Nichirei GroupCSR Report 2022

NICHIREI CORPORATION

Contents

ContentsC O N T EN T S■ Message from the President

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■ Nichirei Group Materiality
Material Matters

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KPIs for Material Matters

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Designation of Material Matters

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DX Strategy

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A History of Creating Value

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Value Creation Process

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Nichirei’s Business Model and Advantages

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Helping to Resolve Social Issues throughOur Business

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■ Environment
Environmental Management
Climate Change（TCFD）
Climate Change（Decarbonization and the Elimination of CFCs）
Initiatives for Water Resource Conservation

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■ Report Archives

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■ ESG Navigation

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■ ESG-related Policies

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■ External Review

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・ 223

■ External Initiatives

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・ 229

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■ Society

Health Management■ Stakeholder Engagement

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Cultivating Human Resources andImproving Work Satisfaction

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Initiatives in Products and Services

Occupational Health and Safety

Risk Management■ ESG Data

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Providing Safe Products and Services

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Management of Wastewater, Waste Matter,and Chemical Substances

Building a Sustainable Supply Chain
Human Rights

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Creating new value in food and healthCorporate GovernanceCompliance / Internal Control

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Initiatives for Biodiversity Conservation■ Governance

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・ 145

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Message from the President
Message from the President

We will help resolve social issues through our business and achievea sustainable society.
The new coronavirus infection (COVID-19) is still raging and the world continues to be in a difficult situation. We pray forthe quick recovery of all those suffering from COVID-19 and their families, and we express our deepest respect andgratitude to all those who are working hard on the front lines, including medical personnel and public health andgovernment agencies, and all those involved in the production and supply of goods that support people's lives.
The Nichirei Group conducts its daily business based on its mission of "Focus on Lifestyles, and Provide True Satisfaction"and its vision of "Focus on Lifestyles, and Provide True Satisfaction We will continue to support good eating habits andhealth by leveraging our state-of-the-art manufacturing practices that optimize nature’s bounty, along with our leadingedge logistics services." We recognize that our mission and the reason for existence is to continue to create and provide
valuable products and services that meet the needs of the world and satisfy our customers.
The global environment is changing in the food supply chain due to the effects of climate change, the pandemic crisis, andother factors that are constraining procurement, production, and logistics around the world. Under these difficult
circumstances, what contribution can the Nichirei Group, which plays a role in the social infrastructure, make toward therealization of a sustainable society?

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

In order to keep building a sustainable food supply chain, the Nichirei Group will continue to manufacture products thattake advantage of the natural abundance while carefully protecting the rich natural environment and food resources, andwill actively promote activities to achieve carbon neutrality. We will also make sincere efforts to address human rights
issues and labor problems based on the premise of coexistence and co-prosperity with our business partners andstakeholders. To achieve these goals, the Nichirei Group joined the United Nations Global Compact in November 2021. We
support the 10 principles related to human rights, labor, the environment, and anti-corruption, and will work to improveeach of them.
Since its founding, the Nichirei Group has grown through businesses that solve various social issues. We will continue topromote sustainability management with the aim of maximizing corporate value by balancing social value and economic
value. Through sustainability management, we aim to realize a sustainable society and solve social issues and to realize asociety of well-being in which employees of the Nichirei Group, all stakeholders of the Nichirei Group, and people aroundthe world can live healthy lives with smiles on their faces.

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We appreciate your continued support.
April 1, 2022

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Nichirei Group Materiality

Nichirei Group Materiality
Material Matters

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5

KPIs for Material Matters

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9

Designation of Material Matters

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11

DX Strategy

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18

A History of Creating Value

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Value Creation Process

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Nichirei’s Business Model and Advantages

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Nichirei Foods Providing New Value in Frozen Foods throughDevelopment Capabilities for Reproducing the Flavor of Meals Madeby Professional Chefs -Honkaku-ItameCha-Han-

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

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

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

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

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Helping to Resolve Social Issues through Our Business

Nichirei Logistics Groupand Delivery System「SULS」Next-generation Transportation

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Nichirei Logistics Group

Truck Loading Dock Reservation System

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Nichirei Fresh

Inochi-no-Mori-Project4

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

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

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

Vision for 2030

Group Measures

Group KPIs for
FY2031

Step up R&D todevelop new
eco-friendly foodresources andingredients withhealth value

Creating newvalue in foodand healthCreate newmarkets andcustomer value
by taking onchallenges
outsideexisting
business areas
in both foodand health

Discovering new
potential for thehealth value andcooling properties ofmaterials, and using
digital technologies
to contribute togood eating habits
and longer healthy
life expectancy.

Allocateresources toSales ofingredients that
explore newpotential andmarketing and
DX to develop
delicious,
healthy products

products andservices fordelicious taste andhigh healthand provide
services forbetter eating
habitsvalue: 100 billion
Total number ofpeople who
receive

Establish

information forgood eating habits
and health: 200
million per year

mechanisms tocreate andcultivate value in
new fields andconduct
innovation
activities

Strengthening
foodprocessing
andproduction
technology
capabilities;
enhancinglogistics
services

Further refine
corecompetencies
in food
processing,production andlogistics toresolve social
issues andimprove
profitability
throughcompetitive
advantages in
global markets

Ability to generatecash improved byconcentrating
management
resources on corebusinesses

Promote capacity
expansion, work
process
innovation,
reduction ofenvironmental
impact anddevelopment ofbusinessfoundations
through proactive
capitalexpenditures in
the processed
foods andtemperaturecontrolled logistics
businesses

Overseas businesshas become a newpillar of earnings

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

6

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

Overseas sales
ratio: 30%

Applicable
SDGs

Rate ofRealizingsustainablefood
procurement
and resources
recycling

Climatechangeinitiatives

Resolving
various social
issues related
to the supply
chain, which isthe foundationof ourbusiness, andcontribute tosustainablefood
procurement
and therealization of arecyclingbased society

As a food andlogistics
company thatis greatly
affected byclimatechange, wewill work withstakeholders tocounter global
warming andreduce energy
consumption
throughout the
supply chain

All raw materials
and ingredients areprocured fromsuppliers andpartner companies
that comply with
the Nichirei Group
Supplier Code of
Conduct andSupplier Guidelines.

Establish a supply
chain withconsideration forhuman rights andthe environmentand conduct due
diligenceprocurement fromsuppliers andOEMs that comply
with the Nichirei
Group Supplier
Code of Conduct
and Supplier
Guidelines: 100%Rate ofimplementation of
ESG due diligencefor main raw
materials andmajor suppliers:
100%
Rate ofattendance for the

Promoting a circular
economy bycreating new
business models

Work to conductsustainable
resource
procurement andhelp to realize acircular economy

Improving resilienceof water resources
through anunderstanding ofwater-related risks

Identify waterrelated risks
through risk
assessments at allsites and conserve
water

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

Reduce CO₂
emissions per unitof production andutilize renewableenergy at foodfactories andlogistics centers,
and disclose
information basedon the TCFD
recommendations

SDGs educational
program aimed atrealizing a circular
economy: 100%(all employees)
Rate of waste
recycling at allsites: 99%
Conduct regularwater-related risk
assessments at allsites, as well as inconservation
activities and the
BCP

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

Replace allrefrigerants usedin freezing andElimination of CFCs
progressing at
production andlogistics facilities asa global warming
countermeasurerefrigerating
equipment inJapan withnaturalrefrigerants
Switch to naturalrefrigerants
overseas asnecessary, basedon on-site
confirmation
7

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

I ntroduce aGroup-wide
engagement
survey* tomonitor theeffectiveness ofmeasuresEstablish apersonnel
system thatenables Group
employees tochoose work
styles according
to their career
outlook andcontributes to
productivity
improvement
Establish andprovide support
for application of

Securing anddeveloping adiverse arrayof human
resources

Secure anddevelop adiverse humanresources andfoster an
inclusive
corporate
culture toachievesustainablegrowthDiverse humanresources withvariouscharacteristics andskills, maximizing
their potential to
improve their job
satisfaction andsupport thesustainable growthof the Grouprules* Engagement
survey: A
survey thatshows degreeofunderstandingof andresonance with
theManagement
Philosophy andindependent
involvement intheorganization(job
satisfaction)
Promotecommunication
activities andimpartiallyprovide learning
opportunities inorder to create a
workenvironment andcorporate culture
in which
employees arehealthy, lively
and satisfied
with their jobs

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

Double investment
in human
resources by
2030** Compared withthe averageannualinvestment in
human resources
in FY2019FY2021* Group KPIs for the material matter “Creating new value in food and health” were revised in 2022

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

Nichirei Group
Material Matters

Creating newvalue in food andhealthGroup Targets (KPIs)

FY2022
Results

FY2025
Targets

FY2031
Targets

Main
OperatingCompanies
Involved

Sales related to this material
matter--￥100 billion

Nichirei Foods
Nichirei Fresh

Number of consumers andother external parties who
receive information (total per
year)

-

-

200
million people

EBITDA margin

9%

10%

12%

Nichirei(Holding
Company)

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

Realizingsustainable foodprocurement andresources
recycling

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

4%7%7% or higher

Overseas sales ratio

16%

20%

30%

Rate of procurement fromsuppliers and OEMs thatcomply with the Nichirei
Group Supplier Code of
Conduct and Supplier
Guidelines

Nichirei Foods
Nichirei
Logistics
Group

Nichirei Foods-

Underconsideration

100%

Nichirei
Logistics
Group
Nichirei Fresh

Rate of implementation of
ESG due diligence for main
raw materials and major
suppliers-

Underconsideration

100%

Rate of attendance for the
SDGs educational program
aimed at realizing a circular
economy-100%(Executives)

100%
(All
employees)

Rate of waste recycling at all
sites

99%

99%

99%

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Nichirei
Biosciences

Climatechange initiatives

Conduct water-related risk
assessments at all sites

Flood risk
survey ofallsites inJapan

Conduct in
FY2024

Conduct
regularwater-related
risk
assessments
at all sites,
as well as inconservation
activities andthe BCP

Reduction in CO₂ emissions(Compared with FY2016;
Scope 1 and 2 in Japan)

-20％

-30%

-50％

58%

80%

100%

Rate of conversion to naturalrefrigerants
Logistics (Global)

53%

63%

75%

20%

20% orhigher

30% orhigherRatio of female directors andfemale Audit & Supervisory
Board members（HD*）* HD：Nichirei Corporation(Holding Company)
Securing anddeveloping adiverse array ofhuman resources

Nichirei Foods

Rate of conversion to naturalrefrigerants
Production equipment inJapan

Ratio of female line managers（HD*）
Investment in humanresources(Compared with the averageannual investment in humanresources in FY2019-FY2021)

Nichirei
Logistics
Group

Nichirei Foods
Nichirei
Logistics
Group
Nichirei Fresh

20%

20%

30%

Nichirei
Biosciences

0.8 times

10

1.7 times

2.0 times

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

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Examination ScheduleExamination Schedule

1

Identifying stakeholders

Since our business domain is food provision, we are aware of our tremendous social responsibility, being involved, as weare, with many stakeholders and impacting their lives and society at large. For this reason, we have identified stakeholders
based on the size of their demand and the degree of impact we have on society.
2

Identifying social issues (risks and opportunities)

After pinpointing our stakeholders, we have identified social issues from future and global perspectives.
3

Evaluating social issue criticality

We then evaluated the importance of those social issues, based on the fact that proactive measures result in businessgrowth, and reactive ones prevent corporate value from being damaged.
4

Mapping material matters

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

125Creating drafts

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

Dialog with Outside Experts
6

Dialog with Experts

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

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

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

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

Nichirei Group (Nichirei Corporation) members

Kunio Otani

Kenya Okushi

Takumi Taguchi

Representative
Director, Chairman

Representative Director, President

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

Yoshifumi Kaneko

Junji Kawasaki

Masahiko Takenaga

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

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

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

Kazuhiko Umezawa

Masato Takenaga

Kazunori Miki(facilitator)

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

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

Executive Officer General Manager,
Strategic Planning

Opinions of outside experts
Granularity of future measures
Efforts should be made, for example, to reduce CO₂ emissions and switch to natural refrigerants to make developmental
leaps part of a long-term strategy.
Timeline to 2030
Perspectives should be divided into two groups: new management-related goals and the means by which they are to beachieved.
A way should be devised to apply global standards, such as by using responsible business conduct as a guideline.
Quality assurance
Quality and safety could be made the most important management issues.
This is currently a basic proactive item. However, should new risks arise, quality assurance could be positioned as aproactive risk factor needed to strengthen quality control.

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Sustainability
Sustainable food production is linked to climate change response (CO₂ reduction) through expanding agricultural
productivity.
In maintaining temperature-controlled logistics, RE100 may be difficult. One should be aware of any linkage amongtarget items.
Since the food business is a high-risk industry, risks should be broken down in a way that is tied to particular areas ofbusiness.
EthicsThere are still few Japanese companies making significant efforts in business ethics, which fact could lead to acompetitive advantage for Nichirei.
An ethical angle is missing in marketing. We should convey the message that Nichirei products are delicious and ethicalby world standards.
Distinctive aspects of Nichirei
The Company would benefit were its distinctive features put in a visual format. In addition to its processed foods, thesefeatures would include important issues related to temperature-controlled logistics, marine items, as well as meat andpoultry products.
Given that the company is a cold chain leader, one should be able to demonstrate distinctive aspects of Nichirei's
temperaturecontrolled logistics within the TCFD framework. One might consider sending out a message regarding CFC
issues.

Integration and Narrowing-down
7

Integration and Narrowing-down

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

Finalizing the draft

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

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

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Ideas Inherent in the Materiality
Material matter

Ideas inherent in the materiality

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

Strengthening food processing
and production technology
capabilities; enhancing
logistics services

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

Realizing sustainable foodprocurement and resources
recycling

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

Climate change initiatives

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

Securing and developing
diverse human resources

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

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DX Strategy
DX Strategy
For the Nichirei Group, digital transformation (DX) consists of data technology-driven business transformation activities
linked to its five material matters, with the aim of creating new value.

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

Development of Education for Digital Transformation (DX)

Value Creation DX

We will utilize data and digital technology to create new businesses that contribute to good eating habits and a longer
healthy life expectancy, and to offer improved experience value for customers. Through initiatives that go beyond our own
industry, we also aim to build new ecosystems and work to monetize them.

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Production/Logistics DX
We will work for automation using IoT, AI, robotics and other methods, and for overall optimization to link factories andwarehouses in areas such as ascertaining production volume at factories and incoming, outgoing and storage volume atrefrigerated warehouses. We will also work to achieve optimal equipment operation and maintenance that mobilizes ourfactory and warehouse management know-how, and to conduct all-inclusive control of multiple sites.
Sustainability DX
We will work to create a sustainable supply chain by collecting, managing and analyzing information on the sustainability of
our suppliers and all other parties throughout the chain.
Human Resources DX
We will deploy the right human resources to the right places in the Company. At the same time, we will improve work
efficiency by promoting cooperation with external human resources.
Management Base DX
We will collect, manage and analyze internal and external data to be converted into valuable information and provided to
management in a timely manner for speedy decision-making.

Nichirei Group Conducts Digital Human Resource Development Training for All Employees, Aidemy
Offers "Aidemy Business" as Training Tool | Nichirei Corporation (nichirei.co.jp)​

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A History of Creating Value
Establishing a Temperature-controlled Logistics Network

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Nichirei’s History in Frozen Foods

21

Value Creation Process22

Nichirei’s Business Model and Advantages

23

Helping to Resolve Social Issues through Our Business

Nichirei Foods

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

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

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

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

Select first-class rice grown in Hokkaido

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

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

26

Helping to Resolve Social Issues through Our Business

Nichirei Logistics Group

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

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

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

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

Nichirei Integrated Report 2021 Helping to Reduce Traffic Congestion and CO₂ Emissions by
Introducing an Innovative Logistics System -Cross-Docking Business-

29

Helping to Resolve Social Issues through Our Business

Nichirei Fresh

Procuring Food through a Sustainable Regional
Agricultural and Livestock Cycle Project -Junwakei
ChickenSocial Issues
Improving Japan’s self-sufficiency for animal proteins
Improving Japan’s self-sufficiency for animal feed
Harmonious coexistence with local communities
Biodiversity (sustainability of breeds)
Sustainable food production

According to a 2018 survey, Japan’s self-sufficiency rate for broilers (chickens
used for meat) is relatively high at 64%. However, the self-sufficiency rate forpure Japanese broiler breeders (the parents) that have been selectively breddomestically from the grandparents is only about 1-2%, based on thenumber of chickens shipped. Avian flu, which has spread repeatedly in Japanand abroad in recent years, has the potential to halt the import of
grandparent stock. If this happens, it could devastate the domestic chicken
farming industry and cause chicken dishes to disappear from Japanese dining tables.

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

30

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

Sustainable Regional Agricultural and Livestock Cycle through Junwakei Chicken

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

31

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

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

Junwakei chicken Nichirei Fresh (Only Available in Japanese)

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

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

32Helping to Resolve Social Issues through Our Business

Nichirei Foods

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

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

33

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

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

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

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

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

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

34

Helping to Resolve Social Issues through Our Business

Nichirei Foods

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

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

35

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

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

Integrated Report 2022 Helping to Resolve Social Issues through Our Business

36

Helping to Resolve Social Issues through Our Business

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

37

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

38

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

Integrated Report 2022 Helping to Resolve Social Issues through Our Business

39

Helping to Resolve Social Issues through Our Business

Nichirei Logistics Group

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

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

40

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

Integrated Report 2022 Helping to Resolve Social Issues through Our Business

41

Helping to Resolve Social Issues through Our Business

Nichirei Fresh

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

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

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

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

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

Integrated Report 2022 Helping to Resolve Social Issues through Our Business
43

Environment

Environment
Environmental Management

・
・
・

45

Climate Change（TCFD）

・
・
・

51

Climate Change（Decarbonization and the Elimination of CFCs）

・
・
・

61

Initiatives for Water Resource Conservation

・
・
・

72

Initiatives for Biodiversity Conservation

・
・
・

75

Management of Wastewater, Waste Matter, and Chemical Substances

・
・
・

78

Initiatives in Products and Services

・
・
・

82

44

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

The Nichirei Group’s Environmental Policy / Nichirei Group Bio-diversity Policy

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

45

Environmental Management＞Group Sustainability Committee

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

99%

Water-related risk assessments at all sites

conducted in FY2023

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

Rate of conversion to natural refrigerants Production equipment in Japan

80%

Rate of conversion to natural refrigerants Logistics (Global)

63%

Nichirei Group Medium-term Environmental Plan Targets

The reduction of CO₂ emissions refers to the target reduction of all emissions, and covers all energy consumed at worksites
and by company-owned vehicles in Japan. The waste recycling rate continues to be maintained at 99% or higher. Foodplants in Japan are also working to reduce residual animal and plant material. As for the conservation of water resources,
as a food-related corporate group, Nichirei has formulated behavioral targets for using water efficiently and is promoting
efforts toward achieving those targets so that the bounties of nature can be preserved for future generations. The entire
Group is also engaged in collecting environmental data at its overseas worksites.

46

*Applicable Worksites
The scope of the Nichirei Group (in Japan), which accounts for more than 99% of the environmental impact, is tabulated.
Environmental Data: Applicable Worksites for FY2020 Results Calculations
The following company food plants and distribution centers are included in the calculations. In the event of multiple
worksites, the number is indicated in parenthesis.
Nichirei Foods
Nichirei-Foods (9), Nichirei Ice (3), Churei, Kyurei, Nichirei Well Dinning
Nichirei Fresh
Fresh Maruichi (3), Nichirei Fresh Process (2), Nichirei Fresh Farm (2), Fresh Chicken Karumai, Fresh Meat Sakudaira
Nichirei Logistics Group
Logistics Network (38), NK Trans (4), Nichirei Logistics Hokkaido (8), Nichirei Logistics Tohoku (5), Nichirei Logistics Kanto(10), Nichirei Logistics Tokai (11), Nichirei Logistics Kansai (13), Nichirei Logistics Chushikoku (15), Nichirei Logistics
Kyushu (15), Kyokurei (5)Nichirei Biosciences
Development Center
Other
New Housing
Notes:

1. Fixed power emission coefficient: The CO₂ emission intensity unit of 0.412 [t-CO₂/MWh] announced by theFederation of Electric Power Companies of Japan in FY2010, used nationwide.
2. Variable power emission coefficient: Power conversion coefficient used by power companies in each fiscal year
utilized at each worksite.
3. Scope of power emission intensity: Nichirei Foods (Nichirei Foods-operated factories and affiliated factories inJapan) and Nichirei Fresh (affiliated factories in Japan). Excluding the following factories: Nichirei Foods:
Nichirei Ice Inc.; Nichirei Fresh: Nichirei Fresh Farm Inc., Fresh Chicken Karumai Inc., FRESH MEATSAKUDAIRA Inc.

Press Release: Establishment of Long-Term Environmental Goals and Endorsement of TCFD
Recommendations

KPIs for Material Matters47

● Nichirei Group CO₂ Emission Trends

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

● Nichirei Group Waste Discharged outside Worksites and Recycling Rate

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

Intiatives for Water Resource Conservation48

Initiatives
Material Balance
INPUT

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

Environmental Audits
In addition to covering areas such as organizational management and business processing, the Nichirei Management
Auditing Department also does Group management audits of important areas, such as compliance with environmentrelated law and conservation activities. Worksites that have obtained ISO 14001 certification undergo internal
environmental audits as well as yearly external reviews by a registered external review body.

49

■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.

e-learning

Training for new employees

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

Hands-on training on company
land in 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 townof Fujimi, Nagano Prefecture

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

Hands-on training (Biodiverse
forests)

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

Status of Environment-related Incidents, Legal Violations
In FY2022, there were no legal violations or environment-related incidents, fines and penalties that had a serious impact
on the environment.

Status of Environment-related Incidents, Legal Violations

50

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

Management System
Management System
The Nichirei Group has established a Group Sustainability Committee that formulates sustainability strategies, including
initiatives related to climate change, and manages the progress of those strategies. The committee (chaired by the
representative director, president of the holding company), also comprises the officer responsible for climate change
initiatives, all other officers including outside directors and outside Audit & Supervisory Board members, as well as relevant
personnel from the strategic planning and sustainability divisions of each operating company. Climate change-related
strategies and targets discussed by the committee are reported to the Board of Directors by the officer responsible forclimate change initiatives. Strategies, targets and plans are reviewed as appropriate. The Group Environmental Protection
Committee was responsible for these matters until FY2022. In April 2022, to respond to a wider range of sustainability
issues, including climate change, we established a Sustainability Management Division within the holding company. This
organization took over the functions of the Group Environmental Protection Committee, and began serving as thesecretariat for the Group Sustainability Committee. The Group Sustainability Committee also discusses the details of various
scenario analyses that have been conducted since 2019. The latest disclosure includes content discussed at a committee
meeting held in July 2022.

Environmental Management＞Group Sustainability Committee

51

KPIs for Material Matters

Initiatives
Strategy
Identification of Material Risks and Opportunities

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

52

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

FY2022 Climate Change Scenario

FY2021 Climate Change Scenario

Climate Change Scenarios for Rice and Chicken Procurement
Business

Risks
Reduction of agricultural and dairy

ChickenGeneral abnormal weather

production, and steep rise inpurchase prices due to deteriorationin quality
Difficulty in obtaining raw materials
and production delays due to logistic

Rice

network disruptions

ShrimpFoods
Business

Baseline
scenario

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

Vegetables, marine
products, and meatand poultry products

Difficulty in obtaining raw materials
and production delays due to supply
chain disruptions

Low-carbon policies
CommonSubmerged agriculture farms,
aquafarms and processing factories

1.5℃
scenario

Baseline
scenario

Environmental
countermeasures within
the supply chain

General abnormal weather

Logistics
1.5℃
scenario

Low-carbon policies

Increased cost for measures forconverting to renewable energy andequipment electrification, eliminationof emissions
Curtailment of transactions; higher
cost of measures such as themaintenance of global certifications
Damage to refrigerated warehouses
and logistics centers
Difficulty securing human resourcesin disaster risk areas
Opportunity loss caused by the slow
increase of investment in naturalrefrigerants and the slow adoption oftechnological platforms such as
electrical and low-carbon vehicles

53

Business

Opportunity
Baseline
scenario

Foods
Business

1.5℃
scenario

Changes in weather
patterns

Strengthening ofenvironmental
countermeasures within
our supply chain

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

Increased environmental
awareness
Baseline
scenario

Logistics
1.5℃
scenario

General abnormal weather

Develop and expand demand for products created using
sustainable raw materials
Increase in sales thanks to customer base expansion achieved
through strengthened disaster countermeasures andresilience

Modal shift

Cost reduction achieved through a modal shift that improvestransportation efficiency

Increased environmental
awareness

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

Note: The bioscience business is characteristically resistant to impact from climate change-related events.
Accordingly, we have not currently identified any material factors in our bioscience business based on the
FY2021 Group climate change scenarios.
Rice and Chicken Procurement Risks and Opportunities
We examined the risks and opportunities created by climate change in relation to the procurement of rice and chicken,
using the “Introduction to Information Disclosure on Climate-related Risks and Opportunities for Food, Agriculture, Forestry
and Fisheries” issued by the Ministry of Agriculture, Forestry and Fisheries; and the Representative Concentration Pathway(RCP) scenarios described in the Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC). The
analysis showed that, in terms of transition risks (risks related to transitioning to a low-carbon economy), both rice andchicken would be impacted by increasing costs associated with the introduction of a carbon tax and low-carbon production
methods.
For physical risks (risks related to the physical impact of climate change), we conducted the following investigation toclarify how a temperature rise would affect our suppliers in terms of the impact on production volume.
Physical Risk Impact Assessment (Analysis of Estimated Change in Yield by Climate Scenario)
We analyzed future yield forecasts for each climate scenario, in terms of changes in rice and chicken production. For eachclimate scenario, we used the IPCC RCP scenarios (2.6, 4.5, 6.0, and 8.5).
Rice Analysis Criteria
Area

Kanto, Tohoku and Hokkaido production regions: 11 zones

Climate scenarios

RCP2.6、RCP6.0

Data used

ISIMIP (the Inter-Sectoral Impact Model Intercomparison Project)54

Chicken Analysis Criteria
Area

Japan: 6 zones, Thailand: 2 zones, Brazil: 1 zone

Climate scenarios

Japan: RCP 2.6, RCP 8.5
Overseas: RCP 4.5, RCP 8.5

Data used

Bias corrected climate scenarios over Japan based on CDFDM method1 using
CMIP52 (National Institute for Environmental Studies)● Trends in Global Average Temperature Deviation (°C)

For chicken yield, the analysis used the following formula (based on material published in 2006). According to theliterature, meat production decreases when the average temperature rises to 23°C or higher.

Using 2020 as the base year, we carried out a rice yield simulation (through to 2090) for our major domestic suppliers. The
table below shows the results of analyzing climate scenarios RCP 2.6 and RCP 6.0 for yields in 2030, 2050, and 2080,
when the base year is 1.00. (Values are the average of 12 simulations, combining four global climate models and threeyield models.) Even in the scenario where temperatures rise (RCP 6.0), yields increase, rising to between 1.11 and 1.50 in
Hokkaido in 2080.

