Nichirei GroupCSR Report 2019NICHIREI CORPORATION

Contents

Contents
CONTENTS■ Presidentʼs Message

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■ The Nichirei Pledge

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

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・ 13

■ Maintain a Sustainable Supply Chain
Supply Chain Management

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・ 27

Human Rights Initiatives

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・ 30

■ Reduce Environmental Impact
Environmental Management

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Initiatives for Sustainable Raw Ingredients

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Initiatives for Energy and Climate Change

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Initiatives for Water Resource Conservation

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Initiatives for Biodiversity Conservation

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Emissions into the Atmosphere

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Management of Wastewater, Waste Matter,and Chemical Substances

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・ 64

Initiatives in Products and Services

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Processing Environmental Complaints

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■ Foster Cooperative Relations with Communities
Contributions to Society

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■ Continually Enhance our Workplaces
Fundamental Policy on Human

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Occupational Safety and Health

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Labor Practices

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Human Rights

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Human Asset Cultivation and Diversity

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■ Support Good Corporate GovernanceCorporate Governance

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94

Risk Management

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97

■ Ensure Strict Compliance
Compliance

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■ Report Archives

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■ ESG Navigation

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■ ESG-related Policies

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■ ESG Data

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■ External Review

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CSR/Environmental Practices

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

Representative Director andPresident
Kenya Okushi

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

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

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

A New Vision
In 2005, the Nichirei Group transitioned to a holding company structure. At present, each Group company makes the most of its existence as anindependent entity.
However, in recent years social issues have become increasingly complex and responses to customer demands are becoming diﬃcult to resolve inindividual business domains. We thus believe we can create a new business model as well as the new products and services necessary for society
and customers by combining Nichirei Group R&D, ingredient procurement, processing, quality assurance and logistics resources.
In order to enhance the cohesive power of the Group and utilize Group capabilities to demonstrate our comprehensive strengths, we decided tocreate a new Group vision. As it says,

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“We will continue to support good eating habits and health by leveraging our state-of-the-art manufacturing practices that
optimize natureʼs bounty, along with our cutting-edge logistics services.”
The following three initiatives are integral to realizing this vision:
1. Focus on growth
Even in a business environment where the future is uncertain, we will increase corporate value by continuing to increase sales and generate
proﬁts, while considering how we can contribute appropriately to society and customers.
2. Take on new challenges
We will rethink our structure, including corporate governance and improve the quality of our management, while at the same time creating new
added value by constantly taking on new challenges without fear of failure.
3. Create diverse workplaces
We will focus on developing our human resources and creating enjoyable and rewarding workplaces. We will promote the introduction of RPA*1
and AI*2 to make operations more eﬃcient and create new types of work that can only be performed by people.
Whether work or play, if it is not interesting no one will do it for very long. To live a rewarding life, doing whatever it is that you want to do is thebest motivation of all. Many working people think to themselves that there is something they want to do or try and I want to create a Company inwhich they can take on such challenges. To this end, our goal is a workplace in which employees can relax and be accepted, even if they makemistakes.
Our new medium-term business plan WeWill 2021 is based on our intention to try new things. We will formulate our own goals at the individual,
departmental and team levels and strive to achieve them.
We formulated our vision and, at the same time, announced our long-term management goals toward 2030. Nichireiʼs corporate culture is one ofseriousness and sincerity because it deals with food. But we have also inherited DNA from predecessors who were constantly trying new things.
Although it is a major challenge, the goal of our 2030 plan is to contribute abundance to the human diet and improve health by creating new valuethat resolves social and customer issues by promoting innovation. We will strive to achieve solid results while at the same time realizing this goal.
*1 Robotic Process Automation: The use of cognitive technologies to enhance the eﬃciency and automation of mainly white-collar operations.
*2 Artiﬁcial intelligence: Using computers to artiﬁcially simulate human intelligence.
Vision for FY2031
Nichirei will promote innovations to create new value that
resolves issues faced by customers and society and contribute to
the good diet and health of all people.
In domestic operations, we aim to ﬁrmly establish ourselves as
the No.1 market share and high proﬁtable company in theprocessed foods and logistics businesses through the provision ofhigher added value and maximum capital eﬃciency.
In overseas operations, we are targeting an overseas sales ratioof 30%, which we will achieve through M&A and alliances aimed
at expanding scale and areas of operation. In addition, we seek toestablish new earnings pillars through the creation of new
businesses.

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

In ﬁscal 2020, the Nichirei Group launched its new medium-term business plan.
The basic policy of this plan is to realize sustainable proﬁt growth and the creation of new value that supports a good dietary lifestyle and good
health.
To realize sustainable proﬁt growth, we aim to strengthen the foundations of our management system and transform our business structure in
Japan. At the same time, we will seek to expand the scale of our operations abroad.
Targets for the Nichirei Group overall include net sales of ¥657.0 billion (average annual growth rate of 4.2%) and operating income of ¥35.0 billion(average annual growth rate of 5.9%). In addition, to accelerate overseas business development, we will engage in alliances with local companies,
including M&As, to achieve growth targeting overseas sales of ¥100.0 billion or more.
In terms of investment strategy, we plan to engage in proactive investments that surpass those under the previous medium-term business plan.
Overall investments for the Group are projected to be ¥100.8 billion, which is ¥37.8 billion more than investments under the previous mediumterm business plan.
Focusing on our core businesses of processed foods and logistics, while engaging in overseas business and operational innovations involving IT andother strategies, we will allocate management resources to new business development and R&D, focused on a medium- to long-term perspective.
In this way, we will attempt to further enhance competitiveness and create pillars of future growth, including those in new areas.
Since 2001, the Nichirei Group has utilized REP (Retained Economic Proﬁt), an original indicator focused on capital costs, with the aim of ensuring
proﬁts that exceed capital costs in each segment. However, under this new plan, we will utilize EBITDA*3 as the new management indicator forevaluating performance. By covering the EBITDA growth rate along with proﬁt margins, we will enhance ongoing ﬁnancial management and ourability to generate cash.
*3 EBITDA: Operating income + Depreciation and Amortization expense (including lease, excluding goodwill)

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

1.Realize sustainable proﬁt growth
2.Improve capital eﬃciency and expand shareholder returns
3.Create new value that supports a good dietary life and healthWith regard to ﬁnancial strategy, we will continue to improve capital eﬃciency and maintain ROE at 10% or higher. To enhance shareholder
returns, we will revise the dividend on equity ratio, previously 2.5% and raise it to 3.0%.
As a result, the dividend per share for the current ﬁscal year will be increased by \10 to \42 (dividend payout ratio of 28%). We will continue totarget stable dividends.
Under this new business plan, we will engage in the following environmental, social and governance initiatives.
The Nichirei Group is focusing eﬀorts on various initiatives aimed at achieving the long-term objectives set forth in the UN Sustainable
Development Goals and the Paris Agreement. It is doing so in order to realize a sustainable society amid rising global concerns over a variety ofsocial issues. These include how best to respond to climate change and respect human rights, as well as the need to conserve water, energy andother resources.
Concerning food, so-called food loss has become a social problem in recent years. Thus, Nichirei will proactively work to solve this problem throughour frozen food, ingredients and logistics businesses.
In terms of reducing environmental impacts, we will promote the elimination of chloroﬂuorocarbons by switching to refrigeration equipment
utilizing natural refrigerants, while ﬁrmly supporting the reduced use of plastic through the development of new, thin-ﬁlm packaging materials.
As a measure to further enhance corporate governance, Nichirei will seek continuous improvement through Board of Director evaluations. In
addition, it will continue to improve corporate value over the medium- to long-term by strengthening the link to executive compensation system
performance.
As even greater changes are expected to take place in the business environment, we will strive to use this new medium-term business plan
WeWill2021—aimed at achieving our long-term management goals toward 2030—to maximize Nichirei Group capabilities and enhance corporate
value.

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CSR/Environmental Practices

The Nichirei Pledge Working to Make Our
Communities More Sustainable

The Nichirei Pledge

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

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

Provide safe
products andservices
We ensure that everything
we oﬀer our customers ischaracterized by highquality and safety.

Maintain asustainablesupply chain

Reduceenvironmental
impactFostercooperative
relations with
communities

We work to ensure that
our supply chain issustainable.

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

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

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

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

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

6Create New Value for Customers

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

Creating New Value for Customers

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

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

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

Nichirei Biosciencesʼ Initiatives
At Nichirei Biosciences, an information website is managed under the supervision of doctors with the objective of providing the latest
immunostaining-related information to those engaged in pathological examinations at hospitals and such, as well as those at universities andresearch institutions involved in pathological research for basic and clinical medicine.

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

Meat Production: Focus on Omega-3 Fatty Acids
Amani no Megumi Meat
http://www.goodbalancemeat.jp/ (Japanese only)
Nichirei Fresh produces and sells meat with a focus on omega-3 fatty acids, which are essential for human health. We have improved the balanceof omega-3 and omega-6 fatty acids by giving chickens, pigs and cattle* a formula feed that uses ingredients derived from ﬂax, which is rich in αlinolenic acid. As a result, we have developed tender meat that we have been selling since 2006.

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Omega-3 fatty acids, abundant in blue-backed ﬁsh, ﬂaxseed oil and wild sesame oil, are converted into eicosapentaenoic acid (EPA) anddocosahexaenoic acid (DHA) in the body. However, the diet of todayʼs Japanese is often lacking in the essential fatty acids that cannot be made in
the body, especially omega-3 fatty acids. Thus, Nichirei Fresh is helping support the health of its customers through the meat that appears
frequently in everyday meal settings.
*There are individual diﬀerences.

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

Kikubari Gozen nutrition composition-controlled foods

Companion Diagnostics
Provision of diagnostics for personalized cancer treatments
https://www.nichirei.co.jp/news/2018/321.html (Japanese only)
In 2014, Nichirei Biosciences became the ﬁrst Japanese company to manufacture and sell “companion diagnostics”, which are used to selecttreatments and drugs eligible for each patient with cancer in terms of their physical condition and pathology.
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

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

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

TOPICSTechnology for Personalized Flavor

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

We are developing a program that gives ﬂavor recommendations to make peopleʼs selection of food more enjoyable. The associatedservice will commence in 2020.
The program uses the Nichirei Groupʼs MS Nose proprietary technology, which measures retronasal aroma1 which is a key element of
ﬂavor.
It also uses psychometrics,2 the design and interpretation of tests that measure psychological values. Using technology to ﬁnd ﬂavors that
one likes enables one to enjoy food better and represents an added value that has not previously been available.

10Notes:1. The sense is stimulated when aroma moves from the mouth to the olfactory receptors.
2. Technology developed in collaboration with the Faculty of Science and Engineering, Chuo University.

Response to Food Allergies
There are 27 foods listed as allergy triggers in Japan. Of these, the Consumer Aﬀairs Agency requires that seven (shrimp, crab, wheat, buckwheat,eggs, milk, peanuts) be displayed on packaging due to the frequency and seriousness of the allergic reactions they cause.
The Nichirei Group both checks the raw ingredients it uses and assesses the likelihood of contamination during manufacture in order to accurately
identify the food allergens on packaging, in compliance with the nationʼs food labeling laws. The Group has made every eﬀort to itemize the foodallergens contained in frozen foods for home use that are handled by Nichirei Foods.

Product Responsibility

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Provide Safe Products and Services

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

Product Responsibility

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Provide Safe Products and Services

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

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

Fundamental Policies on Quality Assurance

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

1. Safety information clearly given
The Nichirei Group provides allergen-related and nutritional information, in compliance with the standards prescribed by all labeling laws.
It also uses easy to understand diagrams and illustrations to convey important information concerning the cooking of its products.
2. Product origination
Customers each have their own criteria for choosing a product. The Nichirei Group uses easy to understand diagrams and drawings, and2D bar codes used for mobile marketing to provide essential customer information, including where an item and its ingredients were
produced, and how it should be prepared for serving.
3. Conveying products ﬂavor
The Nichirei Group consults designers about how packaging can best convey a productʼs ﬂavor.
4. Contact information for customer inquiries
The Nichirei Group displays contact information for collecting various types of information from customers.
5. Meeting industry standards
In addition to accreditation marks, the Nichirei Group displays the information required for packaging to be sorted for appropriate disposal
or recycling.

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Management System
The Nichirei Group Quality Assurance System

The Nichirei Group Quality Assurance System Diagram● Product Quality Assurance

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

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The Nichirei Group Quality Assurance System

Building of Quality Control System through Proactive Introduction of International Standards
https://www.nichirei.co.jp/sites/default/ﬁles/inline-images/english/csr/pdf/csr2018.pdf#page=37
The Nichirei Group oﬀers a variety of products and services that possess distinguishing characteristics. In addition to the operation of internal rules
and regulations that match those characteristics, we are actively promoting the acquisition of international standard certiﬁcations while working tostrengthen our quality control system and provide safe products and services.

■Certiﬁcation Status
Certiﬁcation

Certiﬁed Ratio5

Operating Company

FY2018FY2019Nichirei Foods

13/15

86.7%

14/15

93.3%

Nichirei Fresh

6/76

85.7%

7/76

100.0%

Nichirei Foods

13/15

86.7%

3/157

20.0%

Nichirei Fresh

8/8

100.0%

8/9

88.9%

Nichirei Logistics Group

105/11293.8%

104/115

90.4%

Nichirei Foods

13/15

86.7%

14/15

93.3%

Nichirei Fresh

6/8

75.0%

7/9

77.8%

Nichirei Logistics Group

2/112

1.8%

2/115

1.7%

ISO14001(Environmental management system)

Nichirei Foods

11/15

73.3%

11/15

73.3%

ISO13485(Medical devices / In vitro diagnostic drugs)

Nichirei Biosciences

2/2

100.0%

2/2

100.0%The HACCP system1

ISO9001(Quality management system)FSSC220002, ISO220003, SQF4
(Food safety management system)*Fiscal years (FY) indicate years ended March 31.

Notes:
1. HACCP: Developed in the United States during the 1960s for the aerospace industry, the HACCP system is an international management method for foodproduction that aims to prevent hazards during the manufacturing process by analyzing hazards and establishing important control points.
2. FSSC 22000: An international management system related to food safety that is based on ISO 22000.
3. ISO 22000: An international standard related to food safety management systems for reducing food safety risks that is based on the HACCP food sanitation
control techniques.
4. SQF (Safe Quality Food) certiﬁcation provides assurance that the product being purchased meets strict international food safety and quality standards such
as HACCP. In countries outside of Europe, it is the program recognized by the Global Food Safety Initiative (GFSI).
5. Target business establishments ratio: Consolidated subsidiary business establishments in Japan (food factories, logistics centers, etc.)
6. Target business establishments excluding Nichirei Fresh Farm
7. Switching to FSSC22000

Applicable Worksites
Environmental Data: Applicable Worksites for FY2019 Results Calculations
The following company food plants and distribution centers are included in the calculations. In the event of multiple worksites, the number isindicated 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 (35), NK Trans (4), Nichirei Logistics Hokkaido (7), Nichirei Logistics Tohoku (4), Nichirei Logistics Kanto (11), Nichirei Logistics
Tokai (10), Nichirei Logistics Kansai (13), Nichirei Logistics Chushikoku (14), Nichirei Logistics Kyushu (13), Kyokurei (4)Nichirei Biosciences
Development Center
Other
New Housing

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Food Defense Initiatives
https://www.nichirei.co.jp/english/safety/system.html
The Nichirei Group emphasizes people management to protect food.
In addition to restricting access to areas where food is handled to authorizedindividuals, we have made it possible to determine the when, who and where ofsuch individuals at all times. In-house operation rules covering visitors andcontractors 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 theworkplace environment based on employee satisfaction surveys and interviews.
We have installed cameras and face recognition systems at all our plants in Japanand overseas. To protect the food we have created a system based on the
distinguishing characteristics of each product and which allows follow-up
investigations to be conducted should problems arise. If a problem does occur, a link is established with our food crisis management system, whichallows accurate information to be disseminated and responded to quickly.

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

● Overview of ISO 13485

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

Participants of the 6th contest which is held once a year16

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

Judging of inspection skills

Scene from the competition

Service Quality Assurance
Nichirei Logistics Groupʼs new logistics center is outﬁtted with the most cutting-edge equipment, including advanced security functionality and aseismic isolation structure. In addition, in regard to quality, traceability functionality, inventory management functionality, and more along withtemperature control that combines the Groupʼs know-how and technology have allowed it to realize advanced logistics quality. When it comes to alogistics network, the approximately 4,000 trucks, including the Nichirei Groupʼs own, that provide transportation and delivery all over the country
every day, are the backbone of its logistics network, and collaborations with freight companies are essential. For this reason, the Nichirei Groupestablished a cooperative organization with the freight companies and pursues initiatives such as driver contests and a system of training andawards to improve safety and quality, thereby establishing a close collaborative relationship.
Food Defense Initiatives
Since the Nichirei Group believes that the best way to protect food is by controlling people, it emphasizes people management. It values
communication between people, and in addition to restricting access to areas where food is handled to authorized individuals, the Nichirei Grouphas made it possible to determine the when, who, and where of such individuals at all times. It has created a system to protect its food that isbased on the distinctive characteristics of each product, and which allows follow-up investigations to be conducted should problems arise. The
Nichirei Group is enhancing its face recognition system and other security measures at its logistics facilities as well.

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

Establishment of Quality Control Regulations
Nichirei 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 and reports and shares its
implementation status with the Quality Assurance Committee and the Group Quality Assurance Committee, which assists with the further revisionand enhancement of its quality assurance system.
Management of Raw Ingredients
Nichirei Foods researches the materials comprising the raw ingredients in three stages, and manages the distribution percentages, quality/microbial
speciﬁcations, manufacturing process, and allergens contained. Raw ingredient suppliers are required to submit information on each ingredient in
the form of ingredient quality speciﬁcations. This is placed in its database and used as the basis for nutritional information and to answer customer

17

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

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

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

18

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

Initiatives for Communication with Customers
Initiatives for Communication with Customers
Besides providing products with reliable quality, providing relevant information to customers is Nichirei Foodsʼ 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 customersʼ opinions to provide feedback to work sites
and improve quality.
Adding the N Mark to Packaging
A lot of information is concentrated on packaging. The information in the all-in-one displays on the side or back of packaging cannot aﬀord to be
mistaken, and thus undergoes stringent double-checking to ensure that all relevant legal stipulations are met. The name and place of origin of raw
ingredients used in products are identiﬁed on the packaging, based on the information provided by the producers. Further, since the best-by dateand lot number are displayed, it is possible to look up when and where a product was made, and which ingredients were used. Given the Groupʼsbelief that a customerʼs ability to communicate with lit is of paramount importance, packaging clearly displays a toll free number for enquiries.

19

■Main Laws Concerning Packaging Information
All-in-one display

Food Labeling Act, Measurement Law

Allergy information

Food Labeling Act

Nutritional information

Food Labeling Act

Information identifying packaging materials

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

Product marketing information

Act against Unjustiﬁable Premiums and Misleading Representations, prefectural regulations

In order to ensure the accuracy of information related to product safety and selection, the Nichirei Group conducts a number of checks between thetime that information displays are created and products are shipped. It also checks to make sure that nothing on the packaging can cause
misunderstanding. It is implementing display checks with these two points in mind in its examinations as well, and only those products that passcan be manufactured.

20

Veriﬁcation before the N Mark Is Added to Packaging

Creation・First charts with detailed breakdowns and distribution percentages, based on the speciﬁcations of the raw ingredients and the recipes
are created.
・Next, the information to be displayed on the packaging is decided.
・The checklist is based on legal requirements, industry guidelines, and facts the Nichirei Group has established independently (producthighlights, cooking methods).
・Values derived from nutritional information (for home-use products) are also used.

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

Display veriﬁcation

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

21

Veriﬁcation at the Factory: After Packaging and before Shipping

Printing, data checks

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

Conveying Accurate Product Information
In order to obtain information about raw ingredients, the Nichirei Group requires suppliers to provide detailed speciﬁcations. But, before using
these as a resource for product packaging, it runs tests to conﬁrm they are correct. Such scrutiny of information, as is relevant to highly processed
ingredients, can require several months. In addition, it adapts to changes in laws related to food product labeling as they arise.

