes in consumer demand
from a longterm perspective, procurement ofcertified sustainable raw materials, andsupport for producers●Production Area Assessment (Climate Scenario RCP 8.5)
Effect of the increased body length of adult shrimp
Extra large

Large

Impact ofdecreasing
survival rate

Medium

② Indonesia
Lampung

Small⑦ Vietnam Da
Nang

Large

MediumSmall① Indonesia
Tarakan③ Indonesia East
Java
④ Indonesia South
Sulawesi⑪ Thailand SamutSongkhram
Province⑨ Thailand
Chanthaburi
Province⑥ Vietnam Can Tho⑤ Vietnam Soc
Trang⑩ Thailand Rayong
Province⑧ Vietnam Hue

The effect of increasing body length is higher at the main four production areas in Indonesia than in other areas.
Although the impact of the decreasing survival rate is significant for late larval stage, the impact is considered to be limited
because breeding is at indoor hatcheries with air-conditioning controls and other features.
●Survival Rates by Shrimp Growth Stage●Adult Shrimp Body Length Prediction Map

Whiteleg shrimp growth stages and the impact of2090 Whiteleg shrimp body length in RCP 8.5 (4.0°C

climate change

rise in temperatures)
Prediction (Excerpt)(Index: FY2021 = 100)
Note: Despite some differences among areas, body length
tends to remain the same or increase.

Note: Final survival rate is obtained by calculating(hatching rate at oviparity stage) x (late larval stage
survival rate) x (adult stage survival rate)

68

Financial Impact
We expect the financial impact on the shrimp business to include higher purchasing costs resulting from higher suppliercosts, and various issues arising from market distribution of higher-priced products. Over the medium to long term, we
expect that we will be able to effectively deliver social value by maintaining stable distribution of protein-rich shrimp.

Risk Management
Nichirei ensures that appropriate divisions manage the impact that a variety of risks (including climate change-related risks)
have on business management from a comprehensive standpoint employing both rational and optimal methods. The risks
are also deliberated and reviewed by the Group Risk Management Committee, which is chaired by the representative
director and president. The committee has been managing our responses to major risks related to business operations.
However, due to the need to respond more quickly and accurately to various ESG-related issues, we established the Group
Sustainability Committee in FY2023 as a separate entity to deal with ESG-specific risks and opportunities, including climatechange.
The Group Sustainability Committee works with the strategic planning and sustainability divisions of each operatingcompany to identify important ESG-related issues and risks. The most important themes are then deliberated by thecommittee. Specifically, the risk associated with climate change is positioned as a major risk for the Group. The committee
deliberates and manages business risks and opportunities arising from scenario analyses.

Indicators and Targets
Nichirei Group Material Matters (Materiality)
Realizing sustainable food procurement and a circular economy

Group Targets(KPIs)

Procurement ratio of sustainable marine products
complying with the Nichirei Group Sustainable Marine
Product Procurement Guidelines in marine products
business100%(FY2025 target, FY2031 target)

Ratio of marine products in the above from fisheries with
MSC, ASC or other global certification

32% (FY2025 target)
50% (FY2031 target)

Initiatives for MSC/ASC Certification
69

Climate Change（Decarbonization and the Eliminationof CFCs）​
Basic Philosophy
The Nichirei Group formulated the Nichirei Group Environmental Policy under the following theme: “If the Nichirei Group is
to pass on to future generations the natural abundance that is the source of food and good health and to continue providing
freshness and good taste—together with its stakeholders, it must use its superior products and first-class logistics network
to reduce the environmental impact of its business activities throughout the entire supply chain and help create asustainable society.”
The Nichirei Group Environmental Policy focuses on three priority issues: climate change initiatives, promotion ofsustainable recycling, and symbiosis with nature. For climate change initiatives, we recognize that food and logistics
companies are greatly affected by climate change. We are implementing the following initiatives as part of our low-carbon
policies.

Environmental Management＞Group Sustainability Committee

KPIs for Material Matters

We support laws, regulations, and policies related to climate change mitigation and adaptation at our domestic andoverseas sites. For example, in Japan we support Act on Promotion of Global Warming Countermeasures and Act on the
Rational Use of Energy.

70Initiatives
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 oflong-term 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%.

● Greenhouse Gas (GHG) Emissions

71

● Nichirei Group Scope 1, 2 and 3 GHG Emissions in Japan and Overseas
The Nichirei Group’s GHG emissions in FY2023 totaled 3,485 thousand tons-CO₂e.

72

●Nichirei Group Scope 3 Emissions by Category
Scope 3 emissions account for approximately 90% of the Nichirei Group’s total GHG emissions, and Category 1 accounts forapproximately 89% of total Scope 3 emissions. We have confirmed that the main sources of emissions include procurementof raw materials and OEM products for use in processed foods, marine, meat and poultry products, and third-party logistics(3PL) transportation in the temperature-controlled logistics business.

(t-CO₂e)
Scope 3 CategoryNo.

FY2022

Description

Category 1

Purchased goods and services

Category 2*

FY20232,724,104

2,802,360

Capital goods

113,938

101,503

Category 3

Fuel- and energy-related emissions from
activities not included in Scope 1 or Scope 2

62,82865,438Category 4

Upstream transportation and distribution

98,01695,991Category 5

Waste generated in operations

2,527

2,197

Category 6

Business travel

505

1,563

Category 7

Employee commuting

2,400

2,541

Category 8

Upstream leased assets

00Category 9

Downstream transportation and distribution

3,519

3,696

Category 10

Processing of sold products

33,83337,563Category 11

Use of sold products

9,902

11,160Category 12

End-of-life treatment of sold products

16,431

15,519Category 13

Downstream leased assets

6,582

6,418

Category 14

Franchises

N/A

N/A

Category 15

Investments

N/A

N/A

Total

3,074,586

3,145,951* Increase of approximately 61% compared to Scope 3 emissions for FY2022 presented in Integrated Report 2022 . The main reason is that we expanded
the scope of emissions included in Category 1.

73

● Nichirei Group’s Scope 1 and 2 CO₂ Emissions in JapanIn FY2023, we reduced our CO₂ emissions by 25% compared with FY2016.

CDP Climate Change 2023 Report (Only Available in Japanese）

Utilizing Electricity Generated from Solar PowerThe Nichirei Group is installing solar power generation equipment on the premises of food plants and on the rooftops ofrefrigerated distribution warehouses. As of FY2023, 11 Nichirei Group facilities in Japan had installed solar power
equipment, which generated 3,201 MWh of electricity and reduced CO₂ emissions by 1,429 tons in FY2023. We plan toinstall similar equipment at three more locations in FY2024.
In addition, through our intranet we are also sharing information such as locations that have installed solar panels and daily
power generation volume to help increase employee interest in renewable energy and CO₂ emission reduction.

●Solar Power Generation and CO2 Emission Reduction
Year of installation
No. of locations
where installed(Cumulative total)

FY2020

FY2021

FY2022

FY2023

8

9

10

11

Power generated
(MWh)

2,068

2,149

2,974

3,201

CO₂ emission
reduction (Tons)

1,003

986

1,408

1,429

74

Solar Power Generation and CO₂ Reduction

Nichirei Foods

・Funabashi Plant
・Nichirei Ice Inc.
・Kyurei

Nichirei Logistics Group・Sugito DC
・Matsue DC
・Kushiro DC
・Sakishima DC・Higashi-Ogishima DC・Kyokurei Inc. Daikoku DC・Kyokurei Inc. Honmoku DC

Nichirei Biosciences

・Global Innovation Center

Sakishima DC

Matsue DC

Kushiro DC

75

Initiatives to Use 100% Renewable Energy Sources at Operating Locations – Carbon-Free Electricity
The Nichirei Group is also working to use 100% renewable energy for electricity at its operating locations. In FY2023, twoof the Nichirei Logistics Group’s operating locations that have solar power generation equipment achieved 100% carbonfree electricity, including the purchase of feed-in tariff (FIT) non-fossil fuel energy certificates.*1 In FY2024, the Group willcomplement these initiatives in working to use 100% renewable energy electricity. We will install rooftop solar power
generation equipment at the Nichirei Group’s main campus in the Hinode area of Funabashi City, Chiba Prefecture. In
addition, we will procure renewable energy through methods including Renewable Energy Certificates (RECs) and FIT nonfossil fuel energy certificates.
*1 Certificates that enable trading in the environmental value of non-fossil fuel energy power sources such as renewable energy generated from solar,
wind, hydro, geothermal, and biomass. Among these, FIT non-fossil fuel energy certificates represent electricity generated by FIT power sources.

Switching Energy Sources
The Nichirei Group is switching over to energy sources with lower CO₂ emissions. While switching to electricity fromrenewable energy sources with zero CO₂ emissions, we will also move forward with initiatives to switch to fuels that
produce low amounts of CO₂ to generate electricity or heat used for frying and baking on food factory production lines.

Refrigerated and Freezer Electric Trucks
Nichirei Logistics Group began operating electric trucks for refrigerated and frozen cargo in February 2023. Logistics
Network Inc. has been using the three vehicles for deliveries in the Tokyo metropolitan area to reduce CO₂ emissions as itbuilds know-how on the operation of low-temperature electric trucks, which are rare in Japan, to prepare for their full-scale
introduction in the future. In July 2023, two more vehicles began operating in the Tokai region. We will continue working to
reduce our environmental impact in order to achieve sustainable logistics for supporting our customers’ supply chains.

Refrigerated and freezer electric trucks

Send-off ceremony for the trucks

News release on the launch of refrigerated and freezer electric trucks operation (Only available inJapanese)76

Purchase of Green Energy*
Since March 2020, Nichirei Foods has been purchasing RECs and has switched to hydroelectric, biomass, and other sourcesof renewable energy for the electricity used to manufacture certain household-use frozen foods and for the total amount ofelectricity used at production facilities.
Kyurei Inc.’s new plant, which opened in spring 2023, takes care of all of its electricity needs with its own solar power
generation facilities as well as renewable energy power sources including biomass.
In addition, in FY2021, the Head Office building (Nichirei Higashi Ginza Bldg.) shifted to renewable energy (making use ofRECs) for all of its power usage. Furthermore, we employed RECs for all of the electricity used for the Nichirei Ladies
professional golf tournament we hosted in June 2023.
●Renewable Energy Initiatives at Nichirei Foods Factories
Plant

Funabashi Plant

Yamagata Plant

KyureiAll electricity used for
producing HonkakuItame-Chahan

All electricity used at
the plant

All electricity used at
the plant

Initiative

Purchase of RECs

Switch to renewableenergy fromhydropower
generation

Switch to renewableenergy generationfrom biomass andothersDate initiated

March 2020
(ongoing)

February 2022
(ongoing)

April 2023 (ongoing)

Yes

Yes

Yes

Application

Renewable energy
procurement

Installation of solar panels* 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 the form of RECs.

Eliminating Chlorofluorocarbons (CFCs) -Switching to Natural Refrigerants
The Nichirei Group’s initiatives to counter climate change include systematically eliminating the use of fluorocarbons byswitching to natural refrigerants for refrigeration equipment.
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 by Nichirei
Foods at its food factories and investee factories in Japan.

Refrigeration Equipment Using
Natural Refrigerants (ammonia)

77

Example of Switch to Refrigeration Equipment Using Natural Refrigerants
FiscalYear

Factory / Logistics Center

Subsidy projects utilized

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 topromote wider application of equipment using
energy-saving natural refrigerant

FY2017・Nichirei Logistics Chushikoku
Takamatsu-Nishi DC 2nd Building
・Nichirei Logistics Tokai Haruhi DC 2nd Building
・Logistics Network Funabashi DC 4th and 9th Building

Program for applying advanced technologies topromote wider application of equipment using
energy-saving natural refrigerant

FY2018・Nichirei Logistics Tohoku
Sendai DC 1st Building
・Nichirei Logistics Tohoku
Morioka DC 2nd Building
・Nichirei Logistics Kanto
Mito DC 1st Building

Project to promote energy-efficient commercial
refrigeration and air conditioning, for the creationof a CFC-free society

FY2019・Nichirei Logistics Kyushu
Kagoshima Futo DC 1st Building
・Nichirei Logistics Kyushu, Inc.: Naha Shinko Logistics Center

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

FY2020＜Nichirei Logistics Group＞
・Nichirei Logistics Hokkaido, Inc.: Sapporo Oyachi DC 2nd
Building
・Nichirei Logistics Tokai, Inc.: Haruhi DC 1st Building
・Nichirei Logistics Kansai, Inc: Osaka Shinnanko DC 2nd Building
・Nichirei Logistics Tokai, Inc.: Nagoya Minato Logistics Center

Project to Accelerate Introduction of Energy
Saving-Type Natural Refrigerant Equipment To
Realize Fluorocarbon-Free and Low Carbon
Society＜Nichirei Foods＞
・Nichirei Foods Inc.: Kansai Plant

FY2021＜Nichirei Logistics Group＞
・Nichirei Logistics Kansai, Inc.: Umemachi Logistics Center
・Nichirei Logistics Chushikoku, Inc.: Ujina Logistics Center
・Nichirei Logistics Chushikoku, Inc.: Matsuyama Logistics Center
・Nichirei Logistics Kyushu, Inc.: Kokura Logistics Center・Kyokurei Inc.: Honmoku Logistics Center

Project to accelerate the introduction of energysaving natural refrigerants in equipment for the
early realization of a CFC-free, low-carbon society＜Nichirei Foods＞
・Nichirei Foods Inc.: Yamagata Plant
・Nichirei Foods Inc.: Kansai Plant

FY2022＜Nichirei Logistics Group＞
・Nichirei Logistics Tohoku, Inc.: Sendai Logistics Center
・Nichirei Logistics Tokai, Inc.: Komaki Logistics Center
・Nichirei Logistics Tokai, Inc.: Mie Logistics Center
・Nichirei Logistics Chushikoku, Inc.: Ujina Logistics Center
・Nichirei Logistics Chushikoku, Inc.: Takamatsu Higashi Logistics
Center・Nichirei Logistics Kyushu, Inc.: Hakozaki Wharf Logistics Center

Project to accelerate the introduction of energysaving natural refrigerants in equipment for the
early realization of a CFC-free, low-carbon society＜Nichirei Foods＞
・Nichirei Foods Inc.: Shiroishi Plant

FY2023＜Nichirei Logistics Group＞
・Nichirei Logistics Hokkaido, Inc.: Otaru Logistics Center
・Nichirei Logistics Tokai, Inc.: Shiratori Logistics Center
・Nichirei Logistics Kansai, Inc: Umemachi Logistics Center
・Nichirei Logistics Chushikoku, Inc.: Matsuyama Logistics Center・Kyokurei Inc.: Daikoku Logistics Center

78

Project to accelerate the introduction of energysaving natural refrigerants in equipment for the
early realization of a CFC-free, low-carbon societyIncreasing Energy Efficiency and Preventing Refrigerant Leaks
The Nichirei Group owns large-scale refrigerated distribution warehouses and food factories, and we are implementing avariety of initiatives to increase energy efficiency. In addition, we conduct rigorous inspections and management on a daily
basis to prevent fluorocarbon leakage. We also introduced high-performance fluorocarbon detectors in FY2022, and conduct
regular inspections to reduce refrigerant leakage.
Freezer upgrades

Appropriate renovation of compressors and coolers

Optimization of cooling tower
settings

Suppression of freezer pressure level and reduction of cooling tower operating time

Prevention of warm air
infiltration

Installation of warm air exhaust equipment and installation of appropriate dockshelters

Early detection and eliminationof refrigerant leaks

Introduction of high-performance fluorocarbon detectors

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 can achievenear-optimum equipment functioning. At the same time, the Group is working to avoid the unnecessary use of electricity.
The Group has non-regular staff carry out inspections, since they notice energy-saving points that regular staff may
overlook. Energy-saving inspections of the entire center are conducted in parallel with 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.

79

● Conceptual Diagram of Joint Demonstration

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.

Nichirei Logistics Group Wins "Advanced Technology Award" and "Special Award" at the 23rd
Logistics Environment Grand Prize｜News｜Nichirei Logistics Group (Only Available in Japanese)

80

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 acid*1

calcium , 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).

● Methane Gas Production● Evaluation of Impact on Global Environment*1 Flaxseed oil fatty acid calcium: A fusion of calcium with the oil extracted from flax seeds rich in alpha-linolenic acid (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.

81

*3 Omega balance: The balance between omega-6 and omega-3 fatty acids, which are particularly important essential fatty acids for the human body.
*4 This results from the development of low-cost techniques for cattle production, based on a superior balance of omega-6 and omega-3 fatty acids, andthe subsequently reduced environmental impact. Source: Ibaraki Prefecture Hitachiomiya Regional Agricultural Research and Promulgation Conference
report, 2011.

Suppression of Methane Gas Emissions by Cattle (Nichirei Fresh) (Only available in Japanese)

Simultaneous Bulk Transport of Frozen and Room Temperature Products​
Nichirei Logistics Group, together with NEXT Logistics Japan, Ltd. (NLJ), started Japan’s ﬁrst simultaneous bulk transport offrozen and room-temperature products using double-trailer trucks in March 2021. These 25-meter double-trailer trucks
feature a room-temperature trailer coupled directly to the tractor, towing a refrigerated trailer. These trucks operate
between relay points (XD centers) in the Kanto and Kansai regions.

● Operating Scheme●Enabling Transport of the Load of Two Conventional Trucks in a Single Trip
By improving transportation and delivery efﬁciency, double-trailer truck operation can also be used to cope with the
problem of Japan’s shortage of drivers, which has become serious. Combining frozen and room-temperature products fortransport in a double-trailer truck enables one driver to transport the load carried by two conventional trucks. Moreover,
simply coupling and decoupling the second trailer from the tractor enables simultaneous transportation of two different
loads, leading to a reduction in cargo handling work and waiting time at each XD center and substantially reducing theburden on drivers.
Going forward, we will conﬁrm the beneﬁts of this type of operation in areas such as labor saving and reduction ofenvironmental impact. We also plan to increase the types of cargo that can be bundled and carried to promote theevolution of the high-efﬁciency trunk-route transport scheme that NLJ is building into a system that can be used by a wider
range of shippers and transport companies.

82

Promoting a modal shift*1

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% reduction*2 in CO₂ emissions.
*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.

● 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 thirteen companies（As of October 2022)—including cold storage facilities and low
temperature shipping businesses—and is expanding from its hub in Rotterdam. Logistics in Europe center on shipping bytruck, reflecting the advanced state of the local infrastructure. During the past few years, a modal shift has been promotedin the interests of the environment, resulting in a transition from highway truck transportation to maritime and railway
transportation, making it possible to ship large volumes of goods. Mostly, when a containership docks at Rotterdam, thecontainers 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-by date.
* 40 feet = 12.192 meters

83Hiwa Rotterdam Port Cold Stores B.V.

River barge

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

84

Initiatives for Water Resource Conservation
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 such resources. In addressing
water risk, it is important to understand the local situation and the status of initiatives at our sites. As part of our water risk
assessment, we use a third-party water risk assessment service to evaluate water risk at our locations. In addition to the
WRI Aqueduct*, which assesses regional water risks, we conducted a questionnaire survey of all Group sites to ascertain
the status of their initiatives. The water risk assessment was conducted for all Nichirei Group sites in Japan and overseas(152 sites), covering the WRI Aqueduct* assessment items of water quantity, water quality, and regulation/reputation. In
FY2021, interviews were conducted at the three facilities identified as having high water risk, and the Group confirmed atthat time that there were no water risks in terms of quantity, quality or regulatory and reputational risks. In FY2022,
investigations were conducted at facilities in Japan with respect to river flooding and storm surge risk due to typhoons andheavy rains.
* WRI Aqueduct: A tool released by the World Resources Institute (WRI), an international environmental NGO, to easily evaluate the world's water risk
from location coordinates or addresses.

Management System
Regarding water resources used in business, the volumes of water used and wastewater discharged at worksites in Japanare disclosed externally on the ESG quantitative data. These data are reported to the Group Sustainability Committee,
whose members are members of management.
Forest conservation activities leading to the preservation of water resources are publicized internally and externally via theGroup’s website and intranet. Nichirei Foods has been conducting its own "Hamidasu Activities" to conserve forests andcontribute to local communities at its production plants nationwide. designed to raise employee awareness for theenvironment.

Environmental Management > Group Sustainability Committee

Environmental management > Medium-term targets and results

Supporting Forest Conservation Activities with a Portion of Sales(Only available in Japanese)85

Initiatives
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 such resources.
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.
We have set reduction targets for each site and are working to reduce water throughout the Group.

● Water Usage (By water intake source)

Assessing the Importance of Water Risk and Biodiversity
From FY2020 through FY2022, the Group conducted water risk assessments at all of its facilities (152 facilities in Japan andoverseas) and identified facilities where water risk was high as a result of internal and external factors. In FY2021,
interviews were conducted at the three facilities identified as having high water risk, and the Group confirmed at that timethat there were no water risks in terms of quantity, quality or regulatory and reputational risks. In FY2022, investigations
were conducted at facilities in Japan with respect to river flooding and storm surge risk due to typhoons and heavy rains.
In FY2023, we evaluated whether the 133 facilities in Japan that the Nichirei Group directly operates are located close toareas that are of high importance in terms of biodiversity, and concurrently clarified the basis for determining biodiversity
importance for considering the direction of future business activities at those facilities.

86● Assessment Process< Assessment Results >Approximately 89% of all Group operating facilities in Japan were adjacent to areas of high importance in terms of
biodiversity. This is likely due to the nature of our business since we extensively operate in coastal areas. We will analyze
the results in detail and conduct a fact-finding survey through on-site visits. Regarding our overseas facilities, we will also
consider the Group’s impact on biodiversity and relevant countermeasures.

CDP Water Security 2023 Report (Only Available in Japanese）

External Review

87Initiatives for Biodiversity Conservation
Basic Philosophy
The Nichirei Group Environmental Policy / The Nichirei Group Biodiversity Policy

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 biodiversity-related initiatives are reported at the Group Environmental Managers Meeting held eight times a year with
operating companies and at the Group Sustainability Committee held at least three times a year. Depending on thesituation, they develop policies or strategies covering the Group. We carry out biodiversity-related initiatives in accordancewith the agreed plans.

Initiatives
Conserving Biodiversity and Maintaining Sustainable Production: MSC Fisheries Certification at Clam Fishery
About 60% of Japan’s imported clams are sourced from wetlands along the Yellow Sea coast of China. Since 2006, Nichirei
Fresh has procured clams from China for use as a premium ingredient. In recent years, however, we have become
concerned about the declining yield of clams and the deterioration of the natural environment.
In 2016, Nichirei Fresh collaborated with Dandong Taihong Foodstuff Co., Ltd., a supplier of clams, and the World Wide
Fund For Nature (WWF) in a fisheries improvement project.
In 2021, the shellfish fishery of the Yalu Estuary received Marine Stewardship Council (MSC) certification for sustainablefishing that considers the rich natural environment of the Yellow Sea coast, which is indispensable as a resting and feeding
place for migratory birds. The certification was the first example of a shellfish fishery improvement project in China
involving cooperation between participants in the supply chains of China and Japan.
Nichirei Fresh will continue to increase the number of products that bear the MSC certification* for sustainable fishing.
* MSC certification requires that wild seafood used has been caught using methods that do not deplete the natural supply.

88

● Key Elements of the Coastal Wetland Ecosystem of the Yalu River Estuary

Integrated Report 2023 Helping to Resolve Social Issues through Our Business

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

89

Protecting Endangered Orchids
Since FY2004, the Nichirei Group has helped in the conservation and regeneration of the endangered orchid Cypripedium
macranthos var. macranthos and other species through research on and the breeding of orchids and other plants in Fujimimachi, Nagano Prefecture. In 2014, some artificially propagated orchids of this species flowered and, in FY2020 they
produced 32 blooms. Consequently, Nichirei entered a biodiversity conservation partnership agreement with Fujimimachi, Nagano Prefecture, and the Fujimi-machi Atsumorisou Regeneration Committee in February 2019. The Group will
provide the technologies necessary for the conservation and regeneration of Cypripedium macranthos orchids and cover a
portion of the costs. In June 2021, the Committee began selling artificially propagated blooms and seedlings, which it hopes
will help prevent excessive picking of wild indigenous species. In our artificial pollination efforts, we avoid mixing plantsfrom the same lineage as much as possible in order to preserve genetic diversity.

90Waste Management and Chemical Substances Control
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
Environmental Management＞Group Sustainability Committee

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.

91

Resource Recycling Initiatives
Waste Recycling Initiatives
The Nichirei Group is reducing the amount of industrial and general waste from its business activities. We aim to maintain awaste recycling rate of 99% by incorporating a variety of recycling methods.
Total Waste Recycling Rate for All Facilities
FY2023 Result

FY2024 Plan

FY2025 Target

FY2031 Target

99.5%

99%

99%

99%

● Waste Volume and Recycling Rate

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.
Process residues generated at the plant are recycled into fertilizer and feed for effective use. 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.

92

Participation in the Japan Project of the “10x20x30” Food Loss and Waste Initiative
Nichirei Foods is participating in the Japan Project of the “10x20x30” Food Loss and Waste Initiative, a movement byretailers and food manufacturers worldwide to reduce food loss and waste. Advocated by the World Resources Institute(WRI), a U.S. think tank that conducts policy research and develops technologies at the intersection of the environment andhuman development, the 10x20x30 initiative brings together 10 of the world’s biggest food retailers and providers to eachengage with 20 of their priority suppliers with the aim of halving rates of food loss and waste by 2030.

Initiatives at Nichirei Foods’ Factories in Japan
In joining the 10x20x30 Japan Project, Nichirei Foods set a target for FY2031 to reduce animal and plant residues atdomestic food factories by 50% compared with FY2020. We also aim to maintain a recycling rate of at least 99% for waste(including non-food items) at all business sites in Japan. To achieve these targets, we are working to reduce the amount ofwaste generated by revising production processes and product designs, to donate as food what we previously disposed ofas waste, and to conduct recycling, including conversion to animal feed and industrial products.
Factory Wastewater Released Only after Having Been Cleaned Using Special Equipment
The water used at food factories becomes wastewater containing food-related organic matter, detergents, and disinfectants.
The Nichirei Group cleans its factory wastewater using disposal equipment and only releases it outside the factory once itcomplies with emissions standards stipulated by law.

● Nichirei Group Wastewater and Drainage LoadManagement of Pollutant Release and Transfer Register (PRTR) Substances
In FY2023, we continued to have no materials subject to reporting under the Pollutant Release and Transfer Register Law*
(handled in quantities of 1 ton or more). We will continue to manage chemical substances appropriately.
* The laws concerning the Pollutant Release and Transfer Register refer to the collection and publication of data related to the release into theenvironment of chemicals, from any source, which could possibly adversely affect the lives, growth, or development of humans, animals, or plants.

Substances subject to reporting under the PRTR Law

93

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. In FY2023, seven units
continued to be collected, transported, and processed throughout the Group.
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 FY2023, we performed appropriate treatment in the following matters in accordance with laws and regulations.
Demolition of Yamashita Logistics Center of Kyokurei Inc. and Shiratori Logistics Center 3rd and 5th Building of Nichirei
Logistics Tokai Inc.
Construction of Kobe Rokko Logistics Center of Kyokurei Inc.
Sale of Development Center of Nichirei Biosciences Inc.

Management of Chemical Substance Emissions to the Atmosphere
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. Throughproper facility management at its factories, Nichirei is complying with emissions standards stipulated by law and aiming foran overall reduction in emissions volume. The Nichirei Logistics Group is promoting increased logistical efficiency throughjoint shipping and modal shifts making use of railways and ferries. The Group is making progress on the reduction of NOx
and particulate matter (PM) emissions by using exhaust regulation-compliant vehicles, conducting proper vehicle
maintenance, and promoting such initiatives as eco-driving. Furthermore, there are no emissions from the Nichirei Group’sbusiness corresponding to the volatile organic compound (VOC) emission standards.

SOx Emissions

94

Switching to Natural Refrigerants
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 by Nichirei
Foods at its food factories and investee factories in Japan.

Initiatives to Prevent Refrigerant Leaks
Nichirei Logistics Group works to reduce refrigerant leakage from existing refrigerators. In addition to carrying out regularinspections for refrigerant leakage, in FY2022 it introduced detectors capable of 24-hour measurement.

Natural Refrigerants KPI

Switching to Natural Refrigerants

95

Initiatives in Products and Services
Basic Philosophy
The Nichirei Group proposes manufacturing and services that are conscious of minimizing the environmental impact
throughout the supply chain.
As a food-related corporate group that is greatly affected by climate change, the Group is working on reducing CO₂
emissions in its products.
We will also work to reduce, reuse, and recycle waste in order to use the limited resources of the Earth as sustainably as
possible. For bioresources that the Group is unable to use efficiently and economically or is unable to use completely, it isfocusing on reusing these bounties of nature in animal feed or fertilizer and returning them to nature.

Management System
Environmental Management＞Group Sustainability Committee

Initiatives
Plastic Reduction Initiatives
Reducing Plastic Used in Frozen Food Containers and Packaging

Since FY2007, Nichirei Foods has been striving to reduce the amount of plastic used for household-use frozen food productcontainers and packaging. Recently we achieved a reduction of over 200 tons of plastic for seven items in a product series,
compared with before these initiatives began. While continuing to reduce plastic use by reviewing product containers andpackaging, we will also work toward reducing our CO₂ emissions.

96

■Initiatives for Thinner Packaging
Fiscalyear

Products

Measures

FY2007

Imagawa-Yaki (Japanese waffles)

Elimination of trays

FY2010Yaki-Onigiri (grilled rice balls) 10-packElimination of trays

FY2012

Honkaku-Itame-Chahan (fried rice)

Thinner packaging

FY2015Yaki-Onigiri (grilled rice balls) 10-packThinner packaging

FY2016

Honkaku-Itame-Chahan (fried rice)

Thinner packaging (second
reduction)

FY2019

Ebi-Pilaf (shrimp pilaf) and Chicken Rice

Thinner packaging

FY2021

Ebi-to-Cheese-no-Gratin (shrimp gratin) and Ebi-to-Cheese-noDoria (shrimp rice gratin)

Thinner trays, reduced tray handle
width

FY2022Yaki-Onigiri (grilled rice balls)

Elimination of trays for the lineup

Upcycling Initiatives
Turning Substandard Frozen Foods into Antibacterial Wet Wipes
Nichirei Foods has worked to reduce food loss by making donations to children’s cafeterias and food banks. We also makeuse of the food residue generated during the production process by recycling it into fertilizer and feed. As a company that
deals with food, however, we also want to add “social value” to food residue by upcycling it as part of our efforts to create amore abundant society.
As one of the upcycling initiatives, we have collaborated with Fermenstation Co., Ltd., a company that uses proprietary
fermentation technology to upcycle non-standard products and by-products generated during the food and beverage
manufacturing processes, as well as agricultural non-standard products. We provide antibacterial wet wipes made byfermenting a portion of substandard products from our long-selling Yaki-Onigiri (grilled rice balls) 10-pack and ImagawaYaki (Japanese waffles) to make distilled ethanol.