55

● Average Value of Yield Simulations When the Yield for the Base Year (2020) Is 1.00
RCP2.62030

Hokkaido

Kanto

Tohoku

RCP6.0

2050

2080

2030

2050

2080

Ishikari area

1.06

1.15

1.13

1.06

1.14

1.24

Kamikawa
area

1.09

1.27

1.26

1.13

1.26

1.50

Sorachi area

1.04

1.09

1.10

1.04

1.08

1.11

IbarakiPrefecture

0.99

1.04

1.02

1.02

1.04

1.09

Gunma
Prefecture

1.01

1.05

1.02

1.03

1.05

1.11

Tochigi
Prefecture

1.00

1.05

1.02

1.02

1.03

1.09

AomoriPrefecture

1.02

1.06

1.06

1.03

1.06

1.10

Akita
Prefecture

1.02

1.05

1.03

1.03

1.06

1.10

Yamagata
Prefecture

1.01

1.05

1.03

1.04

1.05

1.10

MiyagiPrefecture

1.02

1.06

1.04

1.04

1.06

1.13

Iwate
Prefecture

1.03

1.07

1.05

1.03

1.06

1.11

● Analysis Model Example (Ishikari Area, Hokkaido, RCP 6.0, Rice Yield)

Using 2020 as the base year, we carried out a chicken yield simulation (through to 2090) for our major domestic andoverseas suppliers. The table below shows the results of analyzing climate scenarios RCP 2.6 and RCP 8.5 for domestic
yields and RCP 4.5 and RCP 8.5 for overseas yields in 2030 and 2050, when the base year is 100. (Four global climate
models are used for domestic suppliers, and 21 for overseas. The average value of the simulations is for the period of eachyear when the average temperature is the highest. The results shown for all domestic suppliers are from July to
September.) In Iwate Prefecture, yields do not decrease even in the RCP 8.5 scenario, but under the same conditions yields
in Miyazaki and Kagoshima prefectures decrease to 95-97% by 2050. In Thailand, the yield values decrease to 92% by
2050 in the RCP 8.5 scenario.

56

● Average Value of Yield Simulations When the Yield for the Base Year (2020) Is 100
RCP2.62030

Iwate Prefecture

Miyazaki Prefecture

RCP8.5
2050

2030

2050

Kuji City

100.00100.00100.00100.00Hachimantai City

100.00100.00100.00100.00

Karumai-cho, Kunohegun

100.00100.00100.00100.00Hyuga City

99.30

98.40

99.00

97.40

Koyugun

99.20

98.00

98.80

96.90

98.80

97.10

98.10

95.10

Kagoshima Prefecture Kagoshima City

● Analysis Model Example (Karumai-cho, Kunohegun, Iwate Prefecture, RCP 8.5, Chicken Yield from July to
September)● Average Value of Yield Simulations When the Yield for the Base Year (2020) Is 100
RCP4.52030
Brazil (January to
March)
Thailand (April
to June)

RCP8.5
2050

2030

2050

Paraná

99.8

99.3

99.6

98.4

Lop Buri

98.4

95.6

97.5

92.6

Chon Buri

98.3

95.6

98.1

92.7

57

● Analysis Model Example (Thailand, RCP 8.5, Chicken Yield from April to June)

Financial Impact and Strategy
For Nichirei Foods, cooked rice products account for about 10% of net sales, while chicken products account for about
30%. For Nichirei Fresh, the chicken business accounts for about 40% of net sales in the meat and poultry products
business.
In these most recent investigations, even in the scenario of continued global warming, rice yields increase in our current
supply areas. However, according to the Ministry of Agriculture, Forestry and Fisheries, there are reports that higher
temperatures can lead to deterioration in rice quality, such as an increase in unripe grains, giving rise to concerns aboutprocuring rice that is suitable for processing.
In some areas, chicken yields would decrease in the 2050 temperature increase scenario. However, the chicken farms
where we currently procure chicken meat are equipped with air conditioning. Yields are therefore not likely to decrease due
to an increase in temperature. However, there could be an increase in cost and amount of energy used to run the air
conditioning systems to ensure temperatures suitable for chicken farming.
If climate change mitigation measures are strengthened (transition scenario), tighter regulations on greenhouse gas (GHG)
emissions could increase the cost of raw material procurement.
On the other hand, we expect decarbonization measures to be promoted in the agriculture and livestock farming sectors as
outlined in the Ministry of Agriculture, Forestry and Fisheries’ Act to Promote Environmental Burden Reduction Activities for
Establishment of Environmentally Harmonized Food System (effective July 1, 2022). By working with our suppliers andreducing GHG emissions related to raw materials, we believe we could gain an advantage even in the transition scenario.
We will use life cycle assessments (LCAs) to evaluate the environmental impact of each product, as well as develop
livestock feeds that reduce such impact. We will also gather data from external research institutions to work toward
breeding rice with a higher temperature tolerance and higher yield.

58

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

Indicators and Targets
We have set forth the following as material matters: climate change initiatives; and realizing sustainable food procurement
and resource recycling.
Nichirei Group Material Matters (Materiality)

Material Matter: Climate change initiatives

Group Measures

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

Group KPIs

FY2025：30% reduction in CO₂ emissions (compared with FY2016; Scope 1
and 2 in Japan)
FY2031：50% reduction in CO₂ emissions (compared with FY2016; Scope 1
and 2 in Japan)

Material Matter: Realizing sustainable food procurement and resource recycling
Group Measures

Conduct sustainable resource procurement and help to realize a circular
economy.

Group KPIs

FY2031：100% implementation rate of ESG due diligence for main raw
materials and major suppliers59

● Nichirei Group GHG Emissions (Scope 1, 2 and 3 in Japan)

As part of its low-carbon policy, the Nichirei Group is promoting measures to reduce Scope 3 emissions.* As shown in the
figure on the left, the highest proportion of Scope 3 emissions comes from raw material procurement (category 1). We
therefore recognize that, in order to achieve a reduction in Scope 3, supplier efforts to reduce GHG emissions are essential.
A cooperative relationship with suppliers is also essential to realizing sustainable procurement. Based on the Nichirei Group
Sustainable Procurement Policy, we will promote initiatives that follow the Nichirei Group Supplier Code of Conduct and the
Nichirei Group Supplier Guidelines established in April 2022. We will also address human rights and environmental issues,
including Scope 3 emissions.

* See the next page for Scope 1 and 2 reduction efforts in Japan.

Climate Change（Decarbonization and the Elimination of CFCs）

60

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

Environmental Management＞Group Sustainability Committee

KPIs for Material Matters

61

Initiatives
Initiatives
Long-term Environmental Goals and Low-carbon Policies

We will implement low-carbon policies in response to one of the material matters and in pursuit of our long-term
environmental goals. We will actively implement the three measures during the 10-year span extending from 2021 through2030.

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

Overview

Target scope

1. The establishment oflong-term CO₂ reduction
goals

50% reduction in CO₂ emissions (compared to fiscal
2016) in Japan, Scope 1 and 2 in 2030

Japan
Scope 1 and 2

2. The promotion of CO₂
reduction countermeasures
overseas

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

Overseas
Scope 1 and 2

3. The promotion of CO₂
reduction countermeasures
within Scope 3

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

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

● Nichirei Group CO₂ Emission Trends

Click here for the CDP Climate Change FY2023 Report(Only Available in Japanese)62

Utilizing Electricity Generated from Solar PowerThe Nichirei Group is working to reduce CO₂ emissions by installing solar power generation equipment on the premises offood factories and on the rooftops of refrigerated logistics warehouses. We will further strengthen these initiatives as partof Medium-term Business Plan Compass Rose 2024.

Solar Power Generation and CO₂ Reduction

Nichirei Foods

・Funabashi Plant
・Nichirei Ice Inc.

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

Nichirei Biosciences

・Global Innovation Center

Sakishima DC

Matsue DC

Kushiro DC

63

Change of Fuel for Manufacturing Equipment
Food factories use heat energy in a variety of manufacturing processes, including frying and baking. For the boilers thatcreate the heat energy used in manufacturing, we are systematically switching from kerosene and heavy oil to city gas andpropane, which produce fewer CO₂ emissions.

Conversion of Refrigerated Trucks to EVs
As society requires companies to manage their businesses in a decarbonized manner, it is also necessary to switch fromfossil fuels to electricity (and in the future, to renewable energy). However, there are many issues regarding electric
refrigerated trucks, such as vehicle price, imitations on charging time and mileage restrictions.
Along with the verification of energy-saving facilities such as vehicles and recharging facilities, we will promote verification
as a low-temperature logistics system for electrification. In February 2023, we introduced three refrigerated/freezer EV
trucks and began operation. We plan to increase the number of vehicles in the future.

Purchase of Green Energy
Since 2007, the Nichirei Group has been purchasing and stockpiling Renewable Energy Certificates (RECs)* every year. As aresult, in FY2021, the head office building (Nichirei Higashi Ginza Bldg.) shifted to renewable energy (making use of RECs)
for all of its power usage. In addition, since March 2020, Nichirei Foods has purchased RECs to cover all electricity used in
production lines for Honkaku-Itame-Chahan (fried rice). It is also making the shift to renewable energy.

* Green power is power generated from renewable energy sources, such as biomass, solar and wind. The CO₂
emission reductions achieved through the use of power generated from renewable energy are traded in theform of RECs.
64

Switching to Natural Refrigerants
By 2030, we will have switched to natural refrigerants for 75% of equipment used by Nichirei Logistics Group (based on
tons of equipment excluding leased equipment), including overseas facilities, and 100% of the freezers used by Nichirei
Foods at its food factories and investee factories in Japan.

自然冷媒冷凍設備（アンモニア）

Example of Switch to Refrigeration Equipment Using Natural Refrigerants
FiscalYear

Temperature-controlled Logistics
Business

Subsidy projects utilized

FY2014

Logistics Network Sugito TC

Subsidies for businesses that rationalize energy usage

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

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

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

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

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

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

Project to promote energy-efficient commercial refrigeration andair conditioning, for the creation of a CFC-free society

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

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

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

Project to Accelerate Introduction of Energy Saving-Type Natural
Refrigerant Equipment To Realize Fluorocarbon-Free and Low
Carbon Society
65

・Nichirei Logistics Kansai
Osaka Shinnanko DC 2nd Building
・Nichirei Logistics Tokai, Inc.:
Nagoya Minato Logistics Center

FY2021・Nichirei Logistics Kansai, Inc.:
Umemachi Logistics Center
・Nichirei Logistics Chushikoku, Inc.:
Ujina Logistics Center
・Nichirei Logistics Chushikoku, Inc.:
Matsuyama Logistics Center
・Nichirei Logistics Kyushu, Inc.:
Kokura Logistics Center・Kyokurei Inc.: Honmoku Logistics
CenterProject to accelerate the introduction of energy-saving naturalrefrigerants in equipment for the early realization of a CFC-free,
low-carbon society

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

Project to accelerate the introduction of energy-saving naturalrefrigerants in equipment for the early realization of a CFC-free,
low-carbon society

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

Preventing Refrigerant Leaks to Boost Operating Efficiency
The Nichirei Logistics Group is stringently checking equipment to reduce refrigerant leaks at all domestic centers.
In FY2014, the Group installed high-sensitivity detectors, which are 10 times more accurate than those previously used,and can detect even minor leaks. By managing the amount of refrigerant used and eliminating leaks, the Group canachieve near-optimum equipment functioning. At the same time, the Group is working to avoid the unnecessary use ofelectricity. The Group has non-regular staff carry out inspections, since they notice energy-saving points that regular staff
may overlook. Energy-saving inspections of the entire center are conducted in parallel with the refrigerant checks as bothcontribute to CO₂ reduction and the prevention of global warming.
Since September 2018, the Nichirei Logistics Group has been conducting a joint demonstration in collaboration with Hitachi,Ltd. at Funabashi DC, utilizing state-of-the-art IoT technology for the early diagnosis of faults in refrigeration equipment
and to improve the efficiency of equipment operations and maintenance. Visualizing energy consumption and analyzing
operational improvements will assist the high-efficiency operation of cold storage facilities and will help reduce CO₂
emissions.

66

● Conceptual Diagram of Joint Demonstration

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

Nichirei Logistics Group Wins "Advanced Technology Award" and "Special Award" at the 23rd
Logistics Environment Grand Prize｜News｜Nichirei Logistics Group​​(Only Available in Japanese)​67

Initiatives in Production Regions
Suppression of Methane Gas Emissions by Cattle (Nichirei Fresh)
Ruminants, such as cattle and sheep, are known for their production of methane gas, which has 21 times the greenhouseeffects of CO₂. The gas is produced in their stomachs, released internally when their food is broken down and digested, andthen release externally. Since prevention of global warming has become a worldwide issue, Nichirei is undertaking the
suppression of methane gas emissions produced by cattle.
The hydrogen generated by the activity of microbes in the rumen (the first stomach) during the digestive process is turned
into methane gas by methanogen, and released externally through burps. If cattle are given flaxseed oil fatty acidcalcium*1, the hydrogen in their rumen combines with the unsaturated fatty acids in the oil to form saturated fatty acids.
Since research results show that methane gas production can be suppressed, to this end Nichirei has been testing
crossbred cattle (male Wagyu and female dairy cattle) on domestic farms since FY2010.
Using Kyoto University’s life-cycle assessment (LCA)*2 method developed in 2010 to gauge fattening methods, Nichirei has
been able to confirm that the environmental impact of these crossbred cattle is 10% less than when conventional fattening
methods are used. Further, there is an improved omega balance*3, while feed costs are lower due to the shorter fattening
period resulting from improved growth*4. Nichirei is now moving toward the sale of beef produced through a nationwide
rearing program using flaxseed oil fatty acid calcium. In addition to cross-breeding, Nichirei is also expanding thisproduction method to crossbred Wagyu and Holstein cattle (bulls).

● Methane Gas Production● Evaluation of Impact on Global Environment68

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

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

● Operating Scheme

69

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

Promoting a modal shift1
Since 2003, in a bid to reduce its environmental footprint, the Nichirei Logistics Group has been switching the means oftransportation it uses from haulage by road to that by rail and sea. And, in 2009, the ferry transportation route from
Hokkaido to Kyushu was extended, resulting in a 30% reduction2 in CO₂ emissions.
Notes:

1. The conversion of road and air transportation by that by rail and sea.
2. The 30% reduction in CO₂ emissions due to modal shifts in Japan is based on per-route calculations.
3. An institution administered by the Ministry of Land, Infrastructure, Transport and Tourism and other bodies
that awards excellent initiatives that promote CO₂ reduction in the logistics field.
4. 3PL:Third-Party Logistics● Comparison of total transportation distances

70Activities with European Logistics
The Nichirei Logistics Group’s overseas business began with its expansion into the Netherlands in 1988. As of March 2020,
Nichirei Holding Holland B.V. has thirteen companies（As of October 2022)—including cold storage facilities and low
temperature shipping businesses—and is expanding from its hub in Rotterdam. Logistics in Europe center on shipping bytruck, reflecting the advanced state of the local infrastructure. During the past few years, a modal shift has been promotedin the interests of the environment, resulting in a transition from highway truck transportation to maritime and railway
transportation, making it possible to ship large volumes of goods. Mostly, when a containership docks at Rotterdam, thecontainers are offloaded and trucked to a warehouse. With containerships are getting progressively larger, and it is now
possible to fit 9,000 forty-foot* containers on the larger vessels. Shipping these by truck would mean using 9,000 trucks,
which would generate large amounts of CO₂.
Holland’s Hiwa Rotterdam Port Cold Stores B.V. uses river barges to reduce its CO₂ emissions when moving containers fromthe container yard to their warehouses. With up to 25 containers piled on one barge, some 3.5 tons less CO₂ is produced
than were 25 trucks used to transfer the containers. Currently there are two barge vessels in the Netherlands that havetheir own container cranes. Both of them are working for HIWA.
At Transports Godfroy in France, the environmental initiatives of its shipping business include introducing eco-driving
training for its drivers in FY2012. Meanwhile, the social contribution activities of its shipping business include the donation
to charities—of course with the permission of the consigners—of goods it has had in storage that are past their use-bydate.

* 40 feet = 12.192 meters

Hiwa Rotterdam Port Cold Stores B.V.

River barge

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

Greening of the Kansai plant

71

Initiatives for Water Resource Conservation
Basic Philosophy
Basic Philosophy
As one factor in achieving its goal of building sustainable supply chains, the Nichirei Group recognizes the importance ofwater resources in producing raw materials and conducting business, and strives to conserve such resources. In addressing
water risk, it is important to understand the local situation and the status of initiatives at our sites. As part of our water risk
assessment, we use a third-party water risk assessment service to evaluate water risk at our locations. In addition to the
WRI Aqueduct*, which assesses regional water risks, we conducted a questionnaire survey of all Group sites to ascertain
the status of their initiatives. The water risk assessment was conducted for all Nichirei Group sites in Japan and overseas(152 sites), covering the WRI Aqueduct* assessment items of water quantity, water quality, and regulation/reputation. In
FY2021, interviews were conducted at the three facilities identified as having high water risk, and the Group confirmed atthat time that there were no water risks in terms of quantity, quality or regulatory and reputational risks. In FY2022,
investigations were conducted at facilities in Japan with respect to river flooding and storm surge risk due to typhoons andheavy rains.

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

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

Environmental Management > Group Sustainability Committee

Environmental management > Medium-term targets and results

Supporting Forest Conservation Activities with a Portion of Sales(Only available in Japanese)72

Initiatives
Initiatives
In terms of water-related initiatives associated with business activities, in addition to water-saving efforts at its foodfactories and distribution centers, the Group is raising employee awareness such as by displaying posters. At worksites inJapan, the Group keeps track and manages consumption of water and quality of wastewater through regular monitoring incompliance with various laws and regulations.
We have set reduction targets for each site and are working to reduce water throughout the Group.

● Water Usage (By water intake source)73Water Risk Assessment
In FY2020, the Group conducted water risk assessments at all of its facilities (152 facilities in Japan and overseas) andidentified facilities where water risk was high as a result of internal and external factors. In FY2021, interviews wereconducted at the three facilities identified as having high water risk, and the Group confirmed at that time that there were
no water risks in terms of quantity, quality or regulatory and reputational risks. In FY2022, investigations were conductedat facilities in Japan with respect to river flooding and storm surge risk due to typhoons and heavy rains.

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

Click here for the CDP Water FY2023 Report

External Review

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

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

Initiatives
Initiatives
Conserving Biodiversity and Maintaining Sustainable Production: MSC Fisheries Certification at Clam Fishery

About 60% of Japan’s imported clams are sourced from wetlands along the Yellow Sea coast of China. Since 2006, Nichirei
Fresh has procured clams from China for use as a premium ingredient. In recent years, however, we have become
concerned about the declining yield of clams and the deterioration of the natural environment.
In 2016, Nichirei Fresh collaborated with Dandong Taihong Foodstuff Co., Ltd., a supplier of clams, and the World Wide
Fund For Nature (WWF) in a fisheries improvement project.
In 2021, the shellfish fishery of the Yalu Estuary received Marine Stewardship Council (MSC) certification for sustainablefishing that considers the rich natural environment of the Yellow Sea coast, which is indispensable as a resting and feeding
place for migratory birds. The certification was the first example of a shellfish fishery improvement project in China
involving cooperation between participants in the supply chains of China and Japan.
Nichirei Fresh will continue to increase the number of products that bear the MSC certification* for sustainable fishing.

* MSC certification requires that wild seafood used has been caught using methods that do not deplete thenatural supply.
75

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

Fukushima: Environmental Research and Protection, Conserving Biodiversity
Nichirei owns land near Lake Hibara in Fukushima Prefectureʼs Urabandai region. The Company supports research on thenatural environment in the surrounding areas and environmental and biodiversity conservation based on that research.
Following the 1888 eruption of Mount Bandai, all vegetation disappeared from the Urabandai area, but more than 130
years on, one can see vegetation returning: red pine forests, white willows, reeded wetlands, and aquatic plant clusters inmarshlands.
The red pine forests, planted by people who want to see the return of greenery, continue to spread.
But since the Companyʼs land remains unforested, it provides a valuable area for observing the transition of virgin nature.
Nichirei has supported the research activities—carried out since FY2012 in the Urabandai area—by the Support Division for
Projects in Natural Symbiosis and Regeneration at Center for Practical and Project-Based Learning, Graduate School of
Symbiotic Systems Science and Technology, Fukushima University.
In FY2020 (ended in March, 2020), we supported an investigation of insect fauna inhabiting reed marshes in Urabandai
area Nichirei-owned land, as well as a study into the diversity of plant species conducted with the goal of publishing a bookon Urabandai flora.

Water quality surveys in the Urabandai area wetlands

The Himeshiro dragonfly: a new species

76

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

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

The Nichirei Group’s approach to environmental conservation

Management System
Management System
Environmental Management＞Group Sustainability Committee

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

78

● Waste Discharged Outside Worksites and Recycling Rate

● Nichirei Group Wastewater and Drainage Load

Fertilizer, Feed Made from Factory Food Residue
To reduce waste generated at our production facilities, Nichirei Foods is undertaking various initiatives. These include
production management, initiatives to prevent problems, and the recycling of processing residue, such as raw ingredients
not turned into products.
Process residues generated at the plant are recycled into fertilizer and feed for effective use. The Group plans to continue
reducing the amount of waste generated by setting target values, while making the most effective use of processing what
residue is inevitably produced.

79

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

Initiatives at Nichirei Foods’ Factories in Japan
In joining the 10x20x30 Japan Project, Nichirei Foods set a target for FY2031 to reduce animal and plant residues per unitof production at domestic food factories by 50% compared with FY2020. We also aim to maintain a recycling rate of atleast 99% for waste (including non-food items) at all business sites in Japan. To achieve these targets, we are working to
reduce the amount of waste generated by revising production processes and product designs, to donate as food what we
previously disposed of as waste, and to conduct recycling, including conversion to animal feed and industrial products.
Factory Wastewater Released Only after Having Been Cleaned Using Special Equipment
The water used at food factories becomes wastewater containing food-related organic matter, detergents, anddisinfectants. The Nichirei Group cleans its factory wastewater using disposal equipment and only releases it outside thefactory once it complies with emissions standards stipulated by law.
Management of Pollutant Release and Transfer Register (PRTR) Substances
In FY2022, we continued to have no materials subject to reporting under the Pollutant Release and Transfer Register Law*
(handled in quantities of 1 ton or more). We will continue to manage chemical substances appropriately.

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

Click here for details

Management of PCBs
Polychlorinated biphenyls (PCBs), a group of man-made compounds, were previously used as insulating oil in transformers,
but their use was banned in the 1970s, after their toxicity became apparent. In Japan, equipment that has been confirmed
to contain PCBs is being appropriately stored in compliance with standards set by law. Currently, disposal is being carriedout systematically, based on the capacity of the nation’s five government-run PCB disposal plants. Three transformers
collected from the Nichirei Group in FY2020 and FY2021 have been disposed of at a one of the government plants. In
FY2022, three units continued to be collected, transported, and processed throughout the Group.
Management of Asbestos
The asbestos that was found to have been sprayed on the underside of the roof, and which had the possibility of spreading,
was removed and disposed of during an inspection in FY2006. In addition, when demolishing office buildings that havebeen closed, the Nichirei Group does another survey and takes legally compliant and appropriate steps to dispose of any
building materials containing asbestos.

80

Management of Contaminated Soil
In addition to fulfilling the appropriate disclosure requirements when selling, buying, or renting land, the Nichirei Group
does evaluations of soil contamination and carries out the appropriate management.
In FY2020, we conducted soil analysis and performed appropriate treatment in the construction of the Nichirei Logistics
Tokai Inc. Nagoya minato DC. Soil analysis is also conducted at the new plant in Kyurei Inc. for proper treatment.

Management of Chemical Substance Emissions to the Atmosphere
Reduction of NOx, SOx, and PM Emissions
Nitrogen oxide (NOx) and sulfur oxide (SOx) are produced when fuel oil and gas are burned in food factory boilers.
Through proper facility management at its factories, Nichirei is complying with emissions standards stipulated by law andaiming for an overall reduction in emissions volume. The Nichirei Logistics Group is promoting increased logistical efficiency
through joint shipping and modal shifts making use of railways and ferries. The Group is making progress on the reductionof NOx and particulate matter (PM) emissions by using exhaust regulation-compliant vehicles, conducting proper vehicle
maintenance, and promoting such initiatives as eco-driving. Furthermore, there are no emissions from the Nichirei Group’sbusiness corresponding to the volatile organic compound (VOC) emission standards.

SOx Emissions

Switching to Natural Refrigerants
By 2030, we will have switched to natural refrigerants for 75% of equipment used by Nichirei Logistics Group (based on
tons of equipment excluding leased equipment), including overseas facilities, and 100% of the freezers used by Nichirei
Foods at its food factories and investee factories in Japan.

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

Natural Refrigerants KPI

Switching to Natural Refrigerants

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

Management System
Management System
Environmental Management＞Group Sustainability Committee

Initiatives
Initiatives
Reducing Plastic Used in Frozen Food Containers and Packaging

Since 2006, Nichirei Foods has been striving to reduce the amount of plastic used for household-use frozen food productcontainers and packaging. Recently we achieved a reduction of over 200 tons for seven items (series) of products,
compared with before these initiatives began. While continuing to reduce plastic use by reviewing product containers andpackaging, we will also work toward reducing our CO₂ emissions.

82

■Initiatives for Thinner Packaging
Fiscalyear

Products

Measures

FY2007

Imagawa-Yaki (Japanese waffles)

Elimination of trays

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

FY2012

Honkaku-Itame-Chahan (fried rice)

Thinner packaging

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

FY2016

Honkaku-Itame-Chahan (fried rice)

Thinner packaging (second
reduction)

FY2019

Ebi-Pilaf (shrimp pilaf) and Chicken Rice

Thinner packaging

FY2021

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

Thinner trays, reduced tray handle
width

FY2022Yaki-Onigiri (grilled rice balls)

Elimination of trays for entire
lineupTaking on the Challenge of Upcycling Products
Upcycling non-standard rice from Yaki-Onigiri (grilled rice balls) 10-pa
Nichirei Foods has worked to reduce food loss by making donations to children’s cafeterias and food banks. We also makeuse of the food residue generated during the production process by recycling it into fertilizer and feed. As a company that
deals with food, however, we also want to add “social value” to food residue by upcycling it as part of our efforts to createa more abundant society.
As a first step, we have collaborated with Fermenstation Co., Ltd., a company that uses proprietary fermentation
technology to upcycle non-standard products and by-products generated during the food and beverage manufacturing
processes, as well as agricultural non-standard products. We provide antibacterial wet wipes made by transforming nonstandard rice from our long-selling product Yaki-Onigiri (grilled rice balls) 10-pack.