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

Food Safety Center Initiatives

The initiatives of the Nichirei Foods Customer Support Center

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

Universal Design Initiative (Only available in Japanese)

Reports Related to Advertisements/Publicity and Labeling
No laws were violated in the advertisements/publicity and labeling related to products and services.

Food Safety Center Initiatives
The Nichirei Quality Assurance Divisions Food Safety Center is the Groupʼs inspection and analysis arm. It veriﬁes that the appropriate quality
assurance activities are being undertaken at operating companies. Inspectors mostly check for residual agricultural chemicals in frozen vegetables,and for veterinary drugs (such as antibiotics and synthetic antimicrobial drugs) in marine/livestock products and their processed derivatives.
Nichirei provides operating companies with feedback even if detected elements are within legally acceptable limits. This enables the companies toassess whether appropriate steps are being taken to manage the use of agrochemicals and drugs at sites, to discover the causes, and to prevent
them from exceeding acceptable levels.

22

In addition, it checks for agrochemicals and veterinary drugs in over 400 items, and for radioactive substances, the Group monitors the products
and raw ingredients it handles using an NaI (TI) scintillation spectrometer.

Quality Assurance Audits
Nichirei Foods performed quality audits at 31 business establishments in FY2018. The control and management category contained eight items and218 checkpoints, and the facility and hygiene category contained nine items and 307 checkpoints. If an issue was discovered, instructions for
improvement were given.
In addition, starting from April 2018, the entire Groupʼs quality assurance system changed. Nichirei Corporationʼs Quality Assurance Division has
established rules and standards for quality control and quality assurance, and it performs quality management reviews to ensure that operatingcompaniesʼ quality management system is functioning properly. Operating companies have changed the roles so that they abide by their own
regulations and handle factory and product inspections in an eﬀort to achieve more eﬃcient quality assurance.

Health Initiatives
As a company engaged in food-related businesses, the Nichirei Group believes that access to better nutrition is a very important part of peopleʼshealth. Nichirei Foods develops and sells wellness products that promote health. In addition, Nichirei Biosciences provides the public with academic
and technical information related to immunostaining and has made it available to health professionals through an information website, allowing it
to contribute to a healthy society through its businesses.

Issues surrounding food safety and security

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

Providing an information site to health professionals (Nichirei Biosciences)(Only available in Japanese)

Collaboration with Industry Organizations, etc.
The Nichirei Group actively participates in industry group activities and contributes to helping communities improve and solve the issues they facethrough proposals and recommendations/encouragement.
Nichirei and Nichirei Foods are oﬃcial members of the Japan Frozen Food Association, both Nichirei Logistics Group and its main subsidiaries are
members of the Japan Association of Refrigerated Warehouses, and Nichirei is a member of the Japan Food Industry Association.

Industry Organizations

23

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 productinformation 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 of which it has them return.
The survey uses a ﬁve-point scale to evaluate four areas: initial impression contacted by telephone (reception response); items noted by the
respondent (on the report form); time taken to submit report (response time); and future purchasing intentions (repeat purchase). Space is also
provided for customers to include additional comments. The aggregate results are used to improve Customer Support Center services. Eﬀorts on
this direction are ongoing.

● Breakdown of Customer Interactions in 2018

● Evaluation of Customer Satisfaction Reception Response24

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

Date

TargetJuly 27, 2014

Retort curry Shinjuku Curry Beef (Only available in Japanese)

May 11, 2016

Frozen vegetables produced in America (Only available in Japanese)Protection of Personal Information
In FY2018, there were no issues related to the leaking of personal information, etc.

Staﬀ Training for Quality Improvement
The following training was carried out for FY2018.

Training

Description

Number ofPeople

Hours

Third-year employee
technical training session

Smooth communication, control of production line sanitation

34 people

14
hours

Leader candidate training

Management demonstration on educating young employees and accomplishing tasks

22 people

28
hours

M1 leader training

How to discover and resolve oneʼs own issues with management skills, feedback
exercise on objectives management evaluations

139 people

14.5
hours

Training for obtaining FSSC
22000 certiﬁcation

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

140 people

46
hours

In FY2019, in addition to the above training, technical training will be expanded to second-year employees as well and training conducted for line
leader candidates and production factory leaders. In addition, for FSSC 22000, training for establishing the system will be conducted.
For promoting appropriate food labeling, all domestic employees learn about food hygiene and product labeling, etc., through e-learning once a
year.

25

Maintain a Sustainable Supply Chain

The Nichirei Groupʼs Nichirei Pledge deﬁnes the philosophy behind the CSR initiatives that the Group believes itshould pursue. However, it cannot make the essence of its philosophy a reality with the Groupʼs eﬀorts alone.
The Group believes that it is essential for a company to forge an appropriate relationship with stakeholders tomake appropriate contributions to society through the life cycle of its business activities. In particular, because
Group businesses harvest raw materials from natural ecosystems, the Group is aware that it may have an impact
on the communities in its production site. For this reason, from a long-term perspective, the Group will forge
appropriate relationships with its suppliers and partner companies and is aiming to contribute to the vitality anddevelopment of communities through its businesses.
In order to build a sustainable supply chain, the Group has established the Nichirei Group Sustainable Supply
Chain Policy. The Group procures products and services in accordance with the following Policy and asks suppliers
to assent to and comply with this policy.

Supply Chain Management

Human Rights Initiatives

26

Maintain a Sustainable Supply Chain

Supply Chain Management
Basic Philosophy
The Nichirei Groupʼs Nichirei Pledge deﬁnes the philosophy behind the CSR initiatives that the Group believes it should pursue. However, it cannot
make the essence of its philosophy a reality with the Groupʼs eﬀorts alone.
The Group believes that it is essential for a company to forge an appropriate relationship with stakeholders to make appropriate contributions tosociety through the life cycle of its business activities. In particular, because Group businesses harvest raw materials from natural ecosystems, theGroup is aware that it may have an impact on the communities in its production site. For this reason, from a long-term perspective, the Group will
forge appropriate relationships with its suppliers and partner companies and is aiming to contribute to the vitality and development of communities
through its businesses.
In order to build a sustainable supply chain, the Group has established the Nichirei Group Sustainable Supply Chain Policy. The Group procures
products and services in accordance with the following Policy and asks suppliers to assent to and comply with this policy.

Nichirei Group Sustainable Supply Chain Policy
The Nichirei Group is committed in working to maintain a sustainable supply chain. The Group procures products and services inaccordance with the following policy and asks suppliers to assent to and comply with this policy.
Legal compliance: We comply with the laws and social norms of each country and region where we operate.
Fair business practices: We employ fair, transparent, and impartial business practices.
Human rights: We respect human rights and provide safe, healthy work environments.
Environment: We strive to reduce environmental impact and consider the health of the global environment.
Product quality and safety: We work hard to deliver safe, high-quality products and services.
Information management: We manage information properly and disclose information related to our business activities in a timely,
appropriate manner.
Local communities: We seek to build close cooperative relationships with local communities, as a good corporate citizen.

English Chinese

Thai Vietnamese Portuguese Spanish

Management System
The Group is aware that it may have various impacts on society and the environment, including in its supply chain, through its domestic andinternational business activities, so it wishes to forge an appropriate relationship with stakeholders from a social and environmental perspective as
well. In April 2017, the Group declared “maintaining a sustainable supply chain” as one of the important items in the Nichirei Pledge of its BasicCSR Policy, and as the foundation for progress on this front, it established the Nichirei Group Sustainable Supply Chain Policy. The Nichirei Groupwill cooperate with its suppliers and promote initiatives based on this Policy.
At its operating company Nichirei Foods, in terms of business activities that take CSR into account, suppliers and partner companies perform a selfcheck of the essential items concerning social responsibility related to procurement, and dialogue about the contents of the check sheet occurs
during factory quality audits. In FY2019, quality audits were conducted at 17 plants in Japan and 20 plants overseas. In this process, the Nichirei
Group Sustainable Supply Chain Basic Policy is shared with suppliers in Japan and overseas to obtain understanding and cooperation.

CSR Management Discussion Meetings
The Group has been holding “CSR Management discussion meetings” since FY2017 primarily to oﬀer an opportunity for discussion on businessactivities that contribute to social responsibility, what group communication should be like, and building trust with society. This discussion consists
mainly of the members of the holding companyʼs CSR Management promotion project and the Strategic Planning Divisions and Management
Divisions of the Groupʼs four core companies. These meetings were held 12 times in FY2018, 5 times in FY2019, and there were discussions about

27

initiatives related to maintaining a sustainable supply chain, as well as an examination of the Group companiesʼ environmental and social issues.
The Group will continue to hold these meetings and promote CSR management.

Initiatives
Participation in Human Rights Program
As an external activity related to human rights, the Nichirei Group is participating in the Stakeholder Engagement Program operated by the JapanCSR Consortium, for which the Caux Round Table operates a bureau. In the Program, we discussed with NPOs/NGOs and other companies to
identify sector speciﬁc human rights issues. The result shall be considered in our human rights activities. The report of the program can be
downloaded from the web site of CRT Japan.
http://crt-japan.jp/human-rights/she-program_archive/
In addition, the Group participated in an international convention of human rights (hosted by CRT Japan) that was attended by NGOs and humanrights exparts.

Promoting respect for human rights across the supply chain

Membership in the RSPO
Palm oil, obtainable from the fruit of the oil palm, is used as a raw ingredient in edible oils, soap, detergent, and various other products. Last year,
progress was made with a large-scale development of oil palm plantations, and the deforestation of the tropical rainforest, CO2 emissions frompeatlands, and other environmental issues, along with forced labor and child labor on the plantations, have become global issues.

In August 2018, the Nichirei Group became a member of the RSPO (Roundtable on Sustainable Palm Oil), a non-proﬁt organization that promotes
the sustainable production and usage of palm oil. In FY2019, Nichirei Foods' food factories (consolidated subsidiaries in Japan and overseas)aggregated the total amount of palm oil used for frying oil and purchased the appropriate amount of RSPO certiﬁed oil credits (Book & Claimmodel). We will support RSPO's eﬀorts to promote sustainable procurement in the supply chain.

4-1055-18-100-00

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

FY2019

Shared Nichirei Group Sustainable Supply Chain Policy
with important suppliers in Japan and overseas,
conducted surveys in a questionnaire format

28

Collected allquestionnaires

Analyzed questionnaire
content
Visited some suppliers andexchanged opinions

ASC/MSC-certiﬁed Products
As of June 2019, Nichirei Fresh has three types of marine products that have obtained ASC certiﬁcation*1 and 17 types of marine products thathave obtained MSC certiﬁcation*2. In FY2018, Nichirei Fresh developed herring roe Kazunoko Matsumae-Zuke and herring roe Kazunoko WasabiZuke made with MSC-certiﬁed Paciﬁc herring (roe) with a business partner that has obtained CoC certiﬁcation*3. Going forward, the Group willcontinue making eﬀorts to keep its marine products sustainable, and will continue to grow the number of ASC-certiﬁed and MSC-certiﬁed marine
products.

*1 ASC certiﬁcation: Marine products certiﬁed by the ASC (Aquaculture Stewardship Council) as having been cultivated in a sustainable manner*2 MSC certiﬁcation: Natural marine products certiﬁed by the MSC (Marine Stewardship Council) as having been cultivated in a sustainable manner*3 CoC certiﬁcation: Certiﬁcation of the management of the processing and distribution processes■ Nichirei Fresh Products That Have Obtained ASC/MSC Certiﬁcation (as of June 2019)
Certiﬁcation

Number Certiﬁed

ASCCertiﬁcation
Registry Number
ASC-C-01632

Three types (Black tiger shrimp, Whiteleg shrimp, Paciﬁc oyster*)

MSC
Certiﬁcation
Registry Number
MSC-C-52165

17 types
Salmon varieties (pink salmon, king salmon, coho salmon, chum salmon, sockeye salmon), Walleye pollack, Paciﬁc cod,
Flatﬁsh varieties (Kamchatka ﬂounder, yellowﬁn sole, dusky sole, white ﬂounder), Scallops, Herring, Capelins, Snow crabs,
Arctic surf clams, Red king crab** The products that newly obtained the certiﬁcation in FY2020

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

29

Maintain a Sustainable Supply Chain

Human Rights Initiatives
Basic Philosophy
The Nichirei Group believes that respecting the human rights not only of the Groupʼs employees, but also all stakeholders involved in its businesses,
including supply chains, is signiﬁcant and absolutely essential.
In order to build a sustainable supply chain, the Group established the Nichirei Group Sustainable Supply Chain Policy in April 2017. The Groupprocures products and services in accordance with the following Policy and asks suppliers to assent to and comply with this policy. In one of theitems, where it is stated that that “the Nichirei Group respects human rights and provides safe, healthy work environments,” sexual harassment,child labor, and discrimination against women and people with disabilities is forbidden.

Code of Conduct

Nichirei Group Sustainable Supply Chain Policy

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

1. Scope

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

2. Basic Principles

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

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

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

30

The Nichirei Group Human Rights Policy

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

External Communications
During the Caux Round Table stakeholder engagement program held between June and July 2019, there were proposals from NGOs and others, aswell as dialogue among companies that delved into human rights issues in diﬀerent industries.
In addition, in October 2019, the Group participated in an international convention (hosted by CRT Japan) that was attended by major NGOs andhuman rights experts both in Japan and abroad, at which guiding principles related to business and human rights were proposed.

31

Reduce Environmental Impact

The Nichirei Group undertakes environmental conservation activities based on three major issues: prevention of
global warming, promotion of sustainable recycling of resources, and symbiosis with nature. The Groupʼsenvironment-related approach is summarized in its environment- and biodiversity-related policies.

Environmental Management

Initiatives for Sustainable Raw
Ingredients

Initiatives for Energy and Climate
ChangeInitiatives for Water Resource
Conservation

Initiatives for Biodiversity
Conservation

Emissions into the Atmosphere

Management of Wastewater,
Waste Matter, and Chemical
Substances

Initiatives in Products andServices

Processing Environmental
Complaints

32

Reduce Environmental Impact

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

The Nichirei Groupʼs Environmental Policy (Revised December 1, 2008)
Basic Policy
If the Nichirei Group is to pass on to future generations the natural abundance that is the source of food and good health—and tocontinue providing freshness and good taste by using superior products and a ﬁrst-class logistics network—together with our stakeholders
we must reduce the environmental impact of our business activities and help create a sustainable society.

Prevention of global warming
We seek to reduce greenhouse gas emissions produced as a result of our food-related business activities, including procurement,
production, storage, and distribution. To this end, we are helping to curb global warming through endeavors that support atransformation of business and lifestyles.

Promotion of sustainable recycling
In addition to making the best use of our limited natural resources, the Nichirei Group is reducing the waste resulting from its businessactivities, reusing resources, and recycling. We also are helping build a recycling-oriented society by planning the recycling of resources
and purchasing these resources.

Symbiosis with nature
The Group, recognizing that natural resources are the product of diverse ecosystems and life forms, is making an eﬀort to live insymbiosis with nature.

Action Guidelines
Since the Nichirei Group believes that environmental problems are a major management issue, environmental considerations color all its
business activities.

1. Creating and implementing a management system
Given the environmental problems involved in the creation of a sustainable society, we are constantly evaluating and reviewing ouractivities so as to maintain and improve our management system. This we do in addition to promoting problem-solving activities, based

33

on the implementation of relevant regulations and the establishment of environmental targets.

2. Legal compliance
We have created our own standards, based on our grasp of the relevant laws and demands of society.

3. Environmentally appropriate products and services
We promote services and conscientious craftsmanship that works to minimize environmental impact at each stage, from the planning,
design, and development of each product and service through to procurement, production, distribution, sale, use, and disposal.

4. Increasing awarenessWe use environmental education and consciousness-raising activities to increase individual awareness, and proactively undertake
environmental conservation activities as both employees and citizens.

5. In harmony with society
In addition to proactively disclosing information, we participate in regional environmental activities and, together with society at large,
pursue various avenues to help improve the environment.

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

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

34

Goals and Priority Challenges toward FY2021■ Long-term Goals for FY2012–FY2021 (formulated in FY2011)
Prevention of global
warming

Promotion of sustainable
resource circulation

Symbiosis with nature

Reduce CO2 emissions from the
Nichirei Group

Reduce CO2 by 10% or 23,000 metric tons from the FY2010 level at all
domestic establishments and vehicles owned.

Reduce CO2 emissions fromsociety as a whole

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

Reduce waste emissions from the
Nichirei Group

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

Reduce waste emissions fromsociety as a whole

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

Activities centered on businessactivities

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

Activities centered oncontribution to society

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

35Medium-term Targets and Results■Groupʼs medium-term environmental plan
Applicable
worksites

Group medium-term environmental plan targets (FY2020–FY2022)
Reduction of CO2

Maintaining waste recycling
rate and controlling waste
discharging

Water resource conservation

Maintain FY2014 CO2 emission levels in FY2022

Worksitesin Japan* Power coeﬃcient: Fixed to the FY2014 coeﬃcient

Keep a recycling rate of 99% or higher

Worksitesin Japan

Reduce residue of material derived from animal and plant

Food
plants inJapan

In consideration of the environmental conditions surrounding water in each community, theGroup engages in water resource conservation through eﬃcient water usage aimed atsustainable water usage

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

Engaged in collecting data regarding the environment at overseas worksites

The reduction of CO2 emissions refers to the target reduction of all emissions, and covers all energy consumed at worksites and by company-

owned vehicles in Japan. The waste recycling rate continues to be maintained at 99% or higher. Food plants 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 bepreserved for future generations. The entire Group is also engaged in collecting environmental data at its overseas worksites.

Prevention of Global Warming
In addition to the Group working to reduce CO2 emissions at its places of business, such as factories and logistics centers, all operating companies
have identiﬁed the major issues they are facing and are working toward reducing their CO2 emissions. The total amount of CO2 emissions for

FY2019 increased by 1.1%※1 compared to FY2010 due to increased production, new oﬃce construction, and so on. In addition, when using thecoeﬃcient of variation to compare the CO2 emission factors due to electricity production, there was an increase of 12.1%※2. Going forward, in
addition to making its food factory and logistics center operations more eﬃcient, updating to energy-saving equipment, and implementing
renewable energy, the Group will work on reducing CO2 emissions throughout its entire supply chain.

● Nichirei Group CO2 Emission Trends

36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 of Japanin FY2010, used nationwide.

2. Variable power emission coeﬃcient: Power conversion coeﬃcient used by power companies in ﬁscal year utilized at each worksite.
3. Scope of power emission intensity: Nichirei Foods (Nichirei Foods-operated factories and aﬃliated factories in Japan) and Nichirei Fresh (aﬃliated factories inJapan). Excluding the following factories: Nichirei Foods: Nichirei Ice Inc., Nichirei Fresh: Nichirei Fresh Farm Inc., Fresh Chicken Karumai Inc., Fresh Meat
Sakudaira Inc.

Promotion of Sustainable Recycling of Resources
The amount of waste discharged outside worksites in FY2019 was 45,400 tons, and the waste recycling rate was 99.5%. Regarding residual animaland plant material at factories, targets have been set for each operating company with a food factory, and eﬀorts are being made to reduce waste
discharge. Although recyclers can sometimes not be found for waste destined for ﬁnal disposal because of the type and volume of waste, the Groupwill work on further reductions, including by controlling the amount of waste produced.