Launched Upcycled Products(Only Available in Japanese)97

SocialSocial...

99

enhancing logistics services

...

108

Supply Chain Management to Achieve Sustainable Procurement

...

115

Human Rights

...

131

Providing Safe Products and Services

...

137

Occupational Health and Safety

...

154

Cultivating Human Resources and Improving Work Satisfaction

...

161

Health Management

...

185

Creating new value in food and healthStrengthening food processing and production technology capabilities;

98Creating new value in food and health​
Basic Philosophy
In July 2023, the Nichirei Group pivoted from its former ideal of creating new value in food and health to the new ideal of
discovering the potential of materials and cooling power to contribute to the future of the Earth and people’s mental andphysical health through food. We then reviewed Group measures and KPIs accordingly.
Committed to health, we will contribute to wellness by enhancing the development of nutritionally responsible products
while supporting mental health, which encompasses emotional and social health. We are also working for the future of the
global environment by minimizing negative impacts and deploying cutting-edge technology and conserving resources in
stepping up initiatives with positive impacts.

99

Initiatives
Creating a Mechanism for New Value Creation Unique to Nichirei
Nichirei Acceleration Program MinoruN is a mechanism launched in 2020 to sustainably create new value and futurebusinesses by inviting employees to take on the challenge of starting a new business. This initiative solicits, selects andcommercializes entrepreneurial ideas from all employees. It also includes skills development programs and ideation
workshops that provide knowledge and methodologies for identifying customer needs required to structure a businessmodel, which enables employees to propose new business ideas even if they have no prior entrepreneurial experience.

We solicit ideas once a year, and those that pass the initial review undergo three stages of verification with the aim ofcommercialization. In Phase 1, we conduct in-depth interviews with prospective customers to confirm customer value. In
Phase 2, we create prototypes, confirm product and service feasibility, and verify the ability of those products and services
to resolve customer issues. In Phase 3, we conduct test sales on a small scale to verify demand. Even if verification results
are not as projected, participants can cycle back to the preceding phase to redo the verification process. This shortens andaccelerates the entrepreneurial cycle, helping to increase the probability of commercialization. The program has not yet
commercialized any projects, but it has developed participants’ ability to promote new value.

100New Businesses Created through MinoruN●Development of Miraikura
One of the projects selected in 2021 and currently undergoing verification of demand is Miraikura (“Future Roe”), a foodthat resembles fish roe. Recent changes in the global environment are impacting the procurement of natural resources ofroe, such as salmon roe and sujiko, raising risks to stable, sustainable procurement. The idea for the project was primarily
the brainchild of members of the Marine Products Division of Nichirei Fresh Inc. We are developing products with thesupport of our technical department, which has knowledge of the physical properties of food, and Fresh Maruichi
Corporation, which has production technology for processing fish roe.
Phase 1 customer value verification indicated that because Miraikura is cholesterol- and allergen-free, even people withhealth concerns and people with fish egg allergies can eat the product on a daily basis. Additionally, it appears to besuitable for vegan diets because it does not contain animal ingredients. We will proceed with verification so that we candeliver this new sustainable, healthy food option to dining tables in Japan, North America and elsewhere around the worldin the near future.

MiraikuraIn recognition of this entrepreneurial effort in

We showcased Miraikura at Global Foodtech

a new field, Miraikura received the President’s

Summit SKS JAPAN 2023, garnering a highAward in Nichirei Fresh’s internal Nichirei

level of interest from domestic andFresh Awards for Linking Sea, Land andinternational foodtech professionals.

People.

Image courtesy of SKS JAPAN101

New Business Models for Health and Sustainable Foods
A Data Service Business Based on Food Preference Analysis:
me:new Automatic Menu Generator App

Due to factors including changes in work styles, advances made by women in the workplace and the development of asuper-aging society, the need to reduce meal preparation time at home is growing among Japanese consumers. Likewise,needs are rising for meals that take health factors into account, such as nutritional balance and food allergies. Many
consumers are finding it difficult to plan daily menus because of these issues. To help resolve them, in August 2021 Nichirei
entered the AI-based menu proposal service business by acquiring all the shares of me:new, a startup that operates anautomatic menu generator app of the same name, and created a new business by integrating me:new’s services with theconomeal kitchen app and services Nichirei developed in-house. The me:new app creates up to a week’s worth of menus.
Mainly geared toward families with young children, it suggests recipes that parents and children can eat together, as well asallergy-friendly recipes. Needs for such services are rising in the BtoB as well as the BtoC market. Going forward, we will
work to provide new value in the form of a data service business based on our research into food preferences anddeliciousness.

me:new Automatic Menu Generator App(Only Available in

102

Japanese)New Brand Statement“Toward a world of sharing deliciousness and health—FoodJoy Equity”
Nichirei Foods has articulated a new brand statement. It incorporates the essence of our aim to achieve a better world of
sharing by providing health value with an emphasis on deliciousness and making full use of the benefits of freezing in areas
such as shelf life that helps to reduce food loss. “FoodJoy” refers to the delight that frozen foods bring, while “Equity”
means fairness for all from offering value tailored to each individual—or in other words, sharing.
Moreover, to make the statement a reality, we are pursuing business activities that increase four kinds of value for sharing.
By doing so, we will evolve the business so that not only consumers, but everyone we interact with and society as a whole,can enjoy the convenience of freezing.

103Promoting the Business of Meat Products with Health Value
Nichirei Fresh conducts research and development of meat products with enhanced health value. By giving chickens, pigs
and cattle* a formula feed with the ingredient flaxseed, which contains the nutrient -linolenic acid, the company has
developed tender and juicy meat abundant in this nutrient. This meat is sold as the Amani-no-Megumi series.
In addition, Nichirei Fresh has begun full-scale sales of Gomanten, a new meat product with health value containing
sesamin, a functional ingredient derived from sesame that is not normally found in meat. This is the result of adding
sesame to pig feed.
Nichirei Fresh will continue to support health management and balanced diets through meat products for everyday meals.
*

There are individual differences among cattle.

Amani no Megumi (Only Available in Japanese)

Platform -Initiatives for NutritionWe will step up our initiatives for nutrition to help resolve the health problem of the double threat of concurrent
overnutrition and undernutrition. Initiatives will include participation in the Ministry of Health, Labour and Welfare’s
Strategic Initiative for a Healthy and Sustainable Food Environment with the aim of being able to set targets that ensure
intake in recommended amounts while avoiding excessive intake of substances of concern.

104

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.

Possibilities of New Effects of Acerola
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.

Possibilities of New Effects of Acerola (Only Available in Japanese)105Companion Diagnostics
Provision of diagnostics for personalized cancer treatments
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

Histofine ALK iAEP® Kit (Only Available in Japanese)

Specialized Diagnostic Agent for a Genetic Testing Device Receives Regulatory Approval as a Companion Diagnostic
Agent for Colorectal Cancer
Nichirei Biosciences is promoting the uptake in Japan of a specialized diagnostic agent for a genetic testing device
developed by its partner Biocartis Group NV. In 2022 and 2023, we obtained approval to manufacture and sell two in-vitro
diagnostics that use this specialized agent as companion diagnostic agents for molecular targeted therapies for colorectal
cancer. This groundbreaking technology allows the medical institution where a patient is examined to conduct genetic
testing for cancer, which was largely outsourced in the past. By shortening turnaround time on test results, we will provide
new value in cancer treatment.

106

Development of New Technologies

Launch of Single-serving Noodles Using Original Technology That Keeps Noodles Cold When Prepared in a Microwave

In March 2022, Nichirei Foods launched Hiyashi-Chuka (chilled Chinese noodles), a household-use frozen food product it
developed as the first in a series of single-serving noodle products that can be prepared in a microwave. A microwave ovenheats food by causing the water molecules in food to vibrate. The bonded hydrogen molecules in ice are less affected by
microwaves, so they are harder to melt, while the molecules of the frozen noodles are further apart, making them easier towarm. We put these different characteristics of each food product to use in developing an original technology* forproducing chilled noodles that remain cold even after they have been prepared in a microwave. This product took about five
years to bring to market from the initial concept, with about three of those years for commercialization. With our many
years of research into frozen foods, we take pride in the concept behind this unique product, which is the first in theindustry to utilize the characteristics of ice in a microwave.
* Patent pending

In fall 2022, we will launch the second product in this series, Gokubuto-Tsukemen (chilled thick Chinese noodles servedwith a dipping sauce). This product also applies our original technology that uses ice to keep the noodles cold while
enabling the broth to warm. It features homemade-style extra-thick noodles made with whole wheat flour and a rich brothwith a seafood and pork flavor.
The development of these products was driven by the move toward lifestyles that rely on cooking and eating outside thehome, as well as an increase in single-person households that has in turn increased demand for personal-use, singleserving meals containing a staple food and a main dish, as well as snacks that can be eaten with one hand. In response tothis situation, Nichirei Foods’ Yamagata Plant in Tendo City, Yamagata Prefecture invested approximately ¥4 billion in a
production line for personal-use, single-serving frozen foods. It began operating in February 2022. This will help us meet
personal-use product demand, which is expected to grow, and capture stay-at-home consumption.

Chilled noodles that remain cold even after they have been prepared in a microwave "Hiyashi-Chuka"(Only Available in Japanese)107Strengthening food processing and production
technology capabilities; enhancing logistics services
Initiatives
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 logical reasoning, and learn from experience.

Strengthening food processing and production technology capabilities
Eco-friendly Plant for Rice Products Begins Operation with Capital Investment of Approximately ¥11.5 Billion
The new rice products plant of Kyurei Inc., one of Nichirei Foods Group companies, in Munakata City, Fukuoka Prefecture
began operation in April 2023, with a production capacity of approximately 70 tons per day. We have also introduced thelatest equipment and ramped up initiatives for eco-friendliness and automation. Environmental measures to reduce CO₂
emissions include using refrigerators that use natural refrigerants instead of CFCs, installing solar panels on the roof andutilizing renewable energy. For automation, the plant has introduced inspection and disposal of burnt items using AI robots
and high-performance cameras, in addition to automating unloading of raw materials, product pallet loading and pallettransportation.

Exterior of new plant

Quality control using AI robots and high-performancecameras108

Overseas Sales Expansion from Our Processing Base in Vietnam
Trans Pacific Seafood Co., Ltd., which operates Nichirei Fresh’s processing plant in Vietnam, produces a variety of processedmarine products to meet customer needs. We will expand the business by increasing the plant’s production capacity to
produce products that have been processed to different degrees. Expansion of sales of these products will encompass North
America and China as well as Japan. As the COVID-19 pandemic subsides, Japanese food service companies are ramping
up their overseas expansion. Using our current customers in Japan and the products we sell there as a foothold, we willdevelop products rooted in local cultures overseas while consistently taking market needs into account in offering new
products and expanding sales.
Note: The plant has obtained certification under the BRCGS Global Standard for Food Safety and the Marine Stewardship Council Chain of CustodyStandard.

Exterior view of the plant

Expansion of overseas sales

MSC-certified crab products

Harnessing AI to Automate and Optimize Production and Personnel Planning
Nichirei Foods has collaborated with Hitachi, Ltd. in creating a system that uses AI to automate and optimize production
and personnel planning. In FY2021, the system was introduced at two model factories in Japan. It uses sophisticated AI
technology to reproduce and refine plans previously formulated by experts based on complex constraints. In addition tolegal and regulatory requirements involved in personnel planning, a variety of other 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 fromamong the various permutations, while also quantifying and incorporating intuition-based criteria. As a result, planningrequires one-tenth of the time and can be conducted by non-expert employees. The system is expected to contribute towork style reforms such as by reducing the number 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 tofluctuations in demand, the system is contributing to improved customer satisfaction due to its application of advanced
digital technologies and the creation of efficient production systems. Nichirei Foods will continue to harness digitaltechnologies to promote further improvements in productivity, reductions in lead time and inventories, as well as work stylereforms.

109

●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.

Automate and Optimize Production and Personnel Planning (Only Available in Japanese)

Enhancing Temperature-controlled Logistics Services
Establishment of a Joint Venture to Expand into Vietnam

On January 31, 2023, Nichirei Logistics Group Inc. entered into an agreement to establish a joint venture with Tan Bao An
Logistics Joint Stock Company, which operates a temperature-controlled logistics business in Vietnam. Following additional
investment in the joint venture company, Nichirei TBA Logistics Vietnam LLC, it was made a consolidated subsidiary on July21, 2023.
Vietnam will be the third ASEAN country where we do business, following Thailand and Malaysia. Vietnam is a huge market
for exports to Japan, mainly agricultural, forestry and fishery products. In addition, domestic demand is rising for imports
and retail products due to improvement in the standard of living of the growing middle class. The market for logistics with
precise temperature control is therefore expected to expand.
The new company plans to build a new refrigerated warehouse (scheduled to begin operation in the second half of 2024) inLong Hau Industrial Park, Long An Province, which is located approximately 20 km south of Ho Chi Minh City. Goingforward, we aim to roll out operations with a view to collaborating with our businesses in Thailand and Malaysia.

Artist’s rendering of the new center

Announcement of New business by establishing a joint venture in Vietnam
110

Expiration Date Reader AI Solution for Tablet Inspections*
Following field tests, in FY2021 Nichirei Logistics Group began introducing an AI solution for automatically reading
expiration dates from image data at 50 bases nationwide. As part of its efforts to fully digitalize warehouse operations, theGroup has adopted tablet devices and is using AI solutions to enhance their functionality. Previously input manually,
expiration date input can now be completed hands-free using AI, enabling highly accurate readings of 93% or higher andfast processing speeds of about two seconds. This has further improved quality control as it enables us to capture
expiration date images and to then convert those images into data records, simplifying overall operations so that they canbe performed by anyone, thus facilitating stress-free work.
* Automated expiration date reader AI solution: Preprocessing technologies that use AI-OCR (Optical Character Recognition/Reader) and image
recognition to identify the characters of the expiration date from the image and cross-reference the recognized expiration date with information in thecloud, thereby achieving higher reading accuracy.

Autonomous Driving Forklifts
In January 2018, Nichirei Logistics Group began conducting field tests of autonomous driving forklifts at refrigerated
warehouses. 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 a tablet device, thereby making
safe operation possible for employees who might otherwise lack the physical strength or operating skills to manuallyoperate a forklift. Going forward, we will steadily increase the number of facilities with autonomous driving forklifts and tie
that measure into reducing working hours, economizing on manpower for on-site work, and improving occupational healthand safety at our warehouses.

An autonomous driving forklift featured in OriOri,an in-house Group publication

111

Automated Guided Vehicles (AGVs)
In 2021, Nichirei Logistics Group introduced automated guided vehicles (AGVs) at the Sendai Distribution Center of Nichirei
Logistics Tohoku. AGVs are used for transporting pallets supplied by Phoxter Corporation (Headquarters: Toyonaka City,
Osaka; President & CEO: Junichi Sonoda), which develops image processing technology and AGVs. AGVs for transportingroll 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 revolutionize onsite work so that anyone can do it. We will continue to work on building an optimal labor environment and systemleveraging the characteristics of both humans and machines.

AGV for transporting pallets

AGV for transportingroll pallets

Start of Proof-of-Concept for Introduction of New Robot
Nichirei Logistics Group Inc. collaborated with Telexistence Inc. to conduct a demonstration test in which Telexistence’s
remote-controlled robot loaded mixed cargo on basket carts in the refrigerated area of a logistics facility.
The test confirmed the feasibility of creating a remote, stress-free work environment in logistics centers in which an
operator in an office remotely controls a robot in a refrigerated area. The work involved the operator visually confirming
each piece of cargo and its place of loading, them moving the robot and its arm by remote control.
We will continue to proactively introduce cutting-edge technology and digitalize operations in working to achieve sustainablelogistics that support the supply chain.

Robot loading cargo
on a basket cart

Robot operator using goggles
to check the cockpit viewfor remote control operation

112

Promoting Overseas Operations
Further refine the Nichirei Group’s core competencies in food processing, production and logistics to resolve social issues
and improve profitability through competitive advantages in global markets.
Operations in North America (Processed Foods Business)

The household-use frozen foods market in North America has been growing steadily every year, and its subcategory, theAsian food market, continues to grow due to factors such as an increase in consumers of Asian origin. Looking to expand its
North American operations, in 2012 Nichirei Foods acquired InnovAsian Cuisine Enterprises Inc. (ICE), which plans and sellsfrozen foods in the United States. ICE has grown significantly faster than its markets and has become a growth driver in theprocessed food business outside Japan.
ICE has three core strengths. The first is marketing power. It has been analyzing trends in the Asian food market for many
years and is leveraging this data in product development and sales strategies. Its second strength is product development
capabilities. ICE’s ability to create products that match local tastes is also the result of many years of experience. The third
strength is sales capabilities. ICE has earned the acceptance of major mass retailers for a diverse array of products andpromotional offerings.
ICE’s main product categories are chicken and processed rice products, and it has established its own processed riceproduct production capabilities to further expand its business. In July 2022, it acquired all the shares of a joint venture
originally formed with another company in 2019 and changed the company’s name to Nichirei Sacramento Foods
Corporation. The company will strengthen its production and sales in the processed rice product category by incorporating
Nichirei Foods’ technology and knowledge to improve productivity and enhance product development capabilities. It alsoplans to expand its chicken and processed rice product lineup and make a full-fledged entry into the appetizer category,
which is the largest market.
ICE will continue to expand its business through marketing and product development tailored to local tastes, with the goalof achieving top market share.

Processed rice products

The management of ICE and Nichirei

Nichirei Sacramento Foods

Sacramento Foods Corporation

Corporation

Operations in Europe (Temperature-controlled Logistics Business)More than 30 years have passed since Nichirei Logistics Group initiated European operations in 1988 with the acquisition ofa cold storage company in Rotterdam, Netherlands. We subsequently expanded our operations to Germany, Poland, France,
and the United Kingdom through mergers and acquisitions. We have continued to grow by providing high-quality
temperature-controlled logistics services to local companies throughout Europe, and currently have the fifth largest
refrigerated warehouse capacity in Europe.

113

●A Business Model for Delivering One-stop Service
The Port of Rotterdam is where we developed our port business model, in which we provide one-stop service that combines
cold storage capabilities at the port with marine transport, drayage, customs clearance, distribution processing, andtransportation and delivery. We aim to expand this model to major ports in neighboring countries including the United
Kingdom, Germany, and France.
Our distribution business model involves temperature-controlled logistics services for retail chains in Germany and Poland.
Operations in Poland have grown to a leading position in the core refrigerated logistics business for mass retailers. We arealso considering expansion into neighboring countries in Eastern Europe.
Our basic strategy is to use these two business models to provide comprehensive services. We will maximize synergies
between our increased storage capacity and the acquisition of companies in the United Kingdom and Poland while
expanding the provision of one-stop cross-border services through collaboration among our locations.

All of our operating companies are managed locally. Nichirei Holding Holland B.V. (NHH), an intermediate holding company
led by Japanese employees posted overseas by Nichirei Logistics Group, plays a supervisory role, monitoring the operationsof our European companies, formulating strategies for business expansion, and supporting implementation. Strategic
initiatives are a particular focus, and as part of its day-to-day operations NHH communicates with the management ofEuropean companies about large-scale investment plans, mergers and acquisitions.

The management of NHH, our intermediate holding company overseeing operations in Europe

114Supply Chain Management to Achieve Sustainable
Procurement
Basic Philosophy
The Nichirei Group is working to build a sustainable supply chain. On April 1, 2022, the Group established the Nichirei
Group Human Rights Policy, the Nichirei Group Sustainable Procurement Policy, the Nichirei Group Supplier Code of
Conduct, and the Nichirei Group Supplier Guidelines. These polices are based on the United Nations Guiding Principles on
Business and Human Rights and the Ten Principles of the United Nations Global Compact as well as on The Nichirei Pledge,
which is the Group’s basic sustainability policy. They also provide the foundation for “realizing sustainable food procurement
and resource recycling,” one of the Group’s material matters. Going forward, we will continue to promote the Nichirei Group
Supplier Code of Conduct and Guidelines. We will evaluate risk factors in the supply chain and work with suppliers to
mitigate these risks in accordance with the potential impact on business.
We will work to build a sustainable supply chain by sharing values and building close relationships within the Group andwith suppliers.
PolicyNichirei Group Human Rights
PolicyKey Points for Amendment and Enactment
Respect for human rights in the Group and throughout the supply chain,
implementation of human rights due diligence, introduction of system for filinggrievances, etc.

Human Rights Policy

Nichirei Group Sustainable
Procurement Policy

Nichirei Group Supplier Codeof Conduct

Nichirei Group Guidelines
Supplier

Respect for human rights throughout the supply chain, reduction of environmental
impact, consideration for animal welfare and biodiversity, etc.

Sustainable Procurement Policy
Clarification of requirements for suppliers based on the Nichirei Group Sustainable
Procurement Policy

Supplier Code of Conduct
Explanation of items in the Nichirei Group Supplier Code of Conduct

Supplier Guidelines

115Management System
For the Nichirei Group, which is involved in the entire supply chain from procurement of materials to production, sales,
distribution, processing and logistics, realizing sustainable procurement is one of crucial topics for management.
It is set as one of our Materiality, and progress is reported and discussed at the Group Sustainability Committee, anadvisory body to the Board of Directors. We are working toward KPIs we set for each of the five Group material matters.
The Group Sustainability Committee monitors overall measures, while specific measures are incorporated into the actionplans of each division, operating company, and committee. Connecting Group targets with those of each operating company
directly links the achievement of each company’s business plan to improvement of the Nichirei Group’s social and economic
value.

● Sustainability Promotion Structure

Structure for Promoting Sustainability

116

Initiatives
The Nichirei Group is promoting sustainability initiatives in its supply chain, which is the foundation of its business. Withreference to the OECD Due Diligence Guidance for Responsible Business Conduct, we recognize that our business activities
could potentially have a negative impact on workers, human rights, the environment, bribery, consumers and corporate
governance. We therefore take action to avoid and address potential negative impacts associated with our business, oursupply chain and other business relationships.

Sustainable Palm Oil Procurement
Establishment of Sustainable Palm Oil Procurement Guidelines
The Nichirei Group supports the No Deforestation, No Peat and No Exploitation (NDPE) commitments and partners with its
suppliers to procure palm oil in a responsible manner. To do so, in April 2023 we established the Nichirei Group Sustainable
Palm Oil Procurement Guidelines and formulated new Group material matter targets and associated KPIs.

Initiatives for Sustainable Palm Oil
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 are advancing efforts to ensure that the palm oil used
to make our products is from sustainable sources. Since 2018, Nichirei Foods’ factories (at consolidated subsidiaries inJapan and overseas) that use palm oil have been purchasing RSPO certified sustainable palm oil credits (via the book andclaim method) corresponding to 100% of the palm oil they use.
We are making progress toward achieving a procurement rate for RSPO certified sustainable palm oil of 100% by 2030.

4-1055-18-100-00

Membership profile pagehttps://rspo.org/members/7750

Nichirei Group Sustainable Palm Oil Procurement Guidelines117

Sustainable Marine Product Procurement
Establishment of Sustainable Marine Product Procurement Guidelines
Marine products are fundamental resources in the Nichirei Group’s business. Problems identified in recent years include
climate change, the impact on ecosystems from overfishing and bycatch, habitat destruction including deforestation foraquaculture, and fishery worker human rights violations. In April 2023, we established the Nichirei Group Sustainable
Marine Product Procurement Guidelines to resolve issues related to sustainable marine products in the supply chain, withthe aim of realizing a sustainable society in cooperation with suppliers and stakeholders. Concurrently, we established new
KPIs for Group materiality goals.
Initiatives for MSC/ASC Certification*1

Since 2006, Nichirei Fresh Inc. has been involved in the "Inochi-no-Mori-Project" , a natural environment protection
activity on Kalimantan Island, Indonesia, through the sustainable black tiger prawn farming and mangrove tree planting.
The company has also spread its activities to banamei shrimp aquaculture ponds in Sumatra, Indonesia, and obtained ASC
certification*2 in 2018. 280,000 mangrove trees have been planted since 2020. We are also gradually increasing our*3

handling of Marine Stewardship Council (MSC) certification

marine products, and As of June 2023, we are handling 24

species of marine products. We will continue to increase our handling of sustainable 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 the natural supply.

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

MSC/ASC Certification

MSC Certification Number
MSC-C-52165

Arctic surf clam, Capelin, Flatfish (Flathead sole, Kamchatka flounder, Arrow-toothflounder, Northern rock sole, Yellowfin sole, Greenland halibut), Salmon (Chinook
salmon, Chum salmon, Coho-silver salmon, Pink salmon, Sockeye-red salmon),
Herring, Longfin squid, Pacific cod, Pacific cupped oyster, Red king crab, Snow crab,
Walleye pollock, Yesso scallop, Atka mackerel, Japanese carpet shell, and Pacificocean perch

ASC Certification Number
ASC-C-01632

Giant tiger prawn, Whiteleg shrimp, Pacific cupped oyster, Atlantic salmon,Cohosilver salmon, and Rainbow trout(As of June 2023)

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

118

Activities Initiated at Group Cafeterias to Encourage Sustainable Seafood Consumption
We have launched activities at Group company cafeterias, venues where employees regularly gather to eat, to raiseawareness of the importance of making sure that sustainable sources of food are available to the next generation.Nichirei
Fresh has obtained CoC certification* and the company cafeteria menu at its head office offered the ASC-certified shrimp
and MSC-certified Japanese carpet shell it procures and sells.
In FY2024, we have implemented this intiative at employee cafeterias in the Kanto region, including the Company's Head
Office cafeteria in Tokyo. We also intend to extend this intiative, putting the MSC-certified products and ASC-certified
products on the menus, to other our cafeterias.
* Chain of custody: A mechanism for managing processing and distribution to ensure certified marine products are separated from non-certified products

Date

Venue

1st

July 3, 2023

Nichirei Higashi-Ginza
Building（Head Office:Tokyo）

2nd

September 11,
2023

Nichirei Higashi-Ginza
Building（Head Office:Tokyo）

Product
Name

Vannamei
ShrimpVannamei
Shrimp119

Menu

ASC-certified shrimp andgarlic curryASC-certified shrimp stir
fryImage Photo

Date

3rd

September 27,
2023

Venue

Product
Name

Menu

・ASC-certified shrimp
curry・Shrimp and avocado
salad

Nichirei Tenma-bashi
Building（Osaka）

Vannamei
Shrimp4th

5th

October 13,
2023

Global Innovation Center（Saitama),
Nichirei Biosciences Inc.

October 19,
2023

Nichirei Training Center（Tokyo）

Vannamei
ShrimpASC-certified whole fried
shrimp and hamburg steak

Chili sauce with ASCcertified shrimp and egg

Vannamei
Shrimp6th

November 2,
2023

Nichirei Group Technology
Development Center（Chiba）

Chili sauce with ASCcertified shrimp and egg

Vannamei
Shrimp7th

December 1,
2023(Anniversaryof thefounding)

1)Nichirei Higashi-Ginza
Building
2)Global Innovation Center3)Nichirei Tenma-bashi
Building
4)Nichirei Group
Technology Development
CenterShort Necked
Clam

120

・MSC-certified Japanese
carpet shell and yakuzen
1
curry・MSC-certified Japanese
carpet shell curry2
・MSC-certified Japanese
carpet shell and vegetable
3,4
curry

Image Photo

Date

8th

December 8,
2023

Product
Name

Venue

Menu

Image Photo

MSC-certified Japanese
carpet shell and vegetablecurry

Nichirei Training Center（Tokyo）

Short Necked
Clam

9th

January 10-12,
2024

Funabashi Plant, Nichirei
Foods Inc.
Funabashi No.3 Plant,
Nichirei Foods Inc.
Funabashi DC, Logistics
Network Inc.

Vannamei
ShrimpASC-certified whole fried
shrimp and hamburg steak

Collaboration with WWF Indonesia and WWF Japan Promoting Biodiversity Conservation in North Kalimantan through theMore Than Decade-long Forest of Life ProjectIn the province of North Kalimantan, on the Indonesian island of Borneo, the natural environment is facing destruction fromthe 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 partnership with WWF
Indonesia and WWF Japan, Nichirei Fresh is currently promoting activities improving aquaculture as part of the WWF North
Kalimantan Sea and Forest Conservation Project. Over a 10-year period, trees have been planted across an area stretching
302 hectares in an effort to restore mangrove forests. This has resulted in an increase in wildlife, including small birds,
crabs and small fish, and even proboscis monkeys introduced from outside the region have begun breeding naturally.

About half of the island’s

Shrimp that have grown big

Regeneration offorest has been lost over the

Mangrove Planting

mangrove trees

past 50 years
Please refer to the following website for further details.

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

Resolving Social Issues through Our Business

Nichirei Fresh

121

Inochi-no-Mori-ProjectConserving Biodiversity and Maintaining Sustainable Production: MSC Fisheries Certification at Clam Fishery

Integrated Report 2023 Helping to Resolve Social Issues through Our Business

Winner of "Champion" in the Collaboration category at the 4th Japan Sustainable Seafood Awards(Only Available in Japanese)

Regenerating Marine Habitats

In June 2022, Nichirei Fresh joined Fukuoka Uoichiba Co., Ltd. and the Amakusa Fisheries Cooperative in launching the
Inochi-no-Umi-Project. This initiative focuses on regenerating Zostera beds, which are areas of the seabed where this typeof marine eelgrass grows. The project is funded using a portion of sales of natural shiba shrimp caught in Amakusa City,
Kumamoto Prefecture. Zostera beds are a spawning and nursery ground for marine life. They play an important role in themarine ecosystem. However, Zostera beds are declining in number each year, which impacts the habitat of marine life andcauses water quality to deteriorate.
Nichirei Fresh will use the expertise and experience it has gained overseas to protect ecosystems in Japan that support
seafood and the marine environment, and engage in sustainable procurement of marine products.

122Sustainable Regional Agricultural and Livestock Cycle through Junwakei Chicken
In 2009, Nichirei Fresh launched a feed rice project in collaboration with the Japan Agricultural Cooperative in Iwate
Prefecture and farmers from Karumai and Hirono in 2009, and in the 13 years since then the project has been
implementing a sustainable regional agricultural and livestock cycle through the production of the Junwakei breed ofchicken (a crossbreed of two native Japanese species). When the project was first launched, paddies for feed rice coveredaround 15 hectares. By FY2022, this area had expanded to around 249 hectares yielding a harvest of roughly 1,700 tons.
Manure from the poultry farm is made into organic fertilizer at an on-site high-speed manure processing plant.
This fertilizer is spread over the feed rice paddies that were previously fallow rice fields, providing nutrients for the soil. 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 the chicken coops.