● Creation of Yaki-Onigiri Antibacterial Wet Wipes

Launched Upcycled Products(Only Available in Japanese)83Society

Society
Creating new value in food and health

・
・
・

85

Maintain a Sustainable Supply Chain

・
・
・

96

Human Rights

・
・
・

107

Provide Safe Products and Services

・
・
・

112

Occupational Health and Safety

・
・
・

127

Cultivating Human Resources and Improving Work Satisfaction

・
・
・

132

Health Management

・
・
・

145

84

Creating new value in food and health​
Basic Philosophy
Basic Philosophy
To create new value in food and health, which is one of its material matters, the Nichirei Group will step up development oforiginal new healthy and sustainable ingredients, products and services that are worthy of the Nichirei brand, as well as
initiatives for nutrition. We select priority themes for our initiatives from three perspectives: helping to resolve healthissues; new food resources and ingredients that are sustainable and eco-friendly; and taking on the challenge of new
business models.
Out of a total of five themes, three are being carried out by Nichirei Corporation and two are being conducted incollaboration with operating companies. We will focus our resources on the visualization of consumers’ mental processes
using our unique psychological statistics, research to discover new value in freezing, and initiatives to create our own
nutritional targets.

85

Initiatives●New Business Models for Health and Sustainable Foods①A Data Service Business Based on Food Preference Analysis:
me:new Automatic Menu Generator App
Due to factors including changes in work styles, advances made by women in the workplace and the development of asuper-aging society, the need to reduce meal preparation time at home is growing among Japanese consumers. Likewise,needs are rising for meals that take health factors into account, such as nutritional balance and food allergies. Many
consumers are finding it difficult to plan daily menus because of these issues. To help resolve them, in August 2021 Nichirei
entered the AI-based menu proposal service business by acquiring all the shares of me:new, a startup that operates anautomatic menu generator app of the same name, and created a new business by integrating me:new’s services with theconomeal kitchen app and services Nichirei developed in-house. The me:new app creates up to a week’s worth of menus.
Mainly geared toward families with young children, it suggests recipes that parents and children can eat together, as well
as allergy-friendly recipes. Needs for such services are rising in the BtoB as well as the BtoC market. Going forward, we will
work to provide new value in the form of a data service business based on our research into food preferences anddeliciousness.

me:new Automatic Menu Generator App(Only Available in86

Japanese)​

②New Healthy Food:
Gohan-no-Mirai
In Japan, the consumption of rice, which is the bedrock of the country’s food culture, has fallen by half over the past 50
years. Current health fads have led people to avoid carbohydrates, with a tendency to go to extremes in limiting intake.
There is also the recent health issue of new types of malnutrition caused by unbalanced diets. Moreover, given the time andtrouble required to cook rice, consumption looks likely to continue falling. Nichirei wanted to create an opportunity forJapan to rediscover its rice-based food culture by offering simple and functional new staple foods made from rice, whileeliminating concerns about carbohydrate intake. Gohan-no-Mirai is a new staple food made from rice flour and rice-derived
dietary fiber using our original restructuring technology. It contains a full day’s recommended allowance of fiber with about
half the carbohydrates, and nutrients such as iron and calcium can be added according to the health condition of theperson eating it. Because it uses ingredients derived from rice, it reproduces rice’s familiar texture and flavor. Furthermore
it can be prepared by simply adding hot water, making it a stress-free healthy staple food that can be eaten regularly. We
also offer personalized health support by providing nutritionally balanced recipes and consultation services with a registereddietitian. We will use customer data obtained through direct sales and communication on our Gohan-no-Mirai website toimprove our products and services, ensuring that our services consistently match needs.

Gohan-no-Mirai(Only Available in Japanese)​87

③I nvestment in Edible Insect Startup TAKEO
Providing new foods is an important subject for Nichirei, which has an obligation to maintain a stable and sustainablesupply to meet potential future food shortages.
Insects have a low environmental impact and excellent nutritional value and production efficiency. As such, they are
expected to be a sustainable food resource and have therefore been attracting attention as a new food ingredient over the
past several years.
TAKEO Inc., a trailblazer in Japan’s edible insect market, has developed a diverse range of products and services for meals
in which insects can be enjoyed as ingredients like vegetables, fish or meat. By investing in TAKEO and combining its knowhow with our processing technologies, we will broaden the potential of edible insects to create a new culinary domain.
As a new challenge, Nichirei aims to develop products and provide services that are eco-friendly, good for people, and help
make edible insects a more familiar ingredient in meals.

TAKEO Inc.(Only Available in Japanese)​​④Meat Production: Focus on Omega-3 Fatty Acids Amani no Megumi Meat
Nichirei Fresh produces and sells meat, and has been focusing on omega-3 fatty acids, which are essential for humanhealth. We have improved the balance of omega-3 and omega-6 fatty acids in our meat by giving chickens, pigs andcattle* a formula feed that uses ingredients derived from flax, which is rich in α-linolenic acid. This results in tender andjuicy meat, which we have been selling since 2006. Omega-3 fatty acids, abundant in blue-backed fish, flaxseed oil andperilla oil, are converted into eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) in the body. However, the dietof people in Japan today is often lacking in essential fatty acids, which the body cannot synthesize, especially omega-3
fatty acids. By promoting everyday diets that include meat containing a balance of these fatty acids, Nichirei Fresh supports
people’s health.
*There are individual differences among cattle.

88

Amani no Megumi(Only Available in Japanese)

Platform
Visualization of Mental Processes
Psychological statistics is the science of quantifying mental processes to visualize them in numerical data and models. It is
possible to intuitively identify a consumer’s train of thought through quantification and visualization using sophisticatedstatistical methods such as carefully designed questionnaire surveys, multivariate analysis and structural equation modelingto provide numerical substantiation. Through its joint research with the University, Nichirei is applying and deploying
unique psychological statistics techniques in its surveys of employee satisfaction, corporate image and other topics. Goingforward, we intend to also use these techniques for original consumer marketing.
Freezing Research
Nichirei is conducting ongoing research on antifreeze proteins (AFPs) for a wide range of practical applications. AFPs bind toice crystals, inhibiting their growth. Other effects of AFPs include inhibiting recrystallization, promoting uniform dispersionof solutes and protecting cells in low-temperature environments above the freezing point. Applications are expected in awide range of fields from food to medicine, cosmetics, reagents and industry. Nichirei will combine the results of thisresearch with its freezing technologies to create new products and services.
Initiatives for Nutrition
We will step up our initiatives for nutrition to help resolve the health problem of the double threat of concurrent
overnutrition and undernutrition. Initiatives will include participation in the Ministry of Health, Labour and Welfare’s
Strategic Initiative for a Healthy and Sustainable Food Environment with the aim of being able to set targets that ensure
intake in recommended amounts while avoiding excessive intake of substances of concern.

89

Meat Analogue Containing No Animal Meat:
Daiz Meat
Nichirei Foods is developing meat analogue products as a new undertaking in frozen foods that will contribute to a moresustainable society. We reproduce the flavor and characteristics of meat without using animal meat by combining various
kinds of soy meat, including that from germinated soybeans grown using the proprietary technology of DAIZ, which isengaged in advanced research on soybeans. Moreover, through the application of our know-how and technology forreproducing delicious flavors, we have developed products that are both healthy and tasty.

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

Possibilities of New Effects of Acerola​(Only Available in Japanese)​​90

Companion Diagnostics
Provision of diagnostics for personalized cancer treatments
In 2014, Nichirei Biosciences became the first Japanese company to manufacture and sell “companion diagnostics”, which
are used to select treatments and drugs eligible for each patient with cancer in terms of their physical condition andpathology.
Furthermore, immune system-related technologies that we have developed so far are contributing to the advancement of
personalized medicine that enables the selection of treatments and drugs that are highly effective and have few side
effects.

Histofine ALK iAEP® Kit

Histofine ALK iAEP® Kit​(Only Available in Japanese)​

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

* Artificial Intelligence (AI) is the use of computers to artificially realize the workings of human intelligence.
Specifically, AI refers to computer programs that can understand natural human language, perform logicalreasoning, and learn from experience.
Launch of Single-serving Noodles Using Original Technology That Keeps Noodles Cold When Prepared in a Microwave
In March 2022, Nichirei Foods launched Hiyashi-Chuka (chilled Chinese noodles), a household-use frozen food product it
developed as the first in a series of single-serving noodle products that can be prepared in a microwave. A microwave ovenheats food by causing the water molecules in food to vibrate. The bonded hydrogen molecules in ice are less affected by
microwaves, so they are harder to melt, while the molecules of the frozen noodles are further apart, making them easier towarm. We put these different characteristics of each food product to use in developing an original technology* forproducing chilled noodles that remain cold even after they have been prepared in a microwave. This product took about
five years to bring to market from the initial concept, with about three of those years for commercialization. With our many
years of research into frozen foods, we take pride in the concept behind this unique product, which is the first in theindustry to utilize the characteristics of ice in a microwave.

* Patent pending91

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

Chilled noodles that remain cold even after they have been prepared in a microwave "Hiyashi-Chuka"​​(Only Available in Japanese)​​Strengthening Food Processing and Production Technology Capabilities;
Enhancing Logistics Services
Harnessing AI to Automate and Optimize Production and Personnel Planning

Nichirei Foods has collaborated with Hitachi, Ltd. in creating a system that uses AI to automate and optimize production
and personnel planning. In FY2021, the system was introduced at two model factories in Japan. It uses sophisticated AI
technology to reproduce and refine plans previously formulated by experts based on complex constraints. In addition tolegal and regulatory requirements involved in personnel planning, a variety of other conditions must also be considered,including individual ability, overtime, and paid leave. Until now, experts formulated plans based on such preconditions,
often relying on experience-based intuition. The new system uses AI to automate planning and identify optimal solutions
from among the various permutations, while also quantifying and incorporating intuition-based criteria. As a result,planning requires one-tenth of the time and can be conducted by non-expert employees. The system is expected tocontribute to work style reforms such as by reducing the number of hours worked and encouraging more employees to use
paid leave. Given that in recent years food manufacturers have been called upon to make and supply products while
responding to fluctuations in demand, the system is contributing to improved customer satisfaction due to its application of92

advanced digital technologies and the creation of efficient production systems. Nichirei Foods will continue to harness
digital technologies to promote further improvements in productivity, reductions in lead time and inventories, as well aswork style reforms.

●Production Planning Formulation Image

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

Automate and Optimize Production and Personnel Planning​(Only Available in Japanese)​​93

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

* Automated expiration date reader AI solution: Preprocessing technologies that use AI-OCR (Optical Character
Recognition/Reader) and image recognition to identify the characters of the expiration date from the image andcross-reference the recognized expiration date with information in the cloud, thereby achieving higher reading
accuracy.

Autonomous Driving Forklifts
In January 2018, Nichirei Logistics Group began conducting field tests of autonomous driving forklifts at refrigerated
warehouses. In 2021, they were introduced at the Daikoku Distribution Center of Group company Kyokurei. A distinctive
characteristic of autonomous driving forklifts is that they can be given instructions using a tablet device, thereby making
safe operation possible for employees who might otherwise lack the physical strength or operating skills to manuallyoperate a forklift. Going forward, we will steadily increase the number of facilities with autonomous driving forklifts and tie
that measure into reducing working hours, economizing on manpower for on-site work, and improving occupational healthand safety at our warehouses.

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

94

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

AGV for transporting pallets

AGV for transportingroll pallets

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

Robot loading cargo
on a basket cart

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

95

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

Nichirei Group Supplier Codeof Conduct

Key Points for Amendment and Enactment
Respect for human rights in the Group and throughout the supply chain,
implementation of human rights due diligence, introduction of system for filinggrievances, etc.

Human Rights Policy

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

Sustainable Procurement Policy

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

Supplier Code of Conduct

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

Supplier Guidelines

96Management System
Management System
The Group is aware that it may have various impacts on society and the environment, including in its supply chain, throughits domestic and international business activities, so it wishes to forge an appropriate relationship with stakeholders from asocial and environmental perspective as well.
Establishment of the Group Sustainability Committee

The Group Sustainability Committee, established in FY 2023, deliberates on the Nichirei Group's efforts to realize asustainable society and works to maximize the Nichirei Group’s corporate value by balancing social and economic value.

● 委員会体制の変遷

Structure for Promoting Sustainability

97

Initiatives
Initiatives
Certified Sustainable Palm Oil (RSPO Oil Credits)

Palm oil from the fruit of the oil palm is used as a raw material in such products as cooking oil, soap and detergent. In
recent years, the ongoing large-scale development of oil palm plantations has led to environmental issues, including
deforestation of tropical rain forests and CO₂ emissions from peat areas, as well as forced labor and child labor among
plantation workers, which are global issues. In August 2018, the Group became a member of the non-profit organization
Roundtable on Sustainable Palm Oil (RSPO), which promotes the production and use of sustainable palm oil. We arepromoting efforts to make palm oil used in our products sustainable palm oil, and have aggregated all (100%) of the palm
oil used at Nichirei Foods' food factories (domestic and overseas consolidated subsidiaries) and will continue to purchase
RSPO-certified oil credits (book and claim method) for the relevant amount from 2018 to 2021. Purchased.

4-1055-18-100-00

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

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

Since 2006, Nichirei Fresh Inc. has been involved in the "Inochi-no-Mori-Project"*1," a natural environment protection
activity on Kalimantan Island, Indonesia, through the sustainable black tiger prawn farming and mangrove tree planting.
The company has also spread its activities to banamei shrimp aquaculture ponds in Sumatra, Indonesia, and obtained ASC
certification*2 in 2018. 280,000 mangrove trees have been planted since 2020. We are also gradually increasing ourhandling of Marine Stewardship Council (MSC) certification*3 marine products, and as of June 2022, we are handling 18
species of marine products. We will continue to increase our handling of sustainable marine products.
Notes:

1. Inochi-no-Mori Project: https://www.nichireifresh.co.jp/inochinomori/(Only Available in Japanese)
2. ASC certification requires that marine products used have been cultivated in a sustainable manner.
3. MSC certification requires that wild seafood used has been caught using methods that do not deplete thenatural supply.

98

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

MSC/ASC Certification

ASC Certification Number
ASC-C-01632

Giant tiger prawn, Whiteleg shrimp, Pacific oyster, Atlantic salmon, Coho salmon,
Rainbow trout

MSC Certification Number
MSC-C-52165

Arctic surf clam, Arrow-tooth flounder, Flathead sole, etc., Atka mackerel, Capelin,
Chinook salmon, Silver salmon, Pink salmon, Herring, Japanese carpet shell,
Longfin inshore squid, Pacific cod, Pacific oyster, Chum salmon, Red king crab,
Snow crab, Sockeye-red salmon, Walleye pollock, Yesso scallop(As of June 2022)

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

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

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

Shrimp that have grown big

Mangrove Planting
Regeneration ofmangrove trees99Please refer to the following website for further details.

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

Helping to Resolve Social Issues through Our Business​Nichirei Fresh

Inochi-no-Mori-Project​

Conserving Biodiversity and Maintaining Sustainable Production: MSC Fisheries Certification at Clam Fishery
About 60% of Japan’s imported clams are sourced from wetlands along the Yellow Sea coast of China. Since 2006, Nichirei
Fresh has procured clams from China for use as a premium ingredient. In recent years, however, we have become
concerned about the declining yield of clams and the deterioration of the natural environment.
In 2016, Nichirei Fresh collaborated with Dandong Taihong Foodstuff Co., Ltd., a supplier of clams, and the World Wide
Fund For Nature (WWF) in a fisheries improvement project.
In 2021, the shellfish fishery of the Yalu Estuary received Marine Stewardship Council (MSC) certification for sustainablefishing that considers the rich natural environment of the Yellow Sea coast, which is indispensable as a resting and feeding
place for migratory birds. The certification was the first example of a shellfish fishery improvement project in China
involving cooperation between participants in the supply chains of China and Japan. Nichirei Fresh will continue to increase
the number of products that bear the MSC certification* for sustainable fishing.

* MSC certification requires that wild seafood used has been caught using methods that do not deplete thenatural supply.

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

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

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

High-speed chicken manure
processing plant

Chicken manure made into
organic fertilizer

101Helping to Resolve Social Issues through Our Business​Nichirei Fresh

Nichirei Fresh

Junwakei Chicken

Junwakei Chicken(Only Available in Japanese)​

Antibiotic-free Chicken
Antibiotic-free Chicken

Chemical agents, such as antibiotics and synthetic antibacterials, are used in general broiler chicken farming to treat
diseases, prevent the spread of illnesses due to farming conducted in tight spaces, and promote growth.
Nichirei Fresh has been selling antibiotic-free chicken since 2004. While vaccinated, our poultry is not exposed to chemical
agents, including antibiotics and synthetic antibacterials, that could contribute to the emergence of antibiotic-resistantbacteria.* Instead, our poultry farming methods take full advantage of the innate immunocompetence of chickens.
Our farming technology takes into consideration the growing conditions and applies Nichirei Fresh’s proprietary expertise topoultry farming, resulting in chickens with higher natural immunocompetence and greater natural resistance to diseases.
This is achieved through the use of such feed ingredients as lactic acid, other probiotics, and plant-based herbal medicinesthat help maintain the health of chickens and boost their immunity. Since the manure of chickens exposed to antibiotics
affects soil bacteria and groundwater, the poultry farming methods used to produce antibiotic-free chicken also contributeto the natural cycles intrinsic to ecosystems.

102

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

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

FA (free from antibiotics) chickens (Only available in Japanese)103Working with Suppliers
Questionnaire Survey and Progress with Major Suppliers

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

Nichirei Foods

Nichirei Fresh

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

FY2019FY2020

FY2021

FY2022・Join Sedex

SMETA audits
conducted atinvesteefactories inJapan (2factories)

Conducted
SMETA audits
at allremaining 13
investeefactories inJapan・Startedcreating
Supplier CSR
Guidelines

Conducted aquestionnaire
based on CSR
guidelines todomestic
suppliers

Ongoingcollection ofquestionnaires

Continuationof analysis ofquestionnaire
contents

A new list of
domestic andinternational
suppliers is
being
compiled

A CSR
questionnaire
is being
prepared

Analyzed
questionnaire
content
Collected allquestionnaires

Visited some
suppliers andexchanged
opinions

From FY2023, we will continue to promote the Nichirei Group Supplier Code of Conduct and Guidelines and apply it tosuppliers throughout the Nichirei Group. We will evaluate risk factors in the supply chain, identify and communicate risks,
and work with suppliers to mitigate these risks in accordance with the potential impact on business.​
We will work to build a sustainable supply chain by sharing values and building close cooperative relationships within theGroup and with suppliers. ​Sedex subscription and SMETA audits​

Nichirei Foods joined Sedex*1 in July 2019. In October 2020, we established "Nichirei Foods Supplier CSR Guidelines",disseminated in five languages. Preparation for the audits began in FY2021, and in FY2022, we completed theimplementation of SMETA audits*2 at 13 investee factories in Japan. In addition to our own food factories, we also
conducted one audit each at two major OEM customers. FY2023 SMETA audits were also conducted at all plants.
Notes:

1. Supplier Ethical Data Exchange (Sedex): A non-profit organization established in the United Kingdom in 2004
to provide a platform for managing and sharing corporate ethical information with the aim of realizing
responsible business practices in supply chains.
2. Sedex Members Ethical Trade Audit (SMETA): An audit methodology developed by the Sedex Stakeholder
Forum, whose members consist of brand-owners, companies, and audit firms, by consolidating best practices
related to ethical audits.

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

Helping to Resolve Social Issues through Our Business＞Acerola Business​

Nichirei Foods > Acerola Powder

Nichirei do Brasil Agricola Ltda. (NIAGRO) awarded "Gold" rating in EcoVadis Sustainability Survey(2022) for the second year in a row, equivalent to the top 5% level.

Education for Sustainable Procurement
Study Sessions on Sustainability for Management
In FY2023, we are inviting experts to participate in study sessions on sustainability for management. We plan to hold fivesuch sessions. At the third session, Mr. Hidemi Tomita of LRQA Sustainability K.K. gave a lecture on sustainableprocurement and human rights. A total of 139 people* attended the event, which created greater awareness of humanrights issues in the supply chain.
●Online study session* Including 85 directors from the holding company and operating companies and 54 officers from related
divisions
105

Date

Theme

Lecturers

Number ofparticipants(of which,number of
directors)

1stApril 26,
2022

Sustainability Challenges Facedby Corporations

Mr. Kenji Huma,
CEO, Neural Inc.

124
participants (10)

100％

2nd

May 24,2022

The Future of Food andTransportation

Mr. Kenji Huma,
CEO, Neural Inc.

127
participants (10)

100％

3rd

June 28,
2022

Sustainable Procurement andHuman Rights Issues

Mr. Hidemi Tomita,
President, LRQA
Sustainability Co.

139
participants (10)

100％

4th

August 23,
2022

The Importance of SDGs andthe Significance of Corporate
Initiatives

Mr. Kazuo Tase, CEO,SDG Partners, Inc.

131
participants (10)

100％

5th

September
27, 2022

Business Transformation to
Circular Economy

Mr. Shinichi Tabei,
AMITA HOLDINGS
CO., LTD.

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

157
participants (10)

100％

6th

Percentage
ofdirectors
attending* All members of the Board of Directors, including outside directors, attended all meetings.
Offering e-learning sessions for employees■FY2023
Holding period

Theme

Implementation rate1

May 9 - May 27, 2022

Circular Economy

97.1％

2

Nov 14 - Dec 12, 2022

SDGs in general

93.8％

3

Dec 1 - 28, 2022

Business and Human Rights

93.9％

106

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

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

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

The Nichirei Group Human Rights Policy​

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

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

Committee.

Sustainability Promotion Structure107

Initiatives
External Communications
Participation in Stakeholder Engagement Program

The company participated in the 2019-2022 Caux Round Table Stakeholder Engagement Program. In this context, thecommittee also held in-depth discussions on how to address human rights issues as well as identify human rights issues
specific to the food industry and logistics business, including issues raised by NGOs and others, and the exchange of
opinions among companies.
The results will be used in our human rights efforts and we will continue to conduct stakeholder engagement to identify
industry-specific human rights issues.

■Participation
Year

Number ofparticipants

Affiliation of participants

2019

2

Nichirei Group Communication Dept.

2020

2

Nichirei Group Communication Dept.

2021

4

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

2022

5

Nichirei Sustainability Management Dept, Nichirei Foods Sustainability Management
Dept.

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

2020 Human Rights Due Diligence Workshop

2021 Human Rights Due Diligence Workshop

2022 Human Rights Due Diligence Workshop

We also participated annually from 2019 to 2022 in the International Conference on Business and Human Rights (organizedby the Japanese Committee of the CRT), which is attended by domestic and international NPOs/NGOs and human rights
experts.

Business and Human Rights Conference

Caux Round Table Japan

108

Initiatives for Human Rights of Employees
The Nichirei Group is aware that, when it comes to operating a global business, respecting the human rights not only of theGroup’s employees, but also all stakeholders involved in its businesses is absolutely essential, and that this philosophy
applies to all people and companies. Based on this way of thinking, the Group has referenced both the “ILO Declaration on
Fundamental Principles and Rights at Work”＊1 and the “UN Guiding Principles on Business and Human Rights”＊2, among
other international human rights standards, and sets forth the Group’s Code of Conduct as follows. The Nichirei Group
respects human rights and does not discriminate at all based on race, skin color, gender, religion, political views, nationality,
social status, background, or any other factor. The Nichirei Group rejects all forms of forced labor and child labor.
Furthermore, discriminatory behavior, violent behavior, sexual harassment, power harassment, and other such behavior isforbidden, and regulatory standards are adhered to with regards to wages (including legal allowances) and working hours.

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

Sustainability Promotion Portal Site

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

e-learning

labor–management relations

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

Labor union activities; labor-management cooperation

109

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

Number of whistleblower reports and consultations regarding human rights issues

Number of Whistleblowing Cases, by Type

Compliance110Study Sessions on Sustainability for Management
In FY2023, we are inviting experts to participate in study sessions on sustainability for management. We plan to hold fivesuch sessions. At the third session, Mr. Hidemi Tomita of LRQA Sustainability K.K. gave a lecture on sustainableprocurement and human rights. A total of 139 people* attended the event, which created greater awareness of humanrights issues in the supply chain.
●Online study session* Including 85 directors from the holding company and operating companies and 54 officers from related
divisions111

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

Fundamental Policies on Quality AssuranceManagement System
Management System
Nichirei Corporationʼs Quality Assurance Division has established rules and standards for quality control and quality
assurance and performs internal audits and monitoring inspections based on quality management standards to ensure that
the Groupʼs quality management system is functioning effectively.​
Each operating companyʼs Quality Assurance Division performs quality inspections of its own products and services andreports and shares its implementation status with the Quality Assurance Committee and the Group Quality AssuranceCommittee, which assists with the further revision and enhancement of its quality assurance system.​112

● The Nichirei Group Quality Assurance System Diagram113

● Product Quality Assurance

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

114

Initiatives
Conduct periodic audits (FY2019-2022)​
Regular audits are conducted by each operating company based on an annual plan. The plans are formulated by rationallyand objectively evaluating the magnitude of possible risks (based on risk management), ascertaining whether or notcertification of international standards has been obtained, and determining the quantity of products handled annually andproduct characteristics. The PDCA cycle is also used in regular audits. Audit results are used as a reference when
determining audit policies and target worksites when developing audit plans for the upcoming year.

* Since FY2021, we have not been able conduct as many regular audits as planned due to restrictions on
movement caused by the COVID-19 pandemic. However, we have worked to expand and review our use of
remote audits in order to confirm compliance with requirements and ensure safety.

■Regular Audits (FY2019–FY2022)
Quality Assurance Audit
Number of Annual Group
Audits (Japan/Overseas)
Annual Group
Implementation Rate
(Compared with plan)

FY2019FY2020

FY2021

FY2022

Japan

Overseas

Japan

Overseas

Japan

Overseas

Japan

Overseas

66

38

52

20

40

10

46

16

96%

100%

87%

80%

58%

28%

66%

48%

Quality Control Based on International Standards

The Nichirei Group offers products and services with a variety of distinguishing characteristics. In addition to having
internal rules and regulations that support these characteristics, we are working to acquire international standard
certification, while strengthening our quality control system to ensure we continue to provide safe products and services.