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

INPUT
FY2015FY2016FY2017FY2018FY2019(Thousands of
tons)

161

167

185

188

195

Material(Thousands of
tons)

145

149

167

170

177

Packaging materials(Thousands of
tons)

16

18

18

18

18

1,000 GJ

4,983

5,063

5,109

5,078

5,107

Purchased power

1,000 kWh

438,673444,843447,574

443,480

447,277

Heavy oil

kl

3,314

3,329

3,335

3,319

2,609

Kerosene

kl

189

198

200

191

173

Raw materials

Energy37

City gas

1,000m3

5,951

6,385

6,705

6,923

7,142

LPG

tons

4,487

4,623

4,620

4,650

4,814

Gasoline (companyowned vehicles)

kl

588

524

467

461

402

Light oil (companyowned vehicles)

kl

1,144

1,270

1,340

1,378

1,556

Solar power generation

1,000 kWh

243

186

211

400

1,444

Nichirei Foods

1,569

1,649

1,716

1,726

1,761

Nichirei Fresh

171

173

179

169

173

3,161

3,159

3,129

3,098

3,089

Nichirei Biosciences

10

10

8

11

12

Other

73

72

73

74

72

1,000m3

3,781

4,033

3,931

3,997

4,117

Clean water3

1,000m

1,276

1,336

1,284

1,293

1,267

Industrial water

1,000m3

638

853

877

797

907

Groundwater (wellwater)

1,000m3

1,867

1,845

1,770

1,906

1,943

Nichirei Foods

2,372

2,595

2,581

2,652

2,812

Nichirei Fresh

352

352

353

331

322

1,043

1,070

977

998

963

Nichirei Biosciences

6

5

8

6

6

Other

8

12

12

11

13

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

Nichirei Logistics Group

Water

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

Nichirei Logistics GroupOUTPUT
FY2015Waste

FY2016FY2017FY2018FY2019Amount of waste
discharged outside
worksites(Thousandsof tons)

40.4

41.9

45.2

45.2

45.4

Recycle volume(Thousandsof tons)

40.3

41.7

45.0

45.0

45.2

Volume of waste for ﬁnal
disposal*1(Thousandsof tons)

0.1

0.2

0.2

0.2

0.2

Nichirei Foods

17,806

18,46921,227

20,965

18,155

Nichirei Fresh

9,474

11,02911,453

11,426

13,973

Nichirei Logistics Group

12,795

12,33012,436

12,733

13236

45

43

20

46

44

-

-

-

-

-

289,396286,382

279,465

273,348

259,980

Breakdown of waste discharged
outside worksites (tons) at eachbusiness company

Nichirei Biosciences
Other
Atmospheric system

CO2 ※238

SOx ※3

7

5

4

4

3

Nichirei Foods

90,77592,894

93,61393,07690,717

Nichirei Fresh

9,956

9,830

9,914

9,281

9,376

184,258

179,529

171,652

166,509155,815

510

406

538

574

568

3,897

3,724

3,747

3,909

3,503

Breakdown of CO2 emissions (tons) ateach business company

Nichirei Logistics Group
Nichirei Biosciences
Other
Water system

Drainage

1,000m3

2,295

2,444

2,525

2,458

2,421

Sewer system

1,000m3

1,453

1,530

1,577

1,514

1,464

Public water area (riveretc.)

1,000m3

841

913

948

945

957

Drainage load BOD*4

tons

52

26

46

48

48

COD ※４

tons

16

19

24

22

24

Nichirei Foods

1,731

1,902

1,922

1,758

1,751

Nichirei Fresh

168

165

234

328

308

Nichirei Logistics Group

382

360

349

355

343

Nichirei Biosciences

6

5

8

6

6

Other

8

12

12

11

14

Breakdown of drainage (1,000m3) ateach business company*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.

Applicable Worksites
Environmental Data: Applicable Worksites for FY2019 Results Calculations
The following company food plants and distribution centers are included in the calculations. In the event of multiple worksites, the number isindicated 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 (35), NK Trans (4), Nichirei Logistics Hokkaido (7), Nichirei Logistics Tohoku (4), Nichirei Logistics Kanto (11), Nichirei Logistics
Tokai (10), Nichirei Logistics Kansai (13), Nichirei Logistics Chushikoku (14), Nichirei Logistics Kyushu (13), Kyokurei (4)Nichirei Biosciences
Development Center
Other
New Housing* Regarding the amount of energy used and volume of CO2 emitted, this includes activities at the head oﬃce, branches and oﬃces other than those indicatedabove, and company-owned trucks.
* Excludes overseas worksites.
* If the scope of applicable worksites diﬀers from the above, a statement to this eﬀect has been included.
* Total ﬁgures may diﬀer due to the rounding eﬀect.

39

ISO 14001 Certiﬁcation, etc.
The Nichirei Group prioritizes ISO 14001 certiﬁcation at its food factories. At Nichirei Foods, certiﬁcation has been obtained at 11 directly-operated
and subsidiary factories. Within the Nichirei Logistics Group, Green Management Certiﬁcation has been obtained at Kyokurei Corporation and NKTrans Inc. On a basis of production, the Group has obtained ISO 14001 certiﬁcation at 76% of its food factories in Japan.

Green Management 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 thathave obtained ISO 14001 certiﬁcation undergo internal environmental audits as well as yearly external reviews by a registered external review
body.

■In-house Environmental Education
Name

Content

Environmental e-learning

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

Campaign to save energy inemployee households

Energy-saving campaigns for employee households have been held since FY2012, to improve
employees' awareness of the environment.
The aim is to have participants share energy-saving tips, and have energy consumption reduction
targets.

Training for new employees

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

Hands-on training on company
land in Urabanda

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

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

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

Hands-on training (Biodiverse
forests)

As part of the Good for lunches! Good for the forest! Program which protects biodiverse forests, Nichirei
Foods hold a hands-on nature training program for employees in forests it supports.
Nichirei Foods: Good for lunches! Good for the forest! Program40Environmental Accounting
To gain a quantitative picture of the costs and environmental beneﬁts of its environmental protection activities, the Nichirei Group has implemented
environmental accounting since FY2001.

■Cost of Environmental Conservation
Cost category

Food factories

Main activities

Investment

Costs within business area

Costs forpreventing
pollution

Breakdown

Food factories● Maintenance, management and load reductionof wastewater treatment facilities for preventing
water pollution● Maintenance and management of boiler
facilities for heating and hot-water supply, and offacilities for eliminating food odors

Logistics centers
ExpenseInvestment

Expense1,466,247

1,232,664

302,382

317,754

1,396,235

899,80350,51060,35269,751

50,678251,872

109,091

Logistics centers● Maintenance, management and load reductionof wastewater treatment facilities for preventing
water pollution● Measures for controlling noise from stopped
trucksCosts forprotecting the
global environment● Adoption of energy-saving equipment, bettereﬃciency of equipment● Proper management of CFCs

Costs for recycling
resources● Proper storage of waste, arrangement of waste
storage spaces designed for thorough waste
separation and sorting● Introduction of processing equipment forrecycling● Outsourcing of recycling and waste processing,management of proper processing● Recycling of water

261

282,183

0148,311

Upstream and downstream costs● Procurement and purchasing of environmental
goods (green purchasing)* Diﬀerence between green purchase and regularpurchase

0012,756

5,447Management activity costs● Development, maintenance and managementof environmental management system● Environmental education of employees● Cleanup activities in areas around worksites

018,197

0

29,751Social activity costs● Nature protection, cleanup activities and treeplanting activities in areas further away fromworksites● Donations to environmental conservation
programs and organizations

0

0

0

813

1,466,247

1,250,862

315,139353,765

Total

Main Investments for FY2019(Food factories)●Maintenance, management and load reduction of wastewater treatment facilities●Renewal of natural refrigerant refrigerators, etc.
●Making high eﬃciency of ﬁring machine(Logistics centers)●Expenses related to the appropriate management of Freon●Maintenance, management and load reduction of wastewater treatment facilities●Installation of energy-eﬃcient lighting●Equipment introduction costs for eﬃcient operation of refrigeration equipment41

Scope of calculation
Main food factories and logistics centers in Japan
Method of calculation(1) Based on the List of Fixed Assets in the accounting system, depreciation and amortization is calculated for equipment related to environmental
burden, such as wastewater treatment facilities, using the statutory useful life.
(2) Personnel expenses are calculated by determining the man-hours required for each environmental conservation activity, and multiplying this by
the number of workers and the average wage rate at the worksite.

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

Description of eﬀect
Increased
earnings

Cost reductions

Gain on sales from recycling

27,652

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

2,832

Reduction in energy costs due to energy savings (electricity)

12,263

Reduction in energy costs due to energy savings (heat)

9,319

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

7,969

Total

60,034

Scope of calculation
Eight Nichirei Foods-operated factories in Japan that have obtained ISO 14001 certiﬁcation
Method of calculation(1) Only substantial eﬀects that can be calculated based on measurements, etc. have been included in the total (gains on sales arising fromrecycling promotion activities, reductions in costs arising from reduced power consumption, etc.)(2) Equivalent to the proﬁt contribution produced in FY2019, attributable to new environmental conservation activities that were conducted in
FY2018 and FY2019 (including activities started midway through the ﬁscal year).

Status of Environment-related Incidents, Legal Violations
In FY2019, there were no legal violations or environment-related incidents, ﬁnes and penalties that had a serious impact on the environment.

42

Ecology Committee Leads Environmental Resource Management
Most of the energy consumed by Nichirei Biosciences Inc. is used by its development center. For that reason, the company set up an Ecology
Committee to make decisions related to environmental conservation. The committee's work entails creating a wide range of proposals for savingenergy, providing feedback on matters subject to company-wide decisions, and serving as a link between employees and the company.
These tasks are facilitated by a regularly issued bulletin, the Eco-tan News, and all employees are involved in resources management.
In FY2018, the committee veriﬁed the eﬀects of air conditioner grills designed to increase the eﬃciency of heating and cooling. The grills had been
introduced in FY2017 for the purpose of reducing the energy consumed by air conditioners. Furthermore, in a project to relocate certain production
bases from January 2019, the committee moved to make the new research and production base environmentally friendly. In addition to
introducing systems to visualize solar power generation and power consumption, advanced environmental equipment will also be installed. Besides
energy-saving eﬀects, consideration is also being given to workplace comfort, with proposals being put forward for external awnings and an
advanced lighting system.

A ceramic air conditioner grill

Discussion is encouraged at committee meetings

43Reduce Environmental Impact

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

Management System
To promote eﬀorts to maintain a sustainable supply chain for all of Nichirei Group, the Group established the CSR Management discussion meetingin FY2017. During this meeting, the Groupʼs common basic policy is examined, issues being faced and eﬀorts being made by each operatingcompany are shared, and so on. The meeting is held six or more times per year, and the results of the discussions are reported to the Board of
Directors and the management conference, providing support for operating companiesʼ eﬀorts to maintain a sustainable supply chain. The Nichirei
Group Sustainable Supply Chain Policy was also established through the CSR Management discussion meeting. The Group procures products andservices in accordance with the following policy and asks suppliers to also assent to and comply with it.

Nichirei Group Sustainable Supply Chain Policy

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

Fair business practices:
We employ fair, transparent, and impartial business practices.

Human rights:
We respect human rights and provide safe, healthy work environments.

Environment:
We strive to reduce environmental impact and consider the health of the global environment.

Product quality and safety:
We work hard to deliver safe, high-quality products and services.

44

Information management:
We manage information properly and disclose information related to our business activities in a timely, appropriate manner.

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

Nichirei Group Sustainable Supply Chain Policy

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

Priority Challenges for FY2021 (focus on business activities)
・ Procure materials produced or caught in consideration of sustainable utilization and their processed products.
・ Build a recycling system in collaboration with business partners and local communities to make full use of resources.

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

Eﬀorts for MSC/ASC-certiﬁed Materials
Nichirei Fresh developed the Forest of Life Project, which it has maintained together with Indonesia supplier PT. Mustika Minanusa Aurora (MMA)
and Tarakan City in North Kalimantan since 2006, and worked on improving the aquaculture industry in partnership with WWF Indonesia and WWF
Japan. As a result, this initiative became the ﬁrst in Indonesia to receive ASC certiﬁcation*1 for black tiger shrimp in August 2017.
As of June 2018, Nichirei Fresh has 16 types of marine products that have obtained MSC certiﬁcation. In FY2018, Nichirei Fresh developed
herring roe Matsumae-zuke and herring roe Wasabi-zuke made with MSC-certiﬁed Paciﬁc herring (roe) with a business partner that has obtained
CoC certiﬁcation*2. Going forward, with an aim of expanding its sales of sustainable marine products, Nichirei Fresh will continue to increase thenumber of ASC-certiﬁed and MSC-certiﬁed*3 marine products it oﬀers.

*1 ASC certiﬁcation: Marine products certiﬁed by the ASC (Aquaculture Stewardship Council) as having been cultivated in a sustainable manner.
*2 CoC certiﬁcation: Certiﬁcation of the management of the processing and distribution processes.
*3 MSC certiﬁcation: Natural marine products certiﬁed by the MSC (Marine Stewardship Council) as having been cultivated in a sustainable manner.

45

ASC and MSC Certiﬁcations for Marine Products

Maintain a sustainable supply chain

Initiatives for FA IngredientsDrug-resistant bacteria—bacteria on which antimicrobial agents (antibiotics) no longer work—have become an international issue. To allay
consumer anxiety toward this issue, Nichirei Fresh has been committed to raising FA (free from antibiotics) chickens for more than a decade.
In order to treat illness, prevent risks of disease associated with intensive poultry farming, and stimulate further growth, antibiotics, synthetic
antimicrobial drugs and other pharmaceuticals are used in the farming of most generally available broiler chickens.
While FA chickens do receive vaccinations, these other pharmaceuticals are not used at all throughout the chickenʼs life. Instead, FA chickens arebred using a number of unique methods. As well as being fastidious about their breeding environment, a resistance to disease is developed inchickens by using lactic acid bacteria or other viable agents that beneﬁt their health, as well as herbal medicines (Chinese medicines), to boost
their inherent immune strength. FA chickens are kind to humans, kind to chickens, and kind to the environment.

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

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

46

Reduce Environmental Impact

Initiatives for Energy and Climate Change
Basic CSR Policy
Established as an environmental initiative, the Nichirei Groupʼs Environmental Policy includes a theme of preventing global warming. Corporate
business activities and global climate change have a great deal to do with each other. The business activities of a food-related corporate group, inparticular, rely heavily on natural ecosystems for procurement of ingredients, and are thus greatly inﬂuenced by climate change. Since using cold
storage facilities is indispensable for the Nichirei Groupʼs business activities, it recognizes that rising energy prices and responding to environmental
regulations are signiﬁcant risks. Based on this recognition, the Group is working on the following in cooperation with its suppliers, partnercompanies and so on.
● Eﬃcient energy use in the production of food products● Reduction of greenhouse gases through increased eﬃciency in temperature-controlled transportation● Reduced impact of business activities on climate change through promoting the use of renewable energy, from procurement and production,
through to storage, logistics, and sales

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

Management System
Environmental management system

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

CO2 emissions data published on the TMG Bureau of Environment website (9:00–18:00, weekdays) (Only available inJapanese)47

● Energy Consumption of the Nichirei Group● SCOPE 1 and SCOPE 2 CO2 Emissions of the Nichirei Group* Calculated based on the Act on Promotion of Global Warming Countermeasures.

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

Initiatives
The Nichirei Groupʼs approach to environmental conservation

Eliminating CO₂ Emissions from Transportation Promoting a modal shift1
Since 2003, in a bid to reduce its environmental footprint, the Nichirei Logistics Group has been switching the means of transportation it uses fromhaulage by road to that by rail and sea. And, in 2009, the ferry transportation route from Hokkaido to Kyushu was extended, resulting in a 30%
reduction2 in CO₂ emissions.
It should be noted that Nichirei Foods has been certiﬁed under the Eco-Ship mark3 system.
Then, to further reduce its CO₂ emissions, the Nichirei Logistics Groupʼs Netherlands subsidiary, Hiwa Rotterdam Port Cold Stores, uses barges4

rather than trucks. Since the companyʼs warehouse is adjacent to the quay, freight is moved from the container yard to the warehouse by barge,
minimizing the use of trucks.
Notes:
1. The conversion of road and air transportation by that by rail and sea.
2. The 30% reduction in CO₂ emissions due to modal shifts in Japan is based on per-route calculations.
3. This is a logo used to indicate those companies that contribute to environmental countermeasures. They include shippers and logistics companies that makeextensive use of sea transportation.
4. A barge is a cargo ship able to navigate rivers.

48

● Comparison of total transportation distances

Chloroﬂuorocarbon (CFC) Initiatives
Natural refrigerants and leakage prevention
The Nichirei Logistics Group uses natural refrigerants in both new refrigerated warehouses and facilities that it enlarges, while encouraging the
replacement of equipment that uses CFC refrigerant with that which uses natural refrigerant.
In addition, since FY2014, we have stepped up inspections at distribution centers nationwide to reduce refrigerant leakage from refrigerators andintroduced highly sensitive detectors that are 10 times more accurate than conventional sensors.
Since September 2018, in collaboration with Hitachi, Ltd., we have been testing methods of predicting and diagnosing refrigeration equipment
failure. We have done this at our Funabashi Logistics Center, using cutting-edge IoT technology to enhance the operation of equipment andmaintenance eﬃciency. By visualizing energy consumption data and analyzing operational improvements, refrigeration equipment can be more
eﬃciently operated.

Reducing Container and Packaging COO2Emissions
Elimination of plastic

In a bid to reduce the discharge of CO2, Nichirei is working to reduce the amount of plastic in the packaging and containers it uses.
・Yaki-Onigiri (grilled rice ball) 10-pack and Imagawa-Yaki (Japanese waﬄe) trays eliminated・Honkaku-Itame Cha-Han (fried rice) package ﬁlm thinned
・Ebi-to-Cheese-no Gratin (shrimp gratin) and Ebi-to-Cheese-no Doria (shrimp rice gratin) package thickness reduced

Initiatives in Production Regions
Suppression of Methane Gas Emissions by Cattle (Nichirei Fresh)
Ruminants, such as cattle and sheep, are known for their production of methane gas, which has 21 times the greenhouse eﬀects of CO2. The gas is
produced in their stomachs, released internally when their food is broken down and digested, and then release externally. Since prevention of
global warming has become a worldwide issue, Nichirei is undertaking the suppression of methane gas emissions produced by cattle.
The hydrogen generated by the activity of microbes in the rumen (the ﬁrst stomach) during the digestive process is turned into methane gas bymethanogen, and released externally through burps. If cattle are given ﬂaxseed oil fatty acid calcium*1, the hydrogen in their rumen combines withthe unsaturated fatty acids in the oil to form saturated fatty acids. Since research results show that methane gas production can be suppressed, tothis end Nichirei has been testing crossbred cattle (male Wagyu and female dairy cattle) on domestic farms since FY2010.
Using Kyoto Universityʼs life-cycle assessment (LCA)*2 method developed in 2010 to gauge fattening methods, Nichirei has been able to conﬁrm

49

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 this production 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 productʼs environmental impact throughout its entire life cycle,
from the raw materials, manufacture and distribution, through to disposal.
*3 Omega balance: The balance between omega-6 and omega-3 fatty acids, which are particularly important essential fatty acids for the human body.
*4 This results from the development of low-cost techniques for cattle production, based on a superior balance of omega-6 and omega-3 fatty acids, and thesubsequently reduced environmental impact. Source: Ibaraki Prefecture Hitachiomiya Regional Agricultural Research and Promulgation Conference report,
2011.

Initiatives at Food Factories
Factories at Nichirei Foods are equipped with refrigeration and cold storage facilities.
High-eﬃciency equipment was previously installed in an attempt to conduct more thorough operations management. In FY2015, an analysis ofdata from all factories was conducted, operational issues were extracted, and measures were implemented to improve those issues. Outcomesfrom veriﬁcations conducted at a number of factories have been expanded to other factories.
In FY2018, in addition to reducing energy consumption by relocating food factory lines, consolidating and reviewing manufacturing processes,
adjusting boiler-related operations and undertaking other energy-saving activities, Nichirei Foods also adjusted the amount of hot water used forwashing and updated the air conditioning. Through various initiatives at its factories, the company is reducing its CO2 emissions intensity.
Initiatives in Cold Storage Facilities and Logistics Centers
Preventing Refrigerant Leaks to Boost Operating Eﬃciency
The Nichirei Logistics Group is stringently checking equipment to reduce refrigerant leaks at all domestic centers.
In 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 achieve near-optimum equipment functioning. At thesame time, the Group is working to avoid the unnecessary use of electricity. The Group has non-regular staﬀ carry out inspections, since they
notice energy-saving points that regular staﬀ may overlook. Energy-saving inspections of the entire center are conducted in parallel with therefrigerant checks as both contribute to CO2 reduction and the prevention of global warming.
Since September 2018, the Nichirei Logistics Group has been conducting a joint
demonstration in collaboration with Hitachi, Ltd. at Funabashi DC, utilizing state-of-theart 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.