High-speed chicken manure

Chicken manure made into

processing plantorganic fertilizer

Resolving Social Issues through Our Business

Nichirei Fresh

Nichirei Fresh

Junwakei Chicken

Junwakei Chicken (Only Available in Japanese)

Antibiotic-free Chicken
Antibiotic-free Chicken
Chemical agents, such as antibiotics and synthetic antibacterials, are used in general broiler chicken farming to treat
diseases, prevent the spread of illnesses due to farming conducted in 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 of antibiotic-resistantbacteria.* 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.

123

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

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)124Working with Suppliers
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.
FY2020

FY2021

FY2022

FY2023・Join Sedex

Received SMETA
audit at 2 our own
plants in Japan

Received SMETA
audit at remaining
13 our own plants inJapan

Ten Sedex member
companies in thefood and beverageindustry form
working team andpromote their
suppliers to join
Sedex

・Started creating
Supplier CSR
Guidelines

Conducted aquestionnaire basedon CSR guidelines todomestic suppliers

Ongoing collection ofquestionnaires

Continuation ofanalysis ofquestionnaire
contents

A new list of
domestic andinternational
suppliers is being
compiled

A CSR questionnaire
is being prepared

Nichirei Foods

Nichirei Fresh

Nichirei Logistics
Group

-

-

-

Nichirei Biosciences

-

-

-

・Conducted ourSupplier ESG Survey
・89% of suppliersin Japan support the
Nichirei Group
Supplier Code of
Conduct andSupplier Guidelines

Supplier ESG Survey
In April 2022, we established the Nichirei Group Supplier Code of Conduct and Supplier Guidelines. In fiscal 2023, we asked
suppliers in Japan to support the Supplier Code of Conduct and Supplier Guidelines. We also conducted our Supplier ESG
Survey, asking for responses to a self-assessment questionnaire.
We received responses to the survey from 89% of our suppliers, and all suppliers who responded agreed to comply with the
Supplier Code of Conduct and Supplier Guidelines. We are following up with the remaining 11% to obtain their responses tothe survey. Based on the results of the survey, we communicated with several suppliers that gave us cause for concern
about possible negative ESG impacts and confirmed that those concerns were not an issue.
We will expand the scope of future surveys to include overseas suppliers while deepening communication with suppliers inways such as holding briefings to enhance their understanding of our sustainable procurement initiatives and Supplier Codeof Conduct and Supplier Guidelines.

125

●FY2023 Supplier ESG Survey

Scope

Domestic suppliers of Nichirei Foods, Nichirei Fresh, Nichirei Logistics Group, and Nichirei Biosciences. We
select companies for the survey based on transaction importance, encompassing factors includingtransaction volume. The survey covers companies that account for about approximately 50% oftransactions on a monetary basis.

Content

The survey requests compliance with the Supplier Code of Conduct and Supplier Guidelines and isevaluated based on responses to a self-assessment questionnaire.

Question
Design

Questions are designed to confirm the status of each supplier’s initiatives to align with the Supplier Code of
Conduct and Supplier Guidelines, and cover legal compliance and ethical behavior, human rights and labor,
safety and health, environment, management, and corporate governance related to sustainability. We
created the survey with reference to CSR/Sustainable Procurement Self-assessment Tool Set (1st Edition)
created by Global Compact Network Japan.

Response
Rate

89% (Support rate was also 89%)

Sedex subscription and SMETA audits
Nichirei Foods joined Sedex, who provides a platform which is designed to manage and share corporate ethical information
including social, human rights, and enviormental topics with the aim of realizing responsible business practices in supply
chains, in July 2019. In October 2020, we established "Nichirei Foods Supplier CSR Guidelines", disseminated in fivelanguages. Preparation for the audits began in FY2021, and in FY2022, we received SMETA audit* at 15 our own plants inJapan. In addition to our own plants, two major OEM suppliers also received SMETA audit.
Note:* Sedex Members Ethical Trade Audit (SMETA): An audit methodology developed by the Sedex Stakeholder Forum, whose members consist of brandowners, companies, and audit firms, by consolidating best practices related to ethical audits.

Human Rights Due Diligence for Meat, Poultry and Marine Product Suppliers
We have launched human rights due diligence initiatives for meat, poultry and marine product suppliers, which account for
the largest proportion of procurement volume in the Group’s business activities. We determine priorities based on
importance of transactions and human rights risk by country and industry.
●Human Rights Due Diligence Result and Plan for FY2023–2025

Scope

FY2023 Result

FY2024 Plan

FY2025 Plan

Meat and poultry suppliers(Domestic chicken)

Meat and poultry suppliers(Domestic)
Marine products suppliers(Overseas)

Meat and poultry suppliers (Domestic)
Marine product suppliers (Overseas
and domestic)126

Information sharing and awareness raising with suppliers
We recognize the importance of sharing information and raising awareness with our suppliers in order to build constructive
relationships with them and improve corporate value for both parties. For this reason, Nichirei Foods and Nichirei Freshhave been holding "Nichirei Foods Procurement Policy Briefings" and "Nichirei Fresh Supplier Briefings" for major suppliers
since FY2023 to share our environmental and social policies and to raise awareness of environmental issues and so on.

Collaboration with suppliers
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.

Resolving Social Issues through Our Business

Nichirei Foods

Acerola Business

Nichirei Foods > Acerola Powder

Nichirei do Brasil Agricola Ltda (NIAGRO) received its first “Platinum" rating in the EcoVadis
Sustainability Survey in 2023, equivalent to the top 1% level

Education for Sustainable Procurement
Study Sessions on Sustainability for Management
We are inviting experts to participate in study sessions on sustainability for management.
●Online study session

127

●FY2023

Date

Theme

Lecturers

Number ofparticipants(number of
directors inparentheses)

Percentage ofdirectors
attending

1stApril 26,
2022

Sustainability Challenges Facedby Corporations

Kenji Fuma, CEO,
Neural Inc.

124
participants (6)

60％

2nd

May 24,2022

The Future of Food andTransportation

Kenji Fuma, CEO,
Neural Inc.

127
participants (7)

70％

3rd

June 28,
2022

Sustainable Procurement andHuman Rights Issues

Hidemi Tomita,
President, LRQA
Sustainability Co.

139
participants (8)

80％

4th

August 23,
2022

The Importance of SDGs and the
Significance of Corporate
Initiatives

Kazuo Tase, CEO, SDG
Partners, Inc.

131
participants (9)

90％

5th

September
27, 2022

Business Transformation to
Circular Economy

Shinichi Tabei, AMITAHOLDINGS CO., LTD.

140
participants (10)100％January
24, 2023"Human Rights" tackled in the
supply chain - What is thehuman rights due diligence
expected of companies
nowadays -Hiroshi Ishida,
Executive Director,
Caux Round Table
Japan

154
participants (10)

100％

Theme

Lecturers

Number ofparticipants(number of
directors inparentheses)

Percentage ofdirectors
attending165
participants
(9)

90%

6th

●FY2024Date

1stApril 25,
2023

The Truth about Global Warming

Seita Emori, Professor
Institute for Future
Initiatives, The
University of Tokyo
Senior Principal
Researcher, Earth
System Division, NIES

2nd

May 30,2023

Biodiversity and Resource
Depletion

Naoki Adachi, CEO
Response Ability, Inc.

175
participants
(10)

100%

3rd

July 4,2023

DE&I from LGBTQ perspectives Changing the workplace and asociety by LGBTQ perspectives -Maki Muraki, Director
NPO Nijiiro Diversity

173
participants
(10)

100%

* Target participants are Directors, Audit & Supervisory Board Members, Executive Officers (Outside directors, outside Audit & Supervisory Board
members, operating company management members, and general managers may participate voluntarily.)128

Training for persons in charge for raw material procurement●FY2024
As part of our supply chain management to achieve sustainable procurement, we conducted training courses on sustainableprocurement for procurement staff.
The training began with a lecture on the Nichirei Group Sustainable Procurement Policy and other procurement-related
policies.
To deepen the knowledge of those in charge of procurement so that they can make use of it in their daily work, we invitedknowledgeable persons to give lectures, and conducted workshops specializing in each field.

1

2

Date

Category

Nov. 28,2023

Marineproducts

Nov. 29,2023

Meat and
Poultry
products

Commontheme

Why we arerequestedsustainableprocurements

LectureLecturer

HidemiTomita,President,
LRQA
Sustainability
Co.

Category
Theme

Lecturers

Participants

Sustainableprocurement
on marine
products

Seafood Legacy Co.,
Ltd., CEO, Wakao
Hanaoka

34

Current
situation andfuture aboutanimalwelfareTokyo University ofAgriculture andTechnology,
Professor, Tsuyoshi
Shimmura

34

Active discussions during the workshop

Offering e-learning sessions for employees●FY2023
Implementation period

Theme

Implementationrate

1

May 9 - May 27, 2022

Circular Economy

97.1％

2

Nov 14 - Dec 12, 2022

SDGs in general

93.8％

3

Dec 1 - 28, 2022

Business and Human Rights

93.9％

129

●FY2024
Implementation period

Theme

Implementationrate1

Jun 7-27, 2023

Environment (CO₂ Emissions Reduction)

93.8%

2

Jul 5-26, 2023

Environment (Global Warming)

93.1%

3

Sep 4-25, 2023

SDGs Overview

93.2%

4

Dec 4-22, 2023

Business and Human Rights

94.2%

Sustainability Education

130

Human Rights
Basic Philosophy
The Nichirei Group is constantly trying to create new customer value. It does so under the Group’s corporate vision of“continuing to support good eating habits and health by leveraging our state-of-the-art manufacturing practices that
optimize nature’s bounty, along with our leading-edge logistics services.” At the same time, we are helping find solutions tochallenges facing our society, in an effort to be an indispensable member of society.
Recognizing that our business processes may have a direct or even an indirect effect on human rights, we have instituted
the Nichirei Group Human Rights Policy, based on the United Nations Guiding Principles on Business and Human Rights. Ourpolicy guides us as we seek to fulfill our responsibility to respect the human rights of all our stakeholders.

Human Rights Policy
Respect for Human Rights
Human Rights Due Diligence
Human Rights Issues Relating to Our Business Activities​Discrimination

Harassment、Forced labor and child labor、Freedom of association and right to collective bargaining、
Occupational health and safety、Working hours and wages、Impact in the supply chain、Impact on local
communities​
Grievance Mechanisms
Education and Training
Monitoring and Reporting

The Nichirei Group Human Rights Policy​

Management System
In addressing the consideration of human rights in our business activities, the Nichirei Group recognizes that through ourbusiness activities in Japan and overseas, we may have various impacts on society and the environment, including our
supply chain, and we wish to build appropriate relationships with our stakeholders in terms of society and the environment.
The Human Rights Policy was established in April 2019 and revised in April 2022 based on the establishment of the NichireiGroup

Sustainability Policy "Nichirei Pledge". Issues related to human rights are discussed by the Group Sustainability

Committee.

Sustainability Promotion Structure131

Initiatives
External Communications
Participation in Stakeholder Engagement Program
The company participated in the 2019-2023 Caux Round Table Stakeholder Engagement Program. In this context, thecommittee also held in-depth discussions on how to address human rights issues as well as identify human rights issues
specific to the food industry and logistics business, including issues raised by NGOs and others, and the exchange of
opinions among companies.
The results will be used in our human rights efforts and we will continue to conduct stakeholder engagement to identify
industry-specific human rights issues.

■Participation
Year

Number ofparticipants

2019

2

Nichirei Group Communication Dept.

2020

2

Nichirei Group Communication Dept.

2021

4

Nichirei Group Communication Dept., Nichirei Foods Sustainability Management Dept.

2022

5

Nichirei Sustainability Management Dept., Nichirei Foods Sustainability Management
Dept.

2023

6

Nichirei Sustainability Management Dept., Nichirei Foods Sustainability Management
Dept., Nichirei Fresh Sustainability Management Dept.

Affiliation of participants

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

2020 Human Rights Due Diligence Workshop

2021 Human Rights Due Diligence Workshop

2022 Human Rights Due Diligence Workshop

2023 Human Rights Due Diligence Workshop

We also participated annually from 2019 to 2023 in the International Conference on Business and Human Rights (organizedby the Japanese Committee of the CRT), which is attended by domestic and international NPOs/NGOs and human rights
experts.

Business and Human Rights Conference

Caux Round Table Japan132

Human Rights Initiatives
At the Nichirei Group, we understand that our business activities, from research and development to procurement andprovision of products and services, have potential or actual impacts on human rights. In line with the United Nations
Guiding Principles on Business and Human Rights, we carry out due diligence to identify, prevent and mitigate adverse
impacts on the human rights of people involved in the Nichirei Group’s business activities.
Human Rights Due Diligence for Foreign Technical Interns and Specified Skilled Workers
Over a period of two months from October to November 2022, with support from the NPO Caux Round Table Japan, we
carried out a fact-finding survey of foreign technical interns and foreign specified skilled workers employed by the Nichirei
Group. The survey was conducted in accordance with the Dhaka Principles* to assess their physical and mental health andwhether they felt a sense of fulfillment day to day.
* Principles for the responsible recruitment and employment of migrant workers

Targetgroup

Foreign technical interns and specified skilled workers employed by the Nichirei Group

SurveyperiodOctober to November 2022

Surveymethod(1) Online questionnaire
・Scope: All food factories where target group members were based・Responses were accepted in languages other than Japanese (Vietnamese, Chinese, Indonesian)(2) Interviews
・Scope: Certain food factories
・Interviewer: Hiroshi Ishida from Caux Round Table Japan

Survey Results and Issues
As a human rights due diligence initiative, Caux Round Table Japan conducted aquestionnaire survey and interviews with foreign workers in accordance with the Dhaka
Principles from the standpoint of a third-party organization. Among the survey results,
there were many comments expressing a desire to continue working as a member ofNichirei, and no signs of serious human rights violations. However, regarding Principle 1of the Dhaka Principles, “No fees are charged to migrant workers,” the survey revealed
that, although there were some variations between individuals, such fees had reached

Hiroshi Ishida
Executive Director
Caux Round TableJapan

considerably large amounts. I expect the Nichirei Group to take specific measures toestablish a foundation of trust with foreign workers. Such measures should involve
management, and should verify the actual fees charged to foreign workers at the timethey were hired.

Interview at a food factory

Documents seeking cooperation in answering online
questionnaire (Japanese/Vietnamese)133Ten Sedex Member Companies in the Food and Beverage Industry Form Working Team to Promote Human Rights Due
Diligence in the Supply Chain
Ten companies in the food and beverage industry, including Nichirei Foods, which joined the Supplier Ethical Data Exchange(“Sedex”), have formed the Sedex Working Team of Buyers in the Food and Beverage Industry. Promoting the common use
and standardization of Sedex within the food and beverage industry, the team has also been promoting membership ofSedex through initiatives including briefing sessions for suppliers in January and February 2023 and for companies thathave trading company functions as of July 2023.
* Nichirei Foods has been a member of Sedex, a non-profit organization dedicated to the realization of ethical and responsible business practices in the
global supply chain, since July 2019. All factories owned by Nichirei Foods in Japan underwent Sedex Members Ethical Trade Audits (SMETA) in FY2022.

News release on forming a Sedex working team (Only available in Japanese)

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

As for informing employees about human rights, we are working to disseminate information related to human rights on thecompany intranet.

Sustainability Promotion Portal Site

Regarding employee education on human rights, e-learning on "Business and Human Rights" is provided to all employees
once a year to coincide with World Human Rights Day.

e-learning134

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

Internal Whistleblower Hotline and Consultation Service
In October 2003, we introduced an internal whistleblower hotline and consultation service (Nichirei Hotline) to respond toreports and consultations from employees regarding actions that violate laws and regulations, the Articles of Incorporation,internal rules, or actions that are ethically questionable. In FY2016, we updated our internal whistleblower hotline system in
response to the requirements of Japan’s Corporate Governance Code, which specifies that internal whistleblower hotline
systems are to be independent from a company’s management, and introduced monitoring/checking functions through
Audit & Supervisory Board members and outside officers. In 2022, we updated the system again in line with the amended
Whistleblower Protection Act that went into effect in June of that year and in compliance with government guidelines. The
response system is being redesigned to strengthen whistleblower protection and confidentiality, and to expand the scope ofwhistleblowers.
To ensure that all officers and employees are aware of the new hotline, the Company created promotional posters fordisplay at workplaces nationwide and distributed Nichirei Hotline reminder cards to all employees. All reports andconsultations received by the Nichirei Hotline are investigated by the administration office to confirm the facts and, if
necessary, corrective measures are taken, in accordance with the Group Whistleblowing Regulations. Whistleblowers are
assured anonymity and any adverse treatment is prohibited, including retaliation by the Company, those who are thesubject of complaints, or any other party. The whistleblower may also receive feedback from the secretariat if he or she sorequests.
In line with the acceleration of overseas business expansion, the need for internal whistleblower hotlines and consultation
services at facilities outside of Japan has also increased. We are working on appropriate designs for these systems, basedon laws and regulations regarding personal information in each country.
The status of response to whistleblowing and consultation is regularly reported to the Board of Directors and monitored toensure that it is being properly managed.

135Number of whistleblower reports and consultations regarding human rights issues

Number of Whistleblowing Cases, by Type

ComplianceStudy Sessions on Sustainability for Management
In FY2023, we invited experts to participate in study sessions on sustainability for management. We held six such sessions.
At the third session, Mr. Hidemi Tomita of LRQA Sustainability K.K. gave a lecture on sustainable procurement and humanrights. A total of 139 people* attended the event, which created greater awareness of human rights issues in the supply
chain.
●Online study session* Including 85 officers from the holding company and operating companies and 54 participants from related divisions

136

Providing Safe Products and Services​
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. In addition, to assess whether these initiatives arebeing implemented reliably, we use internal audits and quality audits at our factories based on our quality management
system and food safety management system. We strive to upgrade our systems by following a PDCA cycle to facilitate
improvements should any deficiencies arise.

Fundamental Policies on Quality Assurance(1) Compliance with legal requirements regulating food products.
(2) Compliance with norms and standards indicated by industry groups.
(3) Recognition of customer and partner needs regarding food safety and security, as well as making efforts tomaintain Group quality management and assurance capabilities.
(4) Incorporation of food safety measures, food crisis management, steps to ensure food defense, and food fraud
prevention initiatives to protect consumer health.

Fundamental Policies on Quality Assurance

137

Management System
Nichirei Corporationʼs Quality Assurance Division has established rules and standards for quality control and quality
assurance and performs internal audits and monitoring inspections based on quality management standards to ensure that
the Groupʼs quality management system is functioning effectively.​
Each operating companyʼs 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.​● The Nichirei Group Quality Assurance System Diagram138

● 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 health hazards. It isalso working to increase the degree of food safety that it can ensure, and expand its risk communication abilities during
emergencies.

139

Initiatives
Conducting Factory Audits by Group Companies
For factory audits, each operating company rationally and objectively evaluates the magnitude of risks based on various
factors such as characteristics of products it handles, whether or not certification of international standards has beenobtained and the quantity of products handled. Based on this evaluation, the operating company creates an annual plan
according to which it carries out factory audits. Any concerns pointed out by the audits are reflected in factory improvement
activities and Company-wide rule reviews. The PDCA cycle is also used in regular audits. Audit results are used as areference when determining audit policies and target worksites when developing audit plans for the upcoming year.
* Since FY2021, we have not been able to conduct as many regular audits as planned due to restrictions on movement caused by the COVID-19
pandemic. However, we are working to ensure safety by expanding and reviewing our use of remote audits.

■Regular Audits (FY2019–FY2023)
Quality
Assurance
Audit

FY2019FY2020

FY2021

FY2022

FY2023

Domestic

Overseas

Domestic

Overseas

Domestic

Overseas

Domestic

Overseas

Domestic

Overseas

67

38

52

20

40

10

46

16

64

23

99%

100%

87%

80%

58%

28%

66%

48%

90%

72%

Number offactory/SiteauditsGroup
Implementation
Rate(Compared withplan)

Conducting Voluntary Monitoring Tests
The Food Safety Center works to confirm the safety and legality of the products handled by the Group. It determines
annual plans for items to be inspected and frequency of inspection according to the characteristics of the products handled
and the magnitude of possible risks, and carries out various inspections, some involving other inspection organizations.
Even when the standards are met, if there are any unusual signs or patterns in inspection results, the factory is alerted andthe results are used for reference in improvement activities.

■Voluntary Monitoring Tests（FY2019-FY2023）
FY2019FY2020

FY2021

FY2022

FY2023

Microorganisms

679

584

625

637

616

Pesticide residues
and veterinary
drugs

609

486

485

492

534

Others (radiation,
odor, overseas
sales, etc.)

202

193

151

144

140

140

Proactive Adoption of International Standards for Quality Control
The Nichirei Group offers products and services with a variety of distinguishing characteristics. In addition to applying
internal rules aligned to these characteristics, Group companies are actively working to acquire international standard
certification for management systems in areas such as quality control and food safety, while strengthening their quality
control systems to ensure the safety of the products and services they provide.

■Certification Status (FY2019–FY2023)
Certification

OperatingCompany

Rate of Certification
FY2019FY2020

FY2021*4

FY2022

FY2023

Nichirei Foods

20.0%(3/15)

20.0%(3/15)*5

20.0%(3/15)*5

20.0%(3/15)

0% (0/15)

Nichirei Fresh

87.5%
(7/8)

62.5%
(5/8)

62.5%
(5/8)

62.5%
(5/8)

62.5%
(5/8)

89.7%
(104/116)

70.4%(81/115)70.9%(83/117)73.5%(86/117)71.4%(85/119)

Nichirei Foods

93.3%(14/15)93.3%(14/15)93.3%(14/15)100%(15/15)100%(15/15)

Nichirei Fresh

75.0%
(6/8)

100% (7/7)

100% (7/7)

100% (7/7)

100% (7/7)

Nichirei
Logistics
Group

1.7%
(2/116)

1.7%(2/115)

1.7%(2/117)

1.7%(2/117)

1.7%(2/119)

ISO14001(Environmental
management system)

Nichirei Foods

73.3%(11/15)73.3%(11/15)73.3%(11/15)

66.7%(10/15)46.7%(7/15)

ISO13485(Medical
devices and in vitro
diagnostics)

Nichirei
Biosciences

100% (2/2)

100%
(2/2)

100%
(2/2)

100%
(2/2)

100%
(2/2)

ISO9001(Quality
management system)

Nichirei
Logistics
Group

*1

FSSC22000 、*2*3ISO22000 、SQF (Foodsafety management
system)*1 FSSC 22000: An international management system for food safety that is based on ISO 22000*2 ISO 22000: An international standard for food safety management systems (for reducing food safety risks). It is based on hazard analysis and criticalcontrol points (HACCP) food sanitation control techniques*3 SQF (Safe Quality Food): Certification providing assurance that the product being purchased meets strict international food safety and quality
standards such as HACCP. Program recognized by the Global Food Safety Initiative (GFSI) in countries outside of Europe.
*4 Rate of certification: Certified worksites ÷ Total worksites of consolidated subsidiaries in Japan (food factories, logistics centers, etc.)*5 Switching to FSSC 22000

141

Food Defense Initiatives
To prevent intentional contamination of food products, the Nichirei Group believes it is critically important to foster strong
bonds of trust with employees at worksites, creating environments in which accidents are unlikely. Furthermore, it isnecessary to employ both procedures and physical safeguards, as well as verification methods in the event of an accident.
We have established food safeguard (food defense) systems tailored to each product type. In-house rules covering visitorsand contractors, as well as self checks, are in place, and audits of our plants are conducted regularly to confirm safety. We
are also working to improve the workplace 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 the safety of food, we have created a system that is based on the distinguishing characteristics of each productand enables follow-up investigations should issues arise. If an issue does arise, a link is established with our food crisis
management system, which facilitates the dissemination of accurate information and quick responses.
Based on this approach, we have established food safeguard systems tailored to each product type at each operatingcompany. In addition to confirming safety through factory self-checks and factory audits, we are actively working to
improve the workplace environment based on employee interviews.

● Nichirei Foods’ Four Principles of Food Defense

Food Defense

142

Safe Workplaces, Better Service
The Nichirei Logistics Group's newly built distribution centers are equipped with state-of-the-art facilities, including
advanced security features and seismic isolation. In terms of quality, the center realizes advanced logistics quality throughtraceability and inventory management functions, in addition to temperature control that draws on the Group's expertiseand technology. In our low-temperature logistics network, we support our nationwide distribution network by transportingand delivering approximately 4,000 trucks every day, including our own, and cooperation with transportation companies isessential. For this reason, we have established a cooperative association with transportation companies and have built aclose cooperative relationship with them through driver contests, training, award programs, and other initiatives to improvesafety and quality.

Loginet Cooperative Association Driver Contest National Competition (once a year: 7th year)

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

Judging of inspection skills

Scene from the competition

143

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.

The Evaluation Flow for Ingredient Quality Specifications

Building a Traceability System
To always provide safe, reliable and high-quality food, the Nichirei Group conducts rigorous quality control and inspections,from ingredients to final products and has built a traceability system suited to the distinguishing characteristics of eachproduct. For example, in the event that an issue should arise in frozen vegetables, the cause can be investigated by using
the product code symbol to trace the product back through the management records stored by the factory. In this way, it ispossible to prevent the issue from spreading or recurring. We also provide prompt and accurate information to alleviate
consumer concerns.
Building a traceability system requires collaboration and cooperation on the part of ingredient suppliers, manufacturers anddistributors in our supply chain. The Nichirei Group regularly holds study sessions to deepen shared awareness with regard
to quality-related information. To digitalize and link information, we are also promoting the utilization of our proprietarysystem for central control.
Transporting
raw materials

The farm manager (field person) checks the quantity of raw materials, status of pollution prevention
measures, truck departure time, etc. and prepares an invoice.

Receipt ofshipment at
the factory

The person in charge of receiving the raw materials checks them against the invoice, and then labels
the raw materials with the truck number.

Processing

Trace code labels are established for each process in the production line. Raw materials are processedin the order they arrive at the factory (raw materials are separated by production area).

144

● Traceability of Frozen Green Soybeans (Illustration)【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.

Quality Control of Frozen Vegetables (Only Available in Japanese)【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.

Quality Control of Prepared Frozen Food Products (Only Available in Japanese)

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.

145

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.

146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.

147

Display verification

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

148

Food Allergy
Currently, in Japan, 28 types of foods cause food allergies, 7 of which (shrimp, crab, wheat, buckwheat, eggs, milk, andpeanuts) are required by the Food Labeling Act to be labeled due to the number of cases and severity of the allergic
reaction.
The Nichirei Group investigates the raw materials used and the possibility of unintentional contamination during the
manufacturing process before labeling food allergenic substances by the Food Labeling Act. In particular, Nichirei Foods has
devised a list of food allergens contained in the frozen prepared foods for home use that we handle.
Conveying Accurate Product Information
In order to obtain information about raw ingredients, the Nichirei Group requires suppliers to provide detailed specifications.
But, before using these as a resource for product packaging, it runs tests to confirm they are correct. Such scrutiny of
information, as is relevant to highly processed ingredients, can require several months. In addition, it adapts to changes inlaws related to food product labeling as they arise.

Search for information on raw materials, place of origin, and allergies (Only Available in Japanese)

Food Safety Center Initiatives

The initiatives of the Nichirei Foods Customer Support Center

Reporting on Products and Services
In FY2023, three violations of laws and regulations related to products and services occurred.

Number of Violations of Laws and Regulations

Health and Nutrition 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.

Development and sales of "wellness foods" at Nichirei Foods

Providing an information site to health professionals (Nichirei Biosciences)(Only available inJapanese)149

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. In addition, Nichirei participates in the activities of the following organisations and others.

Japan Frozen Food Association (Only Available in Japanese)

Japan Association of Refrigerated Warehouses (Only Available in Japanese)

Japan Food Industry Association (Only Available in Japanese)

Japan Fisheries Association (Only Available in Japanese)

Japan Food & Agriculture Cooperative Organization

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.

150

● Breakdown of Customer Interactions in 2022

● Evaluation of Customer Satisfaction Reception Response

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

The number of recall cases

FY2019None

FY2020None

FY2021None

FY2022None

FY20233cases151

Staff Training for Quality Improvement
FY2019Training

Description

FY2020

FY2021

FY2022

FY2023

Numberof
People

Hours

Numberof
People

Hours

Numberof
People

Hours

Numberof
People

Hours

Numberof
PeopleHours

Nichirei Foods

First- tothird-year
employeetechnical
training
sessionSmoothcommunication,
problemsolving
technique,control ofproduction line
sanitation

78

924

92

1,008

97

727

107

1,058

110

825

Leadercandidatetraining

Management
demonstration
on educating
young
employees andaccomplishing
tasks

41

1,309

41

1,320

45

1,041

42

1,029

46

1,188

Training for
obtaining
FSSC
22000
certification

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

183

72

264

84

20

140

91

547

62

497

152

FY2019
Training

Description

FY2020

FY2021

FY2022

FY2023

Numberof
People

Hours

Numberof
People

Hours

Numberof
People

Hours

Numberof
People

Hours

Numberof
PeopleHours

Nichirei FreshFirst- tosecondyear
employeetraining
sessionBasicknowledge of
qualityassurance,
factory check,label, responseto requests,
etc.

17

42

18

44

18

44

19

46

15

32

Mid-career
employeetraining(livestock
instructor,
livestockprocessed
product
meister)

Factory audit /guidancepoints, selectedmaterials,
mechanism ofmetal / X-ray
detector, basics
of cleaning andsterilization,label creation,
etc.

3

6

7

26

2

12

18

48

14

50

Plant
Quality
ManagerTraining

Improvement
activities, insect
and rodent
control, laws
andregulations,andpresentations.

-

-

-

-

-

-

30

180

31

146

Information
session forrevision oflaws andregulations

Food labelingstandards,
addition of foodallergies, etc.

25

25

30

30

300

300

-

-

-

-

153

Occupational Health and Safety
Basic Philosophy
Based on the idea that work satisfaction depends on physical and mental health, the Nichirei Group continuously works tostrengthen its safety management systems at each worksite. All officers and employees work together to create a satisfying
workplace. We also ask our suppliers to carry out various measures and regularly carry out initiatives related tooccupational health and safety in accordance with this policy.