115

■Certification Status (FY2019–FY2022)
Certification

ISO9001(Quality
management system)

Operating Company

Rate of Certification*4
FY2019FY2020

FY2021

FY2022

Nichirei Foods

20.0% (3/15)

20.0%(3/15)*5

20.0%(3/15)*5

20.0% (3/15)​

Nichirei Fresh

88.9% (8/9)

88.9% (8/9)

62.5% (5/8)​

62.5% (5/8)​

Nichirei Logistics
Group

90.4%
(104/115)​

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

FSSC22000*1、ISO22000*2、SQF*3(Foodsafety management
system)Nichirei Foods

93.3%(14/15)93.3%(14/15)93.3%(14/15)100.0%(15/15)​

Nichirei Fresh

75.0% (6/8)

100% (7/7)

100% (7/7)

100% (7/7)

Nichirei Logistics
Group

1.7% (2/115)

1.7% (2/115)

1.7% (2/117)

1.7% (2/117)

ISO14001(Environmental
management system)

Nichirei Foods

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

66.7%(10/15)​

ISO13485(Medical devices
and in vitro diagnostics)

Nichirei Biosciences

100% (2/2)

100% (2/2)

100% (2/2)

100% (2/2)*1 FSSC 22000: An international management system for food safety that is based on ISO 22000*2 ISO 22000: An international standard for food safety management systems (for reducing food safety risks). It
is based on hazard analysis and critical control points (HACCP) food sanitation control techniques*3 SQF (Safe Quality Food): Certification providing assurance that the product being purchased meets strict
international food safety and quality standards such as HACCP. Program recognized by the Global Food Safety
Initiative (GFSI) in countries outside of Europe.
*4 Rate of certification: Certified worksites ÷ Total worksites of consolidated subsidiaries in Japan (food factories,
logistics centers, etc.)*5 Switching to FSSC 22000
Food Safeguard (Food Defense) Initiatives
To prevent intentional contamination of food products, the Nichirei Group believes it is critically important to foster strong
bonds of trust with employees at worksites, creating environments in which accidents are unlikely. Furthermore, it isnecessary to employ both procedures and physical safeguards, as well as verification methods in the event of an accident.
We have established food safeguard (food defense) systems tailored to each product type. In-house rules covering visitorsand contractors, as well as self checks, are in place, and audits of our plants are conducted regularly to confirm safety. We
are also working to improve the workplace environment based on employee satisfaction surveys and interviews. We haveinstalled cameras and face recognition systems at all of our plants in Japan and overseas.
To protect the safety of food, we have created a system that is based on the distinguishing characteristics of each productand enables follow-up investigations should issues arise. If an issue does arise, a link is established with our food crisis
management system, which facilitates the dissemination of accurate information and quick responses.

Food Defense​​

116

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

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

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

Judging of inspection skills

Scene from the competition

117

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

The Evaluation Flow for Ingredient Quality Specifications

Building a Traceability System
To always provide safe, reliable and high-quality food, the Nichirei Group conducts rigorous quality control and inspections,from ingredients to final products and has built a traceability system suited to the distinguishing characteristics of eachproduct. In the event of an accident, enhanced traceability prevents damage from spreading and enables rapid
investigation of the cause. We also provide prompt and accurate information to alleviate consumer concerns.
Building a traceability system requires collaboration and cooperation on the part of ingredient suppliers, manufacturers anddistributors in our supply chain. The Nichirei Group regularly holds study sessions to deepen shared awareness with regard
to quality-related information. To digitalize and link information, we are also promoting the utilization of our proprietarysystem for central control.

● Traceability of Frozen Green Soybeans (Illustration)

118

【Cultivation Management】
The farms, in China and Thailand, where frozen vegetables are produced for Nichirei Foods have been selected based on
their ability to meet Nichirei Foods’ environmental standards (in terms of soil, water quality, etc.) and agro-chemical
management requirements. A farm advisor, from the Group’s frozen vegetable production facilities, is regularly sent tothese farms to do on-the-spot checks of cultivation conditions and confirm that they are being adequately managed.

Quality Control of Frozen Vegetables​​(Only Available in Japanese)​【Production Management】
Nichirei Foods provides quality-management guidance for the contract factories that produce its frozen vegetables. Records
are kept detailing the importation, selection, cleansing, processing, freezing, packaging, inspection, and shipping of thevegetables cultivated. In addition, the Nichirei Group makes sure with local inspection agencies that there are no problems
regarding residual agrochemicals during pre-processing. During shipping it also checks that there are no problems with the
production facility inspection divisions that have received technical training from Nichirei. Furthermore, the Nichirei Food
Safety Center systematically inspects the hygiene and residual agrochemicals of domestic produce and certifies their safety
at the same time as confirming the proper functioning of the local systems.

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

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

119In order to ensure the accuracy of information related to product safety and selection, the Nichirei Group conducts anumber of checks between the time that information displays are created and products are shipped. It also checks to makesure that nothing on the packaging can cause misunderstanding. It is implementing display checks with these two points inmind in its examinations as well, and only those products that pass can be manufactured.

120

Verification before the N Mark Is Added to Packaging

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

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

Display verification

Inspections
・The Nichirei Group checks the label contents for product packaging that receives the N mark. It performs
thorough checks of labels that are regulated by law, including allergen displays and other content directly related
to health hazards.
121

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

Verification at the Factory: After Packaging and before Shipping

Printing, data checks

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

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

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

Food Safety Center Initiatives

The initiatives of the Nichirei Foods Customer Support Center

122

Reporting on Products and Services
In FY2022, there were no violations of laws and regulations related to products and services.

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

Development and sales of "wellness foods" at Nichirei Foods

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

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

Japan Frozen Food Association​(Only Available in Japanese)​Japan Association of Refrigerated Warehouses​(Only Available in Japanese)​Japan Food Industry Association​(Only Available in Japanese)​

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

● Breakdown of Customer Interactions in 2019124

● Evaluation of Customer Satisfaction Reception Response

Product Recall Information
These are the product recalls that have occurred in the past five years.
Date
2017
2018
2019
2020
2021

Target
None
None
None
None
None

125

Staff Training for Quality Improvement
FY2019Nichirei
Foods

NichireiFresh

FY2020

FY2021

FY2022

Numberof
People

Hours

Numberof
People

Hours

Numberof
People

Hours

Numberof
PeopleHours

Smoothcommunication,
problem-solving
technique,control ofproduction line
sanitation78
people

924
hours

92
people

1,008
hours

97
people

727
hours

107
people

1,058
hours

Leadercandidatetraining

Management
demonstration
on educating
young
employees andaccomplishing
tasks

41
people

1,309
hours

41
people

1,320
hours

45
people

1,041
hours

42
people

1,029
hours

Training for
obtaining
FSSC 22000
certification

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

183
people

72
hours

264
people

84
hours

20
people

140
hours

91
people547
hours

First- tosecond-year
employeetraining
sessionBasic knowledgeof quality
assurance,
factory check,label, responseto requests, etc.

17people

42
hours

18
people

44
hours

18
people

44
hours

19
people46
hours

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

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

3 people6hours

7 people26
hours

2 people

12
hours

18
people

48
hours

Plant
Quality
ManagerTraining

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

-

-

-

-

-

-

30
people180
hours

Information
session forrevision oflaws andregulations

Food labelingstandards,
addition of foodallergies, etc.

25
people

25
hours

30
people

30
hours

300
people

300
hours

-

-

Training

Description

First- tothird-year
employeetechnical
training
session126

Occupational Health and Safety
Management System
Management System
In accordance with the Occupational Health and Safety Law, the Nichirei Group has established a Health and Safety
Committee with employee participation to promote health and safety management aimed at preventing occupational
accidents and managing employee health. At the head office and branch offices, working hour management initiatives
include promoting reductions in overtime hours and total actual working hours, and encouraging employees to take annual
paid leave.
In food factories and refrigerated warehouses, we are working to improve the workplace environment according to theconditions of each workplace, with the reduction of work-related accidents as the main issue. Health and safety risks are
discussed and addressed by the Group Health Promotion Liaison Committee, and their status is regularly reported andmonitored by the Board of Directors and the Group Human Resources Committee. At the Central Council (held once ayear), management and labor unions discuss reforms in work styles, job satisfaction among union members, the workplaceenvironment, and other issues.
In addition, as part of our occupational health and safety initiatives, we have achieved a 100% health checkup rate and arethoroughly implementing follow-up measures, including follow-up on the results of the checkups. In addition, we
implement "Kenko Juku," a hands-on health support program for all employees, a walking campaign in collaboration with
the Nichirei Health Insurance Association, comprehensive mental health measures starting with stress checks, and theimplementation, evaluation, and improvement of health and safety plans formulated by the Health and Safety Committee
in cooperation with related departments.
In recognition of these efforts, Nichirei Corporation was certified by the Ministry of Health, Labor and Welfare as an
excellent health and safety company. ​● Occupational Safety and Health Committee Organization Chart

127

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

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

We have also acquired OHSAS18001*, an international standard for occupational safety and health, at one subsidiary inoverseas. Acquisition base in FY2019: GFPT Nichirei (Thailand) Co., Ltd. The ratio of certified establishments is 0.6%.
* OHSAS18001 (Occupational Health and Safety Assessment Series)
Renovation of Safety and Quality Training Centers
That Use Virtual Reality (VR)Aiming to further improve safety and quality at its work sites, Nichirei Logistics Group completed renovation of its Nagoya
training center in June 2022, following renovation of the Tokyo training center in September 2021. We work to promote
safe behavior at worksites through interactive education that involves active trainee participation. These activities are
aimed at achieving zero accidents by building a safe and secure workplace environment for everyone at Nagoya Nichirei
Service. Renovation involved creating an open design classroom to provide trainees with a relaxed classroom environment.
For practical training, instructors participate in safety checks twice per month at each worksite, with training tailored toactual onsite conditions. We have also introduced training that utilizes digital technologies such as VR.

VR training
Training textbooks created by Nagoya Nichirei Service

128

Health and Safety Training for Low-temperature Logistics Operations
Logistics Center Safety and Quality-related Training
Placing importance on quality, the environment and safety, the Nichirei Logistics Group has opened safety and quality
training centers across Japan. These facilities enable logistics staff to acquire knowledge regarding safety and quality, as
well as to develop skills and an appropriate mindset.
The core training content includes “reconfirmation of basic knowledge through classroom learning,” information about“dangerous experiences” and the “reconfirmation of basic forklift operations.” Videos and illustrations are used to enable
students to develop an intuitive understanding of the topics.
All training programs and teaching materials are original and veteran employees with a wealth of knowledge andexperience give lectures while providing hands-on experience as part of a systematic curriculum.
At logistics centers, heavy loads are carried using forklifts to enable cargo to be sorted in upper floors. We thus strive toimprove occupational safety and quality by incorporating into the curriculum practical training to ensure that equipment iscorrectly used to prevent items from falling.
Nichirei Logistics Group conducts safety training in a new employee training program, and in FY2023, 67 employees
participated in the training. We also provide training on occupational safety and health through training for key personnel ofquality improvement, and 28 employees participated in the training up until October 2022.

Specialized course for developing the skill of confirming safety
while driving a forklift using the “point and call out” method
Confirming the usefulness of “falling prevention
equipment” while suspended in midair

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

Driver safety training (Logistics Network)

129

Eco-driving Seminars, Tournaments Boost Driver Awareness
The Nichirei Logistics Group has formed a national network of affiliated transportation and delivery companies, andencourages them to obtain Green Management Certification.
In an effort to improve the quality of shipping by these companies, Logistics Network holds driver tournaments and ecodriving seminars at six locations across the country each year. In the driver tournaments, truck drivers compete against
each other for points, which are accumulated from practical exams on general inspections and written tests covering basic
safety and quality rules related to shipping services offered to customers.
These tournaments help the participants improve the safety of shipping services, maintain the high quality of thoseservices, gain inspection skills, and increase their awareness of safe driving, while at the same time giving each individual
pride in their work and a sense of social responsibility. The seventh national tournament was held in FY2020 with a view tofurther improve shipping quality.
In addition, Logistics Network began a full-fledged initiative in FY2015 for using pallets in its main shipping operations andestablishing services with fixed arrival and departure times. The downtime at bases and time spent loading were vastly
reduced, which led to an improvement in the work environment of long-haul drivers. In addition, the fact that vehicles
were idle for less time led to their having less of an environmental impact.

Driver contest

Safe Workplaces, Better Service
Nichirei Logistics Group sets themes four times a year designed to prioritize safety and quality at warehouses. Accident
prevention activities are conducted under these themes at all domestic facilities (114 locations).

130

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

Bilingual poster in Japanese and Vietnamese

Holding Japanese language speech contests

Health Supervisor
ESG Data Collection Health Manager

131

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

Human Resources Are Critical to Our Sustainability Policy

They are key to helping us support good eating habits and health, which will lead to a more sustainable society
Through diversity and motivation, they boost the Group’s development
Their strategies, linked to those of management, underpin the social value of our human resources and promote
behavioral changeGroup Human Resources Policy(The Kind of Human Resources We Need and the Organization That We Aim to Be)

Encourage empathy; usebusiness to resolve social issues

Develop proactive human resources by aligning employee aspirations with theGroup’s targeted social impact, based on the idea that food connects people

Generate value by linking
knowledge, digital technologies

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

Cultivate a safe, secure
corporate culture to tackle
challenges

Communicate work-related ideas, develop mutual trust, and cultivate a corporate
culture that can tackle challenges without fear of failureGroup Human Resources Policy​132

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

Management System
Management System
Each Group company promotes efforts adapted for its individual businesses, however, the Group has also established theGroup-wide Group Human Assets Committee and Diversity Promotion Conference and shares information about andconfirms the progress with each company’s measures to continually enhance workplaces through these two councils.
The Group Human Resources Committee and Diversity Promotion Council are organized across the Group, and the above
two meeting bodies share information and confirm progress on measures to improve work satisfaction, which are being
promoted by each company.​​133

Initiatives
Cultivating Human Resources
Development of Education for Digital Transformation (DX)

Medium-term Business Plan Compass Rose 2024, which began in FY2023, promotes the use of data and technology within
the Nichirei Group as a high-priority human resource development measure. We continue to provide educational
opportunities in line with this aim.
As global digitalization continues to accelerate, the use of data and technology will increasingly be needed to help resolve
issues for consumers, business partners and society. That is why we believe that being prepared will enhance the Nichirei
Group’s competitiveness.
Specifically, in the final year of Compass Rose 2024 we aim to appoint a Digital Leader at each department of our main
companies in Japan to promote the use of data and technology. The DX program will be implemented in tiers, from DX
Bronze (the basic course for acquiring essential digital literacy) to DX Silver and DX Gold. Of the three, the DX Bronze
course is being rolled out for all employees (approximately 3,500 people) at our main companies in Japan. We expect all
employees to complete the DX Bronze program by FY2024.
Promoting DX is a vital business transformation initiative for realizing the Nichirei Group’s vision. We will work as one tomove that transformation forward.

● Development of Education for DX

134

■Level-based training plan(Holding company)
Training plan

Objective

TargetExecutive Coaching

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

Executive officers

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

General managers,
department
managers

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

Managerial staff

Evaluator Training

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

New attendees(such as recent
graduates, careerhires, transferred
employees)

Facilitation Training

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

All employees

Training for Newly
Appointed Managers

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

Newly appointed
managers

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

New hires,
employees in theirsecond and thirdyears ofemployment

Next-generation
Management Team
Development Program

Leader Training

First Career Training

New Employee Training

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

Nichirei Group Main education and training

Nichirei Group Education time and number of participants

135

New hires,
employees in theirsecond and thirdyears ofemployment

Improving Work Satisfaction
Promoting the Advancement of Female Employees

At Nichirei Foods, we launched an internal project to promote the advancement of female employees. We send out video
messages, and conduct surveys in order to gain an accurate grasp of the current situation. We also hold “Women’s Agura”
roundtable discussions with female executives. We held these discussions 23 times in FY2022, with 94 employees taking
part. The sessions gave participants an opportunity to consider their future careers and helped them to create acommunication network for sharing concerns with peers and supporting each other. These activities have created afoundation for enabling female employees to take on various challenges. By continuing to promote the project, we will
support the career aspirations of female employees and help improve work satisfaction for all employees, regardless ofgender.

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

Sakaseru Roji-Jo Forum

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

Employment Rate of People with Disabilities
136

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

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

137Offering Employees Workplace Transfer Options
Nichirei Foods Inc. revised its personnel system during FY2016 and FY2017, in order to specify which employees are notsubject to job transfers. Those who are unable to move to a distant location due to marriage, childcare, nursing, injury or
sickness, or other personal reasons, or those who have worked more than a set amount of time, can remain at their
desired workplace based on their individual career objectives regardless of reason, and can themselves decide whether
they are eligible to be transferred. The revisions were instituted out of respect for the diverse circumstances andpreferences of Nichirei Foods employees, and to create workplaces in which all members are motivated to work.

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

Lecture on frozen foods during a virtual factory tour

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

Return-to-work rates from childcare leave and male employees taking
childcare leave
Promoting Male Employees to Take Childcare Leave​

The Nichirei Group's childcare leave system originally exceeded the statutory requirements, but as a result of the revisionof the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other
Family Members, the system has been further enhanced and employees now have more options for taking childcare leave.
The Nichirei Group has taken this opportunity through labor-management discussions to set a target value for leave andleave for childcare of "100% of male employees taking 3 or more days" as a means of expanding opportunities for women
to play an active role in the workplace by encouraging men to participate in childrearing, consequently aiming to achieve awork-life balance for both men and women during their childrearing years.​

Employees Using Time Off for Childrearing138

Gender Discrepancies in Salary
The Group decides salary based on position and job description and does not set differences based on gender. In addition,
gender does not play a role in deciding promotions or salary increases.

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

Labor union activities and labor-management cooperation

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

Number of employees hired (new graduates and career)

Percentage of non-company Employees

Diverse Styles of Working（Provide working condition options）
In-House Childcare Facility

In April 2018, Nichirei opened an in-house daycare center at its Head Office, located in the Tsukiji district of Tokyo’s Chuo
Ward. This is one of the Group’s workstyle reforms, designed to enable the early return to work by those employees raisingchildren and to support a work–life balance.
In an effort to assist members of the community, by helping alleviate the problem of long waiting lists at childcare facilities,
we are also accepting a fixed number of local children at the daycare center.

Daycare children visit the workplace

Volunteer Leave System

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

Number of employees taking time off in order to volunteer

139

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

Provide working condition
options

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

Set up systems to prevent
disruption of employee
careers

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

Prevent excessive working hours

Ensure Equal
Opportunity

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

Promote theadvancement of female
employees

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

Provide stimulating
employment
opportunities for people
with disabilities

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

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

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

The Diversity Promotion Conference, under the Group Human Assets Committee, meets with labor andmanagement twice a year to monitor measures undertaken at each Group company in relation to humanrights, job satisfaction, the workstyle of each employee, support for active participation in the workforce
by women, the employment of foreigners, workstyles that differ according to life stage and age, as wellas the employment of and collaboration with, the disabled.
The president of each Nichirei Group operating company is responsible for building systems that develop

Human Assets
Development

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

140

■Workstyle Reforms: Main Measures and Activity Progress (FY2019–FY2021)
PolicyIdeal State
Employees
shall have acertain degreeof freedom tochoose theirworkplace andworking
hours, to suitpersonal
circumstances.
Systems tomaintain these
conditions areto be put inplace.

Priority
MeasureProvideworking
condition
options

Main Activity
FY2019FY2020New in-housechildcarefacility Opened

Full-scale
introduction of
teleworkin the Tokyo
head officebuilding in April
2018

All worksites
except foodfactories andlogistics offices

Introduction of
comebacksystemPurpose:Ongoing career
EnableDiverseStyles ofWorking

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

Implementationof careerdevelopment

Set upsystems toprevent
disruption of
employee
careers

programs for
women
Women’s
success event“Next Step for
2021”
Target: 163
peopleNursing careseminarConducted fourtimes, 115participants

support for life
events andgrowthLeave system
due to spousetransfer
Purpose:Examination
andintroduction ofmulti-careerformation incollaboration
with othercompanies
Nursing careseminars andnursing carehandbookcreation
Conducted fourtimes, 103participants

Prevent
Excessive
Working
Hours

Throughcollaborativelabor andmanagement
initiatives forworkplace
improvement,
working hours
shall belimited tolevels that

Promotion of
paid leave100%

Introduced new

introduction of
new working
hours
management

expensesettlement
systemsystemGuidance onlong working
hours throughintroduction of141

Introduced
planned fiveday annual
leave system
Implemented
e-learning:

FY2021

FY2022Introduction ofsuper flextime

Expansion ofSatellite Offices inthe Logistics
Group

work system
Core timeeliminatedexcept at somework sites suchas factories anddistribution
centers

SateCo Osaka
Umeda(opened in
February 2022)
SateCoYokohama(opened in
March 2022)

Expansion ofchildcare andnursing careleave
・Leave can betaken in hourly
units・Half days andwhole days canbe converted
and taken as
accumulated
annual paidleave
Nursing careseminars (heldonline)Conducted on
November 18
and 26 (60minutes each),
60 total
participants
Information(provided on
intranet) on

Care-giving
Seminar (heldonline)31 participants
Support forbalancing workand medical
treatment,
reviewing theflow ofmeasures for
returning towork andreinstatementin theworkplace, andstrengthening
theoccupational
health staff
systemsupport forbalancingnursing carewith work
Set quantitative Continued
target (average implementationof overwork
annual paid
measuresleave use of at
through laborleast 10 days
management
across thecooperation
Group), andAverage paid
encouraged
leave rate:
employees to
68.3%
take annual
leavePolicy

Ideal State

Priority
Measureallow each
employee todemonstrate
their ability
and perform
satisfying
work in good
health.

Main Activity
FY2019FY2020

FY2021a working time
management

Revised labor
laws, working-Ongoing
implementation

systemhour awarenessTarget:Employees;of measuresagainstoverwork

5,101
participants

through labormanagement
collaboration

Implementationof measuresagainstoverworkthrough labormanagement
collaboration
Nichirei Groupworking hours
guidelines
formulated
through labor-

Implementationof measuresagainstoverworkthrough labormanagement
collaboration

FY2022

Implementationof human
resource
management
education via
e-learning

management
collaboration
EnsureIn providing
Equal
employees
Opportunity with equal
opportunities
and education,
we support
theirdevelopment
into a valuable
force for the
Nichirei Group.

Logistics

Foods:
Implementation

Group: 5th and6th “Sakaseru
Roji-Jo Forum”
Target: Femaleof a joint
program by six"LADY GO UP"
food

employees;
129
participants(404
participants intotal) Theme:
Work values
and workplace
for women
Promote theadvancementof female
employees

Nichirei Foods:
LADY, GO
UP!Target:
Femaleemployees at 6
food
manufacturing
companies (8female Nichirei
Foods
employees
participated)
Summary:
Seminar forbuilding
external
networks andcareerdevelopment

Logistics
Group: 7th and8th “Sakaseru
Roji-Jo Forum”
Target: Female
employees;
118
participants(522
participants intotal)
Nichirei Foods:
LADY, GO
UP!Target:
Femaleemployees at 6
food
manufacturing
companies (8female Nichirei
Foods
employees
participated)
Summary:
Seminar forbuilding
external
networks

Nichirei Foods:
LADY, GO
UP!Target:
Femaleemployees at 6
food
manufacturing
companies (8female Nichirei
Foods
employees
participated)
Summary:

manufacturers
Foods:
Implementationof a program topromote theadvancementof female
employees(Networking
Agura (roundtable meeting))
Logistics
Group:

Lecture byexternal female
officer andseminar for

Implementationof training forfemale line
managersbuilding
external
networks andcareeraccompanied
by supervisors.
(Expected
effects)

development

Expansion of
job areas
Setting theideal image
and stepping
forward
Networking

Diversity andinclusion

Nichirei Foods:
Diversity Forum
DeepenNichirei Foods:
Diversity Forum
DeepenNichirei Foods:
Diversity Forum・Lecture held

understanding

understanding(February 25,

142

Foods:
Implementationof the diversity

Policy

Ideal State

Priority
MeasureMain Activity
FY2019FY2020

FY2021of various work
styles centeredof various work
styles centered2021)
・Target:forum "SPIRAL
UP”

on department
and section
managers at

on department
and section
managers at

Officers (8participants)
and employees

Logistics
Group:
Appointed

each of 6 food
manufacturing
companies. 35
Nichirei Foods

each of 6 food
manufacturing
companies. 60
Nichirei Foods(approx. 140
participants)

diversity
officers at eachregional
company

employees (26men, 9
women)

employees (46men, 14
women)

Nichirei Foods:
Meeting ofgeneralGroup:
Disseminatedand shared
information on

・Meeting ofgeneralmanagers ofplanning

diversity andinclusion
activities
through thedepartmentsfrom 6 food
manufacturing

intranet (MIRU
mind)

managers, 14
employees
fromsecretariat (21people from 6
companies)
Nichirei Foods:
10th year of Jwin
・Femaleleaders training
programorganized by
non-profit
organization
J-win (one-year
program)

Providestimulating
employment
opportunities
for people
withdisabilities

Logistics

managers from
6 foodmanufacturing
companies

companies
・2 executive
officers, 5
generalJob positions
andemployment
opportunities
for people
withdisabilities
shall becreated toenable themto earn aliving throughFY2022

Logistics
Group:
Implemented
Unconscious
Bias e-Learning* Totalnumber of
executives
andpositions:
450 / Total
number ofgeneralemployees:
1,340
Logistics
Group:
Unconscious
Bias
Organization
Analysis (12domestic
companies)

Disabled

Disabled

Disabled

Ratio ofemployment
rate: 2.56%(104 people
with disabilities

employment
rate: 2.75%(101 people
with disabilities

employment
rate: 2.80%(101 people
with disabilities

employees withdisabilities:
2.80%(Number of

employed)

employed)

employed)

employees withdisabilities:
101)

143

Policy

Ideal State

Priority
MeasureMain Activity
FY2019FY2020

FY2021

FY2022stimulating
work, with avision toultimately
eliminate thedistinction
betweenpeople with orwithout
disabilities insociety.
As the healthy
life span ofpeoplebecomeslonger, we will
createworkplaces
that
enable seniors
to leverage
theirdistinctive
experienceand play anactive role
reflecting theirindividual
values andworkstyles.

Createemployment
opportunities
for olderpeopleNumber of
employees
59 employees
rehired after
retirement (64retirees)

57 employees
rehired after
retirement (65retirees)

51 employees
rehired after
retirement (59retirees)rehired after
retirement: 27(Number of
employees who
retired after
retirement: 33)

144

Health Management
Basic Philosophy
Basic Philosophy
Since 2015, the Nichirei Group has been promoting initiatives based on the concept that the health and wellbeing of
employees is fundamental to increasing their work satisfaction. The maintenance and improvement of employee health has
been set as a management issue, and the Nichirei Health Promotion Center plays a key role in our efforts.

Basic Policy

1. We will promote the creation of a workplace that has a lively cooperation between labor and management, based on
the ideal that states that good work has its basis in a healthy mind and body.
2. Each of our employees will work hard to increase his/her health awareness, and will take an active role in creating awork environment that promotes good health.
3. We will strive for health management based on the three pillars of “health maintenance and improvement,” “mental
health measures,” and “safety and hygiene control.”Management System
Management System
In FY2016, the Health Promotion Group was established in Human Resources Strategy & General Affairs as the section
dedicated to health management. In FY2017, the Group formulated the Nichirei Group Health Declaration and Group HealthManagement Standards. In addition to publicizing this declaration both internally and externally, the Group has appointed aholding company health promotion manager as well as operating company health promotion managers andrepresentatives. In April 2018, the Health Promotion Group was reorganized into the Nichirei Health Promotion Center toensure that the entire Group is thoroughly informed of the policy and to promote measures promptly.
We emphasize the analysis of health check results as a risk assessment measure for health and safety. The contents of theanalysis are described in the “health white paper” and published internally. In addition, they are used as a reference in
conducting health-related education and initiatives in line with trends in employee health conditions, as well as forproviding healthier meals at employee cafeterias.