50

● Conceptual Diagram of Joint Demonstration

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

■Example of Switch to Refrigeration Equipment Using Natural Refrigerants
FiscalYear

Facilities Upgraded to Natural
Refrigerant Equipment

Program Providing a Subsidy for Upgrade

FY2014

Logistics Network Sugito TC

Subsidies for businesses that rationalize energy usage

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

FY2016・・Logistics Network Funabashi DC 8th
Expansion Building
・Nichirei Logistics Tokai Shiratori DC
8thExpansion Building

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

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

Program for applying advanced technologies to promote wider application of equipmentusing 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 thecreation of a CFC-free society

Corporate Collaboration for More Eﬃcient Energy Consumption
The Nichirei Logistics Group is working to reduce electricity consumption during product storage, as well as CO2 emissions and fuel consumption fortransportation and production by increasing the eﬃciency, across the board, of the supply chain involved in logistics, production, and storage.

Thus, both Nichirei Foods and Hokkaido Foods, one of the formerʼs sub-contractors, secured safety stock in order to prevent inventory shortages
and the only partial sharing of information. In addition, the business ﬂuctuations in production and shipping caused by sales resulted in a majorburden for both companiesʼ supply chains.
In FY2010, The Nichirei Logistics Group took over control of Hokkaido Foodsʼ logistics and introduced several improvements. The result of theirstudy of the business ﬂuctuations of the logistics side of business, which had been an ongoing problem right from the beginning, led to asuggestion that there be collaborative management between three companies. This would cover operational information, sales plans, re-stocking
and inventory plans, production plans, and even shipping plans, aimed at leveling out logistics. FY2012 saw the start of the three companiesʼ
improvement project begin. In October of 2012, it went into full operation, and improvement activities continue to this day.

51

● Three Companies Collaborate for Cut Costs, Improve Shipping

Fuel Conversion from Liquid Fuel (Fuel Oil, Kerosene) to Municipal Gas and LPG
Nichirei is in the process of converting to municipal gas and LPG, which have low CO2 emission rates compared with fuel oil and kerosene.

In FY2013, Nichirei transitioned from using fuel oil to municipal gas to run the boilers at the Nagasaki plant, later implementing the same change
at its Funabashi and Yamagata plants. Along with fuel conversion, the switch to high-eﬃciency equipment and the promotion of energy-saving
activities have resulted in substantial reductions of CO2 emissions.

52

Utilizing Waste Heat
Nichirei Foods Inc. is using high-temperature, high-pressure steam to heat the oil in deep fryer equipment installed at its Funabashi No. 2 Plant.
The drainage produced by this kind of steam is normally collected and then emitted as is, without using the ﬂash steam that forms when it is
exposed to the air. Nichirei Foods, however, installed a system for collecting the ﬂash steam, with a view to reusing it in preprocessing steamers.
The system releases the high-temperature, high-pressure drainage into a collection tank, returns the high-temperature drainage down an existing
route using a pump, and sends the resultant ﬂash steam to the preprocessing steamer via a pipe so that it can be used. Use of this system hasenabled the company to reduce the amount of steam used in its steamers, and cut CO2 emissions by 21 tons per year.
Use of Solar Energy
Solar energy generation equipment has been installed at Nichirei Foodsʼ Funabashi plant and at Nichirei Ice, K.K. The Nichirei Logistics Group also
installed solar panels at the Matsue DC and Kushiro DC in 2017, and at the Sakishima DC in 2018. Approximately 1.08 million kWh of solar poweris expected to be generated annually at these three distribution centers, equivalent to an annual reduction in CO2 of approximately 448.3 tons.

Sakishima DC

Matsue DC

Kushiro DC

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

Greening of the Kansai plant
Initiatives in Transportation and Delivery
Optimal Logistics for CO2 Reduction
Nichirei Group cutting logistics-related CO2 emissions Shipping-related

CO2 emission cuts seen as important priority.

The Eco Ship Mark is a sign that the company contributes to environmental measures. It can only be used by shippers and logistics ﬁrms certiﬁed
as using a minimum percentage of marine transportation. Prioritizing the reduction of CO2 emissions during the transportation and delivery of

products, Nichirei Foods has obtained Eco Ship Mark certiﬁcation.

During FY2018, despite having promoted a modal shift from trucks to rail for some of its transportation from factories in Hokkaido to Kanto and forsome of its transportation from Kanto to Hiroshima, an increase in sales volume resulted in an increase in CO2 emissions compared to the previous
ﬁscal year. In FY2019, Nichirei Foods will promote a reduction in domestic transportation distances by changing the unloading ports for foreignimports, and will promote a greater use of rail by reviewing its logistics bases.
The Nichirei Logistics Group believes that contributing to the lives of consumers by shipping food is its most important duty. Using the best
logistical solutions, such as transfer center functions and joint shipping, it is undertaking to provide consumers with optimal logistical eﬃciency,
while also reducing CO2 emissions. In addition, to increase shipping eﬃciency the Group is reducing the number of trucks it uses. This it can do

thanks to increased loading eﬃciency, the improved circulation of vehicles, and reduced downtime. The change reﬂects a softening of delivery
requirements (shipping timeslots, locations), which result in reduced CO2 emissions.

53

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

Initiatives at cold storage facilities, logistics centers

Activities with European Logistics
The Nichirei Logistics Groupʼs overseas business began with its expansion into the Netherlands in 1988. As of March 2018, Nichirei Holding Holland
B.V. has eight companies—including cold storage facilities and low temperature shipping businesses—and is expanding from its hub in Rotterdam.
Logistics in Europe center on shipping by truck, reﬂecting the advanced state of the local infrastructure. During the past few years, a modal shift
has been promoted in 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, the containers are oﬄoaded
and trucked to a warehouse. With containerships are getting progressively larger, and it is now possible to ﬁt 9,000 forty-foot* containers on thelarger vessels. Shipping these by truck would mean using 9,000 trucks, which would generate large amounts of CO2.
Hollandʼs Hiwa Rotterdam Port Cold Stores B.V. uses river barges to reduce its CO2 emissions when moving containers from the container yard totheir warehouses. With up to 25 containers piled on one barge, some 3.5 tons less CO2 is produced than were 25 trucks used to transfer thecontainers. Currently there are two barge vessels in the Netherlands that have their own container cranes. Both of them are working for HIWA. At
Transports Godfroy in France, the environmental initiatives of its shipping business include introducing eco-driving training for its drivers in
FY2012. Meanwhile, the social contribution activities of its shipping business include the donation to charities—of course with the permission of theconsigners—of goods it has had in storage that are past their use-by date.
* 40 feet = 12.192 meters

Hiwa Rotterdam Port Cold Stores B.V.

River barge

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

54

These tournaments help the participants improve the safety of shipping services, maintain thehigh quality of those services, gain inspection skills, and increase their awareness of safe
driving, while at the same time giving each individual pride in their work and a sense of social
responsibility. The ﬁfth national tournament was held in FY2018 with a view to further
improve shipping quality.
In addition, Logistics Network began a full-ﬂedged initiative in FY2015 for using pallets in its
main shipping operations and establishing services with ﬁxed arrival and departure times. The
downtime at bases and time spent loading were vastly reduced, which led to an improvementin the work environment of long-haul drivers. In addition, the fact that vehicles were idle forless time led to their having less of an environmental impact.

Driver contest

Green Management Certiﬁcation（NK Trans is working to reduce the environmental impact of its business activities to better co-exist with society as a transportation business. It
thus considers environmental conservation to be part of its corporate social responsibility.
In addition to complying with such environment-related laws and regulations as pollution prevention ordinances, NK Trans promotes eco-driving
and use of the idle-stop system, in addition to the use of low-emission vehicles, and compliance with the relevant waste disposal laws.
As a result, the Numazu Logistics Center obtained green management certiﬁcation in January 2012, while the Niiza Oﬃce (transportation) obtained
it in March 2014. Kyokureiʼs main oﬃce and logistics centers (in the Tokyo districts of Yamashita, Daikoku, Atsugi, and Nakai) have obtained GreenManagement Certiﬁcation, as have all distribution centers of Kyokurei Operation.

* Green management certiﬁcation: The certifying organization, the Foundation for Promoting Personal Mobility and Ecological Transportation, conducts
evaluations, certiﬁcation, and registration of workplaces that carry out initiatives above a certain level, as deﬁned in the Green Management Promotion
Manual, published by Japanʼs Foundation for Promoting Personal Mobility and Ecological Transportation.

Eﬀorts for Modal Shift
In recognition of its achievements in expanding modal shift in frozen food shipping, the Nichirei Logistics Groupʼs Logistics Network received theModal Shift Best Operator Award (Grand Prize) at the 14th Award for Excellent Business Entities Working on Modal Shift in 2016, and received theGreen Logistics Partnership Meeting Outstanding Business Award*1 in 2017. Logistics Network is a third-party logistics (3PL)*2 company that

improves and manages all logistics operations for its shipper clients, from procurement and stock control to distribution. It has been promoting
modal shift for more than 10 years. Rather than just simply using railways and ferries, it implements a variety of advanced solutions, such as
having several shippers share a trunk line for transporting goods and making shipments more eﬃcient and standardized by utilizing a demand
forecasting system. Since 2009, by increasing distances transported by ferry on the Paciﬁc seaboard using container relay services, Logistics
Network has achieved a 30% reduction in CO2 emissions compared to the previous route combining land transportation with services along the Sea
of Japan coast. In 2017, the company received an award along with Nichirei Foods (the owner of the cargo) and its partner companies, Ocean
Trans Co., Ltd. and Nippon Express Co., Ltd. Going forward, it will continue to promote sustainable business management that reduces
environmental impact and addresses labor shortages.
*1 An institution administered by the Ministry of Land, Infrastructure, Transport and Tourism and other bodies that awards excellent initiatives that promote
CO reduction in the logistics ﬁeld.
2*2 3PL: Third-Party Logistics

Driver Advance Reservation System
At distribution centers, truck arrivals tend to be concentrated at the same times. Being uncertain of what cargo is onboard further complicates theloading and unloading, and drivers have to wait around for long periods of time, which becomes a social problem.
To alleviate and eliminate this problem of trucks being on standby, the Nichirei Logistics Group began operating the Driver Advance Reservation
System in October 2017. By using the system, trucks (shipper or shipping company) can reserve their preferred time against available
loading/unloading times set for each distribution center. Details of the loaded cargo are also sent to the distribution center in advance, whichmeans that the checking of orders by shipping companies, which used to be done once the truck had arrived, can now be performed ahead oftime. This facilitates loading and unloading operations, which in turn, shortens the hours that each truck is on the road, and ultimately leads to a
reduction in CO2 emissions. Starting with the Logistics Networkʼs Sugito DC and Osaka Futo DC, the system will be gradually rolled out to other
distribution centers.

55

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

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

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

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

56

Reduce Environmental Impact

Initiatives for Water Resource Conservation
Basic CSR Policy
Established as an environmental initiative, the Nichirei Groupʼs Environmental Policy includes themes of promoting sustainable recycling and living
in symbiosis with nature. Use of water is an important element that is closely related to these themes.
Water resources are extremely important in aspects of the processed foods business, namely, in the development of farm produce and meat andpoultry products, the manufacture of prepared frozen foods, and in sanitation maintenance and control during manufacturing. Water is also
necessary in the refrigerated logistics business, such as in the operation of water-cooled refrigeration equipment.
As part of its medium-term environmental targets (for FY2017–FY2019), the Group formulated the following behavioral target, with a focus on its
food factories in Japan: “In consideration of the environmental conditions surrounding water in each community, the Group engages in water
resource conservation through eﬃcient water usage aimed at sustainable water usage.” By properly managing water use and drainage, the Groupwill maintain eﬀorts for sustainable water usage and conservation, and reduce water usage while gauging the impact of its business activities on
biodiversity.

Management System
Regarding water resources used in business, the volumes of water used and wastewater discharged at worksites in Japan are included in theGroupʼs CSR Report for external publication. These ﬁgures, along with other details of the CSR Report, are approved by management and othermembers of the Group Environmental Protection Committee at its ﬁrst meeting for the ﬁscal year which is held in May.
Forest conservation activities leading to the preservation of water resources are publicized internally and externally via the Groupʼs website andintranet. Hands-on environmental education programs for employees are also conducted at the forests receiving support, designed to raise
employee awareness for the environment. In FY2020, we started water risk assessment.

Environmental Protection Committees, Group Environmental Protection Committee

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

● Water Usage (By water intake source)

57

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

Environmental management > Environmental management system > Medium-term targets and results > Group mediumterm targets

58Reduce Environmental Impact

Initiatives for Biodiversity Conservation
Basic CSR Policy
Biodiversity Policy

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

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

About half of the islandʼs forest has been lost over the

North Kalimantan

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

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

59

Shrimp that have

Regeneration ofgrown bigmangrove trees

Some Sales Proceeds Support Forest Preservation
Nichirei Foods: Good for Lunches! Good for the Forest! Program
Nichireiʼs CSR activities include the purchase of forest credits to support forest preservation activities.
In gratitude for the earthʼs abundance, which provides the ingredients for its products, Nichirei Foods runs a program to protect and develop
forests. As of March of 2014, part of the proceeds of the program—called Good for Lunches! Good for the forest!—go for the purchase of CO2

credits. As of July 1, 2018, the forest conservation activities had supported a total area of 6,058,000 m2 (equivalent to about 130 Tokyo Domes).

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

Environmental Research & Protection, Biodiversity Conservation in Fukushima Prefectureʼs Urabandai Area
Nichirei owns land near Lake Hibara in Fukushima Prefectureʼs Urabandai region, and the company supports research on the natural environment
in the surrounding areas and environmental and biodiversity conservation based on that research. Following the 1888 eruption of Mount Bandai, allvegetation disappeared in the Urabandai area, but with the passing of more than 125 years, one can see returning vegetation: red pine forests,
white willows, reeded wetlands, and aquatic plant clusters in marshlands. The red pine forests continue to spread, having been planted in the
Urabandai tablelands by people who want to see the return of greenery in the area. But the companyʼs land, as yet unforested, provides anacademically valuable area for observing virgin nature as it transitions.
Nichirei has supported the research activities carried out, since FY2012, in the Urabandai area by the Natural Symbiosis and Regeneration
Department of the Practical Education Promotion Centerʼs Research Division at the Fukushima University Graduate School of Symbiotic Systems
Sciences. Since FY2014, the company has been supporting the Fukushima University Graduate School of Symbiotic Systems Sciences Research
Divisionʼs project, to determine research models for the preservation of natural environment in transition as a natural heritage site, namely,
research on humans and the natural environment (preservation of biodiversity) in Bandaiʼs Asahi National park. This is not limited to company
land. The results of a wide variety of research—including that on plants and insects in lakes and swamps in the Urabandai area, as well as ananalysis of sediment in the bed of Lake Inawashiro in the Inawashiro area—has enabled Nichirei to conﬁrm that several species are endangered,and to learn the partial history of the formation of Lake Inawashiro. Further, the rarity of the natural environment in these areas is becoming
increasingly apparent as, for example, when a dragonﬂy was found with characteristics that are vastly diﬀerent to those known today and which
has a high probability of being a new species.
During FY2018, for the purpose of considering future initiatives on lands owned by the company, Nichirei checked on the conditions of theselands, led by a professor from Fukushima University. The check revealed a particularly rich variety of dragonﬂies and a good water environment. In
addition, the company donates to the Sparkling Water Bandai Mizumirai Fund (Inawashiro Lake/Urabandai Lake Aquatic Environment Conservation
Measures Association), which promotes aquatic environment conservation in Lake Inawashiro and the Lake Urabandai basin. This funddisseminates information about the associationʼs activities, and seeks to pass along the lake Inawashiro and Urabandai wetland areas to future
generations in their pristine condition by expanding the circle of understanding and support.

Water quality surveys in the Urabandai area wetlands

The Himeshiro dragonﬂy: a new species

Activities to Protect the Endangered Cypripedium
The cypripedium rock orchid, designated an endangered species and once native to Nagano Prefectureʼs Fujimi area, has seen a signiﬁcantly
decreased presence in its native habitat due to over-harvesting, damage caused by wild animals such as deer, and the impact of climate change.
This caused alarm among Fujimi residents, and lead to the earlier-mentioned Fujimi Cypripedium Restoration Conference.
The Nichirei Group has been part of these activities from the start and, as a result of biotechnological applications, had increased the number ofplants to around 30,000 by FY2012. Members of the Group and the restoration conference painstakingly grew orchids from seeds. Six years after
the seeds had been sown, the orchids ﬁnally bloomed in mid-May 2014, and have continued to do so through to FY2019.
Having overcome the barrier of having the orchid ﬂower for the ﬁrst time indicates that there is a possibility that the initiatives so far undertaken
to restore the cypripedium will expand. In addition, on February 4, 2019, Nichirei signed a “Biodiversity Conservation Partnership Agreement” with
Nagano Prefecture, Fujino-machi, and the Fujimi-machi Cypripedium Macranthos Regeneration Council. It seems that major impetus has been
provided for other protection activities, and that the Nichirei Group will continue to protect the cypripedium.

60

A cypripedium in bloom

Protecting endangered orchids, biodiversity conservation
https://www.nichirei.co.jp/english/csr/environment/action/oﬃce
Since FY2004, the Nichirei Group has helped in the conservation and regeneration of the endangeredorchid Cypripedium macranthos var. Kamanashi hotei and other species through research on and thebreeding of, orchids and other plants in Fujimi-machi, Nagano Prefecture.
In FY2015, some orchids of the genus Cypripedium macranthos var. Kamanashi hotei bore ﬂowers by
artiﬁcial propagation and, FY2019, they produced 103 blooms. As a result, Nichirei entered into a
biodiversity conservation partnership with the Fujimi-machi Cypripedium Macranthos Regeneration Council
in February 2019.
Under the three-year (April 1, 2019 to March 31, 2022) agreement, the Group will provide thetechnologies necessary for the conservation and regeneration of Cypripedium macranthos orchids andcover a portion of the costs.

61

Reduce Environmental Impact

Emissions into the Atmosphere
Management System
The Nichirei Group manages and stores PRTR substances and PCBs (polychlorinated biphenyls) in accordance with statutory standards for the
management of chemical substances. Furthermore, during FY2019, there were no environmental accidents or violations of laws or regulations that
could have a material impact on the environment.

Initiatives
Reduction of NOx, SOx, and PM Emissions
Nitrogen oxide (NOx) and sulfur oxide (SOx) are produced when fuel oil and gas are burned in food factory boilers. Through proper facility
management at its factories, Nichirei is complying with emissions standards stipulated by law and aiming for an overall reduction in emissions
volume. The Nichirei Logistics Group is promoting increased logistical eﬃciency through joint shipping and modal shifts making use of railways andferries. 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 Groupʼs business corresponding to the volatile organic compound (VOC) emission standards.

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

Use and Management of CFCs
Chloroﬂuorocarbons (CFCs) are said to be among the substances destroying the ozone layer. Their production is being phased out, andmanagement regulations have been put into eﬀect in sequences, starting with freon, which is the most destructive of the ozone layer.
The Nichirei Group uses freon as a refrigerant in the cooling facilities at its food plants and logistics centers. Although appropriate equipment
management ensures that the refrigerant, which circulates within sealed cooling equipment, does not leak, the Nichirei Group disposes of it asrequired by law when major equipment repairs are carried out.
Meanwhile, the fact that freon is one of the gases that causes global warming has also become an issue. Since the CO2 of the energy sources used
for cooling equipment are also linked to global warming, the Group is determining the refrigerant it prefers in new equipment based on its energysaving properties.
During FY2017, Nichirei Foods installed freezing facilities which use natural refrigerants at its Shiroishi Factory. Part of the cost of installing the new
freezing facilities was subsidized under the Ministry of the Environmentʼs CO2 emission reduction business expense subsidy. Furthermore, the basic

62policy of the Nichirei Logistics Group is to select natural refrigerants when building new cold storage facilities or when extending existing facilities. It
is also promoting a switch from freezing facilities that use CFCs to freezing facilities that use natural refrigerants for all its other existing facilities.