Occupational Health and Safety Policy

Management System
The Nichirei Group established health and safety committees to fulfill the requirements of Japan’s Industrial Safety and
Health Act, and is working to promote health and safety management aimed at preventing occupational accidents andmanaging the health of employees. At our Head Office, as well as at each branch office, we strive to eliminate long working
hours and manage working hours, while at food factories and refrigerated warehouses, the main issue is the prevention of
accidents. Other workplace environment improvement efforts are conducted according to the conditions of each workplace.
Health and safety risks are discussed and addressed by the Group Health Promotion Liaison Committee, and their status isregularly reported and monitored by the Board of Directors and the Group Human Resources Committee.
At the Central Council (held once a year), management and labor unions discuss reforms in work styles, job satisfaction
among union members, the workplace environment, and other issues.
In addition, as part of our occupational health and safety initiatives, we have achieved a 100% health checkup rate and arethoroughly implementing follow-up measures, including follow-up on the results of the checkups. In addition, we implement"Kenko Juku," a hands-on health support program for all employees, a walking campaign in collaboration with the Nichirei
Health Insurance Association, comprehensive mental health measures starting with stress checks, and the implementation,
evaluation, and improvement of health and safety plans formulated by the Health and Safety Committee in cooperation
with related departments.
In recognition of these efforts, Nichirei Corporation was certified by the Ministry of Health, Labor and Welfare as an
excellent health and safety company.

154

● Management Framework
The proceedings of the Group Human Resources Committee, including occupational health and safety initiatives, areregularly reported to the Board of Directors.

Initiatives
Promotion of acquisition of the Occupational Health and Safety Management System
The Group aims to enhance its workplace and create a workplace that focuses on employees and offers a high level ofsatisfaction.
*

We have acquired OHSAS18001 , an international standard for occupational safety and health, at overseas one subsidiary.
The certified plant : GFPT Nichirei (Thailand) Co., Ltd. (FY2019)/ the ratio of certified plants is 0.6%.
* OHSAS18001 (Occupational Health and Safety Assessment Series)

Safety and Quality Training Centers Aimed at Achieving Zero Accidents
The top priority issues at Nichirei Logistics Group’s Safety and Quality Training Centers are safety, quality and theenvironment. The centers work to eliminate accidents involving personal injury at worksites and achieve zero accidents
involving products. We work to promote safe behavior at worksites through interactive education that involves active
trainee participation. To further improve safety and quality at worksites, we completed renovation of the Tokyo training
center in 2021 and the Nagoya training center in 2022. We conduct classroom training as well as practical training thatutilizes digital technologies such as virtual reality (VR) tailored to the features of each worksite.

Training textbooks created by Nagoya Nichirei Service

VR training

155

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 and experiencegive 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 FY2023, 67 employees
participated in the training. We also provide training on occupational safety and health through training for key personnel ofquality improvement, and 28 employees participated in the training up until October 2022.

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

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

Driver safety training (Logistics Network)

156

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 wereidle for less time led to their having less of an environmental impact.

Driver contest
Safe Workplaces, Better Service
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).

157

Safety at Food Factories
Nichirei Foods has identified three priority measures for safety-related activities at food factories: safety patrols, near-missrelated activities and the mandatory observation of safety rules. Monthly safety patrols are tailored to each factory, witheffective checklist items determined based on worksite feedback. Patrols are conducted mainly in the early morning and late
at night, when fewer managers are on staff. We also ask employees to share workrelated 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 nearmisses. 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
The Nichirei Group provides occupational health and safety training and other training for foreign technical interns before
they start on-the-job training at the Group’s food factories in Japan. This helps to prevent occupational accidents andfacilitates health management for the interns, who are adjusting to life in another 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 worksafely and healthily with purpose.

Bilingual poster in Japanese and Vietnamese

Holding Japanese language speech contests

Health Supervisor
ESG Data Collection Health Manager

158

Labor–Management Council with the Labor Union
The Nichirei Group has established the Central Council, a labor-management council involving the Company in Japan. It
convenes annually based on a collective agreement. Consisting of 13 members from management and 13 members fromthe labor union, the council engages in frank discussions on issues such as the Group’s business development,
improvements to business operations, and the welfare of union members. (In FY2023, the scale of the event was reduced
to prevent the spread of COVID-19.)

Nichirei Labor Union Newspaper 99

Dialogue between Employees and Management
Every year since 2011, Nichirei Foods and Nichirei Fresh have held dialogue sessions between management and employees.
The aim of these sessions is to promote the Nichirei Group’s Mission and Vision, create an open, communicative workplace
and listen to the valuable opinions of employees working on the factory floor. Each session provides an opportunity for
management to directly convey their thoughts, and for employees to talk with management about issues that interest themand to share their ideas.

Nichirei Foods “Agura” dialogue between employees

Nichirei Fresh “OPEN DOOR” dialogue between

and management

employees and management

159

Nichirei Logistics Group “The First Choice of Clients” Awards
In FY2008, Nichirei Logistics Group introduced “The First Choice of Clients” awards based on a desire to always be the first
choice of customers in the food logistics industry. These awards recognize regular employees, temporary employees, parttime workers and employees of outsourced service providers for their contributions to improving the value of customer
experiences and creating a satisfying workplace. At the 17th (FY2023) awards ceremony in May 2023, a total of 28
individuals and teams from Japan and overseas received awards.

Engineering team from SCG Nichirei Logistics Co., Ltd.

Logi Kansai Logicity, Nichirei Logistics Kansai, Inc.

“The First Choice of Clients” Awards ceremony (FY2023) (Only available in Japanese)160

Cultivating Human Resources and Improving Work
Satisfaction
Basic Philosophy
In conducting business, the Nichirei Group places the greatest importance on human resources. To realize our vision for2030 based on our Sustainability Policy, we need to make our stance on human resources clear. We therefore establishedthe Nichirei Group philosophy on human resources. We have also determined the kind of human resources we need and theorganization that we aim to be under the Group Human Resources Policy.
We have set out five human resource-related strategies based on our philosophy and the Group Human Resources Policy.
We will consider and then implement specific human resource initiatives, share information, and check their progress.

Our Philosophy on Human Resources
Human Resources Are Critical to Our Sustainability Policy

They are key to helping us support good eating habits and health, which will lead to a more sustainable society
Through diversity and motivation, they boost the Group’s development
Their strategies, linked to those of management, underpin the social value of our human resources and promote
behavioral changeGroup Human Resources Policy(The Kind of Human Resources We Need and the Organization That We Aim to Be)
Encourage empathy; usebusiness to resolve social
issuesDevelop proactive human resources by aligning employee aspirations with theGroup’s targeted social impact, based on the idea that food connects people

Generate value by linking
knowledge, digitaltechnologies

Create an organization that contributes to good eating habits and health byincorporating a range of perspectives, as well as using data and digital technologies
in response to environmental change

Cultivate a safe, secure
corporate culture to tackle
challenges

Communicate work-related ideas, develop mutual trust, and cultivate a corporate
culture that can tackle challenges without fear of failureGroup Human Resources Policy

161

Human Resources Strategies(Five Perspectives to Help Bridge the Gap between the Ideal Situation and Now)

Eight Themes Based on Our Human Resource Strategy●Health management●Work satisfaction

Perspective

1

2

3

4

●DE & I

●Creation of new value●Personalized learning opportunities●Labor

Theme

Objective

Improve employee
performance throughhealth maintenance andpromotion

We will promote measures to reduce presenteeism andabsenteeism, with the aim of ensuring that all Group
employees, regardless of age or gender, are both
physically and mentally healthy at all times and areworking with enthusiasm.

●

Strengthen therelationship of mutual
trust between the
Company and its
employees

Because mutual trust between a company and its
employees (engagement) correlates with businessperformance, we aim to improve engagement bymeasuring and analyzing engagement levels andimplementing a PDCA cycle to address issues.

●

Provide opportunities towomen employees andrealize their active
engagement

As the percentage of motivated women employees inmanagement positions increases and both employee
attributes and values regarding work diversify, we willreassess the male-dominated workplace and deploy
measures to fully leverage the abilities of all motivatedemployees.

Develop humanresources to support
overseas businesspromotion

Since the growth of overseas business is essential toachieving management goals, we will increase thenumber of human resources able to play an active roleinternationally. Measures will include providing
opportunities to acquire the skills necessary to promoteand support overseas business, offering career paths
that include overseas business experience, andencouraging employees to take on challenges overseas.

●

●

●

●

162

Perspective

5

●

6

7

●

●

●

●

Theme

●

●

●

8

●

Objective

Educational practices
related to digital andsustainability

We will raise the overall level of employee digital skills
by providing educational opportunities related to digitaland sustainability as basic skills that will be required in
the coming era and society, in addition to offering
further learning opportunities to motivated individuals.

Provide independent
learning opportunities
and practice

By identifying the staff size and the types of skills
necessary to implement management measures and byclarifying employee skills, we will create a system thatenables employees to understand their own strengths
and deficiencies and to independently learn the skills
and acquire the knowledge they need. To underpin thisinitiative, we will also foster a corporate culture of selfdirected study.

Obtain new perspectives
from inside and outside
the Group

To both resolve social issues and grow our business, wewill create mechanisms and provide opportunities toencourage the revitalization of the organization and theacquisition of new knowledge through the exchange ofhuman resources and knowledge both inside andoutside the Group.

Compliance with laws
and regulations andmaintenance of a safe
and secure working
environment

Labor and management will work together to maintainand improve workplace environments and systems thatallow employees to work safely and with peace ofmind.

Note: KPIs have been set for themes 1, 3 and 6.

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.
The Group Human Resources Committee and Diversity Promotion Council are organized across the Group, and the above
two meeting bodies share information and confirm progress on measures to improve work satisfaction, which are being
promoted by each company.

163

Initiatives
Implementation of Digital Transformation (DX) Training
Medium-term Business Plan Compass Rose 2024, which began in FY2023, promotes the use of data and technology in the
Nichirei Group as a high-priority human resource development measure, and we have been expanding learning
opportunities tailored to individuals.
In the final year of Compass Rose 2024, we aim to appoint a Digital Leader in each department of our main operatingcompanies in Japan to promote the use of data and technology. The program will be implemented in tiers, from DX Bronze—the introductory program providing the essential points of digital literacy—to DX Silver and DX Gold. DX Bronze targets all
employees (approximately 3,500 people) at our main domestic operating companies, who are scheduled to complete thisprogram by the end of FY2024. DX Silver and DX Gold will then provide learning programs tailored to individualcompetency levels.
DX Training Program

Hours of Study for DX Training Program (Three-Year Plan)

164

Implementation of Sustainability Education
The Nichirei Group has been ramping up sustainability management by implementing position-based study sessions andeducation and training programs for all levels of employees since FY2023.
FY2023–FY2025 Plan for Position-Based Sustainability Training

Study Sessions on Sustainability (For Management)
Objective

Learn the latest sustainability information and trends, measure their impact on management, anddeploy that information in management strategies in both financial and non-financial contexts.

Targetparticipants

Directors, Audit & Supervisory Board Members, Executive Officers (Outside directors, outside Audit &Supervisory Board members, operating company management members and general managers may
participate voluntarily.)

We deepen learning by inviting experts to conduct lectures on topics such as sustainability management, sustainableprocurement, business and human rights, climate change, a circular economy, biodiversity, and diversity of humanresources.

165

●Study Sessions on Sustainability in FY2023

Date

Theme

Lecturer

Number ofparticipants(number of
directors inparentheses)

Percentage
of Company
directors
attendingSession1

April 26, 2022

Sustainability Challenges
Faced by Corporations

Kenji Fuma, CEO,
Neural Inc.

124 (6)60%

Session2

May 24, 2022

The Future of Food andTransportation

Kenji Fuma, CEO,
Neural Inc.

127 (7)70%

Session3

June 28, 2022

Sustainable Procurementand Human Rights Issues

Hidemi Tomita,
President, LRQA
Sustainability Co.,Ltd.

139 (8)80%

Session4

August 23,
2022

The Importance of SDGs
and the Significance ofCorporate Initiatives

Kazuo Tase, CEO,SDG Partners, Inc.

131 (9)90%

Session5

September 27,
2022

Business Transformation toa Circular Economy

Shinichi Tabei, Amita
Holdings Co., Ltd.

140 (10)100%

January 24,
2023“Human Rights” Tackled in
the Supply Chain– What is the Human
Rights Due Diligence
Expected of Companies
Nowadays?

Hiroshi Ishida,
Executive Director,
Caux Round TableJapan

154 (10)

100%

Session6

Study Sessions on Sustainability

166

SDGs and Materiality Training “One for Future”（For Managers or Above）

Objective

Encourage a sustainability mindset and behavioral change by providing participants with anunderstanding of Nichirei’s sustainability management goals and a simulated experience of achieving
both social and economic value through the resolution of social issues.

Targetparticipants

All managers or above (Approx. 1,300)

We initiated training for all Nichirei Group managers or above, approximately 1,300 individuals, in August 2023. The
training employs a unique online business card game called “One for Future”, which incorporates information on the Group’s
assets and material matters to deepen thinking about how to achieve both social and economic value. Participants assemblein teams (as members of different operating companies from the ones they belong to) to think about the social issues they
can resolve using the Group’s strengths and capabilities.

The Nichirei business card game “One for Future”

How to Think about SDGs and Social Issue Resolution（For New Employees and Newly Appointed Managers）

Objective

Inculcate understanding of Nichirei’s sustainability management vectors and how they relate to its
material matters. Encourage participants to think about social issues the Group can help resolve, theirrelevance to each participant’s own work, and the mindset for resolving those issues.

Targetparticipants

New employees and newly appointed managers

Teams think about business models through which the Group’s capabilities and strengths can be deployed to achieve bothsocial and economic value while resolving social issues.

Training materials (excerpt)

167

Sustainability E-learning（For All Employees）
Objective

Acquire basic knowledge about the SDGs and ESG related to our business activities.

Targetparticipants

All employees

We conduct activities related to SDGs and ESG relevant to our material matters, which encompass the environment,
society, human rights, and sustainable food, in conjunction with global events. We also use videos to help participants easily
understand and learn technical terms.

E-learning (theme)

FY2023Global event

Attendance
rate

May

Circular Economy

May 22

International Day for
Biological Diversity

97.1%

November

SDGs Overview

November
20

World Children’s Day

93.8%

DecemberBusiness and Human Rights

December10

Human Rights Day

93.9%

June

Environment (CO2
Emissions Reduction

June 5World Environment Day

93.8%

July

Environment (Global
Warming)

July 7

Cool Earth Day

93.1%

September

SDGs Overview

1 weekincluding
September
25th

SDGs Week

93.2%

DecemberBusiness and Human Rights

December10

Human Rights Day

94.2%

FY2024

Sustainability Portal Site（For All Employees）

Objective

Targetusers

An intranet information platform available to all employees. In addition to disclosing the progress of theGroup’s sustainability activities and material matters, it also provides content on sustainability and ESGrelated subjects for individuals who want to deepen their understanding.
All employees

Sustainability Portal Site168

Level-based training plan (Holding company)
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
belonging

New hires,
employees intheir second andthird years of
employment

Nichirei Group Main education and training

Nichirei Group Education time and number of participants

Diversity, Equity & Inclusion: The Advancement of

Women Employees

To achieve sustainable growth, the Nichirei Group will secure and develop diverse human resources while fostering an
inclusive corporate culture in which everyone can make the most of their strengths.

169

Nichirei Foods Initiatives
Nichirei Foods launched its Diversity Promotion Department in 2022, and is carrying out a variety of activities with the goalof creating an environment where diverse people can do work that is satisfying and allows them to demonstrate theirunique skills. In this context, we have positioned the advancement of women employees as an important issue forpromoting diversity and inclusion. We are therefore implementing measures to help employees advance their careers while
taking into account their individual life stages and values. These measures include providing opportunities for women to
proactively think about their careers, creating networks among women employees, and enhancing welfare programs to
support work-life balance.

Diversity Promotion Department, Nichirei Foods Inc.
Kumiko Kubo (left), and Yurika Tsurutani (right)●Career Advancement Seminar for Women: Research & Development and Product Development Department
In March 2023, the Research & Development and Product Development Department held a seminar for their women
employees in management positions, with the aim of nurturing women in management and resolving career concerns
specific to their job types. The first half of the seminar featured a lecture by a woman director from outside the Group witha career in product development, and in the second half participants broke off into working groups to exchange opinions.
Many participants indicated they were able to envision taking on challenges to advance their careers. They also indicatedthat they found the seminar’s suggestions for solving problems and thinking positively from a woman’s perspective very
helpful for dispelling concerns about career building and embracing a growth mindset.

170

●Initiatives in the N-win Project for Women Employees
The N-win Project launched in 2021 aims to improve the job satisfaction of Nichirei Foods’ women employees. It involves
conducting employee surveys and other initiatives that address feedback from the workplace obtained from the surveys. In
FY2023, the project included a total of four roundtable discussions in which 69 women employees in their 20s participated.

Roundtablediscussions

Total of four (Monthly from November 2022 to February 2023)

Participants

69 women employees in their 20s and their supervisors (Total of 77 people)

Panelists

16 people (Four people x four times); mainly people in their 30s from various occupations
and areas

Executive Comments

Emi Kataoka
Managing Executive Officer
General Manager, Diversity
Promotion Department
Nichirei Foods Inc.
Nichirei Foods is responsible for the Group’s processed food business, and it must respond quickly and flexibly to the everchanging needs of society and customers. We must therefore leverage the unique perspectives and experiences of womento incorporate new ideas when developing and marketing products and services. The Diversity Promotion Department will
provide diverse role models, career support, work-life balance support, and leadership development as it continues striving
to foster a workplace culture in which women are healthy, lively and satisfied with their jobs.

171

Nichirei Logistics Group Initiatives
The Nichirei Logistics Group places the highest priority on diversity, equity and inclusion (DE&I) in order to innovate.
Unconscious bias has a major impact on how DE&I is promoted, and many women themselves believe that their role is in
the home and that the genders have differing abilities to perform work. While men currently dominate the logistics industry,the Diversity Promotion Department leads the implementation of measures for the advancement of women employees in
the workplace, an issue that we will continue to address in promoting diversity.

Members of Nichirei Logistics Group’s Diversity Promotion Department●Training for Women Who Are Managers or Above (from FY2022)
The results of a survey conducted by the Nichirei Logistics Group revealed that while men rarely have concerns after being
promoted to a position, the majority of women harbor a degree of hesitation or concern. Less than one in four womensurveyed viewed the increase in discretion as a result of being promoted to a higher position positively. Therefore, we haveinitiated training for women who have been promoted to provide them with insights about the mindset and work styles ofmanagers. A key feature of this training is that the curriculum inculcates a mindset that enables supervisors to broaden thescope of their responsibilities. Because they take part in the program alongside trainees, supervisors are cultivated as
division managers able to support the development of women managers.

* Planned for Eastern Japan; held voluntarily as a result of each operating company’s diversity activities.

172

●Women-Advance-Meeting (WAM; from FY2023)
Many people in the Nichirei Logistics Group have never seen women working in management positions at distribution
centers and cannot imagine a woman having a management career. Therefore, we started conducting WAMs in FY2023 toprovide an opportunity for our people to learn about women working as managers, and as an opportunity to build personal
networks beyond the worksite. We hold five-person WAMs—comprising two managers and three regular employees—fourtimes a year for 60 minutes each. They are a meaningful, pleasant forum for people to interact and think about theircareers.

173

Work Satisfaction
The Nichirei Group aims to further improve productivity and create a vibrant workplace by welcoming diverse humanresources, values, and ideas to energize the organization. In FY2018, we established the Nichirei Group Workplace Reform
Policy. Each operating company set goals based on the policy and promoted various initiatives over the five years throughFY2022. The Group Diversity Promotion Council and the Group Health Promotion Council were organized under the Group
Human Resources Committee as organizations to enhance work satisfaction. These organizations discussed humanresource strategies that would contribute to the realization of the sustainable growth of the entire Group, exchanged
opinions on measures, shared information, and confirmed progress.

■Work Style Reform: Main Measures and Activity Progress (FY2019–FY2022)
Policy

Ideal
State

Priority
Measures

Enable diverse working styles

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

Establish
systems toprevent
circumstances
includingchildbirth,childcare,nursing care,poor health,relocation ofa spouse, ordisease from
disrupting or
endingemployees’
careers.

Increase
working
condition
options

Createsystems for
employee
careercontinuity

Prevent
excessive
working
hours

Ensure equal opportunity

Reformworkstyles
throughlabormanagement
collaborationto achieve
appropriate
working
hours thatallow
employees
to behealthy,
have jobsatisfaction,and fully
demonstrate
theirabilities.

Promotepaid leave

174

Help make employees avaluable asset for the
Nichirei Group by
providing equal
opportunities andeducation.

Embrace thephilosophyof aninclusive
society that
does notdiscriminate
on the basisof physicallimitations tocreateworkplaces
andemployment
opportunities
that enablepeople withphysicalchallenges toearn a living
throughstimulating
work.

Address
longerhealthy life
expectancy
byleveraging
the uniqueexperienceof olderemployees
and creating
opportunities
for them tosucceed inline with
their
particularvalues andwork styles.

Promote theadvancementof women
employees

Providestimulating
employment
opportunities
for people
withdisabilities

Createemployment
opportunities
for seniors

Diversity
andinclusion

Initiatives to Encourage Childcare Leave
In line with the October 2022 revision of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfareof Workers Caring for Children or Other Family Members, the Nichirei Group has revised its childcare leave system.
Although the Nichirei Group’s system exceeded statutory requirements prior to the act’s revision, the Group addressed therevised regulations by enhancing its system in ways such as establishing childcare leave at the time of childbirth andchildcare leave that can be divided into installments until the child is one year old, with both leave systems aimed at men.
We also provided more options for taking childcare leave.
Taking this revision as an opportunity, Nichirei Group management met with the labor union to discuss and set a target of
100%* of male employees taking three or more days of absence or leave for childcare. By setting these targets,
encouraging men to participate in childrearing and expanding opportunities for women to play an active role in theworkplace, we aim to achieve work-life balance for both men and women during their child-rearing years.
* We set this target for male employees because when women employees give birth, 100% of them take childcare leave.

Employees Using Time Off for Childrearing

Percentage of Male Employees Taking Childcare Leave

175

176

Next Generation Development Guidebook
This guidebook focuses on the Nichirei Group’s absence and leave systems for childbirth and childcare, with the aim ofhelping both men and women achieve work-life balance during childrearing years. The guidebook has sections for womenand men that provide information on support for balancing work and childcare, prenatal preparations, and necessary
procedures at each stage from childbirth to the return to work.

The Next Generation Development Guidebook

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.
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.

Pay Gap between Male and Female Employees

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.

Labor union activities and labor-management cooperation

Number of employees (by type of employment, by level, and by gender)

Number of employees hired (new graduates and career)

Percentage of non-company Employees

177

Creating Stimulating Employment Opportunities for People with Disabilities
The Nichirei Group actively promotes the employment of people with disabilities, 33 of whom work at Nichirei Aura Inc., aspecial Group subsidiary. They are engaged in a wide range of operations, including cleaning of office interiors andmaintenance of green spaces at the Head Office, the food factories of Group companies, and distribution centers. The
Group will continue to create comfortable workplace environments for people with disabilities.

Employment Rate of People with Disabilities

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.

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.

178

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 and preferences of
Nichirei Foods employees, and to create workplaces in which all members are motivated to work.
Providing Employment Opportunities for Seniors

In 2002, the Nichirei Group set up the Senior Staff System to provide employment opportunities for employees onretirement. 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 staff members, whose experience and knowledge contribute to Groupdevelopment.

Lecture on frozen foods during a virtual factory

Senior staff member teaching elementary school students

tour

about food

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, located in the Tsukiji district of Tokyo’s Chuo
Ward. This is one of the Group’s workstyle reforms, 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 workplace

Volunteer Leave System

The Nichirei Group supports employee activities through its volunteer leave system.

Number of employees taking time off in order to volunteer

179

Past Initiatives (2017-2021)
The Nichirei Group considers its employees to be irreplaceable and refers to them as "human assets" rather than "humanresources." (Only for Japanese notation) By accepting diverse human resources, values, and ideas and revitalizing theorganization, we aim to further improve productivity and create an energetic workplace. In 2017, we established the"Nichirei Group Workplace Reform Policy," and each operating company set targets based on this policy and promoted
various initiatives over the five years through FY2022.
The Group Diversity Promotion Council and the Group Health Promotion Liaison Committee were organized under the Group
Human Resources Committee as organizations to promote the "enhancement of job satisfaction." These groups discussed
human resource strategies that would contribute to the realization of sustainable growth of the entire Group, exchanged
opinions on measures, shared information, and confirmed progress. ​Enable Diverse
Working Styles

Provide working
condition options

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

Set up systems toprevent disruption of
employee careers

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

Prevent excessive working hours

Ensure Equal
Opportunity

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

Promote theadvancement of female
employees

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

Provide stimulating
employment
opportunities for people
with disabilities

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

Create employment
opportunities for older
peopleAs people live longer, healthy lives, opportunities shall becreated to allow older people to play an active role in theworkplace by drawing on their particular skills bearing in mind
individual working styles and values.

180

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 labor andmanagement twice a year to monitor measures undertaken at each Group company in relation to humanrights, 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 wellas the employment of and collaboration with, the disabled.
The president of each Nichirei Group operating company is responsible for building systems that develop

Human Assets
Development

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.

■Workstyle Reforms: Main Measures and Activity Progress (FY2019–FY2022)
PolicyIdeal State

Enable Diverse Styles of Working

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
MeasureMain Activity
FY2019FY2020New in-house
Provideworking
condition
optionschildcare facility
Opened in theTokyo head officebuilding in April
2018

FY2021

FY2022Introduction of

Expansion of Satellite
Offices in the
Logistics Group

Full-scale
introduction ofSuper-flexible
working system,

teleworkcore time

All worksites
except foodeliminated except
at some work sites

Umeda (opened in
February 2022)

factories andsuch as factories

logistics offices

and distribution
centers

SateCo Yokohama

SateCo Osaka(opened in March
2022)

Expansion ofIntroduction of
comeback system
Purpose: Ongoingcareer support forlife events andgrowthImplementation of
Systems 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.

career

Set upsystems toprevent
disruption of
employee
careers

Leave system due
to spouse transfer

development
programs for

Purpose:women Women’s

Examination andsuccess event“Next Step for

introduction ofmulti-career

2021”

formation in

Target: 163 people

collaboration withother companies

Nursing careseminar Conducted

Nursing carefour times, 115participants

seminars andnursing carehandbook creation
Conducted fourtimes, 103participants

childcare 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 (60minutes each), 60
total participants
Information(provided on
intranet) on
support forbalancing nursing
care with work

181

Care-giving Seminar(held online)

31 participants
Support forbalancing work andmedical treatment,
reviewing the flowof measures for
returning to workand reinstatementin the workplace,and strengthening
the occupational
health staff system

Policy

Ideal State

Priority
MeasureMain Activity
FY2019FY2020

FY2021

FY2022Prevent Excessive Working Hours

100% introductionof new working
hours management
systemThrough collaborativelabor andmanagement
initiatives forworkplace
improvement,
working hours shallbe limited to levels
that allow each
employee todemonstrate theirability and perform
satisfying work ingood health.

Introduced new
expense settlement
systemGuidance on long
working hours
through

Introduced planned
five-day annual

introduction of aleave system

working time
management
Promotion of
paid leave

Implemented elearning: Revised

systemlabor laws,

Implementation of
measures against

working-hourawareness Target:

overwork throughEmployees; 5,101

labor-management
collaboration

participants

Nichirei Groupmeasures against

working hours
guidelines

overwork throughlabor-management

formulated throughcollaboration

Implementation oflabor-management
collaboration

182

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

Continued
implementation of
overwork measuresthrough labormanagement
cooperation
Average paid leave
rate: 68.3%

Policy

Ideal State

Priority
MeasureMain Activity
FY2019FY2020

FY2021

FY2022

Ensure Equal Opportunity

Foods:
Logistics Group:

Implementation of

5th and 6th“Sakaseru Roji-Joa joint program by
six "LADY GO UP"

Logistics Group:
7th and 8thForum”
Target: Female“Sakaseru Roji-Jo

employees; 129
participants (404Forum”
Target: Female
employees; 118

participants intotal) Theme: Workvalues andparticipants (522participants intotal)

workplace for
Promote theadvancementof female
employees

women

Nichirei Foods:

Nichirei Foods:

LADY, GO
UP!Target: Female

LADY, GO
UP!Target: Female
employees at 6

employees at 6
food manufacturing
companies (8food manufacturing
companies (8female Nichirei

female Nichirei
Foods employees
participated)

Foods employees
participated)
Summary: Seminar

Summary: Seminarfood manufacturers
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

for building
external networks

for building
external networks
and career

Foods:
Implementation ofa program topromote theadvancement offemale employees(Networking Agura(round-table
meeting))
Logistics Group:
Implementation oftraining for femaleline managers
accompanied bysupervisors.
(Expected effects)
Expansion of job
areas
Setting the ideal
image andstepping forward

development

Networking
Nichirei Foods:

In providing
employees with equal
opportunities andeducation, we
support theirdevelopment into avaluable force for the
Nichirei Group.

Diversity Forum・Lecture held
(February 25,
2021)
・Target: Officers(8 participants)
and employees(approx. 140
participants)

Diversity andinclusion

Nichirei Foods:

Nichirei Foods:

Diversity Forum
DeepenDiversity Forum
Deepenunderstanding ofunderstanding ofvarious work styles
centered on

various work styles
centered on

department anddepartment andsection managers
at each of 6 foodsection managers
at each of 6 food

manufacturing

manufacturing

companies. 35
Nichirei Foods

companies. 60
Nichirei Foods

employees (26employees (46men, 9 women)men, 14 women)

Implementation of
the diversity forum"SPIRAL UP”
Logistics Group:
Appointed diversity
officers at each

Nichirei Foods:

regional company

Meeting of generalmanagers from 6

Logistics Group:

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)183

Foods:

Disseminated andshared information
on diversity andinclusion activities
through theintranet (MIRU
mind)
Logistics Group:
Implemented
Unconscious Bias
e-Learning* Total number of executives
and positions: 450 / Total
number of generalemployees: 1,340

Logistics Group:
Unconscious Bias
Organization
Analysis (12domestic
companies)

Policy

Ideal State

Priority
MeasureJob positions andemployment
opportunities forpeople withdisabilities shall becreated to enable
them to earn a living
through stimulating
work, with a vision toultimately eliminate
the distinction
between people withor without disabilities
insociety.

Providestimulating
employment
opportunities
for people
withdisabilities

As the healthy life
span of people
becomes longer, we
will create
workplaces thatenable seniors toleverage their
distinctive experienceand play an activerole
reflecting theirindividual values andworkstyles.

