The Nissui Group aims to have the items that the Nissui Group procures confirmed as sustainable by the year 2030.
The preservation of resources and resolution of labor-related human rights issues is called for when using and procuring marine resources. We are working with our suppliers to implement sustainable procurement that maintains respect for human rights.
Nissui has formulated the Nissui Group Basic Procurement Policy by summarizing the basic approaches to the procurement of raw materials and products.
In June 2022, Nissui revised its Supplier Guideline, given the need to collaborate more intensely with suppliers to carry out sustainable procurement. The Supplier Guideline, the topics of which are comprised of "Compliance with Laws and Regulations," "Respect for Human Rights," "Safety and Health," and "Environmental Consideration," places emphasis especially on the human rights of employees.
The Sustainable Procurement Subcommittee works with suppliers to promote sustainable procurement practices that address environmental and human rights concerns.
![[Figure] Sustainable Procurement Subcommittee](/assets/img/site/107/107_379_img-01e.svg)
The targets specified in the long-term vision, “Good Foods 2030,” and in the mid-term business plan, “Good Foods Recipe1,” are as follows.
| Indicators | Scope | Results | KPI | ||
|---|---|---|---|---|---|
| FY2022 | FY2023 | Target by 2024 Mid-Term Business Plan "Good Foods Recipe1" | Target by 2030 Long-Term Vision "Good Foods 2030" | ||
| Ratio of conducting assessments of Tier-1 suppliers | The Nissui Group | Nissui only 22% | Nissui only 92% | Nissui only 100% | Group companies 100% |
The Supplier Guideline is distributed to all of Nissui Corporation’s Tier-1 suppliers (suppliers within and outside Japan with which Nissui Corporation has direct transactions), and suppliers are also asked to sign a Statement of Agreement. When the Supplier Guideline is distributed, each supplier also receives a link to an explanatory video. With regard to those suppliers that fail to sign the Statement of Agreement, where necessary we engage in dialog with them, and we aim to communicate with them, for example by holding meetings to discuss the reasons for not signing the Statement of Agreement. Going forward, we will be expanding this initiative to cover Nissui Group suppliers, and we will be striving to reduce human rights risk in our supply chain, which extends throughout the world.
![[Photo]](/assets/img/site/107/107_77_img-02.jpg)
Dialogue with a supplier
| Results | ||
|---|---|---|
| Distribution of the Supplier Guideline | 470 companies | |
| Signing of the Statement of Agreement | 461 companies | |
| Percentage of suppliers signing the Statement of Agreement | 98.0% | |
| Instances of dialog with companies that failed to sign the Statement of Agreement | FY2023 | 4 companies |
Data correct as of October 31, 2023
Scope of data: Nissui Corporation’s Tier-1 suppliers
To realize the sustainable procurement that Nissui is aiming for, we need the understanding and collaboration of every supplier. With this in mind, when distributing the Supplier Guideline to suppliers, we also send them a link to an explanatory video (in Japanese), with the goal of enhancing their understanding of sustainable procurement.
A screenshot from the explanatory video
In line with the Nissui Group Basic Procurement Policy and the Supplier Guideline, we implement measures to reduce human rights and environmental risk in the Nissui Group’s supply chain.
We confirm and monitor suppliers’ current status in this regard, and where it is deemed that risk exists, we work together with the supplier to realize improvements.
In FY2023, we introduced a new supplier engagement platform, and built a framework to facilitate communication with the Tier-1 suppliers (suppliers within or outside Japan with whom we engage in direct transactions) registered on this platform. Through this framework, we are encouraging suppliers to implement self-checks, with the aim of reducing human rights and environmental risk in the supply chain. Once a supplier has finished responding to all the self-check items online, a report will display immediately in the form of a radar chart. The report simultaneously displays the average values for all the suppliers that have submitted their response and the results for the supplier in question, enabling that supplier to confirm which areas require improvement. If a supplier’s results indicate that they do not meet the required threshold for items relating to human rights or the environment, then we will provide opportunities for us to visit the supplier or implement online meetings, so as to clarify the intention behind the supplier’s responses and determine the actual situation, and we will offer advice to help the supplier realize improvements.
![[Capture] Report screen which displays after a supplier has submitted its self-check response](/assets/img/site/107/107_443_img-01.png)
Report screen which displays after a supplier has submitted its self-check response
| Results | |
|---|---|
| Self-check requests made | 454 companies |
| Self-check responses provided | 418 companies |
| Response rate | 92% |
Data correct as of October 31, 2023
Scope of data: Nissui Corporation’s Tier-1 suppliers
We implement special training for the Nissui Corporation purchasing managers who act as the contact point between Nissui and its suppliers, with the aim of strengthening human rights and environmental due diligence in relation to suppliers. The training covers social problems relating to human rights, as well as what stakeholders expect, and the importance of the Supplier Guideline and the revisions that have been made to the Guideline; the aim of the training is to strengthen communication with suppliers that will further the realization of sustainable procurement.
Palm oil is a vegetable oil sourced from the fruit of oil palm (Elaeis), which is grown in Indonesia, Malaysia and other tropical regions. In areas where palm oil is produced, various problems have been pointed out, including the deforestation of tropical forests, forest/peat fire and loss of biodiversity associated with plantation development, as well as issues in terms of workers' safety and human rights.
The Nissui Group has been making efforts to procure raw materials in consideration of the environment and human rights, in accordance with the "Nissui Group Basic Procurement Policy" formulated in August 2017. In order to resolve the issues specific to palm oil and promote the procurement of sustainable palm oil, the Nissui Group joined the Roundtable on Sustainable Palm Oil (RSPO) in January 2021. As an initiative to promote the procurement of RSPO-certified palm oil, the Nissui Group has obtained RSPO Supply Chain certification based on the mass balance model in two of its plants in Japan by March 2022.
![[Logo] RSPO](/assets/img/site/107/107_344_img-01.png)