Use of natural refrigerants

63

Reduce Environmental Impact

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

The Nichirei Groupʼs approach to environmental conservation

Management System
Environmental management system

Initiatives
The amount of waste discharged outside worksites in FY2018 was 45,200 tons, and the recycling rate was 99.5%. Looking at waste destined forﬁnal disposal, in some cases, depending on the district, waste paper and other types of waste are simply incinerated at processing plants catering
for general, business-based waste. In other cases, depending on the type and volume of waste, recyclers cannot be found. In any case, the Groupwill work on further reductions, including by controlling the amount of waste produced. During FY2018, the Group emitted 9 kg of speciallycontrolled industrial waste (such as ﬂammable waste oil, strong acid/strong alkali and other waste classiﬁed separately from industrial waste
because of hazardous or toxic properties).

● Nichirei Group Discharged Waste Discharged Outside Worksites and Recycling Rate64

● Nichirei Group Wastewater and Drainage Load

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

Project for Recycling-based Production via Chickens
At the Hirono facility operated by Nichirei Fresh Farm, chicken droppings are processed into organic fertilizer, which is used to produce feed stock
rice for specialized chicken feed. Rice for the chicken feed is produced by partner farmers in the towns of Karumai and Hirono in Iwate Prefecture,in cooperation with JA Shiniwate. Much of this rice is grown using rice paddies lying fallow because of rice production adjustments. The recyclingbased production cycle of chickens thus contributes sustainably to regeneration of the local farming industry.

Project for recycling-based production via chickens

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

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

Management of Pollutant Release and Transfer Register (PRTR) Substances
In FY2019, approximately 1 ton of chlorodiﬂuoromethane (R-22), used as a refrigerant, was released at one of the Nichirei Groupʼs worksites.
The Group reported this to the Japanese government since the amount exceeded the annual legal limit of 1 ton, as speciﬁed in the Pollutant
Release and Transfer Register*. Since this breach, the Group has been taking more steps to reduce the amount of chemical substances it releases.

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

65

Management of PCBs
Polychlorinated biphenyls (PCBs), a group of man-made compounds, were previously used as insulating oil in transformers, but their use wasbanned in the 1970s, after their toxicity became apparent. In Japan, equipment that has been conﬁrmed to contain PCBs is being appropriately
stored in compliance with standards set by law. Currently, disposal is being carried out systematically, based on the capacity of the nationʼs ﬁve
government-run PCB disposal plants. Sixty three transformers collected from the Nichirei Group in FY2019 have been disposed of at a one of thegovernment plants.

Management of Asbestos
The asbestos that was found to have been sprayed on the underside of the roof, and which had the possibility of spreading, was removed anddisposed of during an inspection in FY2006. In addition, when demolishing oﬃce buildings that have been closed, the Nichirei Group does anothersurvey and takes legally compliant and appropriate steps to dispose of any building materials containing asbestos.

Management of Contaminated Soil
In addition to fulﬁlling the appropriate disclosure requirements when selling, buying, or renting land, the Nichirei Group does evaluations of soil
contamination and carries out the appropriate management.

66

Reduce Environmental Impact

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

Management System
Environmental management system

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

Suppression of Methane Gas Emissions by Cattle (Nichirei Fresh)

Reevaluating Packaging and Containers
Nichirei Foods has been able to reduce waste by reevaluating its packaging and containers. With some products, doing away with trays ultimately
made it easier to store the product. This consequently led to both a reduction in petroleum-derived plastic materials and a reduction in CO2emissions during manufacturing.

Nichirei Foods has also exercised ingenuity in merchandising, for instance, shortening both ends of packaging while maintaining its strength has led
to a reduction in the use of plastic materials, and dispensing with the aluminum coating on the inside of packaging has made it easier to recycle.

Ultrasonic sealing of plastic ﬁlm packaging

Some sales proceeds support forest preservation

Reducing waste by reevaluating containers, packaging

Forest of Life Project67

Reduce Environmental Impact

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

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

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

Inquiries

In addition to covering areas such as organizational management and business processing, Nichireiʼs Corporate Internal Audit Division also
performs Group management audits on compliance with environment-related law and important environmental protection matters. During anaudit, circumstances surrounding the worksite and relationships with neighbors are also checked. Complaints, opinions, and inquiries directed toeach worksite, as well as details of the response taken are shared and reviewed within their respective operating companies.

68

Foster Cooperative Relations with Communities

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

Contributions to Society

69

Foster Cooperative Relations with Communities

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

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

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

Management System
The Group has established a Group Social Contribution Committee, and in addition to holding committee meetings once a year, the chairman calls a
meeting when necessary to check on initiatives and perform reviews. In addition, the Mori factory in the Kayabe District of Hokkaido has formed apartnership with the local government to perform forest maintenance on town-owned lands.

Group Social Contribution Committee

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 WorldWar II ended and, when the island was returned to Japan in 1968, the land and buildings wereregistered as the property of Nichirei. Chichijima had several ﬂourishing activities at the time,
including the production of crafts made using Pandanus boninensis leaves, and hula dancing by
local groups. The Nichirei Group wanted its facilities to be used for those pursuits, so it
demolished the buildings and planted grass, for which it cared.

70

UrabandaiContributions through Use of Company Resources > Urabandai

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

KidZania Tokyo and KidZania KoshienChildren on a Factory TourThe concepts are See! Learn! Enjoy!, and Nichirei Foods employees are the teachers. They use videos and PowerPoint slides to explain the frozen
food manufacturing process to elementary school students, including the production of frozen food products, Honkaku-Itamae Cha-Han (fried rice)and Imagawayaki. The program, which allows children to have fun while learning, is full of frozen food quizzes and videos that they otherwise
would never see, even on an actual tour. In that way, the program teaches the students about Nichirei Foodsʼ careful approach to manufacturing
and the merits of frozen food. In FY2018, the Group held 20 factory tours with 900 children participating. Sometimes they were watching videos
while smiling, and sometimes they had intent expressions.

Five Flavors Identiﬁcation Test
In this food education program, participants took a taste test in which they tried to identify the ﬁve tastes of sweet, sour, salty, bitter, and umami.
Employees gave talks on how the tastes felt and what makes a frozen food. In FY2018, this event was held nine times with 300 people
participating.
* Not available to the public.
FamilyApps
With FamilyApps, a smartphone app that families can enjoy together, Nichirei Foods has distributed an app called “Let's Make a Delicious Nichirei
Lunch!” that enables users to make lunches using Nichirei Foodsʼ frozen products. The content, which allows kids to have fun while making lunch,helps deepen their interest in, and concern regarding, food. In FY2018, this event was held 14 times with 1,700 people participating.
“Delicious” Words

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

71

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

Logistics-related Education
Lectures Oﬀered at Universities

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

Internships in the Logistics Industry
Since 2014, the Nichirei Logistics Group has been participating as an intern-accepting company in the Logistics Industry Internship program hosted
by the Japan Association for Logistics and Transport. This initiative allows university students to get a broad view of, and experience in, the logistics
industry. On the ﬁrst day of the internship, the Group gave a presentation on the Nichirei Logistics Groupʼs business, followed by discussions
concerning food logistics and tours of logistics centers. Students who attended told us that this opportunity had enabled them to understand theimportance of food logistics, and that it increased their interest in logistics as a commercial activity to transport goods to customers. The Group willcontinue to participate in tertiary-level courses, to further broaden the appeal of the logistics industry.

Workplace Tours and Job Experience
Logistics Center Field Trip/Internship
The Nichirei Logistics Group continuously provides opportunities for elementary and junior high school students near its logistics centers to attend
ﬁeld trips to these centers. In FY2018, junior high school students toured the Oi DC, and nursery school students toured the Tsuzuki DC. The
students experienced cold storage facility temperatures (below -20°C) after hearing an explanation from employees. In addition, due to a requestfrom the city, the Morioka-nishi DC oﬀered internships to three high school students. They were given the chance to actually experience work at alogistics center and gain better insight into food logistics.

72

Eﬀective Use of Food and Collaboration with Food Banks
Since July 2005, Nichirei Foods has backed the activities of the NPO food bank,
Second Harvest Japan*. Employees who had lived in the US were supportive of thefood bank system that was spreading there. They decided they wanted Nichirei tocontribute to similar activities and, while searching for a partner with which to work,
discovered Second Harvest Japan. Quite free of charge the Group provides the NPOwith frozen foods that are not questionable in terms of quality, but which it could notsell in usual markets for such reasons as that the outer packaging has been damaged
in transit. With the help of the Nichirei Logistics Group, it uses refrigerated transport
to deliver the products directly to institutions certiﬁed by Second Harvest Japan.

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

Support through Business Activities
Nichirei Hagukumi Forest
Nichirei Foodsʼ 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 the forest!,” as part of the Groupʼs activities to help
the forest, involves a plan to plant trees in a 1.2 hectare plot of land owned by Mori, as well as plant and nurture 400 cherry blossom(Someiyoshino) trees, the townʼs plant symbol, over ten years. The employees at the Mori factory along with their families and the rest of thecommunity participate as well, and the Group is working to help the activity take root in the region.
The “Good for the forest!” conservation activity is spreading to other factories, with Kyurei working to restore the pine trees of the Satsuki
Matsubara area in Munakata City, Fukuoka Prefecture, and Nichirei Foodsʼ Shiroishi Factory supporting beech forestation eﬀorts in the Zao area.
Cooking Classes in Ishinomaki Temporary Housing Facilities (Nichirei Foods)
In an eﬀort to support communities that have been aﬀected by the massive earthquake and tsunami that struck Japanʼs Tohoku region in 2011,
Nichirei Foods Inc. has organized cooking classes in temporary housing facilities. Even after large numbers of people moved from those facilities,
Nichirei Foods continued its support. Employees were sent schools to give students a virtual experience of a factory tour. Using audio-video
materials showing an actual production plant, the employees gave the students easy-to-understand lessons about the processes involved in making
frozen food products, Nichirei Foodsʼ safety and security initiatives, and its fastidious manufacturing techniques. In FY2018, cooking classes were
held in Ishinomaki City, Miyagi Prefecture at Futamata Elementary School and Minato Elementary School, with a total of 43 children participating.
Forest of Life Project (Nichirei Fresh)

Forest of Life Project (Only available in Japanese)

Providing Test Drugs to Myanmar Medical Institutions (Nichirei Biosciences)
Since FY2007, Nichirei Biosciences Inc. has been providing, free of charge, antibodies used forpathological testing to medical institutions in Myanmar. The products are provided through theinternational public health division of Niigata Universityʼs School of Medicine. In Myanmar, 42
types of antibodies for immunostaining are diﬃcult to obtain locally. Thus, antibodies andreagents necessary for medical examinations were donated to the University of Medicine 1,
University of Medicine 2, and Yangon Childrenʼs Hospital, for use in research and medical
treatment, including pathological testing, at each of those facilities. In February 2018,
Professor Emeritus Makoto Naito and others visited Myanmar University of Medicine 2, Yangon,
and in addition to test drugs, Nichirei Biosciences provided pathogen staining samples used in
the creation of pathology teaching materials, among other resources. Nichirei Biosciences
remains committed to helping improve medical education and pathological research anddiagnosis in Myanmar.

73

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 familyʼs anguish, and create happy memories during their trip
to Tokyo. As an endorsee of the foundationʼs aims, the Nichirei Group provides support in the form of tours of Nichirei Foods and KidZania, and useof the Sukore Yukigaya training center for accommodations.

Nichireiʼs training center provides lodgings

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

Supporting Sports for a Healthy Life

Donations and Other Support
Donations to Support Disaster-hit Areas
In FY2012, Nichirei decided to donate 10 million yen per year for ﬁve years, for a total of 150 million yen, to each of the three prefectures—Iwate,
Miyagi, and Fukushima—hardest hit by the Great East Japan Earthquake of March 11, 2011. At Nichirei Ladies, the oﬃcial Ladies Professional
Golfersʼ Association of Japan tour held in June 2011, 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 the heavy rainfall that occurred in July 2018, we donated 10 million yen through the Japanese Red Cross Society to assist with initial
restoration eﬀorts in areas heavily damaged by the disaster. Moreover, the Nichirei Fureai Fund, in which the company matches contributions madeby employees, one million yen was donated to the Japanese Red Cross Society.
Fureai Fund Donations
The Nichirei Groupʼs social contributions include fund-raising activities and donations. Through endorsement contributions from employees anddonations made by the company itself, the Nichirei Fureai Fund, set up in 1993, provides ﬁnancial support for social welfare, disaster and medical
relief, and donations to disaster areas aﬀected by natural disasters and other events.
Through the Central Community Chest of Japan and the Tokyo Good Will Bank, we provide support via graduation congratulatory money to help
support the independence of children in social care, as well as via “childrenʼs cafeterias” to aid those in diﬃcult circumstances and victims ofbullying, etc. Nichirei also provides support for preparation expenses for disaster relief to the Japanese Red Cross Society. In FY2018, the Group
donated 262 million yen total.

74

Support for the Keidanren Nature Conservation Fund
Nichirei endorses the spirit of the Keidanren Nature Conservation Fund, to which it has been donating since 1994. The fund supports nature
conservation activities primarily in the developing areas of the Asia-Paciﬁc region, as well as conservation activities and the sustainable use ofnatural resources in order to maintain the preservation of Japanʼs splendid natural environment.
Eco-caps
At all workplaces of the Nichirei Group plastic bottle caps from PET bottles are collected to support the activities of NPOs that sell them as plastic
raw materials to recycling companies, thereby raising money to fund vaccines for children in developing countries. The sale of 800 caps brings inroughly 20 yen, which pays for a polio vaccine for one person. By contrast, were the caps burned as garbage, 3,150 grams of CO2 would be
released per 400 caps, so recycling the caps also helps reduce CO2 emissions.

Participation in Table for Two
The Nichirei Group participates in Table for Two, an employee-participation social contribution activity that starts in the employee cafeteria. The
project involves adding 20 yen—the cost of a school lunch for one child in a developing country—to the cost of the cafeteria food to make a foodsupport donation. Moreover, the foods that can provide this donation are limited to healthy, low-calorie items, so that the program also plays a rolein improving employee health. The program is currently conducted at two workplaces, the Nichirei Higashi Ginza Building and the Technology
Development Center.
Restoration of Endangered Cypripedium macranthos

Restoration of Endangered Cypripedium macranthos

75

Continually Enhance our Workplaces

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

Fundamental Policy on Human
Resources

Occupational Safety and Health

Human Rights

Human Asset Cultivation andDiversity

76

Labor Practices

Continually Enhance our Workplaces

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

Corporate Philosophy: Start by Focusing on Employees(1) Provision of opportunities for the development and manifestation of skills.
(2) Implementation of a reward system based on ability, eﬀort, and results.
(3) Creation of a workplace environment that is safe and well-ventilated.
(4) Prevention of discrimination based on gender, age, education, race, or religion, and the provision of equal opportunity.

Fundamental Policies for Workplace Improvement
Employee-focused Workplace Environment
Based on our fundamental principle that improvement in customer satisfaction (CS) and employee satisfaction (ES) are the two pillars
that support the company, we maintain a workplace environment where all employees in the Nichirei Group can take pride in their work
and workplace; work with ambition through a relationship with superiors based on trust; and fully exercise their abilities.

Promotion of Diversity
We promote diversity ﬁrst, by acknowledging diﬀerent attributes, such as gender, age, and nationality, as well as values. Second, we
promote it by changing simple tolerance of new ideas and values that diﬀer from conventional ones into a force driving the company's
evolution to acquire a work force (human assets), improve the job and life goals of employees, and create new concepts and values.

The Nichirei Group Workplace Improvement Policy
In an eﬀort to increase job satisfaction and create workplaces that reﬂect the Nichirei Corporate Philosophy and Nichirei, the Group has
adopted a Nichirei Group Workplace Improvement Policy, and hopes to achieve the policy objectives by FY2022. By facilitating workplace
improvements that suit the special characteristics of each of its businesses, the Nichirei Group aims to incorporate and draw on diverse
values and ideas, make its organizations more dynamic, and raising productivity.
EnableDiverseWorking
StylesProvide working
condition options

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

Set up systems toprevent disruption of
employee careers

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

Prevent excessive working hours

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

EnsureEqual
Opportunity

Promote theadvancement of female
employees

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

Provide stimulating
employment

Job positions and employment opportunities for people with disabilities shall be createdto allow them to earn a living through stimulating work, with a vision to ultimately

77

opportunities for people
with disabilities

eliminate the distinction between people with or without disabilities in society.

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

78

Continually Enhance our Workplaces

Occupational Safety and Health
Basic Philosophy
As company activities become more globalized, in Japan, with society continuing to age, employment and work styles undergoing signiﬁcantchange, and other factors, the structure of society is transforming greatly. Amidst all of these changes, it is necessary to create a safe andcomfortable workplace environment that maintains employeesʼ physical and mental health so that each and every employee can feel satisﬁed andharness their abilities to the fullest extent possible. The Nichirei Group considers employees to be irreplaceable, and continually enhancing its
workplace is one part of the Nichirei Pledge. Based on this philosophy, the Group is working alongside employees to create an active workplaceenvironment that is safe and facilitates open communication.

Nichirei Group Health Declaration

Management System
The Nichirei Group has established an Occupational Safety and Health Committee based on the Industrial Safety and Health Act and promotes
safety and health management in an eﬀort to prevent work-related accidents and manage employeesʼ health. At branch sites, the main issues arework time management related to extended work hours, no overtime days, and so on, and at food factories and refrigerated warehouses, the main
issue is reducing work-related accidents. As such, the Group is working to make improvements to workplace environments that are adapted foreach workplace. In addition, based on the idea that customer satisfaction (CS) and employee satisfaction (ES) are the two wheels of the “vehicle”
of improvement, the Group perform periodic ES surveys at each company. The Group aims to improve employeesʼ ability to attain their work goals,
and create employee-focused workplaces by moving through a plan-do-check-act (PDCA) cycle, comprising conducting surveys → giving feedbackon survey results → identifying issues and assigning priorities and, ﬁnally → planning and executing solutions. Risks related to health and safety are
discussed and promoted through the Group Health Promotion Liaison Committee, and the situation is monitored by the Group Human Resources
Committee composed of directors. Regarding the planning and execution of measures, the Group is implementing a variety of solutions, such as
having each companyʼs President and Human Resources representative gather for meetings of the Group Human Assets Committee (held twice ayear) to share their progress, as well as applying eﬀective measures to companies.
In addition, in ﬁscal 2015 (FY2016), the “Health Promotion Group” was established within the Human Resources Strategy & General Aﬀairs toserve as the division in charge of overseeing health management. And in FY2017, the Group established the Nichirei Group Health Declaration andGroup Health Management Standards. Along with spreading this declaration both inside and outside the company, the Group has instructed the top
health promotion representative of its holding company and those responsible for and in charge of overseeing health promotion at each Group
operating company to make progress with health management.
As a risk assessment for health and safety and health, we place emphasis on analysis of health check results. The contents of the analysis aredescribed in the “Health White Paper” and published internally to provide education and initiatives related to health in line with employee healthconditions, as well as to make the menu provided at the employee cafeteria healthier It is also utilized as.The goal of 100% health check-up rate,
which we have been aiming for, was 99.3% in FY2017 and 99.8% in FY2018, achieving 100% in FY2019. (Coverage: Nichirei Health Insurance
Association insured)79

● Occupational Safety and Health Committee Organization Chart■ Number of Work-related Incidents at Food Factories
FY2015FY2016FY2017FY2018FY2019

Incidents Requiring Time Oﬀ

18

21

17

34

34

Incidents Not Requiring Time Oﬀ

25

23

18

12

11

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

Nichirei Group Health Declaration

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

In March 2005, the Nichirei Foods Shiroishi factory in particular became the ﬁrst member of the Group to receive JISHA-approved OSHMS(Occupational Safety and Health Management System) certiﬁcation, and the 49th business establishment overall in the country. Occupationalsafety and health initiatives are making progress with the aim of improving safety standards.