Createemployment
opportunities
for olderpeopleMain Activity
FY2019FY2020

FY2021Disabled

Disabled

Disabled

employment rate:
2.56%

employment rate:
2.75%

employment rate:
2.80%(104 people with(101 people with(101 people withdisabilities

disabilities

disabilities

employed)

employed)

employed)

FY2022

Ratio of employeeswith disabilities:
2.80% (Number of
employees withdisabilities: 101)

Number of
59 employees

57 employees

51 employees

rehired after

rehired after

rehired after

retirement (64retirees)

retirement (65retirees)

retirement (59retirees)

184

employees rehired
after retirement:
27 (Number of
employees who
retired after
retirement: 33)

Health Management
Basic Philosophy
Since FY2016, the Nichirei Group has been promoting initiatives based on the concept that the health and wellbeing of
employees is fundamental to increasing their work satisfaction. The maintenance and improvement of employee health has
been set as a management issue, and the Nichirei Health Promotion Center plays a key role in our efforts.

Purpose for the Nichirei Group Health Management

185

Management System
In FY2016, the Health Promotion Group was established in Human Resources Strategy & General Affairs as the section
dedicated to health management. In FY2017, the Group formulated the Nichirei Group Health Declaration and Group HealthManagement Standards. In addition to publicizing this declaration both internally and externally, the Group has appointed aholding company health promotion manager as well as operating company health promotion managers andrepresentatives. In April 2018, the Health Promotion Group was reorganized into the Nichirei Health Promotion Center toensure that the entire Group is thoroughly informed of the policy and to promote measures promptly.

Nichirei Health Promotion Center employees

186

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

Nichirei Group Health Management Strategy Map
Management issues to be resolved by health management is the Embodying the Health Declaration, and we aim to ensurethat our employees, who are responsible for “Creating Savory Moments,” always work vigorously and are in good physicaland mental health, regardless of their age or gender.

187

Initiatives
Health Management Initiatives
Improving Employee Performance by Maintaining and Improving HealthAs for regular health checkups, x-ray examinations for early detection of tuberculosis and various cancer screenings are
conducted, and thorough follow-up measures are taken by occupational healthcare staff. In addition, we conduct healthawareness activities and stress checks, and implement various health promotion measures such as a hands-on healthsupport program for employees that utilizes Nichirei Foods' frozen health management meal Kikubari-GozenTM.
We support good eating habits and health. As such, we promote measures that enable our employees to always work
vigorously and in good physical and mental health, regardless of their age or gender. To reduce absenteeism andpresenteeism we make enhancements to our occupational health systems, conduct health literacy education, and provide
support for balancing medical treatment and work. In recognition of these efforts, we were chosen for inclusion in the 2023
Health and Productivity Stock Selection. This is our third selection, following FY2021 and FY2022 selections. Moreover, wehave also been recognized under the Certified Health and Productivity Management Organization Recognition Program inthelarge enterprise category for seven consecutive years.

Absenteeism※1
Presenteeism※2

FY2023 Results

FY2025 Targets

FY2031 Targets

3.6 days

2.6 days

1.0 days

79%

85%

90%

※1 Lost workdays due to poor physical or mental health/Avarage absebteeism in Japan: 2.6 days (referred by Ministry of Economy, Trade and Industry)※2 Actual performance level, compared with normal performance level (set at 100%)/Avarange presenteeism in Japan: 85% (referred by Single-Item
Presenteeism Question)

List of Certifications

Physical Examinations and Follow-Up Measures

Since FY2019, we have achieved a 100% annual health checkup rate for our employees in Japan. In addition, with the aimof achieving zero deaths in service (while employed by the Company) we provide follow-up measures that include
interviews and guidance from public health nurses via e-mail or other online tools, based on the judgment of an
occupational physician.
In particular, we are enhancing support for people with work restriction scores by requiring periodic treatment confirmation
based on the revised employment regulations.

188

●Regular Health Checkups by Overall Score (%) (Including Non-statutory Items)

Health Management for Japanese Employees Working Overseas
We are enhancing initiatives to ensure that employees working overseas receive the same health management support as
employees working in Japan.
●Interviews with Public Health Nurses for Japanese Employees Posted Overseas
We are conducting online public health nurse interviews using Teams to maintain and improve the health of employees
working overseas. In addition to interviews before departure and upon return to Japan, in FY2023 we also initiated annualinterviews during overseas assignments to detect employees with health issues early on, provide support, and understandthe health issues unique to working overseas. In FY2023, we conducted interviews with public health nurses forapproximately 100 people, including those who requested health consultations themselves and those for whom supervisors
made the request.

An online interview with a public health nurse

189

Mental HealthHaving started with stress checks, we implement an integrated mental health strategy. In addition to helping employeeswith mental health concerns, we promote good mental health through inculding revitalizing workplace communication.

Rapid change in the workplace environment in recent years has increased the chance that managers will be faced with
employees’ mental health issues. Responding to this situation, the Nichirei Group renewed its mental health education
program in FY2024.
Theme: Improvement of mental health-related skills for managers
Changed from voluntary to mandatory training.
(All managers are expected to complete the training within four years.)Care is also provided for managers, who are burdened by their responsibilities.
Expanded from online-only training to include in-person training as well.
I ntroducing a system for certifying those who complete the training. (To make it easier for such individuals to actively
promote mental health in their respective workplaces, and to establish a network linking them across the organization sothey can share information.)190

Enhancing our occupational health system
Aiming that employees to have access to the same level of health promotion services anywhere in the country, weassigined public health nurses in Tohoku, Kansai, and Kyusyu areas by FY2022.
In FY2023, public health nurses at Health Promotion Center began visiting 13 large workplaces in the Tokyo metropolitan
area. The activities include individual support, such as interviews with those who have received a "D" rating after healthcheckups to prevent serious illness, and mental follow-up for high-stress individuals and those who have returned to work.
In addition, we provide health guidance on lifestyle improvement and stop-smoking.
For large organizations, holding health classes in accordance with the health issues at workplaces and conducting workplaceinspections.

Improve health literacy
ーHealth-related EventsーTo provide employees with specific health promotion opportunities and help them avoid lifestyle-related diseases, we havebeen holding hands-on health-related programs regularly since FY2017. With the important issues of "blood pressure,""blood glucose," and "lipids" as themes, the pathophysiology, diet, and exercise sections are explained by specialists in eachsection, and there are also hands-on learning activities such as flexibility tests and quizzes, allowing the learners to deepen
their understanding while having fun. Special seminars on various topics such as "Dietary Seminar for Shift and Late Night
Work," "Sleep," and "Mental Health" were also held to promote health and improve productivity. In questionnaires, morethan 92% of participants at each seminar responded that the event was "beneficial." Due to the COVID-19 pandemic, we
switched to an online format in FY2021, and since FY2022, we have been holding monthly sessions so that more
employees can participate. 5,725 employees participated in total by the end of FY2023.
In FY2023, the results of health checkups showed that the percentage of patients with poorly controlled diabetes decreased
from 1.8% to 1.3% and the percentage of patients with well controlled hypertension improved from 40.6% to 47.6%.
Furthermore, in order to contribute to "promoting good health throughout society," including our stakeholders, we arewidely inviting employees' families and business partners to participate in the health-related events, "Nichirei Kenko Juku,"
with the aim of promoting efforts to address health issues beyond the Group's framework.

Health-related event, called Nichirei kenko Juku

191

ーSupport for Balancing Medical Treatment and WorkーWe aim to create a workplace environment in which Nichirei Group employees who develop a disease or condition that
requires long-term medical treatment can stay in their jobs and balance treatment and work with peace of mind.
The three fundamentals of our measures are treatment-work balance consultation, education and awareness, andcooperation among Group companies.
Treatment-work balance consultation involves annual interviews with affected individuals who interact with public healthnurses, so that we can find out more about their opinions and requests regarding appropriate measures.
In May 2023, we also began operating an online survey called Everyone’s Tweet Room to gather employee feedback.
We held three seminars for education and awareness in FY2023.

July 2022

Kenichi Ishii, Hulic Insurance
Service Co., Ltd.

Cancer, Money and Work20 participants

October 2022

Takashi Sekikawa, Supervising
occupational physician

Current Status of Cancer
Treatment

24 participants

February 2023

Chiaki Hara, Yotsubanokai

Caring for My Body

46 participants

We provide opportunities for employees to view cancer and other illnesses as personally relevant, obtain accurate
information, and think about creating a better work environment.
There are four seminars planned during FY2024.
In addition, we strive to disseminate accurate and reliable information through channels including in-house bulletin boards.

Everyone’s Tweet Room is a forum for employees to voice their thoughts about balancing medical treatment and
work.

192

ーWomen’s Health PromotionーIn January 2022, we conducted a survey of all employees in an effort to promote the Women’s Health Promotion policy.
The results revealed that there are female employees who are "troubled by women-specific health issues" and that many
male managers are "unaware of their troubles." Based on the results, we continue to hold seminars to improve the healthliteracy of our employees. In addition, by FY2024, we will introduce online medical care (menstruation and menopause) tobetter visualize ways in which improvements in physical condition can contribute to increased work productivity.
●Structure: Women's Health Promotion Policy●Education・Awareness: Conduct seminars regularly＜Online Seminars＞
On menstruation: July 20, 2022, 30 participants
On menopause : July 26, 2022, 62 participants
Seminar by Dr. son：March 8, 2023 84 participants

193

●Support: Menstrual and menopausal online medical treatment programーPrevent secondhand smokeー
Smoking has been prohibited during working hours since April 2022, and indoor smoking rooms were abolished at the endof March 2023.
We are working to educate all employees by providing e-learning programs on passive smoking countermeasures.
In addition, the Nichirei Health Insurance Association offers a stop-smoking program to those who wish to stop smoking.

194

ーHealth White Paper, Health Management Guidebookー
A health white paper and health management guidebook (for all employees in Japan, first edition in July 2020, second
edition in October 2022) have been published with the aim of creating an environment where each and every employee isaware of their health and proactively promotes their health.

Health White Paper (Only available in Japanese)

Health Management Guidebook (Only available in Japanese)195

Governance

GovernanceCorporate Governance

...

197

Compliance/Internal Control

...

210

Risk Management

...

216

196

Corporate Governance
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 that includes processed foods, marine products, meat and poultry products, temperature-controlled 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 operatingcompanies.
The holding company adheres to the principles of the Corporate Governance Code and views the achievement of fair andtransparent management as an important management issue. Accordingly, under the supervision of the Board of Directors,
we will continue to strengthen governance by promoting appropriate resource allocation, speeding up decision-making andensuring thorough compliance.
In addition, we have established ourselves as a company with an Audit & Supervisory Board system, an institutional design
specified within the Companies Act of Japan.

Basic Policy on Corporate GovernanceManagement System■Corporate Governance Structure

Corporate Governance, Integrated Report 2023

Corporate Governance Framework197

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

10 directors (4 outside directors)

Number ofmeetings in
FY202319

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.

198

Specific Discussions at Board of Directors’ Meetings
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 specificmatters discussed during FY2023 were as follows.
Management
Strategies

Establishment of KPIs for the Nichirei Group’s material matters (materiality) and the issues to beaddressed in order to achieve themMedium-term
Business Plan

Progress of Medium-term Business Plan Compass Rose 2024 and issues to be addressed

Sustainability

Formulation and promotion of the Group Human Resources Policy and the Nichirei Group’s
Sustainable Marine Product Procurement Guidelines and Sustainable Palm Oil Procurement Guidelines,
and issues to be addressed

Governance

The ideal state of a monitoring model-oriented Board of Directors, as well as revisions of the Board’s
official rules, regulations and the standards for agenda items in order to achieve said ideal stateBusiness
Strategies

Management strategy issues related to important domestic and overseas investments■Overview of Audit & Supervisory Board
Composition

5 Audit & Supervisory Board members (3 outside Audit & Supervisory Board members)

Number ofmeetings in
FY202316

Description ofoperations

As a body that is independent from the Board of Directors, the Audit & Supervisory Board
communicates with directors, the corporate internal audit departments and other departments of theholding company in accordance with the annual audit policy and audit plan to gather information andprepare the audit environment.

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

Role

Chairperson

Number of
Meetings in
FY2023Nominating
Advisory
Committee

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

Kuniko Shoji
OutsideDirector

8

Remuneration
Advisory
Committee

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

Kenji
Hamashima
OutsideDirector

5

199

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 oncea 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 theGroup’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.
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.

Notice of the 105th Anuual General Shareholders Meeting

Skill Matrix

The Nichirei Group believes that in order for the Board of Directors to effectively fulfill its roles and responsibilities, it must
be composed of both internal and external members with sufficient knowledge and experience in fields related to business
management. We have designated the following knowledge and experience as important from a corporate management
perspective. In addition to having appropriate experience in all of the following areas, the Company selects director
candidates based on the areas in which the Company has particular expectations.

■Skills Required for Decision-making in Management (Contributing to Medium- to Long-term
Corporate Value)
Corporate
Management

Demonstrated leadership in corporate management as a top executive; management
experience at a listed company with diverse stakeholders

ESG/Sustainability

Experience and expertise in promoting ESG initiatives; knowledge of and experience inmaking value judgments about ESG and social significance and sustainability for companies;
knowledge and experience in promoting corporate sustainability; experience and expertise in
human resource development related to continuously developing diverse human resources

GlobalCross-cultural communication skills and a high level of ability to get things done in overseas
business as well as knowledge and expertise about markets, economies and business in
specific countries and regions gained through experience including the management of local
subsidiaries

Innovation/Marketing

Knowledge and expertise that contribute to promoting innovation; experience and expertisein sales and marketing200

■Skills Required for Supervision in Management (Contributing to Ensuring Continuity of Management)
Corporate
Management

Demonstrated leadership in corporate management as a top executive; management
experience at a listed company with diverse stakeholders

Financial
Accounting/FinanceExpertise in financial accounting related to financial reporting and auditing; experience andexpertise in corporate financing and management

Legal
Affairs/ComplianceExperience and expertise in legal compliance, regulatory compliance, internal controls, andpromotion of norms and corporate behavior required by society; experience in the legal
profession; expertise and network related to quality assurance■Experience and Skills
Corporate
Management

ESG/
Sustainability

GlobalInnovation/
Marketing

●

●

●

●

●
(Logistics)●●●(Processed
foods)●●●(Marine,meat andpoultry
products)●●

Financial
Accounting/
Finance

Legal
Affairs/
ComplianceDirectors

●

●

●

●

●

●

●

●

●

●

201

●

●

●

●

●

●

Audit &
Supervisory
Board
Members

●

●

●

●

●

●

●

●

●

●

●

●

Officer Career Summaries (As of June 27, 2023)

Board of Directors Composition

Number of Meetings of Various Committees, etc., and Number of Board Members in Attendance

Succession Plan
The Company positions the succession plan for the representative director, president as one of its most important issues,and implements this initiative from a medium- to long-term perspective based on the Group’s Management Principles.
Specifically, the Nominating Advisory Committee, which is chaired by an outside director, carries out training, monitoring,and selection of successor candidates according to the selection process, and reports its findings to the Board of Directors
based on thorough discussions.
Based on the Nominating Advisory Committee’s report, the Board of Directors approves the proposed new Group officer
structure and decides on the representative director, president.

202

Officer Remuneration System
Design of the remuneration scheme for directors and executive officers incorporates the opinions of a third-party
organization. Remuneration comprises a base remuneration component and a bonus component. Base remuneration is paid
at a fixed rate determined in accordance with a remuneration schedule. Bonuses are paid according to 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.
①Policies 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 each 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 theopinions of shareholders and investors, and obtains information necessary for discussion from third-party agencies withextensive global knowledge and experience.
②Changes in Policies for Determining Officer Remuneration
We have decided to change the performance-linked bonus key performance indicator (KPI) in conjunction with the start ofMedium-Term Business Plan Compass Rose 2024 in FY2023. Specifically, ROIC and profit were selected to replace REP1 inorder to optimize the business portfolio and improve capital efficiency and shareholder returns. In addition, we adopted a
new way of utilizing ESG third-party assessments2 to strengthen our response to sustainability-related issues. There are noother significant changes in the policy for determining officer remuneration.

■Company-wide KPIs for Performance-linked Bonuses
Before Revision (Up to
FY2022)After Revision (FromFY2023)

Reasons for Selection of KPIs

Consolidated net sales

Consolidated net sales

Expansion of size of Company

Consolidated EBITDA

Consolidated EBITDA

Improvement of ability to generate cash and profitabilityof core businesses

Consolidated profit

Improvement of shareholder returns

Consolidated ROIC

Optimization of business portfolio and improvement of
capital efficiency

ESG third-party*2
assessment

Strengthen response sustainability-related issues

Consolidated REP―*1*1 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.
*2 For ESG third-party assessments, we utilize the assessments of multiple ESG assessment organizations to ensure objectivity and fairness. Specifically,
we will utilize the following three types of assessment.

203

ESG Third-party Assessments

FTSE4Good Index Series
MSCI ESG Ratings

Reason for Selection

Appropriate management of ESG-related risks and opportunities
Strengthening of response to climate change

CDP Climate Change

Policies for Determining Officer Remuneration①Basic Policies

Remuneration shall strongly encourage directors to perform their duties in accordance with theGroup’s Management Principles, Sustainability Policy, The Nichirei Pledge and management
strategies.

Directors(Excluding
OutsideDirectors)

In order to achieve long-term management goals, remuneration is set to strongly motivate
directors to achieve specific management goals with regard to the Group’s material matters andmedium-term business plans.
In order for remuneration to serve as an incentive toward the Group’s sustainable growth, theratio of remuneration linked to short-term results, performance of duties, etc. (performancelinked bonuses) and remuneration linked to medium- to long-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 officersof the Company in consideration of the significance of the Group’s social role and responsibilities,
trends at companies competing with the Group in business and human resources, including
those in the food and logistic industries, and changes in the business environment.

OutsideDirectors

In light of their role of supervising the Company’s management from an independent andobjective standpoint, outside directors are paid only basic (fixed) remuneration.

②Remuneration Composition and Levels
Remuneration for Directors Other Than Outside Directors
Basic (fixed) remuneration consists of role-based remuneration and a director allowance, and variable remunerationconsists of performance-linked bonuses and stock compensation. Remuneration levels are set at appropriate amounts withreference to objective compensation market survey data (compensation levels of companies competing with the Group interms of business and human resources, including those in the food and logistics industries), taking into consideration the
responsibilities and number of directors, changes in the business environment going forward, and the opinions of thirdparty organizations.

● Guideline for the Ratio of Remuneration for Directors Excluding Outside Directors

204

Remuneration Composition

Purpose/Description

Role-based Remuneration

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

Director Allowance

Remuneration for the responsibilities of making and supervising the execution ofmanagement decisions
Set at a uniform amount for all directors

Performance-linked Bonuses

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

Stock Compensation(Restricted Shares)

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

Remuneration for Outside Directors
Only basic (fixed) remuneration is paid to outside directors. The level of remuneration is set at an appropriate amount,taking into consideration the time and effort spent by each outside director fulfilling expected roles and functions, as well as
objective compensation market survey data (compensation levels of companies similar in business type and size to that of
the Company).
③Performance-Linked Bonuses
The amount of money to be paid to each individual as a performance-linked bonus varies within a range of 0% to 200% of
the base amount for each position, depending on the achievement of Company-wide, business and individual performancetargets.
Amount of individual bonus = Base amount by position × Performance evaluation coefficient (0–200%)
Performance evaluation coefficient = (a) Company-wide performance evaluation coefficient + (b) Business performance
evaluation coefficient + (c) Individual performance evaluation coefficient

Evaluation Weight(a) Company-wide Performance
Evaluation
Net
sales

Representative
Director, President
Director (InCharge ofBusiness)
Director (InCharge ofFunction)

EBITDA

ProfitROIC

ESG(b) Business
Performance Evaluation
Net
sales

100%
10％

40％

10％

20％

20％

10％

10％

10％

70％
5％

30％

5％

-

-

30％

10％

5％

15％
-

15％

ROIC

20％

60％
10％

EBITDA(c) Individual
Performance
Evaluation

15％

205

10％
30％

④Procedures 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 details of officer remuneration for FY2023 are presented in the 105th Annual Securities Report.

Annual Securities Report > Procedures for Determining Remuneration■The total amount of officer remuneration in FY2023

Classification of
Officers

Directors(excluding outside
directors)

Classification of Officers' Total Amount ofCompensation, etc. by Type (Millions of Yen)
Basicremuneration

Performancelinked bonus

Restricted
sharescompensation

Total AmountofCompensation,
etc.
(Millions ofyen)

Number of
eligible
persons
Number of
officers(persons)

110
(210)

30
(63)

62
(62)

203
(336)

7
(7)

Outside directors

46

ー

ー

46

6

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

48

ー

ー

48

3

Outside Audit &Supervisory Board
members

32

ー

ー

32

3

237
(337)

30
(63)

62
(62)

330
(463)

19
(19)

Total

*1 The above includes one director and one Audit & Supervisory Board Member who retired at the conclusion of the 104th Annual General Shareholders
Meeting held on June 24, 2022.
*2 The total amount of remuneration, etc. above is stated as consolidated remuneration, etc. (total amount of expenses, etc. paid or to be paid or borneby the Company and its subsidiaries). For directors (excluding outside directors), the amount in parentheses is the total amount of remuneration, etc.
paid or to be paid by the Company. With respect to outside directors and Supervisory Board Members, the total amount of the consolidated
remuneration, etc. is the total amount of remuneration, etc. to be borne by the Company. For the total, the amount in parentheses is the total amountof remuneration, etc. to be borne by the Company.
*3 The amount of "basic remuneration" above is the total amount of remuneration, etc. paid in FY2023 (all monetary remuneration).
*4 The above "performance-linked bonuses" amount is the amount expected to be paid in June 2023 based on the results of business performance, etc. in
FY2023 (all monetary compensation).
*5 The amount of "Restricted Shares Compensation" above is the total amount expensed in FY2023. In FY2023, the Company granted monetarycompensation claims to six directors (excluding outside directors) and had all such claims contributed in kind to the Company, resulting in the deliveryof 26,016 shares of common stock of the Company as stock compensation. The delivery of such shares is subject to the condition that they do nottransfer their positions as officers of the Company until they retire from the Company.
* The Company has introduced a restricted shares compensation plan similar to that for directors for executive officers who do not concurrently serve
as directors, and in FY2023, 8,788 shares of the Company's common stock were issued to three executive officers.
*6 The maximum remuneration amounts, etc. for directors and Audit & Supervisory Board Members approved at the General Shareholders Meeting are as
follows.

206

Classificationof Officers

Date ofresolution of theGeneral Meetingof Shareholders

Basic
remuneration

Performancelinked bonus

Restricted shares

Number of
officers

Director

June 25, 2019(101st Annual
GeneralShareholders
Meeting)

Up to 270 million
yen (including
Outside Directors:
up to 50 million
yen)

Up to 130
million yen

Up to
100
millionyen

Up to70,000shares10(including
OutsideDirectors: 3)

Audit &
Supervisory
Board
Members

June 26, 2012
(94th General
Shareholders
Meeting)－5(of which
Outside Audit &Supervisory
Board
Members: 3)

Up to 120 million
yen－* The maximum amount of remuneration, etc. for directors does not include salaries for employees of directors who concurrently serve as employees.

Annual Securities Report 2023 > Total Amount of Officer Remuneration in FY2023

Amount of Remuneration, etc. for Directors and Audit & Supervisory Board Members
Notice of the 105th Annual General Shareholders Meeting

Evaluations of Effectiveness of the Board of Directors
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.

Evaluation
Procedure

Subjects: Directors and Audit & Supervisory Board members (15 individuals in total)
Period: January–February 2023
Method: Self-assessment involving questionnaires conducted by third-party experts

Evaluation Resultsfor FY2023

Overall, the largely positive comments affirmed that the Board is maintaining a satisfactory
level of effectiveness. Comments included appreciation of the ability to conduct free and openminded exchanges of opinion in an atmosphere that encourages people to speak up, and of thefact that agenda items are subject to annual scheduling and reviews as part of efforts to ensure
more productive discussions at Board meetings.

207

■Issues to Be Addressed
Issues Identified

1.Materials andStandards for
Agenda Items

2.Institutional
DesignEvaluation and Opinion

Future Approach

While there were positive evaluations of thesubstantial discussions held at Board of
Directors’ meetings, there were alsocomments pointing out that deliberations
often exceeded the pre-allotted time and that
Board meetings were held too often, as wellas comments suggesting room for further
improvement in the quality of discussions.

Proposals on highly important matters, suchas investments or capital contributions, tend
to involve substantial explanations and a large
amount of supporting materials. As well as
encouraging departments making proposals
to remain conscious of the need forpresentation materials to be easy tounderstand, the Board of Directors’
Secretariat is more closely involved inproposals, with the aim of providing support
from the meeting material preparation stage.
In this way, the information necessary fordecision-making and supervision by the Board
will be organized more effectively, improving
the content and quality of the materials—for
example, by omitting additional informationthat should be handled by the executive side.
In addition, presentations held on the day ofBoard meetings will have shorter explanation
sections, focused on the key points from therelevant materials, to ensure adequate time
for deliberations. On April 1, 2023, we mademonitoring model-oriented revisions to thestandards for Board of Directors’ meeting
agenda items. Going forward, we willcontinuously analyze and review theeffectiveness of these revisions.

There does not appear to be any problem
with the current institutional design of acompany with an Audit & Supervisory Board
system. However, many respondents
expressed opinions indicating that they would
prefer discussions on the design and system
to continue.

Although we do not consider a change in theinstitutional design to be necessary at thistime, it was decided that discussions on an
appropriate institutional design should be held
on an ongoing basis, in light of management
strategies, changes in the businessenvironment going forward, and Corporate
Governance Code requirements. In addition,from the perspective that the Board of
Directors should focus even more strongly on
strategic discussions, our current institutional
design of a company with an Audit &Supervisory Board system is bound byconstraints under the Companies Act ofJapan, in relation to individual and specificbusiness execution decisions being entrusted
to the executive side (revisions to standards
for agenda items, as part of point 1 on theprevious page). Based on those constraints,
we will continue to discuss the extent towhich the monitoring model should be
implemented, including a comparative
analysis between the company with Audit &Supervisory Board system and otherinstitutional designs. The progress of these
discussions will be reported to and deliberated
at Board of Directors’ meetings as necessary.

208

Issues Identified

3.Sharing Details ofDeliberations by
the Nominating
Advisory
Committee and theRemuneration
Advisory
Committee

Evaluation and Opinion

Future Approach

Several respondents, mainly officers who are
not committee members, pointed out thatwhile each committee reports to the Board of
Directors, details of discussions at eachcommittee meeting are not always shared.

While it may be preferable to share the detailsof advisory committee discussions at Board of
Directors’ meetings, we recognize that doing
so may adversely affect the free and openminded atmosphere at both voluntarycommittees. Thus, it was decided that theextent to which details of discussions at theNominating Advisory Committee and theRemuneration Advisory Committee will beshared at Board of Directors’ meetings should
be subject to ongoing consideration by bothcommittees.

Nichirei Integrated Report 2022＞Evaluations of Effectiveness

Nichirei Integrated Report 2021＞Evaluations of Effectiveness

Nichirei Integrated Report 2020＞Evaluations of EffectivenessSupport System for Outside Directors (Outside Audit & Supervisory Board Members)/ Policy for Training Directors andAudit & Supervisory Board Members
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 improving the Company’s corporate
value: for example, by maintaining and strengthening trade and cooperative relationships. In addition, every year the Boardof 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
proposals 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 careful 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

209

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 ensure that the execution of the duties by the directors complies withlaws and regulations and the Articles of Incorporation, and other systems prescribed by ordinance of the Ministry of Justiceas systems necessary to ensure the propriety of operations of 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 thebasic policy for its internal control system. The Company will endeavor to improve the policy by reviewing it annually toadapt to changes in the business environment, etc.

Internal Controls Basic Policy

Latest Internal Control Report

Basic Philosophy
The Nichirei Group is implementing various initiatives to promote highly ethical business activities in compliance with thelaws and social norms of all the countries in which it operates. We have established a code of ethics, which serves as a
guideline for officers and employees for following laws and regulations and the Articles of Incorporation and for acting inaccordance with corporate ethics, and a code of conduct, which sets forth basic matters to be observed by everyone
working for the Nichirei Group to ensure thorough compliance. The code of conduct also includes information concerning
prevention of corruption-related matters that have been deemed important from the perspective 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 compliance training for officers and employees aimed atensuring a more pervasive understanding of compliance management and a more universal compliance management
framework.

210

Nichirei Group Code of Conduct (Table of Contents)
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 on Personal Use of the Company’s Property
6. Prohibition on Insider Trading
7. Ensure the Reliability of Financial I nformation
8. Management and Use of Information
9. Prohibition of Personal Acts Conflicting with the Company’s Interests
10. Prohibition on Unfair Benefits Given to/Received from Public Officers or Business Partners
11. Prohibition on Involvement/Trade with Antisocial Forces
12. Compliance with/Reporting of and Consultation on Code of Conduct

Corporate Governance ReportComplianceManagement 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 acollection of examples on the Code of Conduct. By learning about the Code of Conduct based on concrete examples, theaim is to educate and raise awareness for compliance among existing and new employees. The effectiveness of the Code of
Conduct and compliance initiatives will be regularly evaluated and revised or improved as necessary.

211

Internal Whistleblower Hotline and Consultation Service
In October 2003, we introduced an internal whistleblower hotline and consultation service (Nichirei Hotline) to respond toreports and consultations from employees regarding actions that violate laws and regulations, the Articles of Incorporation,internal rules, or actions that are ethically questionable. In FY2016, we updated our internal whistleblower hotline system in
response to the requirements of Japan’s Corporate Governance Code, which specifies that internal whistleblower hotline
systems are to be independent from a company’s management, and introduced monitoring/checking functions through
Audit & Supervisory Board members and outside officers. In 2022, we updated the system again in line with the amended
Whistleblower Protection Act that went into effect in June of that year and in compliance with government guidelines. The
response system is being redesigned to strengthen whistleblower protection and confidentiality, and to expand the scope ofwhistleblowers.
To ensure that all officers and employees are aware of the new hotline, the Company created promotional posters fordisplay at workplaces nationwide and distributed Nichirei Hotline reminder cards to all employees. All reports andconsultations received by the Nichirei Hotline are investigated by the administration office to confirm the facts and, if
necessary, corrective measures are taken, in accordance with the Group Whistleblowing Regulations. Whistleblowers are
assured anonymity and any adverse treatment is prohibited, including retaliation by the Company, those who are thesubject of complaints, or any other party. The whistleblower may also receive feedback from the secretariat if he or she sorequests.
In line with the acceleration of overseas business expansion, the need for internal whistleblower hotlines and consultation
services at facilities outside of Japan has also increased. We are working on appropriate designs for these systems, basedon laws and regulations regarding personal information in each country.
The status of response to whistleblowing and consultation is regularly reported to the Board of Directors and monitored toensure that it is being properly managed.