145

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

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

146

Initiatives
Health Management Initiatives
Health Management Initiatives

Recognizing the health of employees as an important management issue for a company seeking sustainable growth,
Nichirei set up the Health Promotion Group in FY2016. This is a dedicated health management section within Human
Resources Strategy & General Affairs. In April 2018, the Health Promotion Group was reorganized as a "Health Promotion
Center" to ensure that the entire Group is thoroughly aware of the policy and to promote measures promptly. In regular
medical check-ups, x-ray examinations are conducted for the early detection of tuberculosis, and we are also working on
issues related to tuberculosis. Various types of cancer examinations are added, and thorough follow-up measures are takenby the occupational health staff. We are also implementing various health promotion measures, including conducting healthawareness activities and stress checks during the medical check-ups, and hands-on health-related support events for
employees that utilize Nichirei Foods’ Kikubari Gozen frozen health management meals. For our small offices andemployees overseas, we conduct remote interviews using information and communication technology systems. As a resultof these efforts, the Nichirei Group was recognized for the sixth consecutive year by the Ministry of Economy, Trade andIndustry (METI) under "the Certified Health and Productivity Management Organization Recognition Program under thelarge enterprise category (White 500)"(Only available in Japanese).

List of Certifications

Improve health literacy​

ーHealth-related EventsーTo provide employees with specific health promotion opportunities and help them avoid lifestyle-related diseases, we havebeen holding hands-on health-related programs regularly since FY2017. With the important issues of "blood pressure,""blood glucose," and "lipids" as themes, the pathophysiology, diet, and exercise sections are explained by specialists ineach section, and there are also hands-on learning activities such as flexibility tests and quizzes, allowing the learners todeepen their understanding while having fun. Special seminars on various topics such as "Dietary Seminar for Shift andLate Night Work," "Sleep," and "Mental Health" were also held to promote health and improve productivity. In
questionnaires, more than 92% of participants at each seminar responded that the event was "beneficial." Due to the
COVID-19 pandemic, we switched to an online format in FY2021, and since FY2022, we have been holding monthly
sessions so that more employees can participate. 3,791 employees participated in total by the end of FY2022.
Furthermore, in order to contribute to "promoting good health throughout society," including our stakeholders, we arewidely inviting employees' families and business partners to participate in the health-related events, "Nichirei Kenko Juku,"
with the aim of promoting efforts to address health issues beyond the Group's framework.

In-house mental health seminars

147

​

Health White Paper (Only available in Japanese)

Health Management Guidebook (Only available in Japanese)148

Enhancing our occupational health system​
With the goal of "providing the same level of health support services to workplaces nationwide," health nurses visit our
workplaces. We provide post-health checkup interviews, check on safety management in the workplace, and offer otherconsultations related to the health of workers, such as mental health and infectious diseases. In addition to face-to-facemeetings and consultations, we also offer online consultations. Public health nurses have been assigned to each area inJapan since FY2021, and the number will be increased sequentially through FY2028.

Promoting mental healthHaving started with stress checks, we now implement a fully integrated mental health strategy. In addition to helping
employees with mental health concerns, we promote good mental health via self-care and line care* and work to revitalize
workplace communication. We also offer e-learning courses about self-care and line care, and hold webinars 10 times a
year, with over 400 employees taking part.
* Line care: A system in which managers/supervisors are attentive to changes in employees, provide opportunities for
consultation, and work to make the workplace environment better.

149

Ensuring health management and follow-up measures​
Since FY2019, we have achieved a 100% annual health check rate for our employees, even during the COVID-19
pandemic. After health checks, we send out automatic e-mails to those who need medical care, and conduct interviews
with industrial physicians based on the industrial physician's judgment, as well as thorough follow-ups by public healthnurses until the end of the fiscal year.

Countermeasures against COVID-19

We are building a support system for preventing COVID-19 infections and handling confirmed cases. Occupational healthstaff at the Health Promotion Center work with the Group Countermeasures Headquarters, the Nichirei Health Insurance
Association and the Nichirei Labor Union.​

Flowchart of countermeasures for COVID-19

150

Governance

GovernanceCorporate Governance

・
・
・

152

Compliance / Internal Control

・
・
・

164

Risk Management

・
・
・

170

151

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

Basic Policy on Corporate GovernanceManagement System
Management System■Corporate Governance Structure152

Corporate Governance, Integrated Report 2022

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

10 directors (4 outside directors)

Number ofmeetings in
FY202219

Description ofoperations

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

153

■Overview of Audit & Supervisory Board
Composition

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

Number ofmeetings in
FY2021

16

Description ofoperations

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

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

Role

Chairperson

Frequency

Nominating
Advisory
Committee

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

Kuniko Shoji
OutsideDirector

6

Remuneration
Advisory
Committee

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

Kenji
Hamashima
OutsideDirector

6

Election and Term of Office of Directors
The Board of Directors comprises up to 11 members, appointed to one-year terms in order to enhance flexibility inresponse to changes in business conditions. Resolutions to appoint directors must be approved by a majority ofshareholders, with at least one third of those shareholders who have voting rights in attendance. To improve transparency
and strengthen supervisory functions, three of the current 10 directors are outside directors. The Board meets at least
once a month. The Board of Directors is chaired by the Representative Director and Chairman, who also serves as an
executive officer. Together, the Representative Director and Chairman and the Representative Director and President
oversee the Group’s overall execution of business.
Audit & Supervisory Board Member System and Role of Audit & Supervisory Board meetings

Nichirei has adopted the audit & supervisory board member system. Of the five audit & supervisory board members, three
are outside audit & supervisory board members, of whom one has experience at a financial institution, another is anexperienced attorney, and the third has worked at a government agency. Audit & Supervisory Board meets once a month,in principle, convening additional meetings as necessary. Nichirei has established a framework to enhance the supervisory
functions of audit & supervisory board members, allowing for the effective use of audit & supervisory board members, andstrengthening the supervisory role of management.
Independent Outside Directors and Outside Audit & Supervisory Board Members

The Company adheres to its Criteria for Independence when appointing outside directors and outside audit & supervisoryboard members designated by the Company as independent directors/audit & supervisory board members. A vested
interest in Nichirei is denied outside directors and their close relatives, as well as outside audit & supervisory board
members and any companies or organizations of which they are directors or that they serve in other important positions.

Notice of the 104rd Anuual General Shareholders Meeting154

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

■Experience and Skills
Corporate
Management

ESG/
Sustainability

GlobalInnovation/
Marketing

●

●

●

●

Financial
Accounting/
Finance

Legal
Affairs/
ComplianceDirectors●●●(Logistics)●●●(Processed
foods)●●●(Marine,meat andpoultry
products)

●

●

●

●

●

●

●

●

●

●

●

●

●

●

155

●

●

Audit &
Supervisory
Board
Members

●

●

●

●

●

●

●

●

●

●

●

●

*1 Mr. Tanabe, Ms. Nabeshima, and Mr. Kato were newly appointed at the 103rd General Meeting of Shareholders
held on June 22, 2021. Their attendance reflects meetings of the Board of Directors, Nominating Advisory
Committee, Remuneration Advisory Committee or Audit & Supervisory Board held after that date.
*2 As Mr. Suzuki, Mr. Hama, Mr. Hamashima and Mr. Katabuchi were newly appointed a the 104th General
Meeting of Shareholders held on June 24, 2022, their attendance for FY2022 is not presented.

Officer Career Summaries (As of June 24, 2022)

Board of Directors Composition

Number of Meetings of Various Committees, etc., and Number of Board Members in Attendance156

Officer Remuneration System
Design of the remuneration scheme for directors and executive officers incorporates the opinions of a third-party
organization. Remuneration comprises a base remuneration component and a bonus component. Base remuneration ispaid at a fixed rate determined in accordance with a remuneration schedule. Bonuses are paid according to the concept of
productivity-linked bonuses, based on the results of the Nichirei Group, the performance-budget achievement rate of therelevant officer’s business area, and an individual qualitative assessment. Outside directors receive base remuneration only;
they are not paid a bonus. Nichirei has established a Remuneration Advisory Committee which meets, in principle, once a
year to deliberate on such topics as the remuneration system, remuneration levels, and the validity of remuneration, before
reporting its findings to the Board of Directors. The committee comprises the Representative Director and President, a
audit & supervisory board member, and outside directors. Officer remuneration is determined by the Board of Directors.
The total amount of remuneration and bonuses paid to directors must be within the limit resolved at a General Meeting of
Shareholders.
①Policies and Methods for Determining Officer Remuneration
The policy for determining individual director remuneration is for the Remuneration Advisory Committee to discuss theappropriateness of each director’s remuneration each fiscal year and for the decision to be made by the Board of Directors.
In these discussions, the Remuneration Advisory Committee reflects changes in the management environment and theopinions of shareholders and investors, and obtains information necessary for discussion from third-party agencies withextensive global knowledge and experience.
②Changes in Policies for Determining Officer Remuneration
We have decided to change the performance-linked bonus key performance indicator (KPI) in conjunction with the start ofMedium-Term Business Plan Compass Rose 2024 in FY2023. Specifically, ROIC and profit were selected to replace REP1 inorder to optimize the business portfolio and improve capital efficiency and shareholder returns. In addition, we adopted a
new way of utilizing ESG third-party assessments2 to strengthen our response to sustainability-related issues. There are noother significant changes in the policy for determining officer remuneration.

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

Reasons for Selection of KPIs

Consolidated net sales

Consolidated net sales

Expansion of size of Company

Consolidated EBITDA

Consolidated EBITDA

Improvement of ability to generate cash and profitabilityof core businesses

Consolidated profit

Improvement of shareholder returns

Consolidated ROIC

Optimization of business portfolio and improvement of
capital efficiency

ESG third-party
assessment*2

Strengthen response sustainability-related issues*1Consolidated REP―*1 Retained Economic Profit (REP) is a unique business management indicator used by the Group and is
calculated by deducting capital costs (capital used x WACC) from NOPAT.
*2 For ESG third-party assessments, we utilize the assessments of multiple ESG assessment organizations toensure objectivity and fairness. Specifically, we will utilize the following three types of assessment.
ESG Third-party Assessments
FTSE4Good Index Series
MSCI ESG Ratings
CDP Climate Change

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

157

Policies for Determining Officer Remuneration①Basic Policies
Remuneration shall strongly encourage directors to perform their duties in accordance with theGroup’s Management Principles, Sustainability Policy, The Nichirei Pledge and management
strategies.
In order to achieve long-term management goals, remuneration is set to strongly motivate
directors to achieve specific management goals with regard to the Group’s material matters andDirectors(Excluding
OutsideDirectors)

medium-term business plans.
In order for remuneration to serve as an incentive toward the Group’s sustainable growth, theratio of remuneration linked to short-term results, performance of duties, etc. (performancelinked bonuses) and remuneration linked to medium- to long-term results and corporate value(stock compensation) will be set in an appropriate manner.
Directors and executive officers shall be treated in a manner befitting their positions as officersof the Company in consideration of the significance of the Group’s social role andresponsibilities, trends at companies competing with the Group in business and humanresources, including those in the food and logistic industries, and changes in the businessenvironment.

OutsideDirectors

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

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

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

Remuneration Composition

Purpose/Description

Role-based Remuneration

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

Director Allowance

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

Performance-linked Bonuses

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

Stock Compensation(Restricted Shares)

Remuneration for encouraging management from a long-term/Group-wide perspective
and the perspective of shareholders and investors
Value of shares issued each fiscal year (“standard amount”) is set as a percentage ofrole-based compensation
Restricted shares are issued annually in an amount equal to the standard amount, andrestrictions are lifted upon a director’s retirement158

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

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

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

EBITDA

ProfitROIC

ESG(b) Business
Performance Evaluation
Net
sales

100%
10％

40％

10％

20％

20％

10％

10％

10％

5％

70％
5％

30％

5％

ROIC

-

-

30％

10％

20％

60％
10％

EBITDA

15％

10％

15％

(c) Individual
Performance
Evaluation

30％

15％

④Procedures for Determining Remuneration
In order to ensure appropriateness and objectivity in matters related to remuneration for individual directors, theRemuneration Advisory Committee, comprising mainly independent outside directors, discusses matters first and reports its
findings to the Board of Directors, which then makes its decisions.
The amount of officer remuneration for FY2022 is presented in the 104th Annual Securities Report.

Annual Securities Report > Procedures for Determining Remuneration

159

■The total amount of officer remuneration in FY2022
Classification of Officers' Total Amount ofCompensation, etc. by Type (Millions of Yen)
Basicremuneration

Performancelinked bonus

Restricted
sharescompensation

Total AmountofCompensation,
etc.
(Millions ofyen)

Directors(excluding outside
directors)

259
(159)

69
(40)

80
(80)

409
(280)

8
(8)

Outside directors

40

-

-

40

4

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

48

-

-

48

3

Outside Audit &Supervisory Board
members

32

-

-

32

3

Total

380
(280)

69
(40)

80
(80)

529
(401)

18
(18)

Classification of
Officers

Number of
eligible
persons
Number of
officers(persons)*1 The above includes one director and one Audit & Supervisory Board Member who retired at the conclusion of
the 103rd Annual General Shareholders Meeting held on June 22, 2021, and one director who resigned on
January 17, 2022.
*2 The total amount of remuneration, etc. above is stated as consolidated remuneration, etc. (total amount ofexpenses, etc. paid or to be paid or borne by the Company and its subsidiaries). For directors (excluding
outside directors), the amount in parentheses is the total amount of remuneration, etc. paid or to be paid by
the Company. With respect to outside directors and Supervisory Board Members, the total amount of theconsolidated remuneration, etc. is the total amount of remuneration, etc. to be borne by the Company. For the
total, the amount in parentheses is the total amount of remuneration, etc. to be borne by the Company.
*3 The amount of "basic remuneration" above is the total amount of remuneration, etc. paid in FY2022 (allmonetary remuneration).
*4 The above "performance-linked bonuses" amount is the amount expected to be paid in June 2022 based on
the results of business performance, etc. in FY2022 (all monetary compensation).
*5 The amount of "Restricted Shares Compensation" above is the total amount expensed in FY2022. In FY2022,
the Company granted monetary compensation claims to seven directors (excluding outside directors) and had
all such claims contributed in kind to the Company, resulting in the delivery of 27,770 shares of common stockof the Company as stock compensation. The delivery of such shares is subject to the condition that they do
not transfer their positions as officers of the Company until they retire from the Company.
* The Company has introduced a restricted shares compensation plan similar to that for directors for executive
officers who do not concurrently serve as directors, and in FY2022, 9,748 shares of the Company's common
stock were issued to four executive officers.
*6 The maximum remuneration amounts, etc. for directors and Audit & Supervisory Board Members approved at
the General Shareholders Meeting are as follows.

160

Classificationof Officers

Date ofresolution of theGeneral Meetingof Shareholders

Basic
remuneration

Performancelinked bonus

Restricted shares

Number of
officers

Director

June 25, 2019(101st Annual
GeneralShareholders
Meeting)

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

Up to 130
million yen

Up to
100
millionyen

Up to70,000shares10(including
OutsideDirectors: 3)

Audit &
Supervisory
Board
Members

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

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

Annual Securities Report 2022 > Total Amount of Officer Remuneration in FY2022

Amount of Remuneration, etc. for Directors and Audit & Supervisory Board Members Notice of the104th Annual General Shareholders Meeting P33

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

Evaluation
Procedure

Subjects: Directors and Audit & Supervisory Board members (15 individuals in total)
Period: January–February 2022
Method: Self-assessment involving questionnaires conducted by third-party experts

Evaluation Resultsfor FY2022

Although some of the methods of management by Nichirei’s Board of Directors changed due to
COVID-19 as in the previous fiscal year, discussions were free and lively and the atmosphereconducive to speaking up. Moreover, there were many positive opinions to the effect that the
Nichirei Board of Directors has achieved a considerable degree of overall effectiveness,reflecting efforts such as further improving the content and timing of materials in order toenhance discussions.

161

■Issues to Be Addressed
Issues Identified

Evaluation and Opinion

Future Approach

1.Institutional
DesignThe current institutional design of a company
with Audit & Supervisory Board system wasdeemed appropriate, and many respondents
were of the opinion that there was no need totransition to a different institutional design.
However, several respondents said that it isnecessary to clarify the pros and cons of thecurrent design and examine it again, and to
consider transitioning to another institutional
design, taking into account changes in thebusiness environment going forward.

Although we do not consider a change in theinstitutional design to be necessary at thistime, the Nominating Advisory Committee
confirmed at its meeting held in May 2022
that it will continue to address the issue ofthe effectiveness of the current institutional
design of a company with an Audit &Supervisory Board system. The committee
considers it a medium- to long-term issue
and will look at it in light of management
strategies, changes in the businessenvironment going forward and Corporate
Governance Code requirements. The
Nominating Advisory Committee will continue
to hold concrete and lively discussions,
including comparing the company with an
Audit & Supervisory Board system with otherinstitutional designs, and will report anddeliberate on these issues at Board of
Directors meetings as appropriate.

2.Agenda Items for
the Board of
Directors

While many respondents were of the opinion
that agenda items for meetings of the Boardof Directors were appropriate, there was also
concern that meetings are becoming longer
due to the large number of agenda items andthe time required to deliberate on each one.
Some were also of the opinion that theagenda items could be reevaluated (further
narrowed down). In addition, several
respondents mentioned that one of the rolesof the Board of Directors is to set thedirection of medium- to long-term
management strategies.

In order to prevent lengthy meetings and toensure sufficient time for the deliberation ofimportant agenda items, such as setting thegeneral direction of corporate strategy, which
is listed as one of the roles andresponsibilities of the Board of Directors in
the Corporate Governance Code, we decided
to create an annual agenda schedule andreorganize the current agenda items. We alsodecided to review the agenda items andconsider issues related to institutional design
mentioned above.

The size and composition of the Board of
Directors was evaluated positively as a whole.
However, many respondents expressed theneed for more female directors (especiallyfemale inside directors). In addition, some
expressed a desire for an academic expert tojoin the board as an outside director, andseveral others wanted a person with expertisein DX.

Through the development of a skill matrix,
the Company identifies the skills and otherattributes that the Board of Directors should
possess in light of management strategies
and discloses them in the Corporate
Governance Report. In addition, for “securing
and developing a diverse array of humanresources,” which is one of the material
matters identified as necessary for achieving
our long-term management goals (vision for2030), we have set achieving a ratio of
female line managers at Nichirei Corporationof 30% as a KPI and are working toward that
goal. Increasing the number of female
managers will link with efforts to appoint
female inside directors and ensure diversity ofthe board. We will continue to review the sizeand composition of the Board of Directors andrevise the skill matrix as appropriate in
response to changes in management
strategies and the business environment.

While many respondents gave a positive
assessment of training opportunities(provision of basic training, etc.) designed tohelp them fulfill their roles on the Board of

In addition to identifying the knowledge
required due to a changing external
environment, we will continue to consider
ways in which we can provide opportunities

3.Size andComposition of theBoard of Directors

4.Training for
Officers

162

Issues Identified

Evaluation and Opinion

Future Approach

Directors, some commented that training andknowledge acquisition opportunities were notalways adequate during FY2022. Several
respondents expressed the desire for more
opportunities for knowledge acquisition andlearning in order to keep pace with the rapidlychanging external environment.

for the acquisition and study of suchknowledge. For example, we have organized
study sessions by outside experts onsustainability management, a material matter,
and will conduct five sessions in 2022.

Nichirei Integrated Report 2021＞Evaluations of Effectiveness

Nichirei Integrated Report 2022＞Evaluations of Effectiveness

Efforts to Ensure Meaningful Discussions
Nichirei distributes materials for use at Board of Directors meetings to each director and Audit & Supervisory Board
member at least three days in advance of meetings in order to ensure meaningful discussions.
When internal communication and coordination are required to accurately provide Company information in response to
instructions from independent outside directors or independent outside Audit & Supervisory Board members, the secretaryin charge acts as the contact point in order to ensure necessary coordination with relevant departments.
Newly appointed directors and Audit & Supervisory Board members are given training as necessary on the Companies Act
and other related laws, management strategy, ﬁnancial analysis and other such matters. Additional training on legislative
revisions and management issues is provided as necessary after new members assume ofﬁce. Moreover, explanations of
the Group’s businesses and tours of the major facilities are provided to outside ofﬁcers as necessary.
Approach to Cross-Shareholdings

Cross-shareholdings are only utilized when it is determined that they will contribute to improvement of the Company’s
corporate value; for example by maintaining and strengthening trade and cooperative relationships. In addition, every year,
the Board of Directors reviews the economic rationale of individual shareholdings of this type from a medium- to long-term
perspective. If the importance of a particular shareholding is determined to have diminished, the shares are sold. In
conducting such reviews, the Board of Directors carefully examines and makes a comprehensive judgment on whether the
benefits, such as profits from transactions, and dividends or risks are commensurate with the cost of capital, followed byconsideration of a qualitative evaluation of the strategic importance of the shareholding. In regard to the exercise of voting
rights for cross-shareholdings, the Company will review all the details of the relevant proposal in the investee company’s
shareholders meeting agenda, and if any of the following apply to the investee company, the Company will make a decision
after carefully examination on a case-by-case basis:（１）The investee has engaged in acts that will lead to a loss of shareholder value（２）The investee’s performance or stock price has deteriorated significantly（３）There are other serious doubts with respect to agreeing to the proposal

163

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

Internal Controls Basic Policy

Latest Internal Control Report

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

164

Nichirei Group Code of Conduct (Table of Contents)
1. Compliance with Laws and Regulations Concerning Respect for Human Rights and Labor
2. Environmental Protection
3. Compliance with Laws and Regulations and Internal Regulations
4. Management and Preservation of the Company’s Property
5. Prohibition on Personal Use of the Company’s Property
6. Prohibition on Insider Trading
7. Ensure the Reliability of Financial I nformation
8. Management and Use of Information
9. Prohibition of Personal Acts Conflicting with the Company’s Interests
10. Prohibition on Unfair Benefits Given to/Received from Public Officers or Business Partners
11. Prohibition on Involvement/Trade with Antisocial Forces
12. Compliance with/Reporting of and Consultation on Code of Conduct

Corporate Governance Report (Only available in Japanese)

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

165

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

Nichirei Hotline card

Number of Whistleblowing Cases, by Type166

Initiatives
Educating Employees about the Code of Conduct to Ensure Compliance
The Nichirei Group aims to continue to operate and develop as a company that is widely trusted and favorably received bysociety due to the high ethical standards of its officers and employees. In order to foster a sense of ethics in each andevery officer and employee, the Code of Conduct (in addition to the Management Principles and The Nichirei Pledge) is
included at the beginning of the employee handbook, so that officers and employees can refer to it anytime, anywhere as abasis for their actions.
In addition, we have created a monthly series of slideshow-style materials designed to help employees understand casestudies related to the code of conduct, and post them on the Group’s intranet.
The Nichirei Group is committed to continue providing compliance training, including offering e-learning sessions to educate
and train employees, based on its in-house educational rules.

Presentation materials related to the Code of Conduct

e-learning167

Establishment of the Nichirei Group Global Governance Basic Rules
In 2021, we established the Nichirei Group Global Governance Basic Rules, which are based on existing policies and rules
and have been reorganized for overseas subsidiaries to make them easier to understand. Laws and cultures differ in Japanand overseas, and companies acquired through M&As have their own corporate climates built up over time. These rules
therefore only incorporate the most important concepts for Nichirei, while respecting the autonomy of each company. The
rules are available in five languages (Japanese, English, Chinese, Vietnamese and Portuguese), and are gradually being
applied, disseminated and implemented. Through these efforts, we will strengthen the governance of overseas subsidiaries
in order to achieve our vision for 2030 of an overseas sales ratio of 30%.

Awareness-raising Activities for Anti-corruption and the Prohibition of Bribery, etc.
The Nichirei Group has established the Bribery and Corruption Prevention Standards and the Bribery and Corruption
Prevention Manual. They clarify the basic matters that all officers and employees must follow to prevent bribery of public
officials and others. In addition to Japanese laws and regulations, the documents provide an overview of laws andregulations in major countries such as the United States, the United Kingdom, and China, and present specific matters that
require caution in a Q&A format.
For overseas subsidiaries, the Nichirei Group Global Governance Basic Rules stipulate the prohibition of bribery, and we areraising awareness of applicable laws and regulations of each country and the bribery and corruption standards among
employees.

168

Bribery or Other Acts of Corruption
During FY2021, no employees were penalized for bribery or other acts of corruption. Moreover, no payments were madefor fines relating to bribery or other acts of corruption.

Anti-corruption and Bribery

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

Personal Information Protection Leaks, etc.

169

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

Risk Management

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

Educating Employees about the Code of Conduct to Ensure Compliance170Important Risks and Countermeasures of the Nichirei GroupCountermeasures and Initiatives

Management
SystemOverseas markets: Rise of different

Promotion of innovation and creation

Strategic

needs in each region underpinned
by factors including economic
growthof new value to solve social issues

management

Close monitoring and minimizationof impact on business activities

Strategic
management

Risk Category

Risks
Market in Japan: Long-term

1.Economic
conditions andbusiness
environment

contraction of total demand due todeclining population/new demand
due to changes in householdcomposition and lifestyles

Growing expectations and demands
for the achievement of asustainable society

2.Situation in
UkraineImpact on financial markets
Rising energy prices and impact on
supply chain

Implementation of various infectious

Further global economic stagnationand supply chain disruptions
Interruption of business activities

3.Impact of
COVID-19

due to an outbreak within the
Group
Labor shortages due to restrictions
on cross-border movement ofworkers

6.Information
securityGroup Risk
Management

Creation of new businessCommittee

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

contamination with foreignmaterials, and specified livestock
infectious diseases

Group
Quality
Assurance
Committee

allocation of personnel

Securing and developing thenecessary human resources

Improvement of workplaceenvironment and productivity

Responding to labor shortages due

Promotion of health management

to Japan’s declining birthrate andaging population

Investment in human capital
Establishment of firewalls andintrusion detection andauthentication systems

System outages, leakage or
falsification of important
information due to operational
problems or cyberattacks inEstablishment of internal rules andregulations, e-learning and othersystems used for business purposes

7.Pricefluctuations of

Promotion of automation that uses
advanced technologies

Introduction of a food safety

Occurrence of large-scale productrecalls

5.Securing anddeveloping
diverse humanresources

Strategic
management

opportunities in line with changes inpeople’s lifestyles and values

Food quality problems, such as notmeeting sanitation and pesticideand animal drug residue standards,

4.Food quality
issuesdisease control measures that place
the highest priority on employee
health and safety

Group
Human
Resources
Committee

Group Risk
Management
Committee

training for employees, and an
information management structure

Significant fluctuations in raw
material prices (including meat,

Cost reduction through productivity
improvements
171

Strategic
management

Risk Categorycommodities
and raw
materials

Risks

Countermeasures and Initiatives

poultry and marine products) due
to market conditions and yields

Development of products withenhanced value and expansion ofManagement
Systemdistinctive products
Procurement and sales balancedwith supply and demand

8.Fluctuations incrude oil prices,
etc.

9.Impact of
exchange rate
fluctuations

10.Changes inlaws andregulations, etc.