Nichirei Foods Shiroishi factory receives JISHA-approved OSHMS (Occupational Safety and Health Management System)
certiﬁcation

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

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

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

Driver safety training (Logistics Network)

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

Nichirei Group Health Declaration

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

The Certiﬁed Health and Productivity Management Organization Recognition Program under the large enterprise category 2019 for the third consecutive year81Acquired top spot in DBJ Employeesʼ Health Management Rated Loan Program

Nichirei Health School
In order to maintain and promote employee health, since ﬁscal 2017 the Group has been conducting
the Nichirei Health School, a hands-on health support program. We provide speciﬁc health-related
advice for employees at risk of certain lifestyle-related diseases. In ﬁscal 2019, approximately 900
employees participated in a special seminar where body composition and blood vessel age were
measured.

Main Details
Theme: Lifestyle disease prevention
Lecture on pathophysiology (health nurse)
Meal improvement (how to choose familiar menus, etc.) (Administrative dietitian)Exercise (posture, improvement of walking, exercise using chair) (exercise instructor)

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

Nichirei Service Safety and Quality Training Center
Placing importance on quality, the environment and safety, the Nichirei Logistics Group has opened safety and quality training centers across Japan.
These facilities enable logistics staﬀ to acquire knowledge regarding safety and quality, as well as to develop skills and an appropriate mindset.
The core training content includes “reconﬁrmation of basic knowledge through classroom learning,” information about “dangerous experiences” andthe “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 experience give lectures whileproviding hands-on experience as part of a systematic curriculum.
At logistics centers, heavy loads are carried using forklifts to enable cargo to be sorted in upper ﬂoors. We thus strive to improve occupationalsafety and quality by incorporating into the curriculum practical training to ensure that equipment is correctly used to prevent items from falling.

Nichirei Logistics Group conducts safety training in a new employee training program, and in FY2019, 27 employees participated in the training. We
also provide training on occupational safety and health through training for key personnel of quality improvement, and in FY2019, 28 employees
participated in the training.

82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

Occupational Safety and Health Initiatives for Foreign Technical Interns
The Nichirei Group provides occupational safety- and health-related training for technical interns from abroad. We are doing this to prevent
occupational accidents and facilitate health management for those unfamiliar with life in Japan, while at the same time helping the trainees
improve their Japanese-language skills. Our goal is to create workplaces where all Nichirei Group employees can work safely and healthily withpurpose.
Examples of Initiatives Conducted at Worksites
Posters displaying warnings and procedural instructions in various languages
Japanese language classes

A poster for Japanese speech contest

A poster for Vietnamese employees

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

83

Continually Enhance our Workplaces

Labor Practices
Basic Philosophy
For the Nichirei Group, employees are regarded as irreplaceable, and so they are referred to as human assets rather than human resources, and
the Group considers both employee and customer satisfaction to be of equal importance.
The Group operates on the premise of respecting work regulations in each domestic and overseas operating region and ensures appropriate
working conditions. However, in addition to this, it also believes that it is important to strive to respect employees as individuals, create aworkplace environment where all employees can be proud of their workplace and job, assist employees in developing their individual abilities, andprovide equal opportunity for better work conditions and evaluations without discrimination. In addition, it also believes that respecting thediversity of individual values and attributes and allowing for a variety of work styles to bring out employeesʼ ambition and abilities plays animportant role in employees improving their careers and expertise.
The Group is aware that improving the mental and physical health and safety of union members and employees, maintaining and improving
employeesʼ will to work, and helping them improve their abilities contributes to strengthening its competitiveness as a company. This philosophy isestablished in the Groupʼs Fundamental Policies, and each Group company will work to create a vibrant and active workplace and achieve mutual
prosperity alongside employees.

Fundamental Policies for Workplace Improvement

Code of Conduct
Workplace Improvement Policy

EnableDiverseWorking
StylesProvide working
condition options

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

Set up systems toprevent disruption of
employee careers

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

Prevent excessive working hours

EnsureEqual
Opportunity

Through collaborative labor and management initiatives for workplace improvement,
working hours shall be limited to levels that allow each employee to demonstrate theirability 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 recognition of their value to the Nichirei Group.

Provide stimulating
employment
opportunities for people
with disabilities

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

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

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

Human Assets

The Diversity Promotion Conference, under the Group Human Assets Committee, meets with labor and management

Committee

twice a year to monitor measures undertaken at each Group company in relation to human rights, job satisfaction, theworkstyle of each employee, support for active participation in the workforce by women, the employment of foreigners,
workstyles that diﬀer according to life stage and age, as well as the employment of and collaboration with, the disabled.

84

Human Assets
Development

The president of each Nichirei Group operating company is responsible for building systems that develop optimal humanassets 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 eachyear.

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

The Nichirei Group Workplace Improvement Policy

Management System
Each Group company promotes eﬀorts adapted for its individual businesses, however, the Group has also established the Group-wide Group Human
Assets Committee and Diversity Promotion Conference and shares information about and conﬁrms the progress with each companyʼs measures tocontinually enhance workplaces through these two councils. In addition, to respond to reports and consultations from employees regarding labor
practices, the Group introduced an internal reporting and consultation system (Nichirei Hotline) in October 2003.
Between FY2014 and FY2019, there have been 19 cases involving consultation about human aﬀairs or matters related to work conditions. With thisin mind, the Group is striving for coordination between management and labor through cooperation with the labor union.

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

Work for Seniors
In 2002, the Nichirei Group set up the Senior Staﬀ System to provide employment opportunities for employees
on retirement. After reaching the retirement age of 60, those wishing to continue working may do so until theage of 65. At present, we employ more than 100 senior members of staﬀ, whose experience and knowledge
contribute to Group development.

Lecture on frozen foods during
a virtual factory tour

85

Impartial Hiring Opportunities
The Group releases recruiting essentials and all other information on its website, accepts a wide variety of applications, and impartially selects new
graduates.

Creating an Employee-Focused Workplace

Promotion of Diversity

Labor union activities; labor-management cooperation

Number of employees (by job type, rank, gender)■ Group Total Number Hired (new graduates, experienced workers)

Number of new graduates hired

Number of experienced workers hired

Breakdown

Breakdown

FY2015FY2016FY2017FY2018FY2019

106

83

92

101

88

Male

61

58

57

54

46

Female

45

25

35

47

42

50

45

68

45

80

Male

36

36

42

36

60

Female

14

9

26

9

20

■Percentage of Non-company Employees
FY2015FY2016FY2017FY2018FY2019Number of company employees

3,635

3,628

3,755

3,780

3,782

Number of non-company employees

2,408

2,241

2,270

2,228

2,158

Percentage of non-company employees (%)

39.8

38.2

37.7

37.1

36.3

86

Continually Enhance our Workplaces

Human Rights
Basic Philosophy
The Nichirei Group is aware that, when it comes to operating a global business, respecting the human rights not only of the Groupʼs 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 Groupʼs Code of
Conduct as follows. The Nichirei Group respects human rights and does not discriminate at all based on race, skin color, gender, religion, politicalviews, nationality, social status, background, or any other factor. The Nichirei Group rejects all forms of forced labor and child labor. Furthermore,
discriminatory behavior, violent behavior, sexual harassment, power harassment, and other such behavior is forbidden, and regulatory standards
are adhered to with regards to wages (including legal allowances) and working hours.
In FY2020, the Nichirei Group Human Rights Policy was established. In FY2018, the Group established “The Nichirei Group Workplace Improvement
Policy” based on the Nichirei Pledge and aims to achieve its goals by FY2022. In addition to each Group company promoting eﬀorts that address
their individual issues, Nichirei also facilitate exchanges of information and conﬁrms each otherʼs progress through the Group-wide Group Human
Assets Committee and Diversity Promotion Conference.

*1 All member nations pledge to respect, promote, and realize the obligation to eliminate discrimination in hiring 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 ﬁrmsʼ businesses and human rights.

Code of Conduct

the Nichirei Group Human Rights Policy

Workplace Improvement Policy

Nichirei Group Sustainable Supply Chain Policy

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

Labor union activities; labor-management cooperation

87

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

Initiatives
In FY2019, there were no human rights incidents.

We conducted study group to raise awareness concerning about compliance issues twice in FY2017, 18 in FY2018, and 13 in FY2019. 898
individuals attended.
The seminars were designed to reaﬃrm the signiﬁcance of, and need for, compliance, as well as to review the Groupʼs compliance-related policies.
During training, participants examined their role as group leaders in ensuring and promoting compliance, including the prevention of harassment.
Going forward, the Group will continue education to cultivate awareness about respect for human rights.
E-learning to prevent harassment has also been introduced, and has been used by 5,166 employees.
In FY2019, there were 1 cases of internal reports or consultations related to human rights complaints and allegations. In accordance with company
policy, all reports received are relayed to top management by the administration oﬃce, which also conducts an investigation to conﬁrm the facts,
implements corrective measures, and provides feedback to the person who made the report (when not reported anonymously). Anonymity ispreserved to protect the identity of the person reporting, while the process is carefully managed to ensure there is no retaliation against, oradverse treatment of, those who are the subject of complaints.

Compliance88Continually Enhance our Workplaces

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

The Nichirei Pledge

The Nichirei Group Workplace Improvement Policy

Management System
Each Group company promotes eﬀorts adapted for its individual businesses; however, Nichirei has also established the Group-wide Group Human
Assets Committee and Diversity Promotion Conference. These councils share information about and conﬁrm the progress with each companyʼsmeasures to continually enhance workplaces.
The Group Human Assets Committee holds a conference twice a year, and the subordinate Diversity Promotion Conference is held three times ayear in collaboration with management and labor unions. The Diversity Promotion Conference reports the details of the meetings to the Group
Human Assets Committee.
The Diversity Promotion Conference studies and oversees the measures taken by all companies, particularly initiatives related to respecting
employeesʼ human rights, job satisfaction, and diverse work styles. The measures include promoting the equal participation of men and women as
a company that supports womenʼs success in the workplace, employment of foreigners and other groups that demonstrates a global mindset,
allowance for a diverse array of work styles suited to diﬀerent life stages and ages, and employment of and cooperation with people withdisabilities. The Group is working to continually enhance workplaces and raise awareness at Group companies through promoting the sharing of
information, Group-wide application of eﬀective measures, and other eﬀorts. In addition, in FY2018, the Group established The Nichirei Group
Workplace Improvement Policy, and is striving to enable diverse working styles, prevent excessive working hours, and ensure equal opportunities
by FY2022.

Workstyle Diversity
In-House Childcare Facility
In April 2018, Nichirei opened an in-house daycare center at its Head Oﬃce, located in the Tsukiji district ofTokyoʼs Chuo Ward. This is one of the Groupʼs workstyle reforms, designed to enable the early return to workby those employees raising children 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 atchildcare facilities, we are also accepting a ﬁxed number of local children at the daycare center.

Daycare children visit the workplace89Operational Innovations
The Use of Robots
The Nichirei Logistics Group is promoting the introduction of robotic process automation (RPA) to innovate
oﬃce operations. RPA allows automation across applications through the use of computers even by those
without programming knowledge; worksite employees have created and used original RPA scenarios on
their own.
In FY2019, when full-scale deployment of the process began and the goal was to convert 10,000 hours ofhuman labor to RPA each year, we actually converted 20,000 hours. In addition to resolving the problem oflong working hours, the time freed up by automated operations allows for a shift in emphasis from oﬃce
operations to resources; strengthens communications with worksites; and allows suﬃcient time for staﬀ tomeet with visitors, including business partners. In addition, the extra time available has made possible theWorksite employees engaged in RPA
operation training

creation of new added value operations and increased job satisfaction among all employees.
In FY2020, we aim to convert 180,000 hours of human labor into RPA and cultivate 100 more employees able to create RPA scenarios.

Hiring People with Disabilities
The Group encourages the employment of people with disabilities, 30 of whom work at our special subsidiary, Nichirei Aura.
They are engaged in a wide range of operations, including the cleaning of the head oﬃce and food factories located at Group companies, as well asoﬃce interiors within our logistics centers and the maintenance of green spaces. The Group will continue to create comfortable working
environments for individuals with disabilities.

■ Ratio of Employees with Disabilities
FY20192.56%

FY20182.50%

FY2017

2.62%

FY2016

2.64%

FY20152.36%

Oﬀering Employees Workplace Transfer Options
Nichirei Foods Inc. revised its personnel system during FY2016 and FY2017, in order to specify which employees are not subject to job transfers.
Those who are unable to move to a distant location due to marriage, childcare, nursing, injury or sickness, or other personal reasons, or those whohave worked more than a set amount of time, can remain at their desired workplace based on their individual career objectives regardless ofreason, and can themselves decide whether they are eligible to be transferred. The revisions were instituted out of respect for the diverse
circumstances and preferences of Nichirei Foods employees, and to create workplaces in which all members are motivated to work.

Promote the Advancement of Female Employees
As part of its eﬀort to promote the participation of women in the workplace, the Logistics Group held the sixth Sakaseru Roji-Jo Forum in January
2019. Sixty-one female employees from each region across the country gathered to learn about the background, current status and future
prospects of eﬀorts promoting womenʼs active participation in the workplace. For the ﬁrst time, senior employees, including men, attended in
2019.

90

The forum acknowledged peopleʼs values with regard to work, as well as the need to create networks among employees in each region throughdiscussions regarding participant work values and the creation of workplaces where women can work in ways that best suite them.
In ﬁscal 2019, Nichirei Foods held seminars for female employees in collaboration with other food manufacturers. These seminars included SPIRAL
UP!, a diversity forum aimed at building awareness and LADY, GO UP!, a seminar aimed at building external networks and career development.

Sakaseru Roji-Jo Forum

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

Maternity Leave Return Rate
In FY2018, a total of 34 women throughout the Group took maternity leave, and 100% of them returned to work.

Human Asset Data

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 arole in deciding promotions or salary increases.

91

Education and Training■Main education and training
General employees

Managers

OﬃcersTraining by rank

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

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

Education time (cumulative total)

Number of participants (cumulative total)

FY201845,6491,379

FY201949,730

1,699

Total

95,1993,078

92

Support Good Corporate GovernanceOn the basis of its holding company structure, the Group engages in business through its operating companies
across a wide range of ﬁelds which include processed foods, marine products, meat and poultry products, logistics
and biosciences. The Board of Directors of Nichirei Corporation (the “Company”) draws up the Groupʼs businessstrategy and implements an operating structure which provides supervision of business executed by the operatingcompanies with the aim of achieving sustainable growth and increasing its corporate value over the medium tolong term.
The Company is well aware that ensuring equitable and highly transparent business practices constitutes a key
managerial issue, and accordingly, under the supervision of the Board of Directors, strives to ensure soundcorporate governance, including proper allocation of resources, prompt decision-making and strict compliance.
The Company adopts the “Company with Board of Company Auditors” structure of governance pursuant to theCompanies Act of Japan.

Corporate GovernanceRisk Management

93Support Good Corporate GovernanceCorporate GovernanceManagement System● Corporate Governance Structure

Corporate Governance, Integrated Report 2019

Election and Term of Oﬃce of Directors
The Board of Directors comprises up to 11 members, appointed to one-year terms in order to enhance ﬂexibility in response to changes in businessconditions. Resolutions to appoint directors must be approved by a majority of shareholders, with at least one third of those shareholders who havevoting rights in attendance. To improve transparency and strengthen supervisory functions, three of the current 10 directors are outside directors.
The Board meets at least once a month. The Board of Directors is chaired by the Representative Director and Chairman, who also serves as an
executive oﬃcer. Together, the Representative Director and Chairman and the Representative Director and President oversee the Groupʼs overall
execution of business.

Company Auditor System and Role of Board of Company Auditors
Nichirei has adopted the company auditor system. Of the ﬁve company auditors, three are outside company auditors, of whom one has experienceat a ﬁnancial institution, another is an experienced attorney, and the third has worked at a government agency. The Board of Auditors meets oncea month, in principle, convening additional meetings as necessary. Nichirei has established a framework to enhance the supervisory functions ofcompany auditors, allowing for the eﬀective use of company auditors, and strengthening the supervisory role of management.
>Independent Outside Directors and Outside Company Auditors
The Company adheres to its Criteria for Independence when appointing outside directors and outside company auditors designated by theCompany as independent directors/auditors. A vested interest in Nichirei is denied outside directors and their close relatives, as well as outsidecompany auditors and any companies or organizations of which they are directors or that they serve in other important positions.

Reasons for nomination of outside directors: Notice of the 101st Annual General Shareholders Meeting, pages 9–11

94

■ Attendance of Outside Directors and Outside Company Auditors at Meetings of the Board of Directors or Board ofAuditors (as of June 25, 2019)

Category

OutsideDirectors

OutsideCompany
Auditors

Name

Attendance at
Meetings of theBoard of Directors
or Board ofAuditors

Main Activities

ShizukaUzawa

Attended 19 of 19
meetings of theBoard of Directors

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

Mieko
Wanibuchi

Attended 18 of 19
meetings of theBoard of Directors

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

KunikoShoji

Attended 15 of 15
meetings of theBoard of Directors*

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

MasaakiOkajima

Attended 19 of 19
meetings of theBoard of Directors
Attended 16 of 16
meetings of theBoard of Auditors

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

Kazuo
NaganoAttended 16 of 19
meetings of theBoard of Directors
Attended 14 of 16
meetings of theBoard of Auditors

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

YuhikoSaito

New appointee

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

* This member assumed his or her position after being appointed at the 100th Ordinary General Meeting of Shareholders held on June 26, 2018.

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

Titlesnumber of times
held

Conditions

FY2018FY2019Nominating Advisory Committee

Convened by the chairperson twice yearly and as required12Compensation Advisory Committee

Convened by the chairperson once yearly and as required

1

6

The Group Human Resources Committee

Convened by the chairperson twice yearly and as required

2

2

The Group Risk Management Committee

Convened by the chairperson twice yearly and as required

2

2

The Group Environmental Protection
Committee

Convened by the chairperson twice yearly and as required

3

3

The Group Quality Assurance Committee

Convened by the chairperson twice yearly and as required

2

2

The Group Internal Control Committee

Convened by the chairperson once yearly and as required

1

1

The Group Director Review Committee

Convened by the chairperson as required

The Group Social Contribution Committee

Convened by the chairperson once yearly and as required

1

1Management Committee

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

21

23

Review Committee

Convened by the chairperson as required--Intellectual Property Management Committee

Convened by the chairperson as required

-

-

95

-

-

Internal Audits, Audits by Company Auditors, and Accounting AuditsCompany auditors at the holding company and three core operating companies hold regular liaison conferences, conduct joint audits, and ensure
the eﬀective auditing of Group-wide management. The Management Auditing Division, responsible for internal auditing, conducts businessexecution and accounting accounts to verify the status of internal controls across management activities, and oﬀers advice as necessary, in order toensure strict compliance and observance of the Group code of conduct, and raise awareness of risk management. In addition, the division conducts
facility audits inspecting the status of production plants, distribution centers, and other facility audits providing appropriate guidance and advice.
Oﬃcer Remuneration
Design of the remuneration scheme for directors and executive oﬃcers incorporates the opinions of a third-party organization. Remuneration
comprises a base remuneration component and a bonus component. Base remuneration is paid at a ﬁxed rate determined in accordance with aremuneration schedule. Bonuses are paid according to the concept of productivity-linked bonuses, based on the results of the Nichirei Group, theperformance-budget achievement rate of the relevant oﬃcerʼs business area, and an individual qualitative assessment. Outside directors receive
base remuneration only; they are not paid a bonus. Nichirei has established a Remuneration Advisory Committee which meets, in principle, once a
year to deliberate on such topics as the remuneration system, remuneration levels, and the validity of remuneration, before reporting its ﬁndings to
the Board of Directors. The committee comprises the Representative Director and President, a company auditor, and outside directors. Oﬃcer
remuneration is determined by the Board of Directors. The total amount of remuneration and bonuses paid to directors must be within the limit
resolved at a General Meeting of Shareholders.