Nichirei Hotline card

Number of Whistleblowing Cases, by Type212

Initiatives
Educating Employees to Ensure Thorough Compliance
The Nichirei Group aims to continue to operate and develop as a company that is widely trusted and favorably received bysociety due to the high ethical standards of its officers and employees. The Group conducts compliance training for officers
and employees aimed at ensuring a more pervasive understanding of compliance management and a more universal
compliance management framework. In order to foster a sense of ethics in each and every officer and employee, we haveissued a series of presentation materials designed to help employees understand case studies related to the code of
conduct, offered e-learning sessions, and continued providing compliance education and training. The Nichirei Group has
also developed frameworks, including a compliance audit and an internal whistleblower hotline and consultation service.

Presentation materials related to the Code of Conduct

e-learning

213

Establishment of the Nichirei Group Global Governance Basic Rules
In 2021, we established the Nichirei Group Global Governance Basic Rules, which are based on existing policies and rules
and have been reorganized for overseas subsidiaries to make them easier to understand. Laws and cultures differ in Japanand overseas, and companies that joined the Nichirei Group through M&As have their own corporate climates built up overtime. These rules therefore incorporate the most important concepts for the Nichirei Group, while respecting the autonomyof each company. The rules are available in six languages (Japanese, English, Chinese, Vietnamese, Portuguese, and Thai),and we are working to disseminate and implement them. Through these efforts, we will strengthen the governance ofoverseas subsidiaries in order to achieve an overseas sales ratio of 30%, one of the targets of our vision for 2030.

Initiatives to Prevent Corruption and Bribery
The Nichirei Group has established the Corruption and Bribery Prevention Policy, as a public declaration that the entire
Group is working on initiatives to prevent corruption and bribery. The Group has also established the Bribery Prevention
Standards and the Bribery Prevention Manual. They clarify the basic matters that all officers and employees must follow toprevent bribery of public officials or other parties. In addition to Japanese laws and regulations, the documents provide an
overview of laws and regulations in major countries such as the United States, the United Kingdom and China, and present
specific matters that require caution in a Q&A format.
For overseas subsidiaries, the Nichirei Group Global Governance Basic Rules stipulate the prohibition of bribery, and we areraising awareness of applicable laws and regulations in each country and the Group’s bribery and corruption prevention
standards among employees.

214

Bribery or Other Acts of Corruption
During FY2023, no employees were penalized for bribery or other acts of corruption. Moreover, no payments were made forfines relating to bribery or other acts of corruption.

Anti-corruption and Bribery

Protection of Personal Information
In FY2023, there were four issues related to the leaking of personal information, etc.

Personal Information Protection Leaks, etc.

215

Risk Management
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 Corporation and its operating companies take countermeasures to these risks of their own accord
based on the established risk management cycle. Important items are reported to the Board of Directors of Nichirei
Corporation, which also considers countermeasures for the holding company and its operating companies.

Risk Management

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(including ESG), while running a risk management
system for the Group. Any significant risks identified by the risk management process are reported to the holding
company’s board of directors for discussion.

Educating Employees about the Code of Conduct to Ensure Compliance216

Important Risks and Countermeasures of the Nichirei Group
Risk Category

Risks

Countermeasures and Initiatives

Management
SystemMarket in Japan: Long-term
contraction of total demand due

1.Economic
conditions andbusiness
environment

to declining population/new
demand due to changes inhousehold composition andlifestyles

Promotion of innovation andcreation of new value to solve social

Overseas markets: Rise ofdifferent needs in each region
underpinned by factors including
economic growthissuesStrategic
management

Growing expectations anddemands for the achievement ofa sustainable society
Food quality problems, such as

2.Food quality
issuesIntroduction of a food safety
management system

not meeting sanitation andpesticide and animal drug residue
standards, contamination withforeign materials, and specified

Appropriate quality and production
control of raw materials andproducts, traceability system, fooddefense, and training and proper
allocation of personnel

livestock infectious diseases
Occurrence of large-scale productrecalls

3.Securing anddeveloping diverse
human resources

Securing and developing thenecessary human resources

Improvement of workplace

Responding to labor shortages
due to Japan’s declining birthrate

Promotion of health management

environment and productivity
Investment in human capitaland aging population

4.Information
securityGroup
Quality
Assurance
Committee

Group
Human
Resources
Committee

Establishment of firewalls andSystem outages, leakage or
falsification of important
information due to operational

intrusion detection andauthentication systems
Establishment of internal rules andregulations, e-learning and othertraining for employees, and an

problems or cyberattacks insystems used for businesspurposesGroup Risk
Management
Committee

information management structure
Cost reduction through productivity

5.Price fluctuationsof commodities
and raw materials

6.Fluctuations incrude oil prices,etc.

Significant fluctuations in raw

improvements

material prices (including marine,
meat and poultry products) due
to market conditions, yields andhauls

Development of new value-added
products and expansion of
distinctive products

Strategic
management

Procurement and sales balancedwith supply and demand

Increase in electricity, diesel oil,heavy oil, and other fuel

Cost reductions through theintroduction of new technologies

procurement costs due to soaring
crude oil prices; increase inprocurement costs ofcommodities and raw materials

and improvement of operations

217

Strategic
management

Risk Category

7.Impact of
exchange rate
fluctuations

Risks

Countermeasures and Initiatives

Management
SystemUse of forward exchange contracts,
etc.

Strategic
management

Monitoring of trends in laws andregulations in each country andregion, and thorough compliancewith such laws and regulations

Strategic
management

Fluctuations in currencies
including the U.S. dollar, Thaibaht and euro that impact
procurement prices ofcommodities and raw materials,
as well as the impact of currencytranslation on the results ofoverseas subsidiaries

8.Changes in laws
and regulations,etc.

Changes in laws, regulations andsoft laws in Japan and overseas

Growing social demands forconsideration of human rights
and the workplace environment in
the supply chain, management of
natural marine resources,
reduction of food loss, and9.Sustainable foodprocurement

resolution of the marine plastic
problem, as well as changes inand establishment of laws,
regulations and soft laws
Difficulty in ensuring stableprocurement of raw materials andother resources or damage tosocial credibility due toinadequate efforts or those

Development of a Sustainable
Procurement Policy, Supplier Codeof Conduct and Supplier Guidelines,
and implementation of Supplier ESG
SurveyHandling of MSC/ASC-certifiedGroup
Sustainability

marine products

Committee

Implementation of initiatives related
to the procurement of sustainablepalm oil and conducting of asustainable cycle poultry business

deemed insufficientSocial demand for reduction ofgreenhouse gas emissions, andstrengthening of regulations suchas the imposition of a carbon tax

10.Climate change

Switching from fluorocarbon tonatural coolants, introduction ofrenewable energy sources throughinstallation of solar power

and other policies (ourfundamental technologies are forfreezing and refrigeration, and we
consume energy, mainly

generation equipment and the useof green power certificateselectricity)

Ongoing climate change impact
assessment and information
disclosure in accordance with TCFD

Impact of rising temperaturesand extreme weather associatedwith global warming on supply
chains, including raw materialGroup
Sustainability
Committee

recommendations

procurement, production, andlogistics

11.Large-scale
natural disasters

Extensive damage to roads, ports
and railroads at or near theGroup’s sites, market contraction,
supply chain disruptions, orSeismic retrofitting work;
deployment of emergency
generators; establishment of an
employee safety confirmation

restrictions on business activities
due to factors such as a massive
earthquake or localized rainstormssystem, disaster prevention
manuals and business continuity
plans (BCPs); and use of multiple
data centers

218

Group Risk
Management
Committee

Risk Category

12.Internationalsituation

Risks

Countermeasures and Initiatives

Rising energy and raw material
pricesClose monitoring of situations andminimization of their impact on
business activities

Impact on financial markets
Impact on supply chains

Reform of business processes andpromotion of innovation throughthe use of digital technologies andDecline in competitiveness of the
13. Technologicalinnovation

Group’s technologies andproducts and services due totechnological innovations,

data
Implementation of an innovation
management system based on ISO
56002

including rapid progress in digitaltechnologies and food techManagement
SystemStrategic
management

Strategic
management

Impairment loss due todeterioration of conditions at
logistics centers caused byrelocation of shipping companies
and changes in roadtransportation networks
14.Holding of fixed
assetsImpairment loss due to aging andClarification of items forconsideration when preparing

obsolescence of equipment at
production plants or poor sales

investment plans, and the rules forpost-investment verification

management

Approach to CrossShareholdings

Yearly report

Strategic

Impairment and write-down of
goodwill and investment
securities due to deviation fromthe business plan at the time ofinvestment

15.
Crossshareholdings

Significant changes in the market
value of cross-shareholdings or in
the financial position of theissuing company

to the Boardof Directors

Initiatives
Business Continuity Plan Initiatives
Employee Safety

Confirming Safety in Emergency Situations
We have introduced a Company-wide safety confirmation system. In the event of a disaster, such as an earthquake with anintensity of five or higher, messages will be sent via email to employees to check whether they are safe, and relevant local
information will be provided promptly on a dedicated website. The website allows for the rapid collection and sharing of
information.
Overseas Crisis Management
In order to ensure the safety of business travelers, employees posted overseas and their families against various risks
overseas, such as incidents, accidents, and natural disasters, the Nichirei Group manages and implements an Overseas
Crisis Response Manual, which provides background knowledge and stipulates procedures and frameworks for responding
to crises.
219

BCP for Information Systems
The Group’s main core system is redundant for the purpose of business continuity, and includes a disaster recovery (DR)system. Specific examples are as follows.
Enhancing the BCP for Our Core Logistics System
As part of its risk management, Nichirei Logistics Group has been enhancing BCP support for its core logistics system since
February 2018. Assuming the possibility of damage to its data center, where operations are heavily concentrated, thecompany created a DR system that enables rapid resumption of business. In the event of a large-scale disaster, thecompany can quickly resume operations through the use of two sites, each of which can switch from the system at thecompany’s main site to the DR site.
Approximately one hour is needed from the activation of the system until an online restart is possible. The system isdesigned to ensure that customer businesses and food distribution are not affected by any events. Nichirei Logistics Groupplans to implement advanced initiatives to provide a food logistics lifeline that will contribute to the business continuity of its
business 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.

220

Countermeasures Headquarters Establishment Flow221

Stakeholder Engagement
Basic Philosophy
The Nichirei Group engages in global business activities, and as such recognizes the importance of maintaining dialogue
with its diverse stakeholders. We work to promote understanding of our business through various methods ofcommunication with stakeholders and by disclosing information. The Group works to build corporate value by reflecting the
expectations and concerns of stakeholders in its business activities to establish long-term relationships of trust.

Relationship

Expectations andCommunication

Interests

Channels

Outcomes

Related Capital

Related Material
Matters

Creation of newvalue
Customers who
use the Nichirei
Group’s products
and services. By
responding to theneeds of diverse

Customers

customers whileproviding newvalue, we willcontribute to goodeating habits andhealth.

Provision of safe,
high-quality
products andservices
Details

Realization ofgood eating
habits and health
Provision of
appropriate
information

Day-to-day sales

1.Creating new

and businessactivities
Customer Service
CenterCustomersatisfaction
surveysvalue in food andhealthResolution ofissues forSocial andcustomers throughthe promotion ofrelationshipcapitalinnovation

2.Strengthening
food processing
and production
technology
capabilities;
enhancinglogistics services

WebsitesSocial media

Sustainability
initiatives
1.Creating newvalue in food andGeneral Meetingsof Shareholders

Maintaining and
The providers offinancial capital for
the Nichirei Group.

Shareholders
and Investors

improvingcorporate value
Appropriate

Through dialogue
and information

distribution of
profits

disclosure, we gain
their support forTimely andour sustainablegrowth.

appropriate
disclosure of
information
ESG initiatives

health2.Strengthening

Financial results
briefings

food processing
and production

Business

technology
capabilities;

information
sessions, facility
tours
Detailed
interviews withindividual
investors in Japanand overseas
IR website, ESG
websiteIntegrated Report
Shareholder
ReportImprovement oflong-term
corporate valueenhancinglogistics services
Financial capital

3.Realizing
sustainable foodprocurement
and a circular
economy4.Climate change
initiatives
5.Securing anddeveloping adiverse array of
human
resources

222

Relationship

Expectations andInterests

Communication
Channels

Outcomes

Related Capital

Related Material
Matters

The suppliers who
do business with
the Nichirei Group,
including suppliersof raw materials
and commercial
products, OEMs towhich itoutsourcesmanufacturing,and third parties
to which it

Business
Partners

outsources
logistics services
such astransportation andcargo handling.
They are

Impartial, fair,and honest
transactions
Initiatives toimprove quality
Formation of
long-term,
constructive
relationships andmutualdevelopment
premised on
coexistence andco-prosperity
Realization ofimportant partners
for co-creating
value, and wesustainableprocurement
throughout thebuild long-term
relationships of

supply chain

Day-to-day

1.Creating newvalue in food andprocurement andbusiness activities

health2.Strengthening

Meetings andseminars forbusiness partners
Implementationof Supplier Codeof Conduct,
Supplier
Guidelines, andSupplier ESG
Surveyfood processing
and production

Mutual growthwith partners
Sustainable foodprocurement
Realization of a

Financial capital
Natural capital

circular economy
Climate change

technology
capabilities;
enhancinglogistics services
3.Realizing
sustainable foodinitiatives

procurement
and a circular

Initiatives for
improving quality

economy4.Climate change
initiatives

throughcommunication

Details

trust with them for
mutual growth.

Internal

Nichirei Group
employees arewhistleblower
hotlines

indispensable forcreating value andproducing safe,
high-quality
products andservices. We

Occupational
health and safety
Details

assistance andmental healthconsultation
centerrespect thediversity of our

Healthmanagement

employees, andstrive to ensure

Labor–
management

Improvement ofcouncilwork satisfaction

Health and safetycommittees

occupational
health and safety

Employees

Employee

and to provide fairtreatment andopportunities for
personal
development. We

Opportunities for
employees todevelop and fully
demonstrate
their skills
Diversity, equity

also strive toincrease

and inclusion(DE&I)

engagement bycontinuously

Respect for

improving theworkplace toenable every
employee tothrive.

diversity

Symposiums
involving
management andemployees
PR brochures
Intranet
Employee award
system
Employeesatisfaction
surveyEmployee stresschecks223

Advancement ofdiverse humanresources

Intellectual capital
Human capital

5.Securing anddeveloping adiverse array of
human
resourcesRelationship

Expectations andInterests

Communication
Channels

Outcomes

Related Capital

Related Material
Matters

As a member ofsociety, theNichirei Group
contributes to thedevelopment oflocal communities
and helps resolve
social issues
through dialogue
and by thinking

Local
Communities

Harmonious
coexistence with
local
communities
Details

Preservation of
local
environments

and acting
together with a

Educational
activities in local

broad range ofstakeholders. In

communities

addition tocreating local
employment
through ourbusinesses, weconsider local
communities andtheir environment
and promote

Contribution tojob creation andSocialcontribution
activities
3.Realizing
sustainable foodParticipation in
local events

Harmonious

Volunteer
activities

coexistence withlocal communities

Dietary education
activities (ethicalconsumption)
Food factory andlocal community
development

distribution
warehouse tours

Consideration forSponsorship ofthe environmentand sound levels,and safe

sporting events

Sustainable foodprocurement
Realization of acircular economy
Climate change

procurement
and a circularSocial andrelationshipeconomy4.Climate change

capitalNatural capital

initiatives
5.Securing anddeveloping adiverse array of

initiatives

humanresources

Websiteoperations

coexistence.

TCFD Consortium
By actively
participating intrade organization
conferences andother events, theNichirei Group
collaborates withother companies

Trade
Organizations,NGOs, NPOs
and Related
Initiatives

to help resolve
issues. We also

Human rights
Details

Climate change
Preservation of
the global
environment
Food loss andfood waste

work to solve such
issues by

Sustainable foodprocurement

collaborating andcooperating with

Resolution ofvarious NGOs andNPOs in Japan andabroad.

industry issues
throughcollaboration

Japan Frozen
Food Association
Japan Associationof Refrigerated
Warehouses
Japan Fisheries
Association
World Wide Fundfor Nature
Roundtable on
Sustainable Palm
Oil
Caux Round TableJapan
The Consumer
Goods ForumThe UN Global
Compact

224

Resolution ofsocial issues
throughcollaboration

Social and3.Realizing
sustainable foodprocurement

relationshipcapitaland a circular
economy4.Climate change
initiatives

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

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 Koshien (Only available in Japanese)225

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

226

Logistics-related Education
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.

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.

227

Activities to Reduce Food Loss and Food Waste“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 NPO Second Harvest Japan. We
donate a total of 20,000 cases of frozen foods annually to various welfare facilities, including foster homes, mother andchild support centers, and facilities that support people with disabilities.
In addition to supplying these products, we also provide logistical support for frozen foods to ensure that the items can be
consumed with peace of mind.

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)

228

Kodomo Shokudo
Nichirei Foods began supporting kodomo shokudo in 2021 with the cooperation of NPO Musubie, which supports thesegovernment-sponsored drop-in centers that provide free or reduced-price meals for children and families in need acrossJapan.

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.

229

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 visitedthe Second Medical College with our products and explained the precautions, main points of quality control, as well as theimportance of immunostaining in pathological diagnosis through his own experiences. We would like to 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
Rollout of MIRAI MEAT to Support Young Athletes with MeatOn December 20, 2019, Nichirei Fresh began rolling out MIRAI MEAT, a new project to provide meat to support young upand-coming athletes. In this project, we supply our Amani-no-Megumi series of specialty meat products to young athletes
between the ages of 10 and 29 who are pursuing their dreams.
Athletes require a high-quality diet for fatigue recovery, physical fitness and weight control. Although top athletes often
receive specialized dietary support, access to such support is limited to only some athletes.
In keeping with the important role we play in supplying high-quality animal proteins, we launched this project with a strong
commitment to providing more dietary support to new athletic talent of the next generation.
Over a one-year period, up-and-coming athletes that pass Nichirei’s selection process are provided with products from the
Amani-no-Megumi meat series, which are made from animals raised on feed containing ingredients derived from omega-3
fatty acid-rich linseed meal.

MIRAI MEAT (Only available in Japanese)

230

Participation in a Tree-Planting Initiative Aimed at Increasing Fish Stocks
Since 2013, Nichirei Fresh has participated in a tree-planting initiative led by the National Federation of Fisheries in Oumu,
Hokkaido, aimed at increasing fish stocks.
Held annually, this initiative was launched to improve the return rate of salmon and trout by enriching the surrounding
environment of the Horonai River, which flows by a salmon and trout hatchery in Horonai, Hokkaido. Another objective is toincrease other fish species by restoring the overall marine environment.
In 2023, the 28th year of the initiative, approximately 100 people participated, including Nichirei Fresh employees andmembers of the local community. The participants planted 700 trees, mainly Japanese oak, bringing the total number oftrees planted so far to 25,200.

Supporting Sports for Healthy Living
Along with food, Nichirei supports sports as one of the pillars of health.

Supporting Sports for Healthy Living (Only available in Japanese)

NICHIREI LADIES (Only available in Japanese)"Nichirei Presents All Japanese Medalists on Ice 2022" Special Sponsorship (Only available inJapanese)

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

Donations to Non-profit Organizations

231

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” to aid
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.).
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—tothe 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.

232

Establishment of the Nichirei MIRAIterrace Foundation
In August 2022, we established the Nichirei MIRAIterrace Foundation with the aim of tackling social issues related to foodand health from a long-term perspective.
Based on our strong desire to deliver fresh foods in a stable supply to people suffering from postwar food shortages, wehave been working to solve various social issues since our establishment as a company that supports the Japanese dietthrough food production and cold storage logistics business.
In recent years, there have been major changes in the environment surrounding food and health, such as the diversificationof lifestyles and the increase in households with small numbers of people, and there are concerns about the lifelong impact
on health resulting from unbalanced nutritional intake in the daily diet.
We have established this foundation because we believe that in order to resolve these issues, we need to engage in broaddialogue, think together, and act together with all concerned members of society.
The foundation provides grants and other support to social welfare organizations, including Kodomo Shokudo (“children’s
cafeterias”). We will help support good eating habits and health so that we can provide true satisfaction to as many people
as possible.

Nichirei MIRAIterrace Foundation (Only available in Japanese)233

Report Archives
Integrated Report
Integrated Report 2023

PDF (Japanese)
PDF (English)

Integrated Report 2022

PDF (Japanese)
PDF (English)

Integrated Report 2021

PDF (Japanese)
PDF (English)

Integrated Report 2020

PDF (Japanese)
PDF (English)

Integrated Report 2019

PDF (Japanese)
PDF (English)

Integrated Report 2018

PDF (Japanese)
PDF (English)

CSR Report
CSR Report 2023

PDF (Japanese)

CSR Report 2022

PDF (Japanese)
PDF (English)

CSR Report 2021

PDF (Japanese)
PDF (English)

CSR Report 2020

PDF (Japanese)
PDF (English)

CSR Report 2019

PDF (Japanese)
PDF (English)

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

PDF (Japanese)
PDF (English)
234

CSR Report 2017

PDF (Communication Version)

CSR Report 2016

PDF (Communication Version)

CSR Report 2015

PDF (Digest Version)

CSR Report 2014

PDF (Digest Version)

CSR Report 2013

PDF (Digest Version)

CSR Report 2012

PDF (Digest Version)

CSR Report 2011

PDF (Digest Version)

CSR Report 2010

PDF (Digest Version)

CSR Report 2009

PDF (Digest Version)

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

Environmental Report 2003

PDF

Environmental Report 2002

PDF

Environmental Report 2001

PDF

Environmental Report 2000

PDF

235

ESG Navigation
ESG Navigation
Link to eachlocation

Promoting Sustainability Management in the
Nichirei Group

Social●Sustainability Policy: The Nichirei
Pledge●Sustainability Promotion System●

Commitment

Management
Structure

Climate Change●●

Water Resources

●

●

●

●

●

Initiatives for
Biodiversity
Conservation

●

●

●

Supply Chain(Environment)

●

●

●

Supply Chain (Social)

●

●

●

Human Rights

●

●

●

Stakeholder
Engagement●

Providing Safe Products
and Services​

●

●

●

Occupational Healthand Safety

●

●

●

Human Resouces
Development・Work
Satisfaction

●

●

●

Health Management

●

●

●

Waste Management andResouce Utilization
Environment

Message from the President

Chemical Substances
Control

Targets andPerformances

Initiatives
●

●

●

●

236

Link to eachlocation

Corporate Governance

Basic Policy on Corporate Governance●

Remuneration Scheme and Process for the
Directors and Executive Officers●

Basic Approach for nomination of Directors●

Expertise and Background of Directors●

Basic Policy Internal Control System●

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

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

Code of Conduct
Risk Management
Matters relating to theGeneral Meetings ofShareholders

Basic Approach fo Risk Management●

Information Security●

Notification of the Convocation
Notification of the Resolution

237●

ESG-related Policies
ESG-related Policies■The Nichirei Group ESG-related Policies
Topics

Policies

Corporate Basic Policies

Sustainability Policy: The Nichirei Pledge
Human Rights Policy

Environment-related Policies

Environmental Policy
Biodiversity Policy

Social-related Policies

Human Resources-Related Policies
Nichirei Group Occupational Health and Safety Policy
Social Contribution Activities
Quality-related Policies
Sustainable Procurement Policy
Sustainable Marine Product Procurement Guidelines
Sustainable Palm Oil Procurement Guidelines
Supplier Code of Conduct
Supplier Guidelines

Governance-related Policies

Code of Conduct
Corruption and Bribery Prevention Policy
Basic Policy on Corporate GovernanceInternal Control

238

ESG Data
Environmental Data

Social Data

Corporate Governance Data

Environmental Data
Note: Fiscal years (FY) indicate years ended March 31.
Group Medium-term
Environmental Plan
Targets

Nichirei Group CO₂
Emissions

CO₂ Emissions Intensity

Nichirei Group Amount ofDischarged Waste andRecycling Rates

Energy Consumption

Nichirei Group Material
Balance INPUT

Nichirei Group Material
Balance OUTPUT

Nichirei Group speciallyControlled Industrial
Waste

Status of Environmentrelated Incidents, Legal
Violations

Solar Power Generation
and CO₂ Reduction

Management of Pollutant
Release and Transfer
Register (PRTR)
Substances

SOx Emissions■Group Medium-term Environmental Plan Targets
Group Environmental Goals for FY2023-2025
Rate of waste recycling at all sites

99%

Water-related risk assessments at all sites

conducted in FY2024

Reduction in CO₂ emissions(compared with FY2016; Scope 1 and 2 in Japan)-30%

Rate of conversion to natural refrigerants Production equipment in Japan

80%

Rate of conversion to natural refrigerants Logistics (Global)

62%

Engaged in collecting environmental data at overseas work
Group Environmental Goals for FY2020-2022"Maintain" total CO₂ emissions in FY2022 at the FY 2014 level.
Reduction of CO₂ Emissions

Maintaining Waste Recycling Rate
and Controlling Waste Discharging

Water Resource Conservation* Electricity coefficient: Fixed at the FY 2014 coefficient

Maintain 99% or more recycling rate of waste generated from food factories anddistribution centers
Reduction of animal and vegetable residues (food factories in Japan)
Through efficient water use for sustainable water use, taking into consideration
environmental circumstances surrounding water in each region,Work to conserve
water resources (domestic food plants).

Engaged in collecting data regarding the environment at overseas worksites239

■Nichirei Group CO₂ Emissions
Unit

FY2016baseyear

FY2019FY2020

FY2021

FY2022

FY2023

43

43

42

42

43

44

243

215

199

182

185

172

286

259

241

224

228

216

ー

ー

ー

ー

ー

34

ー

ー

ー

ー

ー

89

ー

ー

ー

ー

ー

123

FY2016FY2019FY2020

FY2021

FY2022

FY2023

0.54

0.46

0.42

0.41

0.41

0.41

SCOPE 1 emissions

Domestic

SCOPE 2 emissions*1(Market standard)
SCOPE 1 and 2*2emissions (Total)

Thousandtons of
CO₂

SCOPE 1 emissions

Overseas

SCOPE 2 emissions*1(Market standard)
SCOPE 1 and 2*2emissions (Total)

Thousandtons of
CO₂

Independent Assurance Statement on Environmental Data

■CO₂ Emissions Intensity
Unit
SCOPE 1 and 2 emissions
intensity (per ton of
production)*3

tons CO₂*1 CO₂ emissions factors for electricity: Emissions factor after adjustment of the emissions factor by electric utility (Ministry of the Environment).
*2 Totals may not add up due to individual rounding off.
*3 The emission intensity per ton of production covers Nichirei Foods (domestic self-managed factories and affiliated factories) and Nichirei Fresh (domestic
affiliated factories).
Excluding the following plants
Nichirei Foods: Nichirei Ice Inc.
Nichirei Fresh: Nichirei Fresh Farm Inc., Fresh Chicken Karumai Inc., FRESH MEAT SAKUDAIRA Inc.

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

FY2019FY2020

FY2021

FY2022

FY20231,000 tons

45.4

47.9

47.1

47.9

43.4

%

99.5

99.4

98.7

98.9

99.5

■Energy Consumption
Unit
Energy Consumption

FY2019

MWh

ー

240

FY2020ー

FY2021ー

FY2022ー

FY2023675,147

■Nichirei Group Material Balance INPUT
Item

Unit

FY2019FY2020

FY2021

FY2022

FY20231,000 GJ

5,107

5,079

5,024

4,925

5,117

1,000
kWh

447,277

444,335

439,135

471,952444,004

Heavy oil

kl

2,609

1,926

1,850

1,935

1,859

Kerosene

kl

173

192

195

194

182

City gas

1,000m3

7,142

9,036

9,328

9,708

9,823

LGP

tons

4,814

3,614

3,425

3,522

3,687

Gasoline (Companyowned vehicles)

kl

402

322

273

285

286

Light oil (Companyowned vehicles)

kl

1,556

1,452

1,522

1,388

1,504

Solar power
generation

1,000
kWh

1,444

2,068

2,149

2,974

3,247

Nichirei Foods

1,000 GJ

1,761

1,759

1,793

1,859

1,921

Nichirei Fresh

1,000 GJ

173

172

174

174

166

Nichirei Logistics
Group

1,000 GJ

3,089

3,046

2,966

2,812

2,952

Nichirei Biosciences

1,000 GJ

12

33

30

22

19

Others1,000 GJ

72

69

61

58

58

Total

1,000m3

4,117

4,028

3,929

3,834

3,932

Clean water

1,000m

3

1,267

1,238

1,174

1,134

1,123

Industrial water

1,000m3

907

897

916

919

875

Groundwater (wellwater)

1,000m3

1,943

1,893

1,839

1,782

1,933

Nichirei Foods

1,000m

3

2,812

2,739

2,679

2,676

2,767

Nichirei Fresh

1,000m3

322

318

338

330

312

Nichirei Logistics
Group

1,000m

3

963

952

899

816

839

Nichirei Biosciences

1,000m3

6

8

7

6

5

Others1,000m

3

13

11

6

7

10

Total*1
Purchased power

EnergyBreakdown of energy (1,000GJ) used at each businesscompany

Water

Breakdown of water (1,000
3m ) used at each businesscompany* Total figures may differ due to rounding.
*1 Calculated by primary energy conversion factor at Act on the Rational Use of Energy

241

■Nichirei Group Material Balance OUTPUT
Item

Waste

Breakdown of discharged waste(tons) at each businesscompany

Atmospheric system

Unit

FY2019FY2020

FY2021

FY2022

FY2023

Amount ofDischarged Waste

1,000
tons

45.4

47.9

47.1

47.9

43.4

Recycle volume

1,000
tons

45.2

47.6

46.5

47.4

43.1

Volume of waste for*1
final disposal

1,000
tons

0.2

0.3

0.6

0.5

0.2

Nichirei Foods

tons

18,155

21,561

21,14521,28020,784

Nichirei Freshtons

13,973

13,60913,887

14,188

11,257

Nichirei Logistics
Group

tons

13,236

12,666

11,962

12,246

11,196

Nichirei Biosciences

tons

44

72

103

170

119

Others

tons

ー

ー

ー

ー

ー

CO₂*2

1,000
tons

259

241

224

228

216

tons

3

3

2

3

2

Nichirei Foods

tons

90,41384,42779,06082,322

81,765

Nichirei Fresh

tons

9,430

9,458

9,433

9,009

8,525

Nichirei Logistics
Group

tons

154,971

142,561

132,931

134,380

123,411

Nichirei Biosciences

tons

553

1,526

1,380

1,011

896

Others

tons

3,417

3,201

1,501

1,343

1,319

Drainage

1,000m3

2,421

2,398

2,461

2,403

2,620

Sewer system

1,000m

3

1,464

1,447

1,478

1,431

1,633

Public water area
(river etc.)