Increase in electricity, diesel oil,heavy oil and other fuelprocurement costs due to soaring
crude oil prices; increase inprocurement costs of commodities
and raw materials
Fluctuations in currencies including
the U.S. dollar, Thai baht and eurothat impact procurement prices ofcommodities and raw materials, aswell as the impact of currencytranslation on the results ofoverseas subsidiaries

Changes in laws, regulations andStrategic
management

Use of forward exchange contracts,
etc.

Strategic
management

Monitoring of trends in laws andregulations in each country andStrategic

region, and thorough compliancewith such laws and regulations

soft laws in Japan and overseas

Growing social demands forconsideration of human rights andthe workplace environment in the
supply chain, management of

11.Sustainablefood
procurement

Cost reductions through theintroduction of new technologies andimprovement of operations

management

Development of a Sustainable
Procurement Policy, Supplier Code of
Conduct and Guidelines, andimplementation of ESG

natural marine resources, reductionof food loss, and resolution of themarine plastic problem, as well aschanges in and establishment oflaws, regulations and soft laws

questionnaires for business partners

GroupHandling of MSC/ASC-certified
marine products

Sustainability
Committee

Implementation of initiatives related
to the procurement of sustainablepalm oil and conducting of a

Difficulty in ensuring stableprocurement of raw materials andother resources or damage to social
credibility due to inadequate efforts

sustainable-cycle poultry businessor those deemed insufficientSocial demand for reduction of

12.Climatechangegreenhouse gas emissions, andstrengthening of regulations suchas the imposition of a carbon tax
and other policies (our fundamental

Switching from fluorocarbon tonatural coolants, use of renewableenergy sources through installation

technologies are for freezing andrefrigeration, and we consume
energy, mainly electricity)of solar power generation equipment
and the purchase of green power
certificates

Impact of rising temperatures andOngoing climate change impact

extreme weather associated with
global warming on supply chains,
including raw material
procurement, production andassessment and information
disclosure in accordance with TCFD
recommendations

logistics

172

Group
Sustainability
Committee

Risk Category

Risks

Countermeasures and Initiatives
Seismic retrofitting work;

Extensive damage to roads, ports
and railroads at or near the Group’s
13.Large-scale
naturaldisasters

deployment of emergency
generators; establishment of an
employee safety confirmation
system, disaster prevention manuals

sites, market contraction, supply
chain disruptions, or restrictions on
business activities due to factors
such as a massive earthquake or

and business continuity plans(BCPs); and use of multiple data
centers

localized rain storms

14.Technologicalinnovation

Management
SystemGroup Risk
Management
Committee

Decline in competitiveness of theGroup’s technologies and products
and services due to technological

Reform of business processes andpromotion of innovation through theuse of digital technologies and data

Strategic

innovations, including rapid
progress in digital technologies andfood tech

Implementation of an innovation

management

management system based on ISO
56002

Impairment loss due todeterioration of conditions at
logistics centers caused by

15.Holding of
fixed assets

relocation of shipping companies
and changes in road transportation
networks

Clarification of items forconsideration when preparing

Impairment loss due to aging andobsolescence of equipment at
production plants or poor sales

Strategic

investment plans, and the rules forpost-investment verification

management

Approach to CrossShareholdings

Yearly reportto the Boardof Directors

Impairment and write-down of
goodwill and investment securities
due to deviation from the businessplan at the time of investment

16.Crossshareholdings

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

173

Initiatives
Business Continuity Plan Initiatives
Employee Safety

Group Countermeasures Headquarters in Response to COVID-19
In January 2020, the Nichirei Group Countermeasures Headquarters, headed by the president, was established to respondto COVID-19. In addition to collecting, analyzing and sharing information throughout the Group, we sent out messages andnotifications 50 times from January 2020 to July 2022 regarding infection prevention measures from the perspective of
business continuity. We are creating a crisis management system that will help prevent infection while enabling our
employees to carry out their work.
Confirming Safety in Emergency Situations
We have introduced a Group-wide safety confirmation system using a dedicated website. In the event of a disaster, such as
an earthquake with an intensity of five or higher, messages will be sent via email to employees to check whether they aresafe, and relevant local information will be provided promptly on the website. The system allows for the rapid collection
and sharing of information.
BCP for Information Systems

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

174

Case Study

Nichirei Logistics Group BCP Initiatives

Overview
In recent years, with a number of areas having experienced enormous damage as a result of natural disasters, the Nichirei
Logistics Group has formulated a BCP to be implemented in the event of earthquakes, tsunamis, typhoons, major storms,
and floods. Such risk management prioritizes ensuring the safety of employees and cargo being handled.
Every year before the typhoon season, in addition to circulating a document detailin our anticipated response to forecast
typhoons and other weather-related disasters on the Company website, we provide business partners with information on
how to deal with temporary closures and changes in business hours.
In response to COVID-19, we are conducting infection prevention measures at businesses, while at the same timechanging work styles by, for example, staggering commuting times, encouraging teleworking, and opening satellite offices
to help ensure employee safety and business continuity.
Countermeasures Headquarters Establishment Flow175

COVID-19 Response Manual

Facility Disinfection Manual

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

176

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

Stakeholder

Objective

Customers

Bettercustomersatisfaction
and corporate
branding: tobe achieved
throughprompt,appropriate
and sincere
responses to
consumerrequests andfeedback

Shareholders
and investors

Business
Partners

Employees

Deeperunderstandingof theCompany andhighercorporate
value: to beachievedthrough timely
andappropriate
disclosure

IssuesRecognized

Means and Method of Communication

Frequency

Customer Service CenterRoutineCustomer satisfaction surveys

Once a year

Websites

As necessary

Social media

As necessary

Qualityassurance for
products andservices
Properdelivery of
information
Supply ofdelicious foodand a richvariety ofmeal options
Maintaining
andimprovingcorporate

General Meetings of Shareholders
Financial results briefings
Business information sessions, facility

value

tours

Appropriate
distribution of
profits

Detailed interviews with individual
investors in Japan and overseas

Timely andappropriate

ESG website

disclosure of
information

Shareholder Report

Strong,favorable, andstable longterm
relationships
with business
partners
throughout the
supply chain

Sustainableprocurement

Favorable
labor–
management
relations;Occupational
health andMutualdevelopment
achievedthrough

IR website
Integrated Report

Once a year
Four times a
year
Once a year
As necessary
As necessary
As necessary
Once a year
Twice a year

Survey ongoing
Sustainable procurement survey forsuppliers
Meetings and seminars with participationfrom business partners

customer
intimacy

since 2018
Once a year
(held by threeoperatingcompanies)

Establishment of an internal reporting
centersafety177

Available 24
hour

Stakeholder

Objective
greater
employeemotivation; adynamicorganizational
climateIssuesRecognized

Means and Method of Communication

FrequencyJobsatisfaction

Establishment of an employee assistanceand mental health consultation center

Available 24hourWorkstyle

Labor–management council

Twice a year

reformHealth and safety committee

Once a month

Healthmanagement

Symposiums involving management andOnce a year

employees(all worksites)

PR brochures

Four times a
year

Intranet
Employee award system
Employee satisfaction survey
Employee stress checks

Local
Communities

Trade
Organizations,
NGOs and
NPOs

Stable,enduring
business
operations asa trusted andrespected
company: tobe achieved bybuilding
favorable
relations with
local
communities.
Collaboration
with othercompanies: tobe achieved
throughparticipation inassociations
and other
entities
relating to
tradeorganizations;resolution ofsocial issues
throughcollaboration
andcooperation
with NGOs andNPOs in Japanand abroad.

Harmonious
coexistencewith local
communities
Preservationof localenvironments
Educational
activities
in localcommunities

Social contribution activities
Participation in local events
Volunteer activities
Dietary education activities (ethicalconsumption)

Once a year

As necessary
As necessary
As necessary
As necessary

tours

As necessary

Sponsorship of sporting events

Human rights

Japan Association of Refrigerated

ClimatechangeWarehousesof food

Once a year

As necessary

Japan Frozen Food Association

Sustainableprocurement

Once a year

Food factory and distribution warehouse

TCFD Consortium

Food loss

RoutineJapan Fisheries Association
World Wide Fund for Nature
Roundtable on Sustainable Palm Oil
Caux Round Table JapanThe Consumer Goods ForumThe UN Global Compact

178

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

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

UrabandaiContributions through Use of Company Resources > Urabandai

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

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

KidZania Tokyo and KidZania Koshien(Only available in Japanese)179Children on a Factory TourThe concepts are See! Learn! Enjoy!, and Nichirei Foods employees are the teachers. They use videos and PowerPoint
slides to explain the frozen food manufacturing process to elementary school students, including the production of frozen
food products, Honkaku-Itamae Cha-Han (fried rice) and Imagawayaki. The program, which allows children to have fun
while learning, is full of frozen food quizzes and videos that they otherwise would never see, even on an actual tour. In thatway, the program teaches the students about Nichirei Foods’ careful approach to manufacturing and the merits of frozen
food. In FY2020, the Group held 52 factory tours with 1,700 children participating. Sometimes they were watching videos
while smiling, and sometimes they had intent expressions.

Five Flavors Identification Test
In this food education program, participants took a taste test in which they tried to identify the five tastes of sweet, sour,
salty, bitter, and umami. Employees gave talks on how the tastes felt and what makes a frozen food. In FY2020, this event
was held eleven times with more than 400 people participating.
* Not available to the public.
FamilyApps
With FamilyApps, a smartphone app that families can enjoy together, Nichirei Foods has distributed an app called “Let's
Make a Delicious Nichirei Lunch!” that enables users to make lunches using Nichirei Foods’ frozen products. The content,
which allows kids to have fun while making lunch, helps deepen their interest in, and concern regarding, food. In FY2020,
this event was held 11 times with 4,400 people participating.
Nichirei Fresh Food Education Activities
Food education classes are organized in elementary schools and preschools in the town of Karumai using a dish the Group
call Fresh Chicken Karumai. In the classes the Group presents easy-to-understand information that includes the following:
Iwate Prefecture boasts the nation's third-highest production of poultry, after Miyazaki and Kagoshima Prefectures; thecompany’s Junwakei breed of chicken is raised on feed rice produced in Karumai; and the guano from Junwakei chickens isused as an organic fertilizer for the feed rice. In addition to teaching the children about the production cycle, they areserved Junwakei chicken in their school lunch that day. The Group will always value opportunities such as these to connect
with people in the region, as it continue to develop attractive business opportunities.

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

180

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

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

181

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

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

Process Leading Up to Delivery

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

Initiative website (Only available in Japanese)

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

Support through Business Activities
Nichirei Foods Hagukumi Forest
Nichirei Foods’ Mori factory in Hokkaido began a partnership with the town of Mori in Kayabe District, Hokkaido to perform
forest maintenance on town-owned lands as part of the “Nichirei Hagukumi Forest” initiative. This initiative, ”Good for theforest!,” as part of the Group’s activities to help the forest, involves a plan to plant trees in a 1.2 hectare plot of land owned
by Mori, as well as plant and nurture 400 cherry blossom (Someiyoshino) trees, the town’s plant symbol, over ten years.
The employees at the Mori factory along with their families and the rest of the community participate as well, and theGroup is working to help the activity take root in the region.
The “Good for the forest!” conservation activity is spreading to other factories, with Kyurei working to restore the pinetrees of the Satsuki Matsubara area in Munakata City, Fukuoka Prefecture, and Nichirei Foods’ Shiroishi Factory supporting
beech forestation efforts in the Zao area.
Continuation of support for areas affected by the Great East Japan Earthquake — On-site class "Virtual Factory Tour" held
at an elementary school in Ishinomaki City (Nichirei Foods)
In an effort to support communities that have been affected by the massive earthquake and tsunami that struck Japan’s
Tohoku region in 2011, Nichirei Foods Inc. has organized cooking classes in temporary housing facilities. Even after large
numbers of people moved from those facilities, Nichirei Foods continued its support. Employees were sent schools to give
students a virtual experience of a factory tour. Using audio-video materials showing an actual production plant, theemployees gave the students easy-to-understand lessons about the processes involved in making frozen food products,
Nichirei Foods’ safety and security initiatives, and its fastidious manufacturing techniques. In FY2020, cooking classes were
held in Ishinomaki City, Miyagi Prefecture at Futamata Elementary School and Minato Elementary School, with a total of 41
children participating.

183

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

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

Nichirei’s training center provides lodgings

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

MIRAI MEAT(Only available in Japanese)184

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

Supporting Sports for Healthy Living(Only available in Japanese)​​NICHIREI LADIES(Only available in Japanese)​​"Nichirei Presents All Japanese Medalists on Ice 2022" Special Sponsorship(Only available inJapanese)​​Nichirei Group Social Contribution Activities
Nichirei Group Social Contribution Activities (five Years)

Donations to Non-profit Organizations

Donations to Support Disaster-hit Areas
In FY2012, Nichirei decided to donate 10 million yen per year for five years, for a total of 150 million yen, to each of thethree prefectures—Iwate, Miyagi, and Fukushima—hardest hit by the Great East Japan Earthquake of March 11, 2011. At
Nichirei Ladies, the official Ladies Professional Golfers’ Association of Japan tour held in June 2011, all entrance fees were
donated to the city and prefecture of Chiba.
In addition, after the Kumamoto earthquake in 2016, in addition to donating 10 million yen to Kumamoto Prefecture, we
responded to requests from the prefecture and provided 9,000 Restaurant Use Only beef curry meals to the Uki City Hall.
In response to support the early recovery of devastated area, we offered some donations through the Japanese Red Cross
Society and also by the Nichirei Fureai Fund, in which the company matches contributions made by employees, we donatedto the Japanese Red Cross Society to assist with initial restoration efforts in areas heavily damaged by the disaster.
Fureai Fund Donations
The Nichirei Group’s social contributions include fund-raising activities and donations. Through endorsement contributions
from employees and donations made by the company itself, the Nichirei Fureai Fund, set up in 1993, provides financial
support for social welfare, disaster and medical relief, and donations to disaster areas affected by natural disasters andother events.
Through the Central Community Chest of Japan and the Tokyo Good Will Bank, we provide support via graduation
congratulatory money to help support the independence of children in social care, as well as via “children’s cafeterias” toaid those in difficult circumstances and victims of bullying, etc. Nichirei also provides support for preparation expenses fordisaster relief to the Japanese Red Cross Society.
In FY2019, we contributed 310 million yen as the total amount of group social contributions(donations, etc.).
Support for the Keidanren Nature Conservation Fund
Nichirei endorses the spirit of the Keidanren Nature Conservation Fund, to which it has been donating since 1994. The fundsupports nature conservation activities primarily in the developing areas of the Asia-Pacific region, as well as conservation
activities and the sustainable use of natural resources in order to maintain the preservation of Japan’s splendid naturalenvironment.
185

Eco-caps
At all workplaces of the Nichirei Group plastic bottle caps from PET bottles are collected to support the activities of NPOs
that sell them as plastic raw materials to recycling companies, thereby raising money to fund vaccines for children indeveloping countries. The sale of 800 caps brings in roughly 20 yen, which pays for a polio vaccine for one person. By
contrast, were the caps burned as garbage, 3,150 grams of CO₂ would be released per 400 caps, so recycling the caps also
helps reduce CO₂ emissions.
Participation in Table for Two
The Nichirei Group participates in Table for Two, an employee-participation social contribution activity that starts in theemployee cafeteria. The project involves adding 20 yen—the cost of a school lunch for one child in a developing country—
to the cost of the cafeteria food to make a food-support donation. Moreover, the foods that can provide this donation arelimited to healthy, low-calorie items, so that the program also plays a role in improving employee health. The program iscurrently conducted at two workplaces, the Nichirei Higashi Ginza Building and the Technology Development Center.
Nichirei MIRAIterrace Foundation established
The Nichirei MIRAIterrace Foundation was established on August 10, 2022 with the aim of addressing social issues related
to "food" and "health" from a long-term perspective.
Based on our strong desire to deliver fresh foods in a stable supply to people suffering from postwar food shortages, wehave been working to solve various social issues since our establishment as a company that supports the Japanese dietthrough food production and cold storage logistics business.
In recent years, there have been major changes in the environment surrounding food and health, such as thediversification of lifestyles and the increase in households with small numbers of people, and there are concerns about thelifelong impact on health resulting from unbalanced nutritional intake in the daily diet.
We have established this foundation because we believe that in order to resolve these issues, we need to engage in broaddialogue, think together, and act together with all concerned members of society.
The Foundation will provide support mainly through grants to organizations engaged in social welfare, including children's
cafeterias. We are committed to contributing to the realization of good eating habits and the promotion of good health, andto bringing spiritual satisfaction to as many people as possible. ​Nichirei MIRAIterrace Foundation(Only available in Japanese)

186

Report Archives
Integrated Report
Integrated Report 2022

PDF (Japanese)
PDF (English)

Integrated Report 2021

PDF (Japanese)
PDF (English)

Integrated Report 2020

PDF (Japanese)
PDF (English)

Integrated Report 2019

PDF (Japanese)
PDF (English)

Integrated Report 2018

PDF (Japanese)
PDF (English)

CSR Report
CSR Report 2022

PDF (Japanese)

CSR Report 2021

PDF (Japanese)
PDF (English)

CSR Report 2020

PDF (Japanese)
PDF (English)

CSR Report 2019

PDF (Japanese)
PDF (English)
ESG Data

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

PDF (Japanese)
PDF (English)

CSR Report 2017

PDF (Communication Version)

CSR Report 2016

PDF (Communication Version)

187

CSR Report 2015

PDF

CSR Report 2014

PDF (Digest Verstion)

CSR Report 2013

PDF (Digest Verstion)

CSR Report 2012

PDF (Digest Verstion)

CSR Report 2011

PDF (Digest Verstion)

CSR Report 2010

PDF (Digest Verstion)

CSR Report 2009

PDF (Digest Verstion)

Social and Environmental Report 2008

PDF

Social and Environmental Report 2007

PDF

Social and Environmental Report 2006

PDF

Social and Environmental Report 2005

PDF

Environmental Report 2004

PDF

Social and Environmental Report 2003

PDF

Environmental Report 2002

PDF

Environmental Report 2001

PDF

Environmental Report 2000

PDF

188

ESG Navigation
ESG Navigation
Link to eachlocation

Promoting Sustainability Management in the
Nichirei Group

Message from the President●

Sustainability Policy: The Nichirei
Pledge●Sustainability Promotion System●

Commitment

Management
Structure

Targets andPerformances

Climate Change●●

Water Use

●

●

●

●

●

Initiatives for
Biodiversity
Conservation

●

●

●

Supply Chain(Environment)

●

●

●

Supply Chain (Social)

●

●

●

Human Rights

●

●

●

Stakeholder
Engagement●

Providing Safe Products
and Services​

●

●

●

Occupational Healthand Safety

●

●

●

Workplace
Improvement (including
Diversity)

●

●

●

Initiatives●●●

Waste and Efficient Useof Resources

Environment

SocialManagement of Waste
Water, Waste Matterand Chemical
Substances●

189

Link to eachlocation

Corporate Governance

Basic Policy on Corporate Governance●

Remuneration Scheme and Process for the
Directors and Executive Officers●

Basic Approach for nomination of Directors●

Expertise and Background of Directors●

Basic Policy Internal Control System●

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

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

Code of Conduct
Risk Management
Matters relating to theGeneral Meetings ofShareholders

Basic Approach fo Risk Management●

Information Security●

Notification of the Convocation
Notification of the Resolution190●

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

Policies

Corporate Basic Policies

Sustainability Policy: The Nichirei Pledge
Human Rights Policy

Environment-related Policies

Environment-Related Policies
Environmental Policy
Biodiversity Policy

Social-related Policies

Fundamental Policies on Quality Assurance
Sustainable Procurement Policy
Social Contribution-Related Policies
Human Resources-Related Policies
Supplier Code of Conduct
Supplier Guidelines

Governance-related Policies

Basic Policy on Corporate GovernanceInternal Control
Code of Conduct

191

ESG Data
ESG Data
Environmental Data

Social Data

Corporate Governance Data

Environmental Data

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

Group Medium-term
Environmental Plan
Targets

Nichirei Group CO₂
Emissions

CO₂ Emissions Intensity（1,000 tons CO₂）

Nichirei Group Amountof Discharged Waste andRecycling Rates

Nichirei Group Material
Balance INPUT

Nichirei Group Material
Balance OUTPUT

Nichirei Group speciallycontrolled indutrial waste
emissions

Status of Environmentrelated Incidents, Legal
Violations

Solar Power Generation
and CO₂ Reduction

Management of Pollutant
Release and Transfer
Register (PRTR)
Substances

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

99%

Water-related risk assessments at all sites

conducted in FY2023

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

Rate of conversion to natural refrigerants Production equipment in Japan

80%

Rate of conversion to natural refrigerants Logistics (Global)

63%

Engaged in collecting environmental data at overseas work
Group Environmental Goals for FY2020-2022
Reduction of CO₂ Emissions

Maintaining Waste Recycling Rate andControlling Waste Discharging

Water Resource Conservation

Maintain" total CO₂ emissions in FY2021 at the FY 2013 level.
*Electricity coefficient: Fixed at the FY 2013 coefficient・Maintain 99% or more recycling rate of waste generated from foodfactories and distribution centers
・Reduction of animal and vegetable residues (food factories in Japan)
Through efficient water use for sustainable water use, taking into
consideration environmental circumstances surrounding water in eachregion,Work to conserve water resources (domestic food plants).

Engaged in collecting data regarding the environment at overseas worksites

192

■Nichirei Group CO₂ Emissions
Unit

FY2016baseyear

FY2018FY2019FY2020

FY2021

FY2022

43

44

43

42

42

43

243

224

215

199

182

185

286

268

259

241

224

228

FY2016FY2018FY2019FY2020

FY2021

FY2022

0.54

0.47

0.46

0.42

0.41

0.41

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

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

tons CO₂*1 CO₂ emissions factors for electricity: Emissions factor after adjustment of the emissions factor by electricutility (Ministry of the Environment). The published values before last fiscal year (electricity emissions factor
change) were based on the fundamental emissions factors, but since the FY2031 target is now managed using
the adjusted emissions factors, the figures have been revised to the values calculated using the adjusted
emissions factor.
*2 Totals may not add up due to individual rounding off.
*3 The emission intensity per ton of production covers Nichirei Foods (domestic self-managed factories andaffiliated factories) and Nichirei Fresh (domestic affiliated factories).
Excluding the following plants
Nichirei Foods: Nichirei Ice Inc.
Nichirei Fresh: Nichirei Fresh Farm Inc., Fresh Chicken Karumai Inc., FRESH MEAT SAKUDAIRA Inc.

■Nichirei Group Amount of Discharged Waste and Recycling Rates
Item

Unit

FY2018FY2019FY2020

FY2021

FY2022

Amount of discharged waste

1,000 tons

46.3

45.4

47.9

47.1

47.9

Recycling Rates

1,000 tons

99.6

99.5

99.4

98.7

99.0

193

■Nichirei Group Material Balance INPUT
Item

Unit

FY2018FY2019FY2020

FY2021

FY2022

1,000 GJ

5,078

5,107

5,079

5,024

4,925

1,000
kWh

443,480

447,277

444,335

439,135

471,952

Heavy oil

kl

3,319

2,609

1,926

1,850

1,935

Kerosene

kl

191

173

192

195

194

City gas

1,000m3

6,923

7,142

9,036

9,328

9,708

LGP

tons

4,650

4,814

3,614

3,425

3,522

Gasoline (Companyowned vehicles)

kl

461

402

322

273

285

Light oil (Companyowned vehicles)

kl

1,378

1,556

1,452

1,522

1,388

Solar power
generation

1,000
kWh

400

1,444

2,068

2,149

2,974

Nichirei Foods

1,000 GJ

1,726

1,761

1,759

1,793

1,859

Nichirei Fresh

1,000 GJ

169

173

172

174

174

Nichirei Logistics
Group

1,000 GJ

3,098

3,089

3,046

2,966

2,812

Nichirei Biosciences

1,000 GJ

11

12

33

30

22

Others1,000 GJ

74

72

69

61

58

Total

1,000m

3

4,084

4,117

4,028

3,929

3,834

Clean water

1,000m3

1,256

1,267

1,238

1,174

1,134

Industrial water

1,000m3

917

907

897

916

919

Groundwater (wellwater)

1,000m3

1,911

1,943

1,893

1,839

1,782

Nichirei Foods

1,000m3

2,789

2,812

2,739

2,679

2,676

Nichirei Fresh

1,000m3

331

322

318

338

330

Nichirei Logistics
Group

1,000m3

947

963

952

899

816

Nichirei Biosciences

1,000m3

6

6

8

7

6

Others1,000m3

12

13

11

6

7

Total
Purchased power

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

Water

Breakdown of water (1,000m3) used at each businesscompany* Total figures may differ due to rounding.

194

■Nichirei Group Material Balance OUTPUT
Item

Waste

Breakdown of discharged
waste (tons) at each businesscompany

Atmospheric system

Breakdown of CO₂ emissions(tons) at each businesscompany

Water system

Unit

FY2020

FY2021

FY2022

1,000
tons

46.3

45.4

47.9

47.1

47.9

Recycle volume

1,000
tons

46.1

45.2

47.6

46.5

47.4

Volume of waste forfinal disposal *1

1,000
tons

0.2

0.2

0.3

0.6

0.5

Nichirei Foods

tons

21,904

18,155

21,561

21,14521,280Nichirei Freshtons

11,426

13,973

13,60913,887

14,188

Nichirei Logistics
Group

tons

12,905

13,236

12,666

11,962

12,246

Nichirei Biosciences

tons

46

44

72

103

170

Others

tons

ー

ー

ー

ー

ー

CO₂ *2

1,000
tons

268

259

241

224

228

SOx *3

tons

4

3

3

2

3

Nichirei Foods

tons

92,04990,41384,42779,06082,322

Nichirei Fresh

tons

9,162

9,430

9,458

9,433

9,009

Nichirei Logistics
Group

tons

162,776

154,971

142,561

132,931

134,380

Nichirei Biosciences

tons

526

553

1,526

1,380

1,011

Others

tons

3,629

3,417

3,201

1,501

1,343

Drainage

1,000m3

2,467

2,421

2,398

2,461

2,403

Sewer system

1,000m3

1,522

1,464

1,447

1,478

1,431

Public water area
(river etc.)

1,000m3

945

957

951

983

973

tons

48

48

49

52

68

tons

23

24

23

40

21

BOD

COD *4*FY2019Amount ofDischarged Waste

Drainage load
*4

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

FY2018

Nichirei Foods

1,000m3

1,758

1,751

1,752

1,798

1,783

Nichirei Fresh

1,000m3

328

308

309

325

316

Nichirei Logistics
Group

1,000m3

362

343

317

308

291

Nichirei Biosciences

1,000m3

6

6

8

6

6

Others1,000m3

12

14

12

24

8

Total figures may differ due to rounding.

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

195

■Nichirei Group specially controlled indutrial waste emissions
Unit

FY2018FY2019FY2020

FY2021

FY2022

kg

9

9.3

7.4

4.3

7.0

Special controlled industrial waste emissions ("Flammablewaste oil" and "Strong acid/strong alkali") etc. classified asindustrial waste due to danger and toxicity)*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.