Amounts of remuneration, etc. paid to directors and company auditors: Notice of the 101st Annual General Shareholders
Meeting, page 17

Status of Board of Directorsʼ Evaluations

Corporate Governance, Integrated Report 201996

Support Good Corporate GovernanceRisk Management
Basic Philosophy
The Nichirei Group has formulated a policy for internal control designed to help bring to fruition its management principles, brand statement, andCSR policy. It has established and implements an internal system to facilitate operational eﬀectiveness and staﬀ ability, ensure the accuracy ofﬁnancial reports, comply with laws and regulations pertinent to its business, and to protect assets.
With respect to risk management in particular, the Group has set up the Group Risk Management Committee, chaired by the Representative
Director and President, to manage the various risks associated with its business activities, in the most appropriate and rational ways from acomprehensive standpoint, and to maximize the corporate Groupʼs enterprise value. The committee identiﬁes and evaluates Group-wide risks, andNichirei and its business companies respond to these risks on their own accord, based on the established risk management cycle. Important items
are reported to the Board of Directors of Nichirei Corporation, the holding company, which considers the response.

Internal Control

Business Risk, page 15, Annual Securities Report (for the year ended March 31, 2019) (Only available in Japanese)

Nichireiʼs Value Creation Model, page 13, Integrated Report 2019

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

Educating Employees about the Code of Conduct to Ensure Compliance

Enhanced Business Continuity Planning (BCP) Response for the Logistics Core
SystemAs part of risk management, from February 2018, the Nichirei Logistics Group worked to strengthen the BCP response for its logistics core system.
The work involved relocating its main data center, which had previously been overconcentrated in Tokyo, to Western Japan, and building a disasterrecovery (DR) site capable of rapidly restoring the system in the event of a disaster. By realizing a dual base system that can switch from the mainsite to the DR site in the event of a major disaster, Nichirei Logistics Group is able to quickly proceed with business recovery. Taking about one hour97

from DR activation to resuming online operations, every consideration has been given to preventing customersʼ businesses and food logistics frombeing aﬀected under various circumstances. With an aim of also assisting clients with their business continuity, Nichirei Logistics Group willcontinue to implement advanced initiatives as a lifeline for food distribution.

Conceptual diagram of BCP for the logistics core system

98

Ensure Strict Compliance

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

Compliance99Ensure Strict Compliance

Compliance
Basic Philosophy
The Nichirei Group, in accordance with the Groupʼs Management Principles and Code of Conduct, complies with laws and regulations, refrains fromdishonest or antisocial corporate activities, and is committed to fair corporate activities beﬁtting a public organ of society.
In April 2014, Nichirei established a single international version of its Code of Conduct, designed to strengthen corporate governance for the entire
Group and to better ensure legal compliance and ethical business activities. The revision included addition of “respect for human rights” as the top
priority, derived in part from the Ten Principles in the four areas of the UN Global Compact. Principles on preventing corruption, judged to beimportant from the standpoint of global compliance, were also incorporated, including the prohibition of insider trading, and involvement in, or
dealings with, antisocial forces.
In addition, the Group has established the Nichirei Group Sustainable Supply Chain Policy, which includes matters on compliance, fair trading, andhuman rights. The Group procures products and services in accordance with this policy, and asks suppliers to assent to and cooperate in complying
with it.

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

Management Principles

Code of Conduct

Corporate Governance Report (Only available in Japanese)

Sustainable Supply Chain Policy

100Management System
Strengthening and Ensuring Compliance AwarenessThe internal regulations of the Nichirei Group clarify the rules necessary for a Group company to be managed in a systematic and eﬀective manner.
They are indispensable for the governance and internal controls of the company. Accordingly, all people working for the Nichirei Group must
properly understand and comply with them. Based on this line of thinking, compliance and anti-corruption initiatives are implemented companywide, while the Board of Directors oversees compliance with the Code of Conduct.
Speciﬁcally, to ensure that all employees comply with laws, regulations and Nichireiʼs articles of incorporation, and act in keeping with corporate
ethics, Nichirei has formulated and distributes a Code of Conduct along with a collection of examples of how the code is to be applied. Moreover, sothat the principles and systems of compliance management contained in the Code of Conduct and so on better permeate within the company,
employees and new recruits are provided training using a collection of examples on the Code of Conduct. By learning about the Code of Conduct
based on concrete examples, the aim is to educate and raise awareness for compliance among existing and new employees.
Internal Whistleblower Hotline and Consultation Service
Whistleblowing and consultation systems have been introduced allowing employees to report, or seek advice on, actions that all kinds of corruption
such as violate laws or internal regulations, or that are ethically questionable. In FY2016, Nichirei revised its whistleblowing system in response to
the requirements of Japanʼs new Corporate Governance Code, establishing “a point of contact that is independent of management.” To raiseawareness for the systems, Nichirei created and distributed promotional posters for its workplaces and reminder cards for employees.
Over the past three years, an increasing number of reported cases have involved workplace disputes and harassment. In accordance with
Company policy, all reports received are relayed to top management by the administration oﬃce, which also conducts an investigation to conﬁrm
the facts, implements corrective measures, and provides feedback to the person who made the report (when not reported anonymously).
Anonymity is preserved to protect the identity of the person reporting, while the process is carefully managed to ensure there is no retaliation
against, or adverse treatment of, those who are the subject of complaints.
The persons in charge of whistle-blowing attend education and other training related to harassment, etc. by specialists every year in an eﬀort toimprove responsiveness. In addition, all superiors and managers in the workplace who are in a position to receive consultation from theirsubordinates attend the compliance awareness study session described below. By conducting regular training every year and increasing thenumber of students, we are working to improve our group-wide harassment response capabilities.

■Number of Whistleblowing Cases, by Type
Workplace
Disputes

Mistreatment

Compliancerelated Breaches

Harassment

Other
Consultations

Total

FY2015

0

5

4

0

0

9

FY2016

0

0

7

2

4

13

FY2017

6

2

7

1

4

20

FY2018

6

11

12

3

3

35

FY2019

6

2

1

1

2

12

Educating Employees about the Code of Conduct to Ensure Compliance
The Nichirei Group seeks to endure and develop as a company that enjoys the conﬁdence of society, based on the high ethical standards of its
oﬃcers and employees. To foster a sense of ethics in each and every employee, the Code of Conduct has been included in the employee handbook,along with the Group Management Principles, so that employees can check them at any time. In addition, a guidebook on the use of social media
has been distributed to all employees, and a monthly series of case studies related to the Code of Conduct is published on the Groupʼs intranet in a
clever format that is easy to read and understand.
Seminars are organized for section managers from all relevant departments in order to raise their awareness of the need for compliance. A total of
898 people participated in 33 seminars held in FY2017–FY2019. The seminars are held for two hours, per person, per year. The seminars were
designed to reaﬃrm the signiﬁcance of, and need for, compliance, as well as to review the Groupʼs compliance-related policies. During training,participants examined their role as group leaders in ensuring and promoting compliance, including the prevention of harassment.
In addition, the Nichirei Group has been oﬀering e-learning sessions to educate and train employees, based on its in-house educational rules. The
Nichirei Group is committed to continue providing compliance training.

101■ E-learning Training Sessions Conducted in FY2019
E-learning Topic

Eligible Participants

Actual ParticipantsParticipation Rate

1

Harassment

5,356

5,166

96.5%

2

Quality Assuarance

5,308

5,178

97.6%

3

Health Literacy

5,320

4,988

93.8%

4

Personal Information Protection Act

5,311

4,973

93.6%

5

Intellectual Property

5,308

5,037

94.9%

6

Competition law; bribery and corruption prevention

5,308

5,005

94.3%

7

Internal Whistleblowing ＆ Consultation System

5,256

4,901

93.2%

8

Internal Controls

5,247

5,080

96.8%

9

Environment

5,234

5,016

95.8%

10

Information Security

5,214

5,115

98.1%

Bribery and Corruption
During FY2019, no employees were penalized for bribery or other acts of corruption. Moreover, no payments were made for ﬁnes relating tobribery or other acts of corruption.

102

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

Integrated Report 2019

PDF (Japanese)
PDF (English)

Integrated Report 2018

PDF (Japanese)
PDF (English)

CSR Report 2018

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

CSR Report 2017

PDF (Communication Version)
Employee-related Data

CSR Report 2016

PDF (Communication Version)
Employee-related Data

CSR Report 2015

PDF
Employee-related Data

CSR Report 2014

Website Version
PDF (Digest Verstion)
Employee-related Data

CSR Report 2013

Website Version
PDF (Digest Verstion)
Employee-related Data

CSR Report 2012

Website Version
PDF (Digest Verstion)

CSR Report 2011

Website Version
PDF (Digest Verstion)

CSR Report 2010

Website Version
PDF (Digest Verstion)

CSR Report 2009

Website Version
PDF (Digest Verstion)

Social and Environmental Report 2008

PDF

Social and Environmental Report 2007

PDF

103

Social and Environmental Report 2006

PDF

Social and Environmental Report 2005

PDF

Environmental Report 2004

PDF

Social and Environmental Report 2003

PDF

Environmental Report 2002

PDF

Environmental Report 2001

PDF

Environmental Report 2000

PDF

104

ESG Navigation
ESG Navigation
Link to each location

Promoting CSR Management in the Nichirei Group

Presidentʼs Message●

CSR Basic Policy (The Nichirei Pledge)●

CSR Management Structure●

Commitment

Management
Structure

Targets andPerformances

Climate Change●●

Water Use

●

●

●

●

●

Biodiversity

●

●

●

Supply Chain (Environment)

●

●

●

Supply Chain (Social)

●

●

●

Human Rights

●

●

●

Initiatives●●●

Waste and Eﬃcient Use of
Resources
Environment

Management of Waste Water,
Waste Matter and Chemical
Substances●

Stakeholder Engagement
SocialSafe and Healthy Product andService●●●Occupational Health and Safety

●

●

●

Workplace Improvement(including Diversity)

●

●

●

Link to each location

Corporate Governance

Basic Policy on Corporate Governance●

Remuneration Scheme and Process for the Directors andExecutive Oﬃcers●

Basic Approach for nomination of Directors●

Expertise and Background of Directors●

Basic Policy Internal Control System●

Corporate Governance Structure (Composition of the Board of
Directors and the Board of Company Auditors)
Committees for Eﬀective Corporate Governance

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

Code of Conduct
Risk Management

Basic Approach fo Risk Management

105●

Information Security
Matters relating to the General
Meetings of Shareholders

Notiﬁcation of the Convocation
Notiﬁcation of the Resolution

106

●
●

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

Policies

Corporate Basic Policies

Basic CSR Policy "The Nichirei Pledge"

Environment

Environmental Policy
Biodiversity Policy

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

Governance

Basic Policy on Corporate GovernanceInternal Control
Code of Conduct107

ESG Data
ESG Data
Employee-related Data

Environmental Data

Corporate Governance Data

Employee-related Data
Number of employees

Female Managers Ratio

Average age

Average Number of Years
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 of People
with Disabilities

Annual Total of Actual Hours
WorkedAnnual Paid Vacation: Average
Number of Days andAcquisition Rate

Employees Using Time Oﬀ forChildrearing

Employees Using Time Oﬀ forCaregiving

Number of Work-Related
Accidents at Food Plants

Number of occupational deaths

General regular health checkup
rate

Stress Check Coverage

New Graduate Hire TurnoverStatusMain education and training

Education time and number ofparticipants■Number of employees
Coverage

Item

Unit

Executives and employees total

FY2018FY2019

6,087

6,073

6,002

3,668

3,629

3,746

3,792

3,748

2,438

2,303

2,341

2,281

2,254

63

63

62

65

62

Male

62

62

60

63

60

Female

1

1

2

2

2

Number of company employees

3,635

3,628

3,755

3,780

3,782

Male

2,729

2,732

2,800

2,786

2,789

Female

906

896

955

994

993

【Number of employees inmanagement positions】

1,267

1,270

1,285

1,293

1,309

Male

1,196

1,196

1,206

1,205

1,216

71

74

79

88

93

2,368

2,358

2,470

2,487

2,473

Male

1,533

1,536

1,594

1,581

1,573

Female

835

822

876

906

900

Number of staﬀ other thanemployees

2,408

2,241

2,270

2,228

2,158

Male

877

835

886

943

899

Female

1,531

1,406

1,384

1,285

1,259

Executives and employees total

246

263

273

277

252

Breakdown

Breakdown

Breakdown

Male
FemaleFemale【Number of general employees】
Breakdown

Breakdown
Nichirei

FY2017

5,932

Number of executives

Group total

FY2016

6,106

Breakdown

Numberof people

FY2015108

Corporation

Breakdown

Male

148

159

157

156

148

Female

98

104

116

121

104

20

20

20

21

19

Male

19

19

18

19

17

Female

1

1

2

2

2

Number of company employees

175

189

205

213

187

Male

114

127

125

128

122

Female

906

896

955

994

65

【Number of employees inmanagement positions】

89

99

100

111

112

Male

73

81

79

85

85

Female

16

18

21

26

27

86

90

105

102

75

Male

41

46

46

43

37

Female

45

44

59

59

38

Number of staﬀ other thanemployees

51

54

48

43

46

Male

15

13

14

9

9

Female

36

41

34

34

37

Executives and employees total

3,193

3,014

3,126

3,133

3,054

Male

1,773

1,716

1,799

1,866

1,821

Female

1,420

1,298

1,327

1,267

1,233

13

13

13

12

12

Male

13

13

13

12

12

Female

0

0

0

0

0

Number of company employees

1,512

1,472

1,541

1,535

1,524

Male

1,128

1,110

1,155

1,146

1,134

Female

384

362

386

389

390

【Number of employees inmanagement positions】

530

525

533

534

532

Male

496

488

499

498

497

Female

34

37

34

36

35

982

947

1,008

1,001

992

Male

632

622

656

648

637

Female

350

325

352

353

355

Number of staﬀ other thanemployees

1,668

1,529

1,572

1,586

1,518

Male

632

593

631

708

675

Female

1,036

936

941

878

843

Executives and employees total

308

313

313

308

315

Male

222

225

228

228

228

Female

86

88

85

80

87

７

8

7

9

9

Male

7

8

7

9

9

Female

0

0

0

0

0

Number of executives
Breakdown

Breakdown

Breakdown【Number of general employees】
Breakdown

Breakdown

Breakdown
Number of executives
Breakdown

Breakdown
Nichirei
Foods

Breakdown【Number of general employees】
Breakdown

Breakdown
Nichirei Fresh

Breakdown
Number of executives
Breakdown

109

Number of company employees

243

248

254

252

256

Male

198

200

203

200

197

Female

45

48

51

52

59

【Number of employees inmanagement positions】

142

146

151

149

149

Male

138

142

146

144

142

Female

4

4

5

5

7

101

102

103

103

107

Male

60

58

57

56

55

Female

41

44

46

47

52

Number of staﬀ other thanemployees

58

57

52

47

50

Male

17

17

18

19

22

Female

41

40

34

28

28

Executives and employees total

2,244

2,227

2,260

2,224

2,252

Male

1,470

1,473

1,504

1,479

1,488

Female

774

754

756

745

764

19

18

17

18

16

Male

19

18

17

18

16

Female

0

0

0

0

0

Number of company employees

1,641

1,654

1,687

1,701

1,738

Male

1,247

1,250

1,270

1,262

1,287

Female

394

404

417

439

451

【Number of employees inmanagement positions】

472

467

466

464

479

Male

462

457

454

451

464

Female

10

10

12

13

15

1,169

1,187

1,221

1,237

1,259

Male

785

793

816

811

823

Female

384

394

405

426

436

Number of staﬀ other thanemployees

584

555

556

505

498

Male

204

205

217

199

185

Female

380

350

339

306

313

Executives and employees total

115

115

115

131

129

Male

55

56

58

63

63

Female

60

59

57

68

66

4

4

5

5

6

Male

4

4

5

5

6

Female

0

0

0

0

0

Number of company employees

64

65

68

79

77

Male

42

45

47

50

49

Female

22

20

21

29

28

【Number of employees inmanagement positions】

34

33

35

35

37

Breakdown

27

28

28

27

28

Breakdown

Breakdown【Number of general employees】
Breakdown

Breakdown

Breakdown
Number of executives
Breakdown

Breakdown
Nichirei
Logistics
Group

Breakdown【Number of general employees】
Breakdown

Breakdown
Nichirei
Biosciences

Breakdown
Number of executives
Breakdown

Breakdown

Male

110

Female

7

5

7

8

9

30

32

33

44

40

Male

15

17

19

23

21

Female

15

15

14

21

19

Number of staﬀ other thanemployees

47

46

42

47

46

Male

9

7

6

8

8

Female

38

39

36

39

38

【Number of general employees】
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 (FY2019)
1 Nichirei Corporation

2 Nichirei Foods

3 Nichirei Fresh

4 Nichirei Logistics Group

7 Nichirei Logistics Tohoku

8 Nichirei Logistics Kanto

9 Nichirei Logistics Tokai

12 Nichirei Logistics Kyushu

13 Kyokurei Operation

14 Nichirei Logistics Engineering

5 Logistics Network

6 Nichirei Logistics Hokkaido

10 Nichirei Logistics Kansai

11 Nichirei Logistics Chushikoku

15 Nichirei Biosciences

Page Top■Female Managers Ratio
Coverage

Item

Unit

FY2015FY2016FY2017FY2018FY2019Group total

5.6

5.8

6.1

6.8

7.1

NichireiCorporation

18.0

18.2

21.0

23.4

24.1

Nichirei
Foods

6.4

7.0

6.4

6.7

6.6

2.8

2.7

3.3

3.4

4.7

Nichirei
Logistics
Group

2.1

2.1

2.6

2.8

3.1

Nichirei
Biosciences

20.6

15.2

20.0

22.9

24.3

%

Nichirei Fresh* Applicability: Employees■Average age
Coverage

Item

Unit

FY2015FY2016FY2017FY2018FY2019

41.3

41.2

41.6

41.9

42.1

38.5

39.0

39.5

39.6

39.8

NichireiCorporation

42.1

42.7

43.7

43.3

44.1

39.7

40.9

41.1

41.9

43.1

Nichirei
Foods

41.2

41.4

41.8

42.3

42.5

40.0

40.7

40.8

41.2

41.5

42.5

42.5

42.8

42.9

42.6

41.9

42.5

42.6

42.5

41.2

Nichirei
Logistics
Group

41.2

41.1

41.1

41.2

41.6

36.5

36.9

37.6

37.6

37.9

Nichirei
Biosciences

40.9

40.9

40.6

40.2

40.7

37.3

37.3

37.7

36.3

36.7

Group total

Age
Nichirei Fresh* Applicability: Employees

111

■Average Number of Years Employed
Coverage

Item

Unit

FY2015FY2016FY2017FY2018FY2019

16.1

16.2

16.4

16.7

16.7

14.3

14.8

15.1

15.3

15.7

NichireiCorporation

16.9

17.5

18.3

18.2

19.1

14.0

15.4

13.6

14.4

18.5

Nichirei
Foods

16.0

16.2

16.8

17.3

17.7

14.9

15.5

15.8

16.3

16.7

18.7

18.5

18.7

18.8

18.4

21.0

20.8

20.9

20.5

18.6

Nichirei
Logistics
Group

15.8

15.6

15.6

15.7

15.9

13.0

13.5

14.1

14.1

14.3

Nichirei
Biosciences

15.3

15.2

14.9

14.2

15.3

13.1

13.2

13.4

11.9

12.1

Group total

Year
Nichirei Fresh* 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.