1,000m3

957

951

983

973

987

Drainage load
*4
BOD

tons

48

49

52

68

76

COD*4

tons

24

23

40

21

25

SOx

Breakdown of CO₂ emissions(tons) at each businesscompany

Water system

Breakdown of drainage (1,000m3) at each business company*3

Nichirei Foods

1,000m

3

1,751

1,752

1,798

1,783

1,957

Nichirei Fresh

1,000m

3

308

309

325

316

294

Nichirei Logistics
Group

1,000m3

343

317

308

291

355

Nichirei Biosciences

1,000m

3

6

8

6

6

5

Others1,000m3

14

12

24

8

9

* Total 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.

242

■Nichirei Group specially Controlled Industrial Waste
Unit
Specially Controlled Industrial Waste specified in the “Waste
Disposal and Public Cleansing Law”

FY2019FY2020

FY2021

FY2022

FY2023

9.3

7.4

4.3

7.0

2.9

t

■Status of Environment-related Incidents, Legal Violations
FY2019FY2020

FY2021

FY2022

FY2023

Domestic

0

0

0

0

0

Overseas

0

0

0

0

0

■Solar Power Generation and CO₂ Reduction
Unit
Power generation

FY2019FY2020

FY2021

FY2022

FY2023

Mwh

1,444

2,068

2,149

2,974

3,201

t

765

1,003

986

1,408

1,429

CO₂ reduction■Management of Pollutant Release and Transfer Register (PRTR) Substances

Substances subject to reporting under the PRTR Law*
(handled in quantities of 1 ton or more)Unit

FY2019FY2020

FY2021

FY2022

FY2023

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 ofchemicals, from any source, which could possibly adversely affect the lives, growth, or development of humans, animals, or plants.

■SOx Emissions
Unit
SOx Emissions

tons

FY2019FY20203

FY2021
3* Facilities where measurements of smoke and soot are taken. Not including emissions derived from vehicles.

243

FY2022
2

FY20233

2

*Applicable Worksites
The scope of the Nichirei Group (in Japan), which accounts for more than 99% of the environmental impact, is tabulated.
The following company food plants and distribution centers are included in the calculations. In the event of multiple worksites, thenumber 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 (40), 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 (3)Nichirei Biosciences
Global Innovation Center
Other
New Housing244Social Data

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

Number of Employees

Percentage of Noncompany Employees

Female Managers Ratio

Percentage of Female
Employees inManagement Positions

Average Age

Average Number ofYears Employed

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

Number of
Resignations/Resignation
Rate/Reasons for
Resignation

Number of Employees
Rehired After Retirement

Employment Rate ofPeople with Disabilities

Pay Gap between Maleand Female Employees

Annual Total of Actual
Hours Worked

Annual Paid Vacation:
Average Number of Days
and Acquisition Rate

Number of Employees
Taking Time Off in Order
to Volunteer

Employees Using Time
Off for Childrearing

Percentage of Male
Employees Taking
Childcare Leave

Employees Using Time
Off for Caregiving

Number of Work-Related
Accidents at Food Plants

Number of Occupational
DeathsGeneral Regular Health
Checkup RateStress Check Coverage

New Graduate Hire
Turnover Status

Nichirei Group Main
Education and Training

Nichirei Group Education
Time and Number ofParticipantse-Learning

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

Percentage of Receiving
a Full Medical
Examination after
Periodic Health Checkups

Donations to Non-profit
Organizations

Health Manager

Personal Information
Protection Leaks, etc.

Number of Violations ofLaws and Regulations inAdvertisements/Publicity
and Labeling245

■Number of Employees
Coverage

Item

Unit

Executives and employees
total

FY2020

FY2021

FY2022

FY2023

6,002

5,943

5,994

5,926

5,983

Male

3,748

3,729

3,753

3,722

3,760

Female

2,254

2,214

2,241

2,204

2,223

Number of executives

62

62

61

60

62

Male

60

60

58

56

59

Female

2

2

3

4

3

3,782

3,841

3,903

3,937

3,946

2,789

2,779

2,787

2,776

2,766

993

1,062

1,116

1,161

1,180

1,309

1,335

1,362

1,378

1,382

1,216

1,215

1,222

1,218

1,211

93

120

140

160

171

2,473

2,506

2,541

2,559

2,564

Male

1,573

1,564

1,565

1,558

1,555

Female

900

942

976

1,001

1,009

Number of staff other thanemployees

2,158

2,040

2,030

1,929

1,975

Male

899

890

908

890

935

Female

1,259

1,150

1,122

1,039

1,040

Breakdown

Breakdown

Number of company
employees
Breakdown
NichireiGroup total

FY2019Male
Female【Number of employees inmanagement positions】
Breakdown

Male
Female【Number of generalemployees】
Breakdown

Breakdown

Numberofpeople246

Coverage

Item

Unit

FY2019

Executives and employees
total

FY2021

FY2022

FY2023

252

252

254

268

292

Male

148

153

151

151

161

Female

104

99

103

117

131

Number of executives

19

19

19

19

19

Male

17

17

17

16

17

Female

2

2

2

3

2

187

214

218

226

245

122

123

124

124

130

65

91

94

102

115

112

116

112

116

129

Male

85

87

85

87

94

Female

27

29

27

29

35

75

98

106

110

116

Male

37

36

39

37

36

Female

38

62

67

73

80

Number of staff other thanemployees

46

19

17

23

28

Male

9

13

10

11

14

Female

37

6

7

12

14

Breakdown

Breakdown

Number of company
employees
Breakdown
Nichirei
holdingcompany

FY2020Male
Female【Number of employees inmanagement positions】
Breakdown

Numberofpeople【Number of generalemployees】
Breakdown

Breakdown247

Coverage

Item

Unit

Executives and employees
total

FY2020

FY2021

FY2022

FY2023

3,054

3,010

3,023

3,039

3,097

Male

1,821

1,816

1,834

1,826

1,885

Female

1,233

1,194

1,189

1,213

1,212

Number of executives

12

11

10

9

12

Male

12

11

9

8

11

Female

0

0

1

1

1

1,524

1,505

1,528

1,541

1,559

1,134

1,114

1,118

1,114

1,129

390

391

410

427

430

532

525

536

555

562

Male

497

487

494

499

502

Female

35

38

42

56

60

992

980

992

986

997

Male

637

627

624

615

627

Female

355

353

368

371

370

Number of staff other thanemployees

1,518

1,494

1,485

1,489

1,526

Male

675

691

707

704

745

Female

843

803

778

785

781

Breakdown

Breakdown

Number of company
employees
Breakdown
Nichirei
Foods

FY2019Male
Female【Number of employees inmanagement positions】
Breakdown

Numberofpeople【Number of generalemployees】
Breakdown

Breakdown248

Coverage

Item

Unit

FY2019

Executives and employees
total

FY2021

FY2022

FY2023

315

315

319

318

299

Male

228

225

223

222

206

Female

87

90

96

96

93

Number of executives

9

10

10

10

11

Male

9

10

10

10

11

Female

0

0

0

0

0

256

267

271

272

261

197

200

198

197

181

59

67

73

75

80

149

155

158

149

140

Male

142

143

143

138

129

Female

7

12

15

11

11

107

112

113

123

121

Male

55

57

55

59

52

Female

52

55

58

64

69

Number of staff other thanemployees

50

38

38

36

27

Male

22

15

15

15

14

Female

28

23

23

21

13

Breakdown

Breakdown

Number of company
employees
Breakdown
NichireiFresh

FY2020Male
Female【Number of employees inmanagement positions】
Breakdown

Numberofpeople【Number of generalemployees】
Breakdown

Breakdown249

Coverage

Item

Unit

Executives and employees
total

FY2020

FY2021

FY2022

FY2023

2,252

2,226

2,253

2,168

2,169

Male

1,488

1,466

1,475

1,460

1,447

Female

764

760

778

708

722

Number of executives

16

16

16

18

16

Male

16

16

16

18

16

Female

0

0

0

0

0

1,738

1,769

1,798

1,821

1,815

1,287

1,289

1,294

1,294

1,282

451

480

504

527

533

479

499

513

515

511

Male

464

469

470

464

456

Female

15

30

43

51

55

1,259

1,270

1,285

1,306

1,304

Male

823

820

824

830

826

Female

436

450

461

476

478

Number of staff other thanemployees

498

441

439

329

338

Male

185

161

165

148

149

Female

313

280

274

181

189

Breakdown

Breakdown

Number of company
employees
Breakdown
Nichirei
Logistics
Group

FY2019Male
Female【Number of employees inmanagement positions】
Breakdown【Number of generalemployees】
Breakdown

Breakdown

Numberofpeople250

Coverage

Item

Unit

FY2019

Executives and employees
total

FY2021

FY2022

FY2023

129

140

145

133

126

Male

63

69

70

63

61

Female

66

71

75

70

65

Number of executives

6

6

6

4

4

Male

6

6

6

4

4

Female

0

0

0

0

0

77

86

88

77

66

49

53

53

47

44

28

33

35

30

22

37

40

43

43

40

Male

28

29

30

30

30

Female

9

11

13

13

10

40

46

45

34

26

Male

21

24

23

17

14

Female

19

22

22

17

12

Number of staff other thanemployees

46

48

51

52

56

Male

8

10

11

12

13

Female

38

38

40

40

43

Breakdown

Breakdown

Number of company
employees
Breakdown
Nichirei
Biosciences

FY2020Male
Female【Number of employees inmanagement positions】
Breakdown

Numberofpeople【Number of generalemployees】
Breakdown

Breakdown* Staff other than employees: Includes temporary employees, contract employees, fixed-term employees and part-time employees; excludes dispatchedemployees* Employee-related Data applies to employees working at the following 15 companies (FY2023)

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

12 Nichirei Logistics Kyushu

13 Kyokurei Operation 14 Nichirei Logistics Engineering 15 Nichirei Biosciences

251

■Percentage of Non-company Employees
FY2019FY2020

FY2021

FY2022

FY2023

Number of company employees

3,782

3,841

3,903

3,937

3,946

Number of non-company employees

2,158

2,040

2,030

1,929

1,975

Percentage of non-company employees (%)

36.3

34.7

34.2

32.9

33.4

* Non-company Employees: includes temporary employees, contract employees, contract employees, part-time employees, and part-time employees,
excluding temporary employees.

■Female Managers Ratio
Coverage

Unit

FY2019FY2020

FY2021

FY2022

FY2023

Nichirei Group total

7.1

9.0

10.3

11.6

12.4

Nichirei holding company

24.1

25.0

24.1

25.0

27.1

6.6

7.2

7.8

10.1

10.7

4.7

7.7

9.5

7.4

7.9

Nichirei Logistics Group

3.1

6.0

8.4

9.9

10.8

Nichirei Biosciences

24.3

27.5

30.2

30.2

25.0

Nichirei Foods%

Nichirei Fresh* Applicability: Employees■Percentage of Female Employees in Management Positions
Coverage

Unit

FY2023

Nichirei holding company

15.0

Nichirei Foods Inc.

5.3

Nichirei Fresh Inc.

%

4.5

Nichirei Logistics Group Inc.

5.9

Nichirei Biosciences Inc.

30.0

* Calculated in accordance with regulations of Act on the Promotion of Women's Active Engagement in Professional Life (Act No. 64, 2015)252

■Average AgeCoverage

Item

NichireiGroup total
Nichirei
holdingcompany
Nichirei
Foods

Unit

Nichirei
Logistics
Group
Nichirei
Biosciences

FY2021

FY2022

FY2023

42.1

42.3

42.5

42.7

42.9

Female

39.8

39.9

40.0

40.1

40.5

Male

44.1

44.2

44.1

44.5

44.7

Female

43.1

44.5

44.6

44.0

43.3

Male

42.5

42.8

43.1

43.6

43.7

41.5

41.5

41.5

41.6

41.9

42.6

42.7

42.9

42.8

43.1

Female

41.2

41.5

41.4

42.2

42.9

Male

41.6

41.6

41.8

42.0

43.0

Female

37.9

37.8

37.9

38.1

38.6

Male

40.7

40.9

40.7

40.7

40.2

Female

36.7

36.2

36.6

37.7

39.8

Male

NichireiFresh

FY2020Male

FemaleBreakdown

FY2019Age* Applicability: Employees* There may be differences between the year in which calculations began and the year that an employee joined the Company due to factors including themerger or separation of the company to which they are assigned and employee promotions.

■Average Number of Years Employed
Coverage

Item

NichireiGroup total
Nichirei
holdingcompany
Nichirei
Foods
Breakdown
Nichirei
Fresh
Nichirei
Logistics
Group
Nichirei
Biosciences

Unit

FY2019FY2020

FY2021

FY2022

FY2023

Male

16.7

17.0

17.3

17.5

17.7

Female

15.7

15.3

15.4

15.4

15.7

Male

19.1

19.0

19.0

19.4

18.9

Female

18.5

15.8

16.8

16.0

17.1

Male

17.7

18.0

18.4

18.8

19.0

16.7

16.8

16.8

16.8

17.7

18.4

18.4

18.7

18.6

19.0

Female

18.6

18.0

17.4

17.7

17.7

Male

15.9

15.9

16.1

16.3

16.6

Female

14.3

13.9

14.0

14.1

14.4

Male

15.3

15.2

15.0

14.7

13.5

Female

12.1

11.7

12.3

13.1

15.3

FemaleMale

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

253

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

Item

Unit

FY2019NichireiGroup total

Nichirei
holdingcompany

117

127

Male

46

49

63

65

70

Female

42

55

54

52

57

80

113

61

51

56

Male

60

52

36

22

36

Female

20

61

25

29

20

0

4

4

5

8

Male

0

4

3

3

3

Female

0

0

1

2

5

2

37

5

9

5

Male

2

5

2

3

2

Female

0

32

3

6

3

31

33

37

36

41

20

14

19

19

21

11

19

18

17

20

13

16

28

21

29

Male

6

11

16

11

24

Female

7

5

12

10

5

10

9

11

8

6

Male

6

6

6

5

3

Female

4

3

5

3

3

5

11

3

4

5

Male

1

2

0

0

0

Female

4

9

3

4

5

42

50

58

66

72

Male

19

22

32

36

43

Female

23

28

26

30

29

60

46

25

17

15

Male

51

31

18

8

8

Female

9

15

7

9

7

Mid-career
Breakdown
New graduates
Breakdown

Nichirei
Foods

Male
FemaleMid-career
Breakdown

NumberofpeopleNew graduates
Breakdown
NichireiFresh

Mid-career
Breakdown
New graduates

Nichirei
Logistics
Group

Breakdown
Mid-career
Breakdown

FY2023117

New graduates
Breakdown

FY2022

104

Mid-career
Breakdown

FY2021

88

New graduates
Breakdown

FY2020254

Coverage

Item

Unit

FY2019New graduates

Nichirei
Biosciences

FY2022

FY2023

8

7

2

0

1

3

3

2

0

4

5

4

0

0

0

3

0

0

2

Male

0

3

0

0

2

Female

0

0

0

0

0

FemaleMid-career
Breakdown

FY2021

5
Male

Breakdown

FY2020

Numberofpeople* Applicability: Employees■Number of Resignations/Resignation Rate/Reasons for Resignation
Coverage

Item

Unit

FY2019FY2020

FY2021

FY2022

FY2023

146

159

141

121

156

Retirement

64

65

59

45

49

Personal
circumstances

74

84

63

72

98

Company
circumstances

0

0

0

0

1

Others

8

10

19

4

8

2.1%

2.4%

2.1%

1.9%

2.6%

ー

2.1%

1.6%

1.8%

2.4%

12

10

12

7

7

Retirement

6

3

5

2

4

Personal
circumstances

5

6

5

4

3

Company
circumstances

0

0

0

0

0

Others

1

1

2

1

0

3.0%

3.1%

3.1%

2.2%

1.3%

ー

2.7%

2.2%

1.7%

1.3%

Number of Resignations

NichireiGroup total

Breakdown by
reasonResignation rate
Employee turnover rate (forpersonal reasons)
Number of Resignations

Nichirei
holdingcompany

Breakdown by
reasonNumberofpeopleResignation rate
Employee turnover rate (forpersonal reasons)255

Coverage

Item

Unit

FY2019FY2020

FY2021

FY2022

FY2023

57

59

50

50

47

Retirement

30

29

21

20

17

Personal
circumstances

26

26

24

29

29

Company
circumstances

0

0

0

0

0

Others

1

4

5

1

1

1.7%

1.9%

1.9%

1.9%

1.9%

Employee turnover rate (forpersonal reasons)

ー

1.7%

1.5%

1.9%

1.8%

Number of Resignations

14

9

13

6

14

Retirement

7

4

3

3

3

Personal
circumstances

4

5

5

2

9

0

0

0

0

0

3

0

5

1

2

2.7%

1.8%

3.6%

1.1%

4.1%

Employee turnover rate (forpersonal reasons)

ー

1.8%

1.8%

0.7%

3.4%

Number of Resignations

60

74

63

49

82

Retirement

21

29

29

17

23

Personal
circumstances

36

41

27

31

53

Company
circumstances

0

0

0

0

1

Others

3

4

7

1

5

2.3%

2.5%

1.9%

1.8%

3.1%

ー

2.3%

1.5%

1.7%

2.8%

Number of Resignations

Nichirei
Foods

Breakdown by
reasonResignation rate

Nichirei
Fresh

Breakdown by
reasonCompany
circumstances

NumberofpeopleOthersResignation rate

Nichirei
Logistics
Group

Breakdown by
reasonResignation rate
Employee turnover rate (forpersonal reasons)256

Coverage

Item

Unit

FY2019FY2020

FY2021

FY2022

FY2023

3

7

3

9

6

Retirement

0

0

1

3

2

Personal
circumstances

3

6

2

6

4

0

0

0

0

0

0

1

0

0

0

3.6%

8.1%

2.2%

6.7%

5.8%

ー

7.0%

2.2%

6.7%

5.8%

Number of Resignations

Nichirei
Biosciences

Breakdown by
reasonCompany
circumstances

NumberofpeopleOthersResignation rate
Employee turnover rate (forpersonal reasons)* Applicability: Employees* The turnover rate is calculated based on employees who resigned excluding retired employees* "Others" includes appointed executives who resigned■Number of Employees Rehired After Retirement
Coverage

Unit

FY2019FY2020

FY2021

FY2022

FY2023

Nichirei Group total

59

57

51

36

42

Nichirei holding company

5

3

5

2

5

28

25

16

17

14

7

3

3

1

2

19

26

26

14

21

Nichirei Biosciences

0

0

1

2

0

Ref. Number of employees who retired group total

64

65

59

45

49

Nichirei Foods

NumberofpeopleNichirei Fresh
Nichirei Logistics Group* 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%

FY2019FY20202.56

2.75

FY2021

2.80

FY20222.80

FY2023

2.73* Legal employment rate of 2.3%.
* Applicable scope: Nichirei Aura (special subsidiary) Group applied company* Group applied companies (FY2023): Nichirei, Nichirei Foods, Nichirei Fresh, Nichirei Logistics Group, Nichirei Biosciences, Logistics Network, Nichirei
Logistics Kanto, Nichirei Logistics Engineering, Tokyo Nichirei Services, Nichirei Aura257

■Pay Gap between Male and Female Employees
FY2023Coverage

Unit

All employees

Non-regular
employees

Regular employees

Nichirei holding company

69.3

72.1

43.6

Nichirei Foods Inc.

60.5

73.4

76.5

74.0

75.4

101.0

Nichirei Logistics Group Inc.

79.7

80.2

ー

Nichirei Biosciences Inc.

63.5

86.2

63.4

Nichirei Fresh Inc.

%* Calculated in accordance with regulations of Act on the Promotion of Women's Active Engagement in Professional Life (Act No. 64, 2015)

Annual Securities Report＞Supplementary explanation of pay gap between men and women workers■Annual Total of Actual Hours Worked
Coverage

NichireiGroup total

Nichirei
holdingcompany

Nichirei
Foods

Item

Unit

FY2019FY2020

FY2021

FY2022

FY2023

Total

1,997

1,977

1,975

1,993

1,989

Official working hours-Hours of vacation time

1,780

1,758

1,767

1,759

1,738

Hours worked outside official working hours

217

219

208

234

251

Total

1,905

1,899

1,949

2,004

2,001

Official working hours-Hours of vacation time

1,718

1,724

1,754

1,762

1,743

Hours worked outside official working hours

187

175

196

242

258

Total

1,998

2,005

2,011

2,018

2,004

Official working hours-Hours of vacation time

1,772

1,758

1,768

1,757

1,735

226

247

243

261

269

1,948

1,948

1,929

1,994

2,009

Official working hours-Hours of vacation time

1,770

1,754

1,759

1,765

1,751

Hours worked outside official working hours

178

194

170

229

258

Total

2,014

1,970

1,958

1,972

1,975

Official working hours-Hours of vacation time

1,796

1,763

1,771

1,760

1,739

Hours worked outside official working hours

218

207

187

212

236

Total

1,954

1,882

1,901

1,971

1,961

Official working hours-Hours of vacation time

1,736

1,716

1,754

1,768

1,731

Hours worked outside official working hours

218

166

148

203

230

Hours worked outside official working hours

hours

Total
Nichirei
Fresh

Nichirei
Logistics
Group

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

258

■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

FY2019FY2020

FY2021

FY2022

FY2023

Average days acquired

Days

8.0

10.2

11.0

12.5

13.8

Acquisition rate

%

41.8

53.4

59.7

65.6

72.2

Average days acquired

Days

15.1

14.8

13.2

13.1

14.0

Acquisition rate

%

78.0

77.1

71.7

68.6

73.6

Average days acquired

Days

8.3

10.2

10.8

13.3

14.4

Acquisition rate

%

42.7

52.4

57.2

69.1

75.0

Average days acquired

Days

9.9

11.6

12.6

13.0

13.7

Acquisition rate

%

51.9

60.9

69.2

68.5

71.3

Average days acquired

Days

6.5

9.3

10.6

11.7

13.1

Acquisition rate

%

34.6

49.3

58.7

61.8

68.9

Average days acquired

Days

12.5

14.2

11.7

12.1

14.6

Acquisition rate

%

69.0

79.4

69.3

65.7

77.2

* Applicability: Employees* Acquisition rate = Days acquired ÷ Number of days granted (excluding carry over days)* Other special holidays (summer vacation) averaged 2.5 days per employee (FY2023).

■Number of Employees Taking Time Off in Order to Volunteer
Coverage
Nichirei Group total

Unit

FY2019Number of people

FY20200259

FY20210

FY2022

1

FY20231

0

■Employees Using Time Off for Childrearing
Coverage
Nichirei Group total

Nichirei holding company

Nichirei Foods

Nichirei Fresh

Nichirei Logistics Group

Nichirei Biosciences

Item

Unit

FY2019FY2020

FY2021

FY2022

FY2023

Male

1

2

2

9

59

Female

42

48

31

36

38

Male

0

1

0

1

1

Female

2

6

3

4

2

Male

1

1

1

1

24

14

17

14

12

12

0

0

1

2

6

Female

2

1

2

3

5

Male

0

0

0

5

25

Female

20

22

11

16

17

Male

0

0

0

0

3

Female

4

2

1

1

2

FemaleMale

Number of people* Applicability: Employees（includes full-time employees）* Includes employees taking maternity leave* From FY2023, includes employees taking childcare-related leave■Percentage of Male Employees Taking Childcare Leave
Coverage

Unit

FY2023

Nichirei holding company

100

Nichirei Foods Inc.

64.9

Nichirei Fresh Inc.

%

Nichirei Logistics Group Inc.

100―

Nichirei Biosciences Inc.

75.0

* In accordance with regulations of Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other
Family Members (Act No.76, 1991), calculated the percentage of childcare leave, etc. and leave for childcare purposes taken In Article 71-4, Item 2 ofOrdinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other
Family Members (Ordinance of the Ministry of Labor No. 25, 1991).

260

■Employees Using Time Off for Caregiving
Coverage

Unit

FY2019FY2020

FY2021

FY2022

FY2023

Nichirei Group total

3

2

2

3

2

Nichirei holding company

0

0

0

0

0

3

2

1

2

1

0

0

0

0

0

Nichirei Logistics Group

0

0

1

1

1

Nichirei Biosciences

0

0

0

0

0

FY2019FY2020

FY2021

FY2022

FY2023

34

29

20

21

26

11

16

19

19

33

ー

ー

ー

5

6.2

ー

ー

ー

0.09

0.11

Nichirei Foods

Number of people

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

Item

Unit

Number of lost time injuries*1
Food Plants

Number of days of inactivity
Lost time injury frequency rate*2

Case

Lost time injury intensity rate*3* 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*1 Number of fatalities and injuries due to work-related accidents (number of people who lost at least one day of work)*2 Number of fatalities and injuries due to work-related accidents per 1,000,000 total actual working hours*3 Total number of lost workdays per 1,000 total actual working hours■Number of Occupational Deaths
Coverage

Item

Unit

Regular employees
Nichirei Group
total

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

Case

261

FY2019FY2020

FY2021

FY2022

FY2023

1

0

0

0

0

0

0

0

0

0

■General Regular Health Checkup Rate
Coverage

Unit

FY2019FY2020

FY2021

FY2022

FY2023

Nichirei Group total

100

100

100

100

100

Nichirei holding company

100

100

100

100

100

Nichirei Foods

100

100

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

100

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.

100

100

100

100

100

Nichirei Logistics Kansai, Inc.

100

100

100

100

100

Nichirei Logistics Chushikoku, Inc.

100

100

100

100

100

Nichirei Logistics Kyushu, Inc.

100

100

100

100

100

NK Trans Inc.

100

100

100

100

100

Logistics Network Inc.

100

100

100

100

100

Nichirei Logistics Engineering Inc.

100

100

100

100

100

Nichirei Logistics Kanto, 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

Unit

Nichirei Group total%

FY2019FY2020

90.1

89.6

262

FY202190.8

FY202290.1

FY202390.1

■New Graduate Hire Turnover Status
Coverage

Joined Company in
FY2019Joined Company in
FY2020Nichirei Group
total

Joined Company in
FY2021Joined Company in
FY2022Joined Company in
FY2023Joined Company in
FY2019Joined Company in
FY2020Nichirei holding
company

Turnover(number ofpeople)Item

Joined Company in
FY2021Joined Company in
FY2022Joined Company in
FY2023

Turnoverrate (%)

End of first year

2

2.3%

End of second year

5

5.7%

End of third year

11

12.5%

End of first year

1

1.0%

End of second year

5

4.8%

End of third year

9

8.7%

End of first year

3

2.6%

End of second year

8

6.8%

End of third year

17

14.4%

End of first year

2

1.7%

End of second year

7

6.0%

End of third year――

End of first year

4

3.1%

End of second year――

End of third year――

End of first year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

End of first year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

End of first year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

End of first year

0

0.0%

End of second year

0

0.0%

End of third year――

End of first year

0

0.0%

End of second year――

End of third year

―

―

263

Number of
hires

88

104

118

117

127

0

4

4

5

8

Coverage

Joined Company in
FY2019Joined Company in
FY2020Nichirei Foods

Joined Company in
FY2021Joined Company in
FY2022Joined Company in
FY2023Joined Company in
FY2019Joined Company in
FY2020Nichirei Fresh

Turnover(number ofpeople)Item

Joined Company in
FY2021Joined Company in
FY2022Joined Company in
FY2023

Turnoverrate (%)

End of first year

1

3.2%

End of second year

2

6.5%

End of third year

5

16.1%

End of first year

0

0.0%

End of second year

2

6.1%

End of third year

4

12.1%

End of first year

2

5.4%

End of second year

4

10.8%

End of third year

5

13.5%

End of first year

1

2.8%

End of second year

1

2.8%

End of third year――

End of first year

2

4.9%

End of second year――

End of third year――

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

2

22.2%

End of third year

2

22.2%

End of first year

0

0.0%

End of second year

0

0.0%

End of third year

3

27.3%

End of first year

0

0.0%

End of second year

0

0.0%

End of third year――

End of first year

0

0.0%

End of second year――

End of third year

―

―

264

Number of
hires

31

33

37

36

41

10

9

11

8

6

Coverage

Joined Company in
FY2019Joined Company in
FY2020Nichirei Logistics
Group

Joined Company in
FY2021Joined Company in
FY2022Joined Company in
FY2023Joined Company in
FY2019Joined Company in
FY2020Nichirei
Biosciences

Turnover(number ofpeople)Item

Joined Company in
FY2021Joined Company in
FY2022Joined Company in
FY2023

Turnoverrate (%)

End of first year

1

2.4%

End of second year

2

4.8%

End of third year

4

9.5%

End of first year

1

2.0%

End of second year

1

2.0%

End of third year

3

6.0%

End of first year

1

1.7%

End of second year

3

5.1%

End of third year

8

13.6%

End of first year

1

1.5%

End of second year

6

9.1%

End of third year――

End of first year

2

2.8%

End of second year――

End of third year――

End of first year

0

0.0%

End of second year

1

20.0%

End of third year

2

40.0%

End of first year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

End of first year

0

0.0%

End of second year

1

14.3%

End of third year

1

14.3%

End of first year

0

0.0%

End of second year

0

0.0%

End of third year――

End of first year

0

0.0%

End of second year――

End of third year――

* Applicability: Employees

265

Number of
hires

42

50

59

66

72

5

8

7

2

0

■Nichirei Group Main Education and Training
General employees

Training by rankTraining bypurpose-New employees training-1st to 3rd year employees followup training-Mid-career employees training

Managers-New managers training-Next-generation executives
training course-Management training-Facilitation training-Career seminar for female employees-Female leaders development program-Coaching training-Foreign Languages training-Evaluators training-Critical thinking-Marketing-Accounting

Officers-New officers seminar-Media training-Director training-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)

FY201949,6101,711

FY202046,9271,614

FY202136,376

1,509

FY202258,0372,650

FY202374,183

4,503

Total

265,133

11,987266

■e-Learning
FY2019FY2023

Implem-entation
Rate

Number of
Subjects

Number ofPeopleImplem-entation
Rate

Number of
Subjects

Number ofPeopleImplem-entation
Rate

Number of
Subjects

Number ofPeopleImplem-entation
Rate

Number of
Subjects

Number ofPeopleImplem-entation
Rate

G

FY2022

Number ofPeopleS

FY2021

Number of
Subjects

E

FY2020

5,234

5,016

95.8%

5,396

5,035

93.3%

―

―

―

―

―

―

5,835

5,667

97.1%

SDGs

―

―

―

―

―

―

5,659

5,304

93.7%

5,780

5,066

87.6%

5,753

5,398

93.8%

Business andHuman Rights

―

―

―

―

―

―

―

―

―

―

―

―

5,738

5,385

93.9%

Ensuring
Food Quality
Hygiene and
Safety

―

―

―

―

―

―

5,619

5,302

94.4%

5,771

5,230

90.6%

5,792

5,373

92.8%

Quality
Assurance

5,308

5,178

97.6%

5,403

5,032

93.1%

―

―

―

―

―

―

―

―

―

Intellectual
Property

5,308

5,037

94.9%

5,357

5,050

94.3%

5,659

5,324

94.1%

5,786

5,318

91.9%

5,739

5,088

88.7%

Personal
Information
Protection
Law

5,311

4,973

93.6%

5,381

5,121

95.2%

5,645

5,347

94.7%

5,763

5,293

91.8%

5,806

5,448

93.8%

Information
Security

5,214

5,115

98.1%

5,362

4,993

93.1%

5,595

5,352

95.7%

5,725

5,477

95.7%

5,788

5,243

90.6%

Harassment

5,356

5,166

96.5%

5,367

5,008

93.3%

5,680

5,421

95.4%

5,765

5,350

92.8%

5,835

5,656

96.9%

Working
Hours

―

―

―

5,381

5,101

94.8%

5,645

5,363

95.0%

5,763

5,371

93.2%

5,835

5,572

95.5%

HealthLiteracy

5,320

4,988

93.8%

5,403

5,047

93.4%

5,681

5,409

95.2%

5,778

5,310

91.9%

5,835

5,557

95.2%

Stress Check

―

―

―

5,358

4,948

93.1%

―

―

―

―

―

―

―

―

―

HealthInformation

―

―

―

―

―

―

5,649

5,371

95.1%

―

―

―

―

―

―

Compliance

―

―

―

―

―

―

―

―

―

5,771

5,252

91.0%

5,792

5,395

93.1%

Internal
Control

5,247

5,080

96.8%

5,435

5,088

93.6%

5,643

5,247

93.0%

5,750

5,281

91.8%

5,779

5,248

90.8%

Whistleblower
andConsultation
System

5,256

4,901

93.2%

5,471

4,862

88.9%

5,618

5,282

94.0%

―

―

―

―

―

―

Competition
Law
Complianceand Antibribery

5,308

5,005

94.3%

5,357

5,057

94.4%

―

―

―

5,786

5,276

91.2%

5,820

5,275

90.6%

Anti-bribery

―

―

―

―

―

―

5,655

5,228

92.4%

―

―

―

―

―

―

Insider

―

―

―

5,358

4,904

91.5%

5,649

5,361

94.9%

5,757

5,216

90.6%

5,806

5,487

94.5%

Retirement
benefit plans

―

―

―

―

―

―

―

―

―

3,873

3,569

92.2%

3,963

3,768

95.1%

Environment

267

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

FY2019Domestic

FY2020

FY2021

FY2022

FY2023

Overseas

Domestic

Overseas

Domestic

Overseas

Domestic

Overseas

Domestic

Overseas

Quality Assurance Audits

Number of
Factory/Site
Audits

Quality
Assurance
Department

67

38

52

20

40

10

46

16

64

23

Nichirei Foods

Nichirei
Foods Quality
Assurance
Department

26

20

6

5

16

6

5

5

13

7

Nichirei
Logistics Group

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department

24

0

34

―

19

―

26

0

29

―

Nichirei Fresh

NichireiFresh Quality
Assurance
Department

10

17

9

15

5

4

15

11

18

16

Nichirei
Bioscience

Nichirei
Bioscience
Quality
Assurance
Department

7

1

3

0

0

0

0

0

3

0

100%
(=38/38)of theplan

87%(=52/60)of theplan

80%(=20/25)of theplan

58%(=40/69)of theplan

28%(=10/36)of theplan

66%(=46/70)of theplan

48%(=16/33)of theplan

90%(=64/71)of theplan

72%(=23/32)of theplan

99%(=67/68)of the plan

*One BIO
case wasdelayed from
November toApril of thefollowing year
due to amanufacturing
delay.