■Status of Environment-related Incidents, Legal Violations
FY2018FY2019FY2020

FY2021

FY2022

Domestic

0

0

0

0

0

Overseas

0

0

0

0

0

■Solar Power Generation and CO₂ Reduction
Unit
Power generation
CO₂ reduction

FY2019FY2020

FY2021

FY2022

Mwh

1,444

2,068

2,149

2,974

t

765

1,003

986

1,408

■Management of Pollutant Release and Transfer Register (PRTR) Substances
Substances subject to reporting under the PRTR Law*
(handled in quantities of 1 ton or more)Unit

FY2018FY2019FY2020

FY2021

FY2022

tons

0

0

0

0

0

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

■SOx Emissions
Unit
SOx Emissions

tons

FY2018FY20194

FY20203

FY2021
3

FY20222* Facilities where measurements of smoke and soot are taken. Not including emissions derived from vehicles.

196

3

*Applicable Worksites
The scope of the Nichirei Group (in Japan), which accounts for more than 99% of the environmental impact, is tabulated.
Environmental Data: Applicable Worksites for FY2020 Results Calculations
The following company food plants and distribution centers are included in the calculations. In the event of multiple
worksites, the number is indicated in parenthesis.
Nichirei Foods
Nichirei-Foods (9), Nichirei Ice (3), Churei, Kyurei, Nichirei Well Dinning
Nichirei Fresh
Fresh Maruichi (3), Nichirei Fresh Process (2), Nichirei Fresh Farm (2), Fresh Chicken Karumai, Fresh Meat Sakudaira
Nichirei Logistics Group
Logistics Network (38), NK Trans (4), Nichirei Logistics Hokkaido (8), Nichirei Logistics Tohoku (5), Nichirei Logistics Kanto(10), Nichirei Logistics Tokai (11), Nichirei Logistics Kansai (13), Nichirei Logistics Chushikoku (15), Nichirei Logistics
Kyushu (15), Kyokurei (5)Nichirei Biosciences
Development Center
Other
New Housing
Notes:

1. Fixed power emission coefficient: The CO₂ emission intensity unit of 0.412 [t-CO₂/MWh] announced by theFederation of Electric Power Companies of Japan in FY2010, used nationwide.
2. Variable power emission coefficient: Power conversion coefficient used by power companies in each fiscal year
utilized at each worksite.
3. Scope of power emission intensity: Nichirei Foods (Nichirei Foods-operated factories and affiliated factories inJapan) and Nichirei Fresh (affiliated factories in Japan). Excluding the following factories: Nichirei Foods:
Nichirei Ice Inc.; Nichirei Fresh: Nichirei Fresh Farm Inc., Fresh Chicken Karumai Inc., FRESH MEATSAKUDAIRA Inc.

197

Social Data
Note: Fiscal years (FY) indicate years ended March 31.
Number of employees

Percentage of Noncompany Employees

Female Managers Ratio

Average age

Average Number ofYears Employed

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

Number of
Resignations/Resignation
Rate/Reasons for
Resignation

Number of Employees
Rehired After Retirement

Employment Rate ofPeople with Disabilities

Annual Total of Actual
Hours Worked

Annual Paid Vacation:
Average Number of Days
and Acquisition Rate

Number of employees
taking time off in order
to volunteer

Employees Using Time
Off for Childrearing

Employees Using Time
Off for Caregiving

Number of Work-Related
Accidents at Food Plants

Number of occupational
deathsGeneral regular healthcheckup rate

Stress Check Coverage

New Graduate Hire
Turnover Status

Nichirei Group Main
education and training

e-learning

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

Percentage of receiving a
Full Medical Examination
after Periodic Health
Checkups

Health Manager

Personal Information
Protection Leaks, etc.

Number of Violations ofLaws and Regulations inAdvertisements/Publicity
and Labeling

Nichirei Group Education
time and number ofparticipants

Donations to Non-profit
Organizations■Number of employees
Coverage
NichireiGroup total

Item

Unit

Executives and employees
total

NumberofpeopleFY2018FY2019FY2020

FY2021

FY2022

6,073

6,002

5,943

5,994

5,926

3,792

3,748

3,729

3,753

3,722

2,281

2,254

2,214

2,241

2,204

65

62

62

61

60

Male

63

60

60

58

56

Female

2

2

2

3

4

3,780

3,782

3,841

3,903

3,937

Male

2,786

2,789

2,779

2,787

2,776

Female

994

993

1,062

1,116

1,161

【Number of employees inmanagement positions】

1,293

1,309

1,335

1,362

1,378

1,205

1,216

1,215

1,222

1,218

88

93

120

140

160

2,487

2,473

2,506

2,541

2,559

Male

1,581

1,573

1,564

1,565

1,558

Female

906

900

942

976

1,001

Number of staff other thanemployees

2,228

2,158

2,040

2,030

1,929

943

899

890

908

890

Breakdown

Male
FemaleNumber of executives
Breakdown

Number of company
employees
Breakdown

Breakdown

Male
Female【Number of generalemployees】
Breakdown

Breakdown

Male
198

Female

1,285

1,259

1,150

1,122

1,039

Executives and employees
total

277

252

252

254

268

Male

156

148

153

151

151

Female

121

104

99

103

117

21

19

19

19

19

Male

19

17

17

17

16

Female

2

2

2

2

3

213

187

214

218

226

Male

128

122

123

124

124

Female

994

65

91

94

102

【Number of employees inmanagement positions】

111

112

116

112

116

Male

85

85

87

85

87

Female

26

27

29

27

29

102

75

98

106

110

Male

43

37

36

39

37

Female

59

38

62

67

73

Number of staff other thanemployees

43

46

19

17

23

Male

9

9

13

10

11

Female

34

37

6

7

12

Executives and employees
total

3,133

3,054

3,010

3,023

3,039

Male

1,866

1,821

1,816

1,834

1,826

Female

1,267

1,233

1,194

1,189

1,213

12

12

11

10

9

Male

12

12

11

9

8

Female

0

0

0

1

1

1,535

1,524

1,505

1,528

1,541

Male

1,146

1,134

1,114

1,118

1,114

Female

389

390

391

410

427

【Number of employees inmanagement positions】

534

532

525

536

555

Male

498

497

487

494

499

Female

36

35

38

42

56

1,001

992

980

992

986

Male

648

637

627

624

615

Female

353

355

353

368

371

Number of staff other thanemployees

1,586

1,518

1,494

1,485

1,489

Male

708

675

691

707

704

Female

878

843

803

778

785

Breakdown

Number of executives
Breakdown

Number of company
employees

Nichirei
holdingcompany

Breakdown

Breakdown【Number of generalemployees】
Breakdown

Breakdown

Breakdown

Number of executives
Breakdown

Number of company
employees
Breakdown
Nichirei
Foods

Breakdown【Number of generalemployees】
Breakdown

Breakdown

199

Executives and employees
total

308

315

315

319

318

Male

228

228

225

223

222

Female

80

87

90

96

96

9

9

10

10

10

Male

9

9

10

10

10

Female

0

0

0

0

0

252

256

267

271

272

Male

200

197

200

198

197

Female

52

59

67

73

75

【Number of employees inmanagement positions】

149

149

155

158

149

Male

144

142

143

143

138

Female

5

7

12

15

11

103

107

112

113

123

Male

56

55

57

55

59

Female

47

52

55

58

64

Number of staff other thanemployees

47

50

38

38

36

Male

19

22

15

15

15

Female

28

28

23

23

21

Executives and employees
total

2,224

2,252

2,226

2,253

2,168

Male

1,479

1,488

1,466

1,475

1,460

Female

745

764

760

778

708

18

16

16

16

18

Male

18

16

16

16

18

Female

0

0

0

0

0

1,701

1,738

1,769

1,798

1,821

Male

1,262

1,287

1,289

1,294

1,294

Female

439

451

480

504

527

【Number of employees inmanagement positions】

464

479

499

513

515

Male

451

464

469

470

464

Female

13

15

30

43

51

1,237

1,259

1,270

1,285

1,306

Male

811

823

820

824

830

Female

426

436

450

461

476

Number of staff other thanemployees

505

498

441

439

329

Male

199

185

161

165

148

Female

306

313

280

274

181

Executives and employees
total

131

129

140

145

131

Breakdown

63

63

69

70

63

Breakdown

Number of executives
Breakdown

Number of company
employees
Breakdown
Nichirei
Fresh

Breakdown【Number of generalemployees】
Breakdown

Breakdown

Breakdown

Number of executives
Breakdown

Number of company
employees

Nichirei
Logistics
Group

Breakdown

Breakdown【Number of generalemployees】
Breakdown

Breakdown
Nichirei
Biosciences

Male
200

Female

68

66

71

75

70

5

6

6

6

4

Male

5

6

6

6

4

Female

0

0

0

0

0

79

77

86

88

77

Male

50

49

53

53

47

Female

29

28

33

35

30

【Number of employees inmanagement positions】

35

37

40

43

43

Male

27

28

29

30

30

Female

8

9

11

13

13

44

40

46

45

34

Male

23

21

24

23

17

Female

21

19

22

22

17

Number of staff other thanemployees

47

46

48

51

52

Male

8

8

10

11

12

Female

39

38

38

40

40

Number of executives
Breakdown

Number of company
employees
Breakdown

Breakdown【Number of generalemployees】
Breakdown

Breakdown* Staff other than employees: Includes temporary employees, contract employees, fixed-term employees andpart-time employees; excludes dispatched employees* Employee-related Data applies to employees working at the following 15 companies (FY2021)
1. Nichirei Corporation
2. Nichirei Foods
3. Nichirei Fresh
4. Nichirei Logistics Group
5. Logistics Network
6. Nichirei Logistics Hokkaido
7. Nichirei Logistics Tohoku
8. Nichirei Logistics Kanto
9. Nichirei Logistics Tokai
10. Nichirei Logistics Kansai
11. Nichirei Logistics Chushikoku
12. Nichirei Logistics Kyushu
13. Kyokurei Operation
14. Nichirei Logistics Engineering
15. Nichirei Biosciences■Percentage of Non-company Employees
FY2018FY2019FY2020

FY2021

FY2022

Number of company employees

3,780

3,782

3,841

3,903

3,937

Number of non-company employees

2,228

2,158

2,040

2,030

1,929

Percentage of non-company employees (%)

37.1

36.3

34.7

34.2

32.6

* Non-company Employees: includes temporary employees, contract employees, contract employees, part-time
employees, and part-time employees, excluding temporary employees.
201

■Female Managers Ratio
Coverage

Unit

FY2018FY2019FY2020

FY2021

FY2022

Nichirei Group total

6.8

7.1

9.0

10.3

11.6

Nichirei holding company

23.4

24.1

25.0

24.1

25.0

6.7

6.6

7.2

7.8

10.1

3.4

4.7

7.7

9.5

7.4

Nichirei Logistics Group

2.8

3.1

6.0

8.4

9.9

Nichirei Biosciences

22.9

24.3

27.5

30.2

30.2

FY2018FY2019FY2020Nichirei Foods%

Nichirei Fresh* Applicability: Employees■Average age
Coverage

Item

Unit

FY2021

FY2022

NichireiGroup total

Male

41.9

42.1

42.3

42.5

42.7

Female

39.6

39.8

39.9

40.0

40.1

Nichirei
holdingcompany

Male

43.3

44.1

44.2

44.1

44.5

Female

41.9

43.1

44.5

44.6

44.0

Nichirei
Foods

Male

42.3

42.5

42.8

43.1

43.6

41.2

41.5

41.5

41.5

41.6

42.9

42.6

42.7

42.9

42.8

Female

42.5

41.2

41.5

41.4

42.2

Nichirei
Logistics
Group

Male

41.2

41.6

41.6

41.8

42.0

Female

37.6

37.9

37.8

37.9

38.1

Nichirei
Biosciences

Male

40.2

40.7

40.9

40.7

40.7

Female

36.3

36.7

36.2

36.6

37.7

Nichirei
FreshFemaleBreakdown

Male

Age

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

■Average Number of Years Employed
Coverage

Item

Unit

FY2018FY2019FY2020

FY2021

FY2022

NichireiGroup total

Male

16.7

16.7

17.0

17.3

17.5

Female

15.3

15.7

15.3

15.4

15.4

Nichirei
holdingcompany

Male

18.2

19.1

19.0

19.0

19.4

Female

14.4

18.5

15.8

16.8

16.0

Nichirei
Foods

Male

17.3

17.7

18.0

18.4

18.8

16.3

16.7

16.8

16.8

16.8

18.8

18.4

18.4

18.7

18.6

Female

20.5

18.6

18.0

17.4

17.7

Nichirei
Logistics
Group

Male

15.9

15.9

15.9

16.1

16.3

Female

14.1

14.3

13.9

14.0

14.1

Nichirei
Biosciences

Male

14.2

15.3

15.2

15.0

14.7

Female

11.9

12.1

11.7

12.3

13.1

Nichirei
Fresh

Breakdown

Female
Male

Year

202

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

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

Item

Unit

FY2018

New graduates

NichireiGroup total

Breakdown

Breakdown

117

117

Male

54

46

49

63

65

Female

47

42

55

54

52

45

80

113

61

51

Male

36

60

52

36

22

Female

9

20

61

25

29

3

0

4

4

5

Male

2

0

4

3

3

Female

1

0

0

1

2

4

2

37

5

9

Male

2

2

5

2

3

Female

2

0

32

3

6

27

31

33

37

36

Male

18

20

14

19

19

Female

9

11

19

18

17

8

13

16

28

21

1

6

11

16

11

1

7

5

12

10

10

10

9

11

8

Male

7

6

6

6

5

Female

3

4

3

5

3

0

5

11

3

4

Male

0

1

2

0

0

Female

0

4

9

3

4

53

42

50

58

66

Male

24

19

22

32

36

Female

29

23

28

26

30

32

60

46

25

17

Male

26

51

31

18

8

Female

6

9

15

7

9

8

5

8

7

2

Male

3

1

3

3

2

Female

5

4

5

4

0

1

0

3

0

0

Male

1

0

3

0

0

Female

0

0

0

0

0

New graduates

Nichirei
Foods

Breakdown
Mid-career
Breakdown

Male
FemaleNew graduates

Nichirei
Fresh

Breakdown

NumberofpeopleMid-career
Breakdown
New graduates

Nichirei
Logistics
Group

Breakdown
Mid-career
Breakdown
New graduates

Nichirei
Biosciences

Breakdown
Mid-career
Breakdown

FY2022

104

Mid-career
Breakdown

FY2021

88

New graduates
Nichirei
holdingcompany

FY2020101

Mid-career
Breakdown

FY2019* Applicability: Employees203■Number of Resignations/Resignation Rate/Reasons for Resignation
Coverage

Item
Number of Resignations

FY2018

121

48

64

65

59

45

69

74

84

63

72

Company
circumstances

0

0

0

0

0

Others

20

8

10

19

4

2.3%

2.1%

2.4%

2.1%

1.9%

Employee turnover rate (forpersonal reasons)

ー

ー

1.3%

0.9%

1.1%

Number of Resignations

9

12

10

12

7

Retirement

3

6

3

5

2

Personal
circumstances

4

5

6

5

4

Company
circumstances

0

0

0

0

0

Others

2

1

1

2

1

2.8%

3.0%

3.1%

3.1%

2.2%

Employee turnover rate (forpersonal reasons)

ー

ー

2.7%

2.2%

1.8%

Number of Resignations

43

57

59

50

50

Retirement

17

30

29

21

20

Personal
circumstances

23

26

26

24

29

Company
circumstances

0

0

0

0

0

Others

3

1

4

5

1

1.7%

1.7%

1.9%

1.9%

1.9%

Employee turnover rate (forpersonal reasons)

ー

ー

1.7%

1.5%

1.9%

Number of Resignations

10

14

9

13

6

Retirement

2

7

4

3

3

Personal
circumstances

7

4

5

5

2

Company
circumstances

0

0

0

0

0

Others

1

3

0

5

1

3.1%

2.7%

1.8%

3.6%

1.9%

ー

ー

1.8%

1.8%

0.7%

Breakdown by
reasonBreakdown by
reasonBreakdown by
reasonResignation rate

NichireiFresh

FY2022

141

Resignation rate

NichireiFoods

FY2021

159

Resignation rate

Nichirei
holdingcompany

FY2020146

Personal
circumstances

NumberofpeopleFY2019137

Retirement

NichireiGroup total

Unit

Breakdown by
reasonResignation rate
Employee turnover rate (forpersonal reasons)204

Number of Resignations

72

60

74

63

49

Retirement

25

21

29

29

17

Personal
circumstances

35

36

41

27

31

Company
circumstances

0

0

0

0

0

Others

12

3

4

7

1

2.7%

2.3%

2.5%

1.9%

1.8%

Employee turnover rate (forpersonal reasons)

ー

ー

2.3%

1.5%

1.7%

Number of Resignations

3

3

7

3

9

Retirement

1

0

0

1

3

Personal
circumstances

0

3

6

2

6

Company
circumstances

0

0

0

0

0

Others

2

0

1

0

0

2.6%

3.6%

8.1%

2.2%

6.6%

ー

ー

7.0%

2.2%

6.6%

Breakdown by
reasonNichirei
Logistics
Group

Resignation rate

Breakdown by
reasonNichirei
Biosciences

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

Unit

FY2018FY2019FY2020

FY2021

FY2022

Nichirei Group total

44

59

57

51

36

Nichirei holding company

3

5

3

5

2

Nichirei Foods

14

28

25

16

17

2

7

3

3

1

Nichirei Logistics Group

24

19

26

26

14

Nichirei Biosciences

1

0

0

1

2

Ref. Number of employees who retired group total

48

64

65

59

45

Nichirei Fresh

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

Unit%

FY2018FY20192.50

2.56

FY20202.75

FY2021

2.80

FY22

2.80

* Legal employment rate of 2.0%.
* Applicable scope: Nichirei Aura (special subsidiary) Group applied company* Group applied companies (FY2019): Nichirei, Nichirei Foods, Nichirei Fresh, Nichirei Logistics Group, Nichirei
Biosciences, Logistics Network, Nichirei Logistics Kanto, Nichirei Logistics Engineering, Tokyo Nichirei Services,
Nichirei Aura

205

■Annual Total of Actual Hours Worked
Coverage

Nichirei Group total

Nichirei holding
company

Nichirei Foods

Item

Unit

FY2018FY2019FY2020

FY2021

FY2022

Total

2,025

1,997

1,977

1,975

1,993

Official working hours-Hours of vacation
time

1,801

1,780

1,758

1,767

1,759

Hours worked outside official working
hours

225

217

219

208

234

Total

1,906

1,905

1,899

1,949

2,004

Official working hours-Hours of vacation
time

1,729

1,718

1,724

1,754

1,762

Hours worked outside official working
hours

176

187

175

196

242

Total

2,020

1,998

2,005

2,011

2,018

Official working hours-Hours of vacation
time

1,790

1,772

1,758

1,768

1,757

Hours worked outside official working
hours

230

226

247

243

261

1,981

1,948

1,948

1,929

1,994

Official working hours-Hours of vacation
time

1,795

1,770

1,754

1,759

1,765

Hours worked outside official working
hours

185

178

194

170

229

Total

2,052

2,014

1,970

1,958

1,972

Official working hours-Hours of vacation
time

1,821

1,796

1,763

1,771

1,760

Hours worked outside official working
hours

231

218

207

187

212

Total

1,980

1,954

1,882

1,901

1,971

Official working hours-Hours of vacation
time

1,749

1,736

1,716

1,754

1,768

Hours worked outside official working
hours

232

218

166

148

203

hours

Total
Nichirei Fresh

Nichirei Logistics Group

Nichirei Biosciences* Average number of hours worked per employee annually* Applicability: Employees■Annual Paid Vacation: Average Number of Days and Acquisition Rate
Coverage
Nichirei Group total
Nichirei holding company
Nichirei Foods
Nichirei Fresh
Nichirei Logistics Group
Nichirei Biosciences

Item

Unit

FY2018FY2019FY2020

FY2021

FY2022Average days acquired

Days

6.6

8.0

10.2

11.0

12.5

Acquisition rate

%

34.8

41.8

53.4

59.7

65.6

Average days acquired

Days

14.3

15.1

14.8

13.2

13.1

Acquisition rate

%

76.9

78.0

77.1

71.7

68.6

Average days acquired

Days

7.4

8.3

10.2

10.8

13.3

Acquisition rate

%

37.9

42.7

52.4

57.2

69.1

Average days acquired

Days

7.9

9.9

11.6

12.6

13.0

Acquisition rate

%

41.2

51.9

60.9

69.2

68.5

Average days acquired

Days

4.6

6.5

9.3

10.6

11.7

Acquisition rate

%

24.8

34.6

49.3

58.7

61.8

Average days acquired

Days

12.6

12.5

14.2

11.7

12.1

Acquisition rate

%

70.7

69.0

79.4

69.3

65.7

206

* 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).

■Number of employees taking time off in order to volunteer
Coverage
Nichirei Group total

Unit

FY2018

Number of people

FY2019FY20200

0FY2018FY2019Male

2

FemaleFY20210

FY2022

1

1

FY2020

FY2021

FY2022

1

2

2

9

34

42

48

31

36

Male

2

0

1

0

1

Female

1

2

6

3

4

Male

0

1

1

1

1

17

14

17

14

12

0

0

0

1

2

Female

0

2

1

2

3

Male

0

0

0

0

5

Female

15

20

22

11

16

Male

0

0

0

0

0

Female

1

4

2

1

1

■Employees Using Time Off for Childrearing
Coverage
Nichirei Group total
Nichirei holding company
Nichirei Foods

Item

FemaleMale

Nichirei Fresh
Nichirei Logistics Group
Nichirei Biosciences

Unit

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

Unit

FY2018FY2019FY2020

FY2021

FY2022

Nichirei Group total

0

3

2

2

3

Nichirei holding company

0

0

0

0

0

0

3

2

1

2

0

0

0

0

0

Nichirei Logistics Group

0

0

0

1

1

Nichirei Biosciences

0

0

0

0

0

FY2018FY2019FY2020

FY2021

FY2022

34

34

29

20

21

12

11

16

19

19

-

-

-

-

5

-

-

-

-

0.09

Nichirei Foods

Number of people

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

Item

Unit

Number of lost time injuries*1
Food Plants

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

Case

Lost time injury intensity rate*3*

Scope of applicability: Employees at Nichirei Foods-owned plants and subsidiary of Nichirei Fresh in Japan*

Incudes contract employees, fixed-term employees and part-time employees

207

*1 Number of fatalities and injuries due to work-related accidents (number of people who lost at least one day ofwork)*2 Number of fatalities and injuries due to work-related accidents per 1,000,000 total actual working hours*3 Total number of lost workdays per 1,000 total actual working hours■Number of occupational deaths
Coverage

Item

Unit FY2018 FY2019 FY2020 FY2021 FY2022

Regular employees
Nichirei Group
total

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

Case

0

1

0

0

0

0

0

0

0

0

■General regular health checkup rate
Coverage

Unit

FY2018FY2019FY2020

FY2021

FY2022

Nichirei Group total

99.8

100

100

100

100

Nichirei holding company

100

100

100

100

100

Nichirei Foods

99.9

100

100

100

100

Nichirei Fresh

100

100

100

100

100

Nichirei Logistics Group Inc.

100

100

100

100

100

Nichirei Biosciences

100

100

100

100

100

Nichirei Logistics Hokkaido, Inc.

98.3

100

100

100

100

Nichirei Logistics Tohoku, Inc.

100

100

100

100

100

100

100

100

100

100

Kyokurei Inc

100

100

100

100

100

Nichirei Logistics Tokai, Inc.

100

100

100

100

100

Nichirei Logistics Kansai, Inc.

100

100

100

100

100

Nichirei Logistics Chushikoku, Inc.

100

100

100

100

100

Nichirei Logistics Kyushu, Inc.

99.3

100

100

100

100

NK Trans Inc.

99.7

100

100

100

100

Logistics Network Inc.

99.8

100

100

100

100

Nichirei Logistics Engineering Inc.

99.4

100

100

100

100

Nichirei Logistics Kanto, Inc.