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

Item

Unit

New graduates
BreakdownGroup total

88

61

58

57

54

46

45

25

35

47

42

50

45

68

45

80

Male

36

36

42

36

60

Female

14

9

26

9

20

4

5

5

3

0

Male

2

5

1

2

0

Female

2

1

4

1

0

7

2

22

4

2

Male

3

1

4

2

2

Female

4

1

18

2

0

36

29

25

27

31

Male

27

20

15

18

20

Female

9

9

10

9

11

7

3

2

8

13

Mid-career
Breakdown

Nichirei
Foods

New graduates
Breakdown

FY2019101

New graduates

NichireiCorporation

FY201892

Mid-career

Breakdown

FY2017

83

FemaleBreakdown

FY2016

106

Male

Numberof people

FY2015Mid-career112

Breakdown

Male

6

3

2

1

6

Female

1

0

0

1

7

6

8

9

10

10

Male

5

7

6

7

6

Female

1

1

3

3

4

0

3

1

0

5

Male

0

2

1

0

1

Female

0

1

0

0

4

57

38

47

53

42

Male

26

25

32

24

19

Female

31

13

15

29

23

36

36

41

32

60

Male

27

29

34

26

51

Female

9

7

7

6

9

3

3

6

8

5

Male

1

2

3

3

1

Female

2

1

3

5

4

0

1

2

1

0

Male

0

1

1

1

0

Female

0

0

1

0

0

New graduates
Breakdown
Nichirei Fresh

Mid-career
Breakdown

New graduates
Breakdown
Nichirei
LogisticsGroup

Mid-career
Breakdown

New graduates
Breakdown
Nichirei
Biosciences

Mid-career
Breakdown* Applicability: Employees

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

Item

Unit
Number of
Resignations

Breakdown by
reasonGroup total

Breakdown by
reasonNichireiCorporation

FY2015

Numberof people

FY2016FY2017FY2018FY2019

160

144

131

137

146

Retirement

74

61

52

48

64

Personal
circumstances

65

62

65

69

74

Company
circumstances

1

2

1

0

0

Others

20

19

13

20

8

Resignation rate

2.3%

2.2%

2.0%

2.3%

2.1%

Number of
Resignations

13

10

9

9

12

Retirement

8

3

2

3

6

Personal
circumstances

4

6

5

4

5

Company
circumstances

0

0

0

0

0

Others

1

1

2

2

1

Resignation rate

2.7%

3.7%

3.2%

2.8%

3.0%

113

Breakdown by
reasonNichirei
Foods

Breakdown by
reasonNichirei
Fresh

Breakdown by
reasonNichirei
Logistics
Group

Breakdown by
reasonNichirei
Biosciences

Number of
Resignations

73

43

52

43

57

Retirement

33

22

22

17

30

Personal
circumstances

28

17

26

23

26

Company
circumstances

0

0

0

0

0

Others

12

4

4

3

1

Resignation rate

2.6%

1.4%

1.9%

1.7%

1.7%

Number of
Resignations

10

9

9

10

14

Retirement

7

5

3

2

7

Personal
circumstances

3

3

3

7

4

Company
circumstances

0

0

0

0

0

Others

0

1

3

1

3

Resignation rate

1.2%

1.6%

2.3%

3.1%

2.7%

Number of
Resignations

62

80

59

72

60

Retirement

25

31

25

25

21

Personal
circumstances

29

35

29

35

36

Company
circumstances

1

2

1

0

0

Others

7

12

4

12

3

Resignation rate

2.2%

2.9%

2.0%

2.7%

2.3%

Number of
Resignations

2

2

2

3

3

Retirement

1

0

0

1

0

Personal
circumstances

1

1

2

0

3

Company
circumstances

0

0

0

0

0

Others

0

1

0

2

0

Resignation rate

1.6%

3.0%

2.7%

2.6%

3.6%

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

Page Top■Number of Employees Rehired After Retirement
CoverageGroup total
NichireiCorporation

Item

Unit

FY2015

Numberof people

114

FY2016FY2017FY2018FY2019

64

54

45

44

59

8

3

2

3

5

Nichirei
Foods

27

18

19

14

28

Nichirei Fresh

6

5

3

2

7

Nichirei
Logistics
Group

22

28

21

24

19

Nichirei
Biosciences

1

0

0

1

0

Ref. Numberof employees
who retired
group total

74

61

52

48

64

* Applicability: Employees, people working in their 60s* Number of people rehired among employees who retired in each ﬁscal year
* Rehired nearly 100% of those who wanted to be rehired

Page Top■Employment Rate of People with Disabilities
Coverage

Item

Group total

Unit

FY2015%2.36

FY2016

2.64

FY2017FY20182.62

FY20192.5

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

■Annual Total of Actual Hours Worked
CoverageGroup total

NichireiCorporation

Nichirei
Foods

Nichirei Fresh

Item

Unit

Total

hours

FY2015FY2016FY2017FY2018FY2019

2,038

2,025

2,026

2,025

1,997

Oﬃcial working
hours-Hours ofvacation time

1,822

1,807

1,804

1,801

1,780

Hours worked
outside oﬃcial
working hours

216

218

222

225

217

Total

1,998

1,934

1,943

1,906

1,905

Oﬃcial working
hours-Hours ofvacation time

1,765

1,732

1,740

1,729

1,718

Hours worked
outside oﬃcial
working hours

233

202

203

176

187

Total

1,998

1,987

2,007

2,020

1,998

Oﬃcial working
hours-Hours ofvacation time

1,807

1,790

1,791

1,790

1,772

Hours worked
outside oﬃcial
working hours

191

197

216

230

226

Total

2,034

1,983

1,972

1,981

1,948

115

Oﬃcial working
hours-Hours ofvacation time

Nichirei
Logistics
Group

Nichirei
Biosciences

1,818

1,800

1,796

1,795

1,770

Hours worked
outside oﬃcial
working hours

216

183

176

185

178

Total

2,081

2,076

2,061

2,052

2,014

Oﬃcial working
hours-Hours ofvacation time

1,845

1,833

1,826

1,821

1,796

Hours worked
outside oﬃcial
working hours

236

243

235

231

218

Total

2,025

1,993

2,024

1,980

1,954

Oﬃcial working
hours-Hours ofvacation time

1,767

1,738

1,761

1,749

1,736

Hours worked
outside oﬃcial
working hours

258

255

263

232

218

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

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

Item

Nichirei
Foods

Nichirei
Biosciences

FY2016FY2017FY2018FY2019

Days

5.9

5.7

5.5

6.6

8.0

Acquisition rate

%

30.8

29.6

28.5

34.8

41.8

Average days
acquired

Days

12.6

12.9

10.9

14.3

15.1

Acquisition rate

%

65.2

67.2

58.5

76.9

78.0

Average days
acquired

Days

7.4

6.8

6.4

7.4

8.3

Acquisition rate

%

37.8

35.1

33.0

37.9

42.7

Average days
acquired

Days

7.2

7.5

6.8

7.9

9.9

Acquisition rate

%

37.2

39.1

35.5

41.2

51.9

Average days
acquired

Days

3.5

3.4

3.6

4.6

6.5

Acquisition rate

%

18.4

18.1

19.2

24.8

34.6

Average days
acquired

Days

10.5

11.5

9.5

12.6

12.5

Acquisition rate

%

55.6

60.9

51.3

70.7

69.0

Nichirei Fresh

Nichirei
Logistics
Group

FY2015

Average days
acquiredGroup total

NichireiCorporation

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

Page Top

116

■Employees Using Time Oﬀ for Childrearing
Coverage

Item

Group total

NichireiCorporation
Nichirei
Foods

Unit

Nichirei
Biosciences

FY2017FY2018FY2019

1

0

0

2

1

Female

42

52

44

34

42

Male

0

0

0

2

0

Female

4

4

4

1

2

Male

1

0

0

0

1

16

28

20

17

14

0

0

0

0

0

Female

2

0

3

0

2

Male

0

0

0

0

0

Female

20

15

15

15

20

Male

0

0

0

0

0

Female

0

5

2

1

4

Male

Nichirei
Logistics
Group

FY2016

Male

FemaleNichirei Fresh

FY2015

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

Item

Unit

FY2015FY2016FY2017FY2018FY2019Group total

1

1

1

0

3

NichireiCorporation

0

0

0

0

0

0

1

1

0

3

0

0

0

0

0

Nichirei
Logistics
Group

1

0

0

0

0

Nichirei
Biosciences

0

0

0

0

0

Nichirei
Foods

Numberof people

Nichirei Fresh* Applicability: Employees

Page Top■Number of Work-Related Accidents at Food Plants
Coverage

Food Plants

Item
Number of lost time
injuries
Number of days ofinactivity

Unit

FY2015FY2016FY2017FY2018FY2019

18

21

17

34

34

25

23

18

12

11

Case

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

117

■Number of occupational deaths
Coverage

Item

Unit

Regular employeesGroup

Non-employees(including
temporaryemployees, contract
employees, parttime workers, etc. &excepting agency
temps)Case

FY2015FY2016FY2107FY2018FY2019

-

-

-

1

0

-

-

-

0

0

Page Top■General regular health checkup rate
Coverage

Item

Group

Unit
%

FY201590.0

FY2016FY201792.0

FY201899.3

99.8

FY2019100■Stress Check Coverage
FY2017Group

FY201888.3

FY201989.2

84.6

Page Top■New Graduate Hire Turnover Status
Coverage

Item

Joined Company in FY2013

Joined Company in FY2014

Group total

Joined Company in FY2015

Joined Company in FY2016

Joined Company in FY2017

Joined Company in FY2013

Joined Company in FY2014

Turnover (number of people)

Turnover rate (%)

End of ﬁrst year

0

0.0%

End of second year

3

3.8%

End of third year

8

10.1%

End of ﬁrst year

1

1.3%

End of second year

3

3.8%

End of third year

4

5.0%

End of ﬁrst year

0

0.0%

End of second year

5

4.7%

End of third year

7

6.6%

End of ﬁrst year

1

1.2%

End of second year

5

6.0%

End of third year

7

8.4%

End of ﬁrst year

1

1.1%

End of second year

2

2.2%

End of third year

8

8.7%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

1

33.3%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

118

Nichirei Corporation

Joined Company in FY2015

Joined Company in FY2016

Joined Company in FY2017

Joined Company in FY2013

Joined Company in FY2014

Nichirei Foods

Joined Company in FY2015

Joined Company in FY2016

Joined Company in FY2017

Joined Company in FY2013

Joined Company in FY2014

Nichirei Fresh

Joined Company in FY2015

Joined Company in FY2016

Joined Company in FY2017

Joined Company in FY2013

Joined Company in FY2014

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

1

20.0%

End of second year

1

20.0%

End of third year

1

20.0%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

2

8.7%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

1

3.3%

End of ﬁrst year

0

0.0%

End of second year

3

8.3%

End of third year

3

8.3%

End of ﬁrst year

0

0.0%

End of second year

2

6.9%

End of third year

3

10.3%

End of ﬁrst year

0

0.0%

End of second year

1

4.0%

End of third year

2

8.0%

End of ﬁrst year

0

0.0%

End of second year

1

20.0%

End of third year

1

20.0%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

End of ﬁrst year

0

0.0%

End of second year

1

12.5%

End of third year

1

12.5%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

End of ﬁrst year

0

0.0%

End of second year

2

4.4%

End of third year

4

8.9%

End of ﬁrst year

1

2.6%

119

Nichirei Logistics Group

Joined Company in FY2015

Joined Company in FY2016

Joined Company in FY2017

Joined Company in FY2013

Joined Company in FY2014

Nichirei Biosciences

Joined Company in FY2015

Joined Company in FY2016

Joined Company in FY2017

End of second year

3

7.7%

End of third year

3

7.7%

End of ﬁrst year

0

0.0%

End of second year

2

3.5%

End of third year

3

5.3%

End of ﬁrst year

0

0.0%

End of second year

1

2.6%

End of third year

2

5.3%

End of ﬁrst year

1

2.1%

End of second year

1

2.1%

End of third year

6

12.8%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

1

33.3%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

End of ﬁrst year

0

0.0%

End of second year

0

0.0%

End of third year

0

0.0%

* Applicability: Employees

Page Top■Main education and training
General employees

Managers

Training by rank

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

Training bypurpose*Facilitation training*Career seminar for female employees*Female leaders development program*Coaching training*Foreign Languages training*Evaluators training*Critical Thinking*Marketing*Accounting

120

Oﬃcers*New oﬃcers seminar*Media training*Directors and executive oﬃcers
training*Management training*Coaching training

■Education time and number of participants
Training by
by rrank
ank and purpose

Education time (cumulativ(cumulative
e total)total)

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

FY201949,730

1,699

Total

95,1993,078
Page Top

Environmental Data
Medium-term Business Plan
Targets (FY2020-FY2022)

Nichirei Group CO2 Emissions

Material Balance OUTPUT

Nichirei Group speciallycontrolled indutrial waste
emissions

Amount of Discharged Waste
and Recycling Rates

Material Balance INPUT■Medium-term Business Plan Targets (FY2020-FY2022)

Group Medium-term
Business Plan Targets(FY2020-FY2022)

Item

Contents

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

Maintain FY2014 CO2 emission levels in FY2022

Maintaining Waste
Recycling Rate andControlling Waste
Discharging

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

Water Resource
Conservation

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

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

Unit

FY2015FY2016FY2017FY2018FY2019Fixed power emission coeﬃcient

t-CO2

223

226

228

227

228

Variable power emission coeﬃcient

t-CO2

290

287

279

273

260

■Amount of Discharged Waste and Recycling Rates
Item

Unit

FY2015FY2016FY2017FY2018FY2019Amount of discharged waste

1,000 tons

40.4

41.9

45.2

45.2

45.4

Recycling Rates

%

99.6

99.6

99.7

99.5

99.5

Environmental Data Top■Material Balance INPUT
Item

Raw materials

Unit

FY2015FY2016FY2017FY2018FY2019

Total

1,000
tons

161

167

185

188

195

Material

1,000
tons

145

149

167

170

177

Packaging materials

1,000
tons

16

18

18

18

18

438,673444,843447,574

443,480

447,277

Purchased power

1,000
GJ

121

Energy

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

Water

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

Heavy oilklKerosene

kl
3

3,314

3,329

3,335

3,319

2,609

189

198

200

191

173

5,951

6,385

6,705

6,923

7,142

City gas

1,000m

LGP

tons

4,487

4,623

4,620

4,650

4,814

Gasoline (Companyowned vehicles)

kl

588

524

467

461

402

Light oil (Company-owned
vehicles)

kl

1,144

1,270

1,340

1,378

1,556

Solar power generation

1,000
kWh

243

186

211

400

1,444

Nichirei Foods

1,000
GJ

1,569

1,649

1,716

1,726

1,761

Nichirei Fresh

1,000
GJ

159

173

179

169

173

Nichirei Logistics Group

1,000
GJ

3,161

3,159

3,129

3,098

3,089

Nichirei Biosciences

1,000
GJ

10

10

8

11

12

Others

1,000
GJ

73

72

73

74

72

Clean water

1,000m3

1,276

1,336

1,284

1,293

1,267

Industrial water

1,000m3

638

853

877

797

907

Groundwater (well water)

1,000m3

1,867

1,845

1,770

1,906

1,943

Nichirei Foods

1,000m3

2,372

2,595

2,581

2,652

2,812

Nichirei Fresh

1,000m3

352

352

353

331

322

Nichirei Logistics Group

1,000m3

1,043

1,070

977

998

963

Nichirei Biosciences

1,000m3

6

5

8

6

6

Others1,000m3

8

12

12

11

13

Environmental Data Top■Material Balance OUTPUT
Item

Waste

Breakdown of discharged waste (tons) ateach business company

Atmospheric system
Breakdown of CO2 emissions (tons) at eachbusiness company

Unit

FY2015FY2016FY2017FY2018FY2019Amount of Discharged
Waste

1,000
tons

40.4

41.9

45.2

45.2

45.4

Recycle volume

1,000
tons

40.3

41.7

45.0

45.0

45.2

Volume of waste for ﬁnal
disposal *1

1,000
tons

0.1

0.2

0.2

0.2

0.2

Nichirei Foods

tons

17,806

18,46921,227

20,965

18,155

Nichirei Fresh

tons

9,474

11,02911,453

11,426

13,973

Nichirei Logistics Group

tons

12,795

12,33012,436

12,733

13,236

Nichirei Biosciences

tons

45

43

20

46

44

Others

tons

ー

ー

ー

ー

ー

CO2 *2

tons

289,396286,382

279,465

273,348

259,980

7

5

4

4

3

SOx *3
Nichirei Foods

tons

90,77592,894

93,61393,07690,717

Nichirei Fresh

tons

9,956

9,830

9,914

9,281

9,376

122

Water system

3

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

Nichirei Logistics Group

tons

184,258

179,529

171,652

166,509155,815

Nichirei Biosciences

tons

510

406

538

574

568

Others

tons

3,897

3,724

3,747

3,909

3,503

Drainage

1,000m3

2,295

2,444

2,525

2,458

2,421

Sewer system

1,000m3

1,453

1,530

1,577

1,514

1,464

Public water area (riveretc.)

1,000m3

841

913

948

945

957

Drainage load

tons

52

26

46

48

48

COD *4

tons

16

19

24

22

24

Nichirei Foods

1,000m3

1,731

1,902

1,922

1,758

1,751

Nichirei Fresh

1,000m3

168

165

234

328

308

Nichirei Logistics Group

1,000m3

382

360

349

355

343

Nichirei Biosciences

1,000m3

6

5

8

6

6

Others1,000m3

8

12

12

11

14

BOD *4

Environmental Data Top■Nichirei Group specially controlled indutrial waste emissions
Unit
Special controlled industrial waste emissions ("Flammable waste oil" and"Strong acid/strong alkali") etc. classiﬁed as industrial waste due to danger andtoxicity)

FY2015FY2016FY2017FY2018FY2019

11.7

11.1

3.8

9

9.3

kg

*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.

Applicable Worksites
Environmental Data: Applicable Worksites for FY2019 Results Calculations
The following company food plants and distribution centers are included in the calculations. In the event of multiple worksites, the number isindicated 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 (35), NK Trans (4), Nichirei Logistics Hokkaido (7), Nichirei Logistics Tohoku (4), Nichirei Logistics Kanto (11), Nichirei Logistics
Tokai (10), Nichirei Logistics Kansai (13), Nichirei Logistics Chushikoku (14), Nichirei Logistics Kyushu (13), Kyokurei (4)Nichirei Biosciences
Development Center
Other
New Housing* Regarding the amount of energy used and volume of CO2 emitted, this includes activities at the head oﬃce, branches and oﬃces other than those indicatedabove, and company-owned trucks.
* Excludes overseas worksites.
* If the scope of applicable worksites diﬀers from the above, a statement to this eﬀect has been included.
* Total ﬁgures may diﬀer due to the rounding eﬀect.

123Corporate Governance Data

■Board of Directors composition
Category

Inside directors

Outside directors

Total

Gender

FY2018 (Number of people)

FY2019 (Number of people)

Male

7

7

Female

0

0

Total

7

7

Male

1

1

Female

2

2

Total

3

3

Male

8

8

Female

2

2

Total

10

10

■Board of Directors meeting attendance rate
Category

FY2018 (%)

FY2019 (%)

Inside directors

97.7

97.4

Outside directors

96.5

98.2

124

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

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

year
2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

✓

✓

✓

✓

✓

✓

―

―

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

year
2019

2018

2017

✓

✓

✓

2016

2015

2014

2013

2012

2011

2010

2009

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

year
2019

2018

2017

✓

✓

✓

2016

2015

2014

125

2013

2012

2011

2010

2009

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

year
2019

2018

2017

✓

✓

✓

2016

2015

2014

2013

2012

2011

2010

2009

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

year
2019

2018

2017

2016

2015

2014

2013

2012

✓

✓

✓

✓

✓

✓

―

―

2011

2010

2009

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

year■Climate Change
2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

B

C

A-

C

C

C

31

―

―

―

―
year

■Water Security
2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

B-

B-

―

―

―

―

―

―

―

―

―

■List of Certiﬁcations
Acquisition
Year

Name

From
FY2019DBJ Employees' HealthManagement Rated Loan Program

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

From
FY2017The Certiﬁed Health andProductivity Management
Organization Recognition Program
under the large enterprise
category

126

From
FY2018Eruboshi “Stage 3” (Accredited by
the Minister of Health, Labor andWelfare based on the “The Act ofPromotion of Women's
Participation and Advancement in
the Workplace")https://www.nichirei.co.jp/news/2017/293.html(Japanese only)

From
FY2010"The Act on Advancement of
Measures to Support Raising NextGeneration Children" certiﬁcation
mark (nickname: Kurumin)

https://www.nichireifoods.co.jp/corporate/csr/employee.html
Japanese only)■Awards
AwardsYear

Name

FY2019

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

FY2018

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

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

FY2018

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

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

FY2017

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

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

FY2017

Nano Tech
2017
Life
Nanotechnology
Award

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

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

127