Group
Implementation
Rate (vs.
plan) (Officecoverage)

Quality
Assurance
Department

Group
Implementation
Rate (Actual
number) (Officecoverage)

Quality
Assurance
Department

18%(67/370)20%(38/189)17%(52/307)11%(20/180)13%(40/305)6%(10/172)15%(46/299)9%(16/176)25%(64/258)

17%(23/134)

Nichirei Foods
Implementation
Rate

Nichirei
Foods Quality
Assurance
Department100%(26/26)/61

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

100%(5/5)/43(16/38)/52(6/20)/43(5/25)/55(5/17)/42(13/13)
/15

(7/7)
/12

Nichirei
Logistics Group
Implementation
Rate

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department100%(24/24)
/110

―

87%
(34/39)/115―(19/19)/117―(26/26)/117―(29/35)/119―

Nichirei Fresh
Implementation
Rate

NichireiFresh Quality
Assurance
Department100%(10/10)/189

100%(17/17)
/139

100%
(9/9)
/129

83%
(15/18)
/135

(5/8)
/127

(4/14)/126(15/17)/123(11/16)/131(18/20)/120(16/25)/119

Nichirei
Bioscience
Implementation
Rate

Nichirei
Bioscience
Quality
Assurance
Department

75%
(6/8)
/10

100%
(1/1)
/1

71%
(5/7)
/10

0%
(0/2)
/2

(0/4)/9(0/2)/3(0/2)/4(0/0)/3(3/3)/4(0/0)/3

268

Quality Assurance Related Data
Number of certifications as of theend of March of each fiscal year

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

HACCP(Food Hygiene Management System)
Number of ISO9001 Certifications

Nichirei Foods

14/15

ー

14/15

ー

15/15

ー

ー

ー

ー

ー

Nichirei Fresh

7/7

ー

7/7

ー

7/7

ー

ー

ー

ー

ー

114/139

3/5

89/138

3/5

91/1402/5

94/1402/5

90/142

2/6

ISO14001 and ISO13485 Certifications

Number ofGroup
Certifications

Quality
Assurance
Department

Nichirei Foods

Nichirei
Foods Quality
Assurance
Department

3/15

3/5

3/15

3/5

3/15

2/5

3/15

2/5

0/15

2/6

Nichirei
Logistics Group

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department

104/116―

81/115―83 /117―

86/117―

85/119―Nichirei Fresh

NichireiFresh Quality
Assurance
Department

7/8

―

5/8

―

5/8

―

5/8

―

5/8

―

Nichirei
Bioscience

Nichirei
Bioscience
Quality
Assurance
Department

―

―

―

―

―

―

―

―

―

―

Number ofGroup
Certifications

Quality
Assurance
Department

12

3

13

2

13

3

12/17
(71%)

6/6
(100%)

9/17
(53%)

3/7
(43%)

Nichirei Foods

Nichirei
Foods Quality
Assurance
Department

11/15
(73%)

2/5
(40%)

11/15
(73%)

2/5
(40%)

11/15
(73%)

2/5
(40%)

10/15
(67%)

5/5
(100%)

7/15
(47%)

2/6
(33%)

Nichirei
Logistics Group

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department

―

―

―

―

―

―

―

―

―

―

Nichirei Fresh

NichireiFresh Quality
Assurance
Department

―

―

―

―

―

―

―

―

―

―

1 (100%)1(100%)―

2/2(100%)

1/1(100%)

2/2(100%)

1/1(100%)

2/2(100%)

1/1(100%)

Nichirei
Bioscience

Nichirei
Bioscience
Quality
Assurance
Department

14000:
0/1 (0%)13485:
2/2(100%)

269

FSSC22000 ISO22000
Number of SQF Certifications

Number ofGroup
Certifications

Quality
Assurance
Department

22/139

4/5

23/137

4/5

23/139

6/6

24/1396/6

24/141

7/7

Nichirei Foods

Nichirei
Foods Quality
Assurance
Department

14/15

4/5

14/15

4/5

14/15

5/5

15/15

5/5

15/15

6/6

2/116

―

2/115

―

2/117

―

2/117

―

2/119

―

6/8

―

7/7

―

7/7

1/1

7/7

1/1

7/7

1/1

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

0

0

2

1

―

―

―

―

―

―

0

0

0

1

―

―

―

―

―

―

0

0

0

0

―

―

―

―

―

―

0

0

1

0

―

―

―

―

―

―

0

0

1

0

210

19

221.5

10

455.5

21

790

25

635

32

42.5

19

42.5

10

24

21

24

25

18

32

77

0

77

0

334

―

678

―

555.8

0

Nichirei
Logistics Group

Nichirei Fresh

Nichirei
Bioscience

Quality Assurance –Number of Critical Cases

Group Annual
NumberNichirei Foods

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department
NichireiFresh Quality
Assurance
Department
Nichirei
Bioscience
Quality
Assurance
Department
Quality
Assurance
Department
Nichirei
Foods Quality
Assurance
Department

Nichirei
Logistics Group

Nichirei Fresh

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department
NichireiFresh Quality
Assurance
Department
Nichirei

Nichirei
Bioscience

Quality Assurance Training Hours

Group Annual
Hours

Bioscience
Quality
Assurance
Department
Quality
Assurance
Department
Nichirei

Nichirei Foods

Foods Quality
Assurance
Department
Nichirei
Logistics

Nichirei
Logistics GroupGroup
Quality and
SafetyManagement
Department

Nichirei Fresh

NichireiFresh Quality
Assurance
Department

26.5

0

38

0

40

0

30

0

28

0

Nichirei
Bioscience

Nichirei
Bioscience
Quality
Assurance
Department

64

0

64

0

57.5

0

58

0

33

0

270

Number of Major Meetings and Committee Meetings as well as Attendance Rates
Group Quality
Assurance Committee

Quality
Assurance
Department

Quality
Assurance
Department(1stmeeting)91%(10/11)(2nd
meeting)91%(10/11)(1st
meeting)100%(11/11)(2nd
meeting)82%(9/11)―(1st
meeting)100%(11/11)(2nd
meeting)91%(10/11)――(1st
meeting)92%(12/13)(2nd
meeting)100%(12/12)―(1st
meeting)100%(10/10)(2nd
meeting)83%(10/12)―* From FY2022, the number of quality assurance critical cases is based on the number of open recalls.

■Percentage of Receiving a Full Medical Examination after Periodic Health Checkups
Coverage

Unit

Nichirei Group total％

FY2019FY202012.3

FY2021

17.5

FY202266.1

FY202370.1

65.0■Donations to Non-profit Organizations
Donations to Non-profit
Organizations(Millions of yen)

FY2019FY2020

FY2021

FY2022

FY2023

Domestic

Overseas

Domestic

Overseas

Domestic

Overseas

Domestic

Overseas

Domestic

Overseas

Social welfare and disaster support（Social welfare, social inclusion）

19

―

19

―

20

―

18

―

41

0

Social welfare and disaster support（Support for disaster-stricken
areas）

14

0

16

0

2

0

4

0

1

20

Education（Academia & research）

15

―

10

―

8

―

6

―

5

0

Education（Education and social education）

82

―

77

―

67

―

57

―

74

0

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

133

―

138

―

134

―

134

―

142

0

Health, sports and the arts
（Culture and arts）

0

―

0

―

0

―

0

―

0

0

Environmental conservation（Environment）

17

―

50

―

57

―

59

―

83

0

Community contribution（Community activities,
preservation of historic sites andtraditional culture）

24

―

19

―

48

―

67

―

61

0

Political contributions（Lobbying activities）

0

―

0

―

0

―

0

―

0

0

Other

3

―

2

―

2

―

2

―

2

0

306

0

330

0

338

0

347

―

409

20

Nichirei Group total■Health Manager
Coverage

Nichirei Group total

Item

Unit

FY2021

FY2022

FY2023First-Class Health Manager

Number of people

89

78

122

Second-Class Health Manager

Number of people

11

11

15

Total

Number of people

100

89

137

271

■Personal Information Protection Leaks, etc.
FY2019Nichirei Group total

FY20200

FY20210

FY20220

FY2023

1

4■Number of Violations of Laws and Regulations in Advertisements/Publicity and Labeling
FY2019Nichirei Group total

FY20200

FY20210

FY20220

Corporate Governance Data

FY202303Note: 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, byType

Anti-corruption andBribery

Number of Meetings of
Various Committees,etc., and Number ofBoard Members inAttendanceOutside Directors and Outside Audit & Supervisory Board Members Appointments

Notice of the 105th Anuual General Shareholders Meeting■Board of Directors Composition
Category

Inside directors

Outside directors

Total

GenderNumber of people
FY2019FY2020

FY2021

FY2022

FY2023

Male

7

7

7

7

6

Female

0

0

0

0

0

Total

7

7

7

7

6

Male

1

1

1

1

2

Female

2

2

2

3

2

Total

3

3

3

4

4

Male

8

8

8

8

8

Female

2

2

2

3

2

Total

10

10

10

11

10

272

■Board of Directors Meeting Attendance Rate
Category

FY2019 (%)

FY2020 (%)

FY2021 (%)

FY2022 (%)

FY2023 (%)

Inside directors

97.4

100

100

97.6

100

Outside directors

98.2

94.4

100

100

98.7

■Number of Meetings of Various Committees, etc.
Number of Meetings HeldFY2019FY2020

FY2021

FY2022

FY2023

Board of Directors

Meets regularly on the third Tuesday ofeach month

19

18

18

19

19

Management Committee

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

23

20

17

23

25

Group Human
Resources Committee

Convened twice a year and at othertimes as needed by the chairperson of
the committee

2

2

2

2

2

Group Risk Management
Committee

Convened twice a year and at othertimes as needed by the chairperson of
the committee

2

2

2

2

2

Group Environmental
Protection Committee

Convened twice a year and at othertimes as needed by the chairperson of
the committee

3

2

2

2

ー

Group Supply Chain
Committee

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

ー

ー

ー

1

ー

Group Sustainability
Committee

Convened three times a year, and asneeded, convened by the chairperson

ー

ー

ー

ー

4

Group Quality
Assurance Committee

Convened twice a year and at othertimes as needed by the chairperson of
the committee

2

2

2

2

2

Group Internal Control
Committee

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

1

1

1

1

1

Group Officer
Examination Committee

Chairperson convenes as needed

ー

1

1

1

0

Social Action Program
Committee

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

1

1

1

1

1

Nominating Advisory
Committee

Convened twice a year and at othertimes as needed by the chairperson of
the committee

2

2

5

6

8

Remuneration Advisory
Committee*2

Convened twice a year and at othertimes as needed by the chairperson of
the committee

6

3

5

6*1

5

Examination Committee

Chairperson convenes as needed

ー

1

2

0

0

Intellectual Property
Management Committee

Chairperson convenes as needed

ー

ー

ー

0

0

*1 Includes 6th meeting in writing.
*2 As of January 2020, meets twice a year in principle according to the Remuneration Advisory Committee rules273

■Number of Meetings of Various Committees, etc., and Number of Board Members in AttendanceClassification

Name

Board ofDirectors
Meeting
AttendanceNominating
Advisory
Committee
Meeting
AttendanceRemuneration
Advisory Committee
Meeting Attendance

19/19

8/8

5/5

19/19

8/8

5/5

19/19

8/8

5/5

14/15*1

6/6*1

3/3*1

15/15*1

6/6*1

3/3*1

19/19

19/19

19/19

15/15*1
Directors*2

274

Audit &
Supervisory
Board Meeting
AttendanceClassification

Audit &
Supervisory
Board Members

Name

Board ofDirectors
Meeting
AttendanceNominating
Advisory
Committee
Meeting
AttendanceRemuneration
Advisory Committee
Meeting Attendance

Audit &
Supervisory
Board Meeting
Attendance

19/19

16/16

15/15*1

11/11*1

19/19

16/16

19/19

16/16

19/19

16/16

*1 Mr. Suzuki, Mr. Hama, Mr.Hamashima and Mr. Katabuchi were newly appointed at the 104th General Meeting of Shareholders held on June 24, 2022.
Their attendance reflects each meeting held after that date.
*2 As Mr. Takaku was newly appointed a the 105th General Meeting of Shareholders held on June 27, 2023, their attendance for FY2023 is not presented.

275

■Facilities Audits of Compliance Audits and Internal Controls
Department
in charge

FY2019Dome-stic

FY2020

Over
-seas

Dome
-stic

FY2021

Over
-seas

Dome
-stic

FY2022Over-seas

FY2023

Remarks

Dome
-stic

Over
-seas

Dome
-stic

Over
-seas

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

Corporate
Audit
Department

1

1

1

1

1

2

1

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

96.8%

93.6%

94.0%

91.8%

100%

90.8%

100%

Number ofGroup audits
per year(Domestic/
Overseas)

Corporate
Audit
Department

301

16

285

8

222

0

272

0

310

7

Complianceand facilities
combined

Group annual
implementation
rate (officecoverage rate
domestic/
overseas)

Corporate
Audit
Department

82%

36%

73%

19%

58%

0%

69%

0%

78%

15%

Complianceand facilities
combined

Number ofGroup audits
per year(Domestic/
Overseas)

Corporate
Audit
Department

181

8

162

4

152

0

162

0

188

3

Group annual
implementation
rate (officecoverage rate
domestic/
overseas)

Corporate
Audit
Department

74%

31%

66%

17%

61%

0%

62%

0%

72%

12%

Nichirei Foods(Domestic/
Overseas)

Corporate
Audit
Department

74%

8%

88%

40%

75%

0%

68%

0%

91%

10%

Nichirei
Logistics Group(Domestic/
Overseas)

Corporate
Audit
Department

68%

70%

59%

0%

49%

0%

51%

0%

55%

0%

Nichirei Fresh(Domestic/
Overseas)

Corporate
Audit
Department

100%

0

100%

0

88%

0%

76%

0%

97%

25%

Nichirei
Bioscience(Domestic/
Overseas)

Corporate
Audit
Department

100%

0

0

0

100%

0%

100%

0%

100%

100%

Overseas
includes only
those stationed
abroadGovernance Management

Internal
audit

Compliance
audits276Complianceonly (thenumber ofGroup annual
audits and theGroup annual
implementation
rate includes
corporate
departments)

Department
in charge

Facilities
audit

FY2019FY2020

FY2021

FY2022

FY2023

Remarks

Dome
-stic

Over
-seas

Dome
-stic

Over
-seas

Dome
-stic

Over
-seas

Dome
-stic

Over
-seas

Dome
-stic

Over
-seas

Number ofGroup audits
per year(Domestic/
Overseas)

Corporate
Audit
Department

120

8

123

4

70

0

110

0

122

4

Group annual
implementation
rate (officecoverage rate
domestic/
overseas)

Corporate
Audit
Department

87%

42%

87%

22%

51%

0%

82%

0%

90%

19%

Nichirei Foods(Domestic/
Overseas)

Corporate
Audit
Department

100%

17%

94%

33%

82%

0%

94%

0%

100%

50%

Nichirei
Logistics Group(Domestic/
Overseas)

Corporate
Audit
Department

85%

58%

87%

14%

43%

0%

79%

0%

88%

0%

Nichirei Fresh(Domestic/
Overseas)

Corporate
Audit
Department

100%

0

100%

0

89%

0%

89%

0%

100%

100%

Nichirei
Bioscience(Domestic/
Overseas)

Corporate
Audit
Department

0%

ー

100%

0

100%

0%

100%

ー

100%

ー

ー

100%

ー

100%

ー

100%

ー

Facilities only
(the number ofGroup annual
audits and theGroup annual
implementation
rate includes
corporate
departments)

Number of major meetings and committees held and the attendance rate
Percentage
of directors
attendingeachcommittee
meeting (10individuals)

Group Internal
ControlCommittee

Corporate
Audit
Department

90%

ー

100%

■Number of Whistleblowing Cases, by TypeFY2019FY2020

FY2021

FY2022

FY2023

Mistreatment

6

2

2

0

1

Workplace Disputes

2

5

8

2

8

Harassment

1

12

10

3

11

Compliance-related Breaches

1

1

5

11

4

Human rights issues

0

0

0

0

0

Other Consultations

2

1

2

4

2

Total

12

21

27

20

26

277

■Anti-corruption and Bribery
FY2020

FY2021

FY2022

FY2023

Punished employees

None

None

None

None

Payment of fines

None

None

None

None

278

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 （As of February 6, 2024）
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.

2023

2022

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.

2023

2022

2021

2020

2019

2018

2017

✓

✓

✓

✓

✓

✓

✓

2016

2015

2014

2013

2012

2011

2010

2013

2012

2011

2010

FTSE blossom japan sector relative index
An index constructed by FTSE Russell reflects the performance of Japanese companies
with relatively strong environmental, social, and governance (ESG) responsiveness intheir respective sectors.

2023

2022

✓

✓

2021

2020

2019

2018

2017

2016

279

2015

2014

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).

2023

2022

2021

2020

2019

2018

2017

AA

AA

AA

AA

A

A

A

2016

2015

2014

2013

2012

2011

2010

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.

2023

2022

2021

2020

2019

2018

2017

✓

✓

✓

✓

✓

✓

✓

2016

2015

2014

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.

2023

2022

2021

2020

2019

2018

2017

✓

✓

✓

✓

✓

✓

✓

2016

2015

2014

2013

2012

2011

2010

2016

2015

2014

2013

2012

2011

2010

Morningstar Japan ex-REIT Gender Diversity Tilt Index

2023

2022

2021

2020

2019

2018

2017

✓
DISCLAIMER
Morningstar, Inc., and/or one of its affiliated companies (individually and collaboratively, “Morningstar”) has authorized Nichirei Corporation to use of the Morningstar
Japan ex-REIT Gender Diversity Tilt Logo (“Logo”) to reflect the fact that, for the designated ranking year, Nichirei Corporation ranks in the top quintile of companies
comprising the Morningstar® Japan ex-REIT Gender Diversity Tilt IndexSM (“Index”) on the issue of gender diversity in the workplace. Morningstar is making theLogo available for use by Nichirei Corporation solely for informational purposes. Nichirei Corporation use of the Logo should not be construed as an endorsement by
Morningstar of Nichirei Corporation or as a recommendation, offer or solicitation to purchase, sell or underwrite any security associated with Nichirei Corporation. The
Index is designed to reflect gender diversity in the workplace in Japan, but Morningstar does not guarantee the accuracy, completeness or timeliness of the Index or
any data included in it. Morningstar makes no express or implied warranties regarding the Index or the Logo, and expressly disclaim all warranties of merchantability
or fitness for a particular purpose or use with respect to the Index, any data included in it or the Logo. Without limiting any of the foregoing, in no event shall
Morningstar or any of its third party content providers have any liability for any damages (whether direct or indirect), arising from any party’s use or reliance on the
Index or the Logo, even if Morningstar is notified of the possibility of such damages. The Morningstar name, Index name and the Logo are the trademarks of services
marks of Morningstar, Inc. Past performance is no guarantee of future results.

280

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).

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

―

―

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.

■Climate Change
2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

A-

B

A-

B

B

B

C

A-

C

C

C

31

―

―

■Water Security
2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

A-

A-

A-

B

B

B-

B-

―

―

―

―

―

―

―

S&P/JPX Carbon Efficient Index

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

✓

✓

✓

✓

✓

―

―

―

―

―

―

―

―

―

JPX-NIKKEI 400

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

✓

✓

✓

✓

✓

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281

■List of Certifications
Acquisition Year

Name

From July 2021 to June 2024

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

FY2023

Health & Productivity Stock
Selection

https://www.nichirei.co.jp/ne
ws/2023/436.html(Only Available in Japanese)

From FY2019

DBJ Employees' HealthManagement Rated Loan
Programhttps://www.nichirei.co.jp/ne
ws/2022/419.html(Only Available in Japanese)

From FY2017

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

https://www.nichirei.co.jp/ne
ws/2023/436.html(Only Available in Japanese)

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)282

■Awards
AwardsYear

FY2024

TopicsNichirei Corporation
was selected for "BestContinual IR Efforts
Premium"

OutlineSponsored by Japan Investor Relations Association
Nichirei Corporation was selected for the "Best Continual
IR Efforts Premium," a special award established tocommemorate the 30th anniversary of the Association's
establishment and given to companies that haveconducted IR activities above a certain level over the
medium to long term, in the IR Award.
Best Continual IR Efforts Premium（2023）
https://www.jira.or.jp/activity/bluechip.html (Japanese
only)

FY2024

Amani-no-Megumi
series won the "Japan
Child Care Advocate
Grand Prize"Sponsored by Japan Association for Child Rearing Support
Amani-no-Megumi series won the "Japan Child Care Advocate Grand Prize" atthe 4th Japan Child Care Advocate Grand Prize 2023.
https://www.nichireifresh.co.jp/news/detail/?id=1743 (Japanese only)

FY2024

Nichirei do Brasil
Agricola Ltda(NIAGRO) received its
first "Platinum" ratingin the EcoVadis
Sustainability Survey
in 2023, equivalent to
the top 1% level

Sponsored by EcoVadis
Nichirei do Brasil Agricola Ltda (NIAGRO), a subsidiary of
Nichirei Foods Inc. (President: Masahiko Takenaga),
received its first “Platinum" rating in the EcoVadis
Sustainability Survey in 2023, equivalent to the top 1%
level.
https://www.nichireifoods.co.jp/en/corporate/pdf/releas
e_ecovadis_230710.pdf

FY2024

Nichirei Ligistics
Group received"Japan Logistics Press
Association Award"
and "Special Award"
at 24th Logistics
Environment Award

Sponsored by Japan Association for Lgistics and Transport
KIRISHIMA SHUZO Co., Ltd. and Nichirei Logistics Kyushu, Inc. received "Japan
Logistics Press Association Award". Also, Logistics Network Inc. received "Special
Award".
https://www.nichirei-logi.co.jp/news/2023/20230706.html (Japanese only)

FY2023

Nichirei Bioscience
received a "Silver"
rating in the EcoVadis
Sustainability Survey(2022) for the second
consecutive year,
which is equivalent to
the top 25% level.

Sponsored by EcoVadis
Nichirei Biosciences Inc. (President: Hideo Yokoi) has
received a "Silver" rating, equivalent to the top 25% of
all companies evaluated, in the 2022 EcoVadis
Sustainability Survey for the second year in a row.
https://nichireibiosciences.co.jp/wp-content/uploads/20
23/02/NB_HP_Ecovadis%E3%83%97%E3%83%AC%E
3%82%B9%E3%83%AA%E3%83%AA%E3%83%BC%E
3%82%B9_230202.pdf

FY2023

Awarded "Champion"in the collaboration
award at the 4thJapan Sustainable
Seafood Awards

Sponsored by Seafood Legacy Inc. and Nikkei ESG​
We won the "Champion" award in the collaboration award at the 4th Japan
Sustainable Seafood Awards, sponsored by Seafood Legacy, Inc. and Nikkei ESG.
https://www.nichireifresh.co.jp/news/detail/?id=1659

Received the "SDGs
Carbon Offset Award"

Sponsored by J-Credit Tohoku Region Promotion Council (Secretariat:
Tohoku Bureau of Economy, Trade and Industry)
The "Obento-ni-Good! Good for the Earth! Program" received the "SDGs Carbon
Offset Award."
https://www.nichireifoods.co.jp/news/2022/info_id13768/

FY2023283

Awards
Year

Topics

FY2023

Nichirei do Brasil
Agricola Ltda(NIAGRO) received a"Gold" rating in the
EcoVadisSustainability Survey
in 2022, equivalent to
the top 5% level, forthe second year in arow

Sponsored by EcoVadis
Nichirei do Brasil Agricola Ltda (NIAGRO), a subsidiary of
Nichirei Foods Inc. (President: Masahiko Takenaga), received
a "Gold" rating, equivalent to the top 5% of all companies
evaluated, in the 2022 EcoVadis Sustainability Survey for thesecond year in a row.
https://www.nichireifoods.co.jp/en/corporate/pdf/release_e
covadis_220809.pdf

FY2023

Received the"Advanced
Technology Award"
and "Special Award"
at the 23rd Logistics
Environment Awards

Sponsored by the Japan Federation of Freight Industries
The Nichirei Logistics Group received the "Advanced Technology Award" and"Special Award" at the 23rd Logistics Environment Awards sponsored by the Japan
Federation of Freight Industries.
https://nichirei-logi.co.jp/news/2022/20220708.html

FY2022

Sustainability Awards
2021
Strategy for
Sustainable Food
Systems(MeaDRI)
Promotion award

Sponsored 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

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

FY2022

Commendation fromWICI Japan, a generalincorporated
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
over many years, and for contributing to their social independence throughvocational guidance.

FY2021The Yokohama Global
Warming
Countermeasures
Award

OutlineOrganized 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
that have significantly reduced greenhouse gas and other emissions. Assessments
are made based on the implementation status of priority measures and theachievement status of 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 WarmingCountermeasures.

284

Awards
Year

TopicsOutlineSponsored 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 foodeducation activities, contributing to the local community through environmental
conservation activities, and working with food banks.

FY2019

1st Award for Good
Practices ofConsumer-oriented
Received theConsumer Affairs
Agency Director'sCommendation

FY2018

Tokyo Stock
Exchange, Inc. 6thCorporate Value
Improvement Award
Excellent Award

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

FY2018

Green Logistics
Partnership
ConferenceAward from the MLIT
Minister's Secretariat
Deputy Vice-Ministerof Logistics

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

FY2017

Modal Shift Excellent
company
announcement /commendation
system“The award for
Excellent Business
Entities Working on
Modal Shift”

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

Nano Tech 2017
Life Nanotechnology
Award

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

FY2017285

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.

286

Roundtable on Sustainable Palm Oil (RSPO)
https://www.rspo.org/
In response to growing global concern regarding the impact of therapidly expanding palm oil plantations, in Malaysia and Indonesia, on theenvironment and human rights, the RSPO was set up in 2004 bystakeholders 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 the formulation of international certification standards andstakeholder participation. The Nichirei Group became a member of the

4-1055-18-100-00

RSPO in August 2018.

Membership profile pagehttps://rspo.org/members/4-1055-18-000-00/

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.

287

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 the sametime, 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 in July
2018, as a loose network of 105 participating organizations. The Nichirei Group has
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.

288

Life Cycle Assessment Promotion Consortium
https://riss.aist.go.jp/en-lca-consortium/
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.

289

The Caux Round Table Japan, a Non-Profit Organization (NPO)https://crt-japan.jp/en/
The Caux Round Table (CRT) was established at Caux in Switzerland in 1986 by a group of Japanese, American, andEuropean business leaders. In Japan, it was organized in 2000 as the Caux Round Table Japan (CRT Japan Committee),which became a non-profit organization in 2006. It is a global network of business leaders working to realize a fair, free andtransparent society through sustainable and socially responsible business. As corporate activities become increasingly
globalized, investors, the civil society, and consumers are becoming increasingly aware of the need for companies torespect human rights. Since 2019, the Group has participated annually in the Stakeholder Engagement Program sponsoredby the Caux Roundtable, which brings together companies, NGOs/NPOs, academics, and others to discuss "Business andHuman Rights."

Participation in the Stakeholder Engagement Program

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.

290