％

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

■Stress Check Coverage
Coverage
Nichirei Group total

Unit%

FY2018FY2019

89.2

90.1

208

FY202089.6

FY202190.8

FY2022

90.1

■New Graduate Hire Turnover Status
Coverage

Joined Company in
FY2018Joined Company in
FY2019Nichirei Group total

Turnover (number ofpeople)Item

Joined Company in
FY2020Joined Company in
FY2021Joined Company in
FY2022

Nichirei holding
company
Joined Company in
FY2018Joined Company in
FY2019Joined Company in
FY2020Joined Company in
FY2021

Turnover rate(%)

End of first
year

4

4.3%

End of second
year

10

10.9%

End of third
year

17

18.5%

End of first
year

2

2.3%

End of second
year

5

5.7%

End of third
year

11

12.5%

End of first
year

1

1.0%

End of second
year

5

4.8%

End of third
year

9

8.7%

End of first
year

3

2.6%

End of second
year

7

6.0%

End of third
year

―

―

End of first
year

2

1.7%

End of second
year

―

―

End of third
year

―

―

End of first
year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of first
year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of first
year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of first
year

0

0.0%

209

Number of
hires

101

88

104

117

117

3

0

4

4

Joined Company in
FY2022Joined Company in
FY2018

Nichirei Foods

Joined Company in
FY2019Joined Company in
FY2020Joined Company in
FY2021Joined Company in
FY2022

Nichirei Fresh

Joined Company in
FY2018Joined Company in
FY2019End of second
year

0

0.0%

End of third
year

―

―

End of first
year

0

0.0%

End of second
year

―

―

End of third
year

―

―

End of first
year

0

0.0%

End of second
year

1

4.0%

End of third
year

3

12.0%

End of first
year

1

3.2%

End of second
year

2

6.5%

End of third
year

5

16.1%

End of first
year

0

0.0%

End of second
year

2

6.1%

End of third
year

4

12.1%

End of first
year

2

5.4%

End of second
year

4

10.8%

End of third
year

―

―

End of first
year

1

2.8%

End of second
year

―

―

End of third
year

―

―

End of first
year

1

11.1%

End of second
year

2

22.2%

End of third
year

3

33.3%

End of first
year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

210

5

27

31

33

37

36

10

10

Joined Company in
FY2020Joined Company in
FY2021Joined Company in
FY2022Joined Company in
FY2018Joined Company in
FY2019Joined Company in
FY2020Nichirei Logistics
Group

Joined Company in
FY2021Joined Company in
FY2022

Nichirei Biosciences

Joined Company in
FY2018End of first
year

0

0.0%

End of second
year

2

22.2%

End of third
year

2

22.2%

End of first
year

0

0.0%

End of second
year

0

0.0%

End of third
year

―

―

End of first
year

0

0.0%

End of second
year

―

―

End of third
year

―

―

End of first
year

3

6.4%

End of second
year

6

12.8%

End of third
year

8

17.0%

End of first
year

1

2.4%

End of second
year

2

4.8%

End of third
year

4

9.5%

End of first
year

1

2.0%

End of second
year

1

2.0%

End of third
year

3

6.0%

End of first
year

1

1.7%

End of second
year

2

3.4%

End of third
year

―

―

End of first
year

1

1.5%

End of second
year

―

―

End of third
year

―

―

End of first
year

0

0.0%

End of second
year

1

16.7%

211

9

11

8

53

42

50

58

66

8

Joined Company in
FY2019Joined Company in
FY2020Joined Company in
FY2021Joined Company in
FY2022End of third
year

3

50.0%

End of first
year

0

0.0%

End of second
year

1

20.0%

End of third
year

2

40.0%

End of first
year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of first
year

0

0.0%

End of second
year

1

14.3%

End of third
year

―

―

End of first
year

0

0.0%

End of second
year

―

―

End of third
year

―

―

5

8

7

2

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

Managers

Officers

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*New officers seminar*Media training*Directors and executive
officers training*Management training*Coaching training■Nichirei Group Education time and number of participants
Training by rank and purpose

Education time (cumulative total)

Number of participants (cumulative total)

FY201845,6491,379

FY201949,7301,699

FY202047,1901,596

FY2021

37,201

1,429

FY2022

68,552

2,651

Total

248,322

8,820

212

■e-learning
FY2018FY2019FY2020

FY2021

FY2022

Number Number Implem- Number Number Implem- Number Number Implem- Number Number Implem- Number Number Implemof Subjof
entation of Subjof
entation of Subjof
entation of Subjof
entation of Subjof
entation
ects
PeopleRate
ects
PeopleRate
ects
PeopleRate
ects
PeopleRate
ects
PeopleRate
E

Environment

5,234

5,016

95.8%

5,396

5,035

93.3%

-

-

-

-

-

-

SDGs

-

-

-

-

-

-

5,659

5,304

93.7%

5,780

5,066

87.6%

5,835

5,667

97.1%

Ensuring
Food
Quality
HygieneandSafety

-

-

-

-

-

-

5,619

5,302

94.4%

5,771

5,230

90.6%

5,792

5,373

92.8%

Quality
Assurance

5,308

5,178

97.6%

5,403

5,032

93.1%

-

-

-

-

-

-

Intellectual
Property

5,308

5,037

94.9%

5,357

5,050

94.3%

5,659

5,324

94.1%

5,786

5,318

91.9%

Personal
Information
ProteS
ction
Law

5,311

4,973

93.6%

5,381

5,121

95.2%

5,645

5,347

94.7%

5,763

5,293

91.8%

5,806

5,448

93.8%

Information
Security

5,214

5,115

98.1%

5,362

4,993

93.1%

5,595

5,352

95.7%

5,725

5,477

95.7%

Harassment

5,356

5,166

96.5%

5,367

5,008

93.3%

5,680

5,421

95.4%

5,765

5,350

92.8%

5,835

5,656

96.9%

Working
Hours

-

-

-

5,381

5,101

94.8%

5,645

5,363

95.0%

5,763

5,371

93.2%

5,835

5,572

95.5%

HealthLiteracy

5,320

4,988

93.8%

5,403

5,047

93.4%

5,681

5,409

95.2%

5,778

5,310

91.9%

5,835

5,557

95.2%

Stress
Check

-

-

-

5,358

4,948

93.1%

-

-

-

-

-

-

HealthInformation

-

-

-

-

-

-

5,649

5,371

95.1%

-

-

-

Compliance

-

-

-

-

-

-

-

-

-

5,771

5,252

91.0%

5,792

5,395

93.1%

Internal
Control

5,247

5,080

96.8%

5,435

5,088

93.6%

5,643

5,247

93.0%

5,750

5,281

91.8%

Whistleblower
andConsultation
System

5,256

4,901

93.2%

5,471

4,862

88.9%

5,618

5,282

94.0%

-

-

-

Competition
G Law
ComplianceandAntibribery

5,308

5,005

94.3%

5,357

5,057

94.4%

-

-

-

5,786

5,276

91.2%

5,820

5,275

90.6%

Antibribery

-

-

-

-

-

-

5,655

5,228

92.4%

-

-

-

Insider

-

-

-

5,358

4,904

91.5%

5,649

5,361

94.9%

5,757

5,216

90.6%

5,806

5,487

94.5%

Retirement
benefit
plans

-

-

-

-

-

-

-

-

-

3,873

3,569

92.2%

3,963

3,768

95.1%

213

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

FY2018Domestic

Overseas

Domestic

FY2020

FY2021

FY2022

Overseas Domestic Overseas Domestic Overseas Domestic

Overseas

Number of Group
Quality
Audits per year
Assurance(Domestic/Overseas) Department

156

7

66

38

52

20

40

10

46

16

Nichirei
Nichirei Foods
Foods Quality(Domestic/Overseas) Assurance
Department

30

4

26

20

6

5

16

6

5

5

Nichirei
Logistics
Nichirei Logistics
Group
Group
Quality and(Domestic/Overseas) Safety
Management
Department

112

-

24

0

34

-

19

-

26

0

Nichirei Fresh 7/7(7/8:One caseNichirei Fresh
Quality
is a poultry farm,(Domestic/Overseas) Assurance
so no audit was
Department
performed.)

11/13

10

17

9

15

5

4

15

11

0

7

1

3

0

0

0

0

0

Nichirei
Bioscience
Nichirei Bioscience
Quality(Domestic/Overseas)
Assurance
Department

Quality
Assurance
Audits

FY20197

99%(=67/68) of
the plan *One
Group Annual
BIO case was
100%
87%
80%
28%
Implementation Rate Quality
100%
delayed from
58%
66%
48%
88% (=15/17)(=38/38) (=52/60) (=20/25)(=10/36)
Assurance implementation ofNovember to(=40/69)(=46/70) of (=16/33) of(vs. plan) (Officeof the planof theof theof theof theDepartment the plan
April of theof the plan
the planthe plancoverage
plan
plan
plan
plan
following year
domestic/overseas)
due to amanufacturing
delay.
Group Annual
Implementation Rate
Quality
20%
17%
11%(ActualAssurance 38%（157/408） 7%（15/210） 18%(67/370)(38/189) (52/307) (20/180)
number) (Office
Department
coveragedomestic/overseas)
Nichirei
Nichirei Foods
Foods Quality(Domestic/Overseas) Assurance
Department

100%
100%(30/30)
100%(26/26)
100%
100%
100%(4/4) /49(20/20)(16/38)/52/61/61(6/6) /53 (5/5) /43/49

Nichirei
Logistics
Nichirei Logistics
Group
100%(112/112)
Group
Quality and/112(Domestic/Overseas) Safety
Management
Department
Nichirei Fresh
Nichirei Fresh
Quality
100%(7/7) /222
(Domestic/Overseas) Assurance
Department
Nichirei
Bioscience
Nichirei Bioscience
Quality(Domestic/Overseas)
Assurance
Department

13%6%(40/305) (10/172)

100%(7/7) /13-

100%(24/24)
/110

87%
- (34/39)
/115

100%
85%(11/13) 100%(10/10)(17/17)
/158
/189
/139

- (0/0) /3 75%(6/8) /10

214-(19/19)
/117

100%
83%
(9/9) (15/18) (5/8) 127
/129
/135

100%
71% 0%(0/2)(1/1) /1 (5/7) /10/2

15%(46/299)9%(16/176)(5/25)/55(5/17)/42- (26/26)/117-(6/20)/43(4/14)(15/17)/123 (11/16)/131/126(0/4) /9 (0/2) /3(0/2)/4(0/0)/3

Quality Assurance Related Data
Number of certifications as of the end of March Number of Offices Acquired/Number of Offices of Consolidated Subsidiaries in Japanof each fiscal year
HACCP
Nichirei Foods(Food
HygieneManagement Nichirei Fresh
System)

13/15

-

14/15

-

14/15

-

15/15

-

-

-

6/7

-

7/7

-

7/7

-

7/7

-

-

-

Number of Group
Quality
Certifications
Assurance(Domestic/Overseas) Department

126/1353

114/139

3/5

89/138

3/5

89/1402/5

94/1402/5

Nichirei
Nichirei Foods
Foods Quality(Domestic/Overseas) Assurance
Department

13/15

3

3/15

3/5

3/15

3/5

3/15

2/5

3/5

2/5

Nichirei
Logistics
Nichirei Logistics
Group
Number of Group
Quality andISO9001(Domestic/Overseas) Safety
Certifications
Management
Department

105/112-104/116-

81/115-83 /117-

86/117-

Nichirei Fresh
Nichirei Fresh
Quality(Domestic/Overseas) Assurance
Department

8/8

-

7/8

-

5/8

-

5/8

-

5/8

-

Nichirei
Bioscience
Nichirei Bioscience
Quality(Domestic/Overseas)
Assurance
Department

-

-

-

-

-

-

-

-

-

-

Number of Group
Quality
Certifications
Assurance(Domestic/Overseas) Department

13/17

2

12

3

13

2

13

3

12

6

Nichirei
Nichirei Foods
Foods Quality(Domestic/Overseas) Assurance
Department

11/15

2

11/15

2/5

11/15

2/5

11/15

2/5

10/15

5/5

Nichirei
Logistics
Nichirei Logistics
Group
ISO14001
Group
Quality andand(Domestic/Overseas) Safety
ISO13485
Management
Certifications
Department

-

-

-

-

-

-

-

-

-

-

Nichirei Fresh
Nichirei Fresh
Quality(Domestic/Overseas) Assurance
Department

-

-

-

-

-

-

-

-

-

-

-

2/2

1/1

2/2

1/1

Nichirei
Bioscience
Nichirei Bioscience
Quality(Domestic/Overseas)
Assurance
Department

2/2

-

1

1

14000:
0/1
13485:
2/2

21/1352

22/139

4/5

23/137

4/5

23/139

6/6

24/139

6/6

13/15

-

14/15

4/5

14/15

4/5

14/15

5/5

15/15

5/5

Nichirei
Logistics
Nichirei Logistics
Group
Group
Quality and(Domestic/Overseas) Safety
Management
Department

2/112

-

2/116

-

2/115

-

2/117

-

2/117

-

Nichirei Fresh
Nichirei Fresh
Quality(Domestic/Overseas) Assurance
Department

6/8

-

6/8

-

7/7

-

7/7

1/1

7/7

1/1

FSSC22000 Number of Group
Quality
ISO22000
Certifications
Assurance
Number of (Domestic/Overseas) Department
SQF
Nichirei
Certifications Nichirei Foods
Foods Quality(Domestic/Overseas) Assurance
Department

215

Nichirei
Bioscience
Nichirei Bioscience
Quality(Domestic/Overseas)
Assurance
Department

-

-

-

-

-

-

-

-

-

-

Group Annual
Quality
NumberAssurance(Domestic/Overseas) Department

3

0

7

0

1

3

4

2

3

2

Nichirei
Nichirei Foods
Foods Quality(Domestic/Overseas) Assurance
Department

1

-

1

-

-

-

0

0

0

0

Nichirei
Logistics
Nichirei Logistics
Group
QualityGroup
Quality andAssurance –(Domestic/Overseas) Safety
Number ofManagement
Critical Cases
Department

-

-

-

-

-

0

0

-

0

0

Nichirei Fresh
Nichirei Fresh
Quality(Domestic/Overseas) Assurance
Department

-

-

6

-

1

3

4

2

3

2

Nichirei
Bioscience
Nichirei Bioscience
Quality(Domestic/Overseas)
Assurance
Department

2

-

-

-

-

0

0

0

0

0

QualityGroup Annual Hours
Assurance(Domestic/Overseas)
Department

199.1

86

210

19

221.5

10

455.5

21

790

25

Nichirei
Nichirei Foods
Foods Quality(Domestic/Overseas) Assurance
Department

67

34

42.5

19

42.5

10

24

21

24

25

Nichirei
Logistics
Nichirei Logistics
Group
Group
Quality and(Domestic/Overseas) Safety
Management
Department

41

0

77

0

77

0

334

-

678

-

Nichirei Fresh
Nichirei Fresh
Quality(Domestic/Overseas) Assurance
Department

23.1

50

26.5

0

38

0

40

0

30

0

Nichirei
Bioscience
Nichirei Bioscience
Quality(Domestic/Overseas)
Assurance
Department

68

2

64

0

64

0

57.5

0

58

0

-

(1st
meeting)100%(11/11)(2nd
meeting)91%(10/11)-(1st
meeting)92%(12/13)(2nd
meeting)100%(12/12)-

Quality
Assurance
Training
Hours

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

Group
Quality
Assurance
Committee

Quality Assurance
Department

Quality
Assurance
Department

95%

(1st
meeting)100%(11/11)(2nd
meeting)82%(9/11)(1st meeting)
91% (10/11)(2nd meeting)
91% (10/11)■Percentage of receiving a Full Medical Examination after Periodic Health Checkups
Coverage
Nichirei Group total

Unit％

FY2018FY2019

6.1

216

12.3

FY202017.5

FY2021

66.1

FY2022

70.1

■Donations to Non-proﬁt Organizations
Donations to Non-profit
FY2017FY2018FY2019FY2020
FY2021
FY2022
Organizations(Millions ofDomestic Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas
yen)Social welfare and disastersupport（Social welfare, social
inclusion）

25

19

-

19

-

19

-

20

-

18

-

Social welfare and disastersupport（Support for disasterstricken areas）

18

2

1

14

0

16

0

2

0

4

0

Education（Academia & research）

5

3

-

15

-

10

-

8

-

6

-

Education（Education and social
education）

77

77

-

82

-

77

-

67

-

57

-

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

118

120

-

133

-

138

-

134

-

134

-

Health, sports and the arts
（Culture and arts）

1

6

-

0

-

0

-

0

-

0

-

Environmental
conservation（Environment）

17

18

-

17

-

50

-

57

-

59

-

Community contribution（Community activities,
preservation of historicsites and traditional
culture）

16

16

-

24

-

19

-

48

-

67

-

Political contributions

0

0

-

0

-

0

-

0

-

0

-

Other

4

2

-

3

-

2

-

2

-

2

-

281

262

1

306

0

330

0

338

0

347

-

Nichirei Group total■Health Manager
Coverage

Item

Unit

First-Class Health Manager
Nichirei Group total

FY2021

Number of people

FY2022

89

78

Second-Class Health Manager

Number of people

11

11

Total

Number of people

100

89

■Personal Information Protection Leaks, etc.
FY2018
Nichirei Group total

FY20190

FY20200

FY20210

FY20220

1■Number of Violations of Laws and Regulations in Advertisements/Publicity and Labeling
FY2018
Nichirei Group total

FY20190

FY20200217

FY20210

FY202200

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

Board of Directors
composition

Board of Directors
meeting attendance rate

Number of Meetings of
Various Committees, etc.

Facilities audits ofcompliance audits andinternal controls

Number ofWhistleblowing Cases,
by TypeAnti-corruption andbribery

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

Notice of the 104rd Anuual General Shareholders Meeting■Board of Directors composition
Category

Insidedirectors

Outsidedirectors

Total

Gender

FY2018(Number ofpeople)FY2019(Number ofpeople)FY2020(Number ofpeople)FY2021(Number ofpeople)FY2022(Number ofpeople)

Male

7

7

7

7

7

Female

0

0

0

0

0

Total

7

7

7

7

7

Male

1

1

1

1

1

Female

2

2

2

2

3

Total

3

3

3

3

4

Male

8

8

8

8

8

Female

2

2

2

2

3

Total

10

10

10

10

11

■Board of Directors meeting attendance rate
Category

FY2018 (%)

FY2019 (%)

FY2020 (%)

FY2021 (%)

FY2022 (%)

Inside directors

97.7

97.4

100

100

97.6

Outside directors

96.5

98.2

94.4

100

100

■Number of Meetings of Various Committees, etc.
Number of Meetings HeldFY2018FY2019FY2020

FY2021

FY2022

Board of Directors

Meets regularly on the third Tuesdayof each month

19

19

18

18

19

Management Committee

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

21

23

20

17

23

218

Number of Meetings HeldFY2018FY2019FY2020

FY2021

FY2022

Group Human Resources
Committee

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

2

2

2

2

2

Group Risk Management
Committee

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

2

2

2

2

2

Group Environmental
Protection Committee

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

3

3

2

2

2

Group Quality AssuranceCommittee

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

2

2

2

2

2

Group Internal Control
Committee

Convened once a year, and asneeded, convened by the chairperson

1

1

1

1

1

Group Officer
Examination
Committee*1

Chairperson convenes as needed

-

-

1

1

1

Social Action Program
Committee

Convened once a year, and asneeded, convened by the chairperson

1

1

1

1

1

Nominating Advisory
Committee

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

1

2

2

5

6

Remuneration Advisory
Committee*2

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

1

6

3

5

6*

Examination Committee

Chairperson convenes as needed

-

-

1

2

0

Intellectual Property
Management Committee

Chairperson convenes as needed

-

-

-

-

0

*

Includes 6th meeting in writing.

*1 Meetings are called by the chairperson on an as-needed basis*2 As of January 2020, meets twice a year in principle according to the Remuneration Advisory Committee rules■Number of Meetings of Various Committees, etc., and Number of Board Members in AttendanceClassification

Name

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

19/19

6/6

6/6

Directors

19/19

19/19

219

Audit &
Supervisory Board
Meeting
AttendanceClassification

Name

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

19/19

6/6

5/6

15/15*1

4/4*1

4/4*1

*2

*2

*2

*2

*2

*2

Audit &
Supervisory Board
Meeting
Attendance

18/19

15/15*1*2

Audit &
Supervisory
Board Members

15/15*1

11/11*1

*2

*2

19/19

16/16

19/19

16/16

19/19

16/16

*1 Mr. Tanabe, Ms. Nabeshima, and Mr. Kato were newly appointed at the 103rd General Meeting of Shareholders
held on June 22, 2021. Their attendance reflects meetings of the Board of Directors, Nominating Advisory
Committee, Remuneration Advisory Committee or Audit & Supervisory Board held after that date.
*2 As Mr. Suzuki, Mr. Hama, Mr. Hamashima and Mr. Katabuchi were newly appointed a the 104th General
Meeting of Shareholders held on June 24, 2022, their attendance for FY2022 is not presented.
220

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

FY2018FY2019FY2020

FY2021

FY2022

Remarks

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

Corporate Audit
Department

Participation ratio (% of all employees
covered)Corporate Audit
95.50%
Department

1

1

1

96.80%

1

93.60%

1

93.00%

91.80%

1

Overseas
includes only100%
those stationed
abroadGovernance Management
Number of Group audits
Corporate Audit
per year
Department(Domestic/Overseas)

290

7

301

16

285

8

222

0

272

Compliance
0 and facilities
combined

Group annual
implementation rate
(office coverage rate
domestic/overseas)

Corporate Audit
Department

77%

16%

82%

36%

73%

19%

58%

0%

69%

Compliance
0% and facilities
combined

Number of Group audits
Corporate Audit
per year
Department(Domestic/Overseas)

172

4

181

8

162

4

152

0

162

Group annual
implementation rate
(office coverage rate
domestic/overseas)

Corporate Audit
Department

71%

15%

74%

31%

66%

17%

61%

0%

62%

Compliance audits Nichirei Foods(Domestic/Overseas)

Corporate Audit
Department

85%

8%

74%

8%

88%

40%

75%

0%

68%

Nichirei Logistics Group Corporate Audit(Domestic/Overseas) Department

58%

10%

68%

70%

59%

0%

49%

0%

51%

Nichirei Fresh(Domestic/Overseas)

Corporate Audit
Department

100%

50%

100%

0

100%

0

88%

0%

76%

0% only (thenumber ofGroup annual
audits and the
0% Group annual
implementation
0% rate includes
corporate
departments)0%

Nichirei Bioscience(Domestic/Overseas)

Corporate Audit
Department

100%

0

100%

0

0

0

100%

0%

100%

0%

Number of Group audits
Corporate Audit
per year
Department(Domestic/Overseas)

118

3

120

8

123

4

70

0

110

0

Group annual
implementation rate
(office coverage rate
domestic/overseas)

Corporate Audit
Department

87%

16%

87%

42%

87%

22%

51%

0%

82%

Nichirei Foods(Domestic/Overseas)

Corporate Audit
Department

94%

33%

100%

17%

94%

33%

82%

0%

94%

Nichirei Logistics Group Corporate Audit(Domestic/Overseas) Department

84%

0

85%

58%

87%

14%

43%

0%

79%

Nichirei Fresh(Domestic/Overseas)

Corporate Audit
Department

100%

100%

100%

0

100%

0

89%

0%

89%

0%

Nichirei Bioscience(Domestic/Overseas)

Corporate Audit
Department

100%

-

0%

-

100%

0

100%

0%

100%

-

-

90%

-

100%

-

100%

-

100%

-

Internal audit

Facilities audit

0Compliance

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

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

Corporate Audit
Department

100%

221

■Number of Whistleblowing Cases, by TypeFY2018FY2019FY2020

FY2021

FY2022

Mistreatment

6

6

2

2

0

Workplace Disputes

11

2

5

8

2

Harassment

12

1

12

10

3

Compliance-related Breaches

3

1

1

5

11

Human rights issues

0

0

0

0

0

Other Consultations

3

2

1

2

4

Total

35

12

21

27

20

■Anti-corruption and bribery
FY2020

FY2021

FY2022

Punished employees

None

None

None

Payment of fines

None

None

None

222

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

External Evaluations （As of March 24, 2023）
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.

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

✓

✓

✓

✓

✓

✓

✓

―

―

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

2022

2021

2020

2019

2018

2017

✓

✓

✓

✓

✓

✓

2016

2015

2014

2013

2012

2011

2010

2013

2012

2011

2010

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

2022

2021

2020

2019

2018

2017

2016

✓

223

2015

2014

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

2021

2020

2019

2018

2017

AA

AA

A

A

A

2016

2015

2014

2013

2012

2011

2010

2012

2011

2010

2012

2011

2010

2011

2010

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

2021

2020

2019

2018

2017

AA

AA

A

A

A

2016

2015

2014

2013

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.

2021

2020

2019

2018

2017

AA

AA

A

A

A

2016

2015

2014

2013

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

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

✓

✓

✓

✓

✓

✓

✓

✓

✓

―

―

224

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

■Climate Change
2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

A-

B

B

B

C

A-

C

C

C

31

―

2010

■Water Security
2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

A-

B

B

B-

B-

―

―

―

―

―

―

2010

S&P/JPX Carbon Efficient Index

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

〇

〇

〇

―

―

―

―

―

―

―

―

―

JPX-NIKKEI 400

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

〇

〇

〇

〇

〇

〇

〇

〇

〇

―

―

―

225

■List of Certifications
Acquisition Year

Name

2021年7月2024年6月

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

FY2023

Health & Productivity Stock
Selection

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

From FY2019

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

From FY2017

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

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

From FY2018

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

From FY2010"The Act on Advancement of
Measures to Support Raising
Next-Generation Children"certification mark (nickname:
Kurumin)https://www.nichireifoods.co.
jp/corporate/sustainability/human_resources.html(Only Available in Japanese)226

■Awards
AwardsYear

Name

OutlineFY2023

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

The study was conducted by EcoVadis
Nichirei Biosciences Inc. (President: Hideo Yokoi) has received a "Silver"
rating, equivalent to the top 25% of all companies evaluated, in the 2022
EcoVadis Sustainability Survey for the second year in a row.
https://nichireibiosciences.co.jp/wp-content/uploads/2023/02/NB_HP_Ecova
dis%E3%83%97%E3%83%AC%E3%82%B9%E3%83%AA%E3%83%AA%E
3%83%BC%E3%82%B9_230202.pdf

FY2023

Awarded "Champion"in the collaboration
award at the 4th Japan
Sustainable SeafoodAwardsSponsored by Seafood Legacy Inc. and Nikkei ESG​
We won the "Champion" award in the collaboration award at the 4th Japan
Sustainable Seafood Awards, sponsored by Seafood Legacy, Inc. and Nikkei
ESG.
https://www.nichireifresh.co.jp/news/detail/?id=1659
Sponsored by J-Credit Tohoku Region Promotion Council (Secretariat:
Tohoku Bureau of Economy, Trade and Industry)
The "Obento-ni-Good! Good for the Earth! Program" received the "SDGs
Carbon Offset Award."
https://www.nichireifoods.co.jp/news/2022/info_id13768/

FY2023

Received the "SDGs
Carbon Offset Award"

FY2023

Nichirei do Brasil
Agricola Ltda (NIAGRO)
received a "Gold" ratingin the EcoVadis
Sustainability Survey in2022, equivalent to the
top 5% level, for thesecond year in a row

Sponsored by EcoVadis
Nichirei do Brasil Agricola Ltda (NIAGRO), a subsidiary of
Nichirei Foods Inc. (President: Masahiko Takenaga),
received a "Gold" rating, equivalent to the top 5% of allcompanies evaluated, in the 2022 EcoVadis Sustainability
Survey for the second year in a row.
https://www.nichireifoods.co.jp/news/2022/info_id14062/

FY2023

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

FY2022

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

FY2022

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

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

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

227

FY2022

Commendation fromWICI Japan, a generalincorporated
association

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

FY2021City of Yokosuka
Commendation

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

FY2021The Yokohama Global
Warming
Countermeasures
Award

Sponsored by City of Yokosuka
The Yokohama Global Warming Countermeasures Award commends businesses
that have significantly reduced greenhouse gas and other emissions.
Assessments are made based on the implementation status of priority measuresand the achievement status of reduction targets over a three-year period.
Nichirei Logistics Kanto received the Yokohama Climate Change Countermeasures
Award, part of the Yokohama City Action Plan for Global WarmingCountermeasures.
Sponsored by Consumer Affairs Agency
A system that recognizes businesses that promote consumer-oriented businessactivities, “consumer-oriented management” (nickname: sustainable
management)
Effort to promote SDGs was evaluated by supporting employees 'voluntary
activities through Nichirei Foods' unique “Hamidas activities”, promoting foodeducation activities, contributing to the local community through environmental
conservation activities, and working with food banks.

FY2019

1st Award for Good
Practices of Consumeroriented
Received the Consumer
Affairs Agency
Director'sCommendation

FY2018

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

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

FY2018

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

Sponsored by Green Logistics Partnership Conference
A system implemented by the Ministry of Land, Infrastructure, Transport andTourism to recognize outstanding efforts to promote CO₂ reduction in the logistics
field. Logistics Network Inc. of the Nichirei Logistics Group Inc. has beenpromoting a modal shift for more than 10 years as a 3PL operator that improves
and operates all logistics for customer companies that are shippers, fromprocurement 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 Excellent
company
announcement /commendation system“The award for
Excellent Business
Entities Working on
Modal Shift”

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

Nano Tech 2017
Life Nanotechnology
Award

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

FY2017228

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

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

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

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

229

Roundtable on Sustainable Palm Oil (RSPO)
https://www.rspo.org/
In response to growing global concern regarding the impact of therapidly expanding palm oil plantations, in Malaysia and Indonesia, on theenvironment and human rights, the RSPO was set up in 2004 bystakeholders from the seven sectors of the palm oil industry, including
the World Wildlife Fund (WWF).
The RSPO aims to promote the sustainable production and use of palm
oil through the formulation of international certification standards andstakeholder participation. The Nichirei Group became a member of the

4-1055-18-100-00

RSPO in August 2018.

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

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

230

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

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

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

231

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

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

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

232

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

Participation in the Stakeholder Engagement Program

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

233