The Nissui Group recognizes the preservation of biodiversity as a vital management issue. The Group joined the Task Force on Nature-related Financial Disclosures (TNFD) Forum in September 2023, and registered as a TNFD Adopter in December 2023.

Participation in External Initiatives

Governance

Efforts related to natural capital and biodiversity in the Nissui Group are primarily handled by six subcommittees: the Marine Resource Sustainability Subcommittee, the Sustainable Procurement Subcommittee, the Marine Environment Subcommittee, the Plastics Subcommittee, the Environmental Subcommittee, and the Human Rights Subcommittee. Each subcommittee develops and implements policies and strategies, and reports to the Sustainability Committee.
At the meeting of the Sustainability Committee, which is convened six times a year, specific targets, policies and measures for sustainability-related issues are examined based on reports and proposals made by each subcommittee, and the Board of Directors’ opinions and advice are reflected in its initiatives through periodic reports made to the Board of Directors.

(Note): 3R+R: Reduce, Reuse and Recycle + Renewable

Sustainability Committee

• Chair: President & CEO
• Members: All of the Executive Officers and the Outside Directors
• Secretariat: Sustainability Department
• Report to: Board of Directors
• Holding frequency: Six times a year

Strategy

To clarify the relationship between the Nissui Group’s dependence on nature for its fisheries and aquaculture operations and the impact those operations have on nature, we conducted a diagnosis of “Dependencies and Impacts” and an evaluation of “Risks and Opportunities” in line with the LEAP Approach (Note 1), and organized the results as follows. This evaluation focused on “fisheries” and “aquaculture,” which represent the upstream points of contact with nature in our value chain. An initial evaluation was performed using the external tool “ENCORE" (Note 2), followed by a secondary (qualitative) evaluation aligned with the realities of the Nissui Group’s operations. As a result, it was found that fisheries in the Group are highly dependent on marine ecosystem services, such as specific ocean areas and marine resources, and that fishing activities impact resource quantities and species. In aquaculture, significant dependence was found on ecosystem services that regulate water temperature and quality, in addition to the use of land, water, and sea areas. It was also found that aquaculture impacts nature through water pollution around farming sites, particularly due to water quality deterioration caused by feeding practices.

(Note1) The LEAP (“Locate, Evaluate, Assess, Prepare”) approach: an analytical process developed by TNFD to serve as a guide on evaluating nature-related risks and opportunities.
(Note2)Exploring Natural Capital Opportunities, Risks and Exposure (ENCORE): a tool for evaluating dependence and impact on natural capital for each business sector and production process.

Diagnose dependence and impact

Evaluate risks and oppoutunities

[Fisheries]

Main risks and opportunities for Nissui Group

[Aquaculture]

Main risks and opportunities for Nissui Group

Manage risks and opportunities

The Nissui Group uses material issues as the starting point for risk management to identify significant risks with a focus on medium- to long-term management strategies. In FY2023, a review of material issues was conducted, and accordingly, significant risks were also reassessed. The identified significant risks related to natural capital and biodiversity are as below. The review of material issues incorporated the results from our analysis of “climate-related and nature-related risks and opportunities" as part of our TCFD and TNFD initiatives.
The analysis and countermeasures for risks and opportunities related to climate change are being examined by the “TCFD Compliance Project," a cross-functional initiative led by a Managing Executive Officer (CFO), in collaboration with the Environmental Subcommittee. Additionally, the analysis and countermeasures for risks and opportunities related to natural capital along the value chain are being examined by the Marine Resource Sustainability Subcommittee, the Marine Environment Subcommittee, the Sustainable Procurement Subcommittee, and the Human Rights Subcommittee. The results of the discussions in each subcommittee are reported to the Board of Directors after deliberation in the Sustainability Committee, and the Board’s opinions and advice are incorporated into our policies.

Metrics and targets

The Nissui Group positions the sustainability of marine resources and the conservation of the marine environment as key management issues, managing nature-related dependencies, impacts, risks, and opportunities using the following indicators and targets.

(Note1) ODP: Ocean Disclosure Project. Online reporting platform for voluntary disclosure of seafood sourcing established by the SFP in 2015.
(Note2) GSSI: Global Sustainable Seafood Initiative. An international partnership that verifies programs assessing the sustainability of marine products.
(Note3) RFMO: Regional fisheries management organizations. International organizations established under individual conventions to achieve the conservation and sustainable use of marine resources.

In the fishing industry, the incidental catch of seabirds and marine mammals—that is, non-targeted species—is considered to be a major concern. The Nissui Group understands the risks of bycatch associated with various fishing methods and is committed to promoting initiatives for bycatch prevention. Furthermore, SeaBOS (Seafood Business for Ocean Stewardship, a cross-industry initiative to strengthen sustainable seafood business practices to which Nissui is a signatory to) is also addressing this topic and is working with member companies to assess the current situation and seek ways to make improvements.

Nissui Group Companies' Initiatives

Fishing companies in the Nissui Group have introduced “tori lines” (Note), which are widely used to prevent the bycatch of seabirds, as well as a variety of other innovations adapted to their specific fishing methods. When there are national or fishery area bycatch prevention programs in place, Nissui conducts business in line with these accordingly.

(Note)Tori line: A device that prevents birds from approaching the bait by towing a rope to which streamers and tapes are attached from the tip of a long pole fixed at the stern of the fishing boat; also called tori pole (Source: World Wide Fund for Nature (WWF) website).

[Initiatives at EMDEPES]

Chilean trawler company EMDEPES has devised a way to prevent seabirds from striking towing wires that extend from the stern into the sea by suspending a weight with a pulley and submerging these wires close to the stern of the vessel. This approach has reduced the number of wire collisions involving seabirds in flight by about 80% compared to conventional methods. This initiative was submitted to the Chilean Ministry of Fisheries, and received a favorable evaluation. EMDEPES fishing vessels are also fitted with devices to prevent bycatch of marine mammals (fur seals, seals, etc.); the company has seen a zero bycatch of these animals since installation of these devices.

Wire for fishing-equipment monitoring sensor

[Initiatives at Sealord]

Sealord, engaged in trawling in the waters around New Zealand and Australia, is a founding member of the Southern Seabird Solutions Trust (Note), which sponsors the Seabird Smart Awards, a program that recognizes fishing companies for their efforts in preventing seabird bycatch. In 2010, Sealord itself received the Seabird Safe Awards 2010 for its vessel, the FV Thomas Harrison. A variety of measures are in place to prevent seabird bycatch, including the following:

• Using bafflers (like a metal scarecrow) and tori lines (streamers) to scare birds away from lines and trawl nets
• Trawling at night when fewer birds are around
• Managing offal onboard to avoid attracting birds to the vessel
• having a bycatch reduction management plan for every vessel.

(Note) Southern Seabird Solutions Trust: An innovative alliance between the WWF, fishers, and government. Supports and encourages fishers in Southern Ocean fleets to adopt responsible fishing practices and to reduce harm to seabirds around New Zealand caused by fishing by supporting and encouraging the adoption of responsible fishing practices and providing projects that contribute to reducing the impact of fishing on seabirds in Southern Hemisphere fisheries.

Seabird

Bafflers

Tori lines

[Initiatives at Australian Longline]

Australian Longline, a bottom longline company that operates around Australia, has installed a device called a moonpool on board its vessels. A moonpool is a circular hole in the bottom of a vessel. On longline vessels, reeling in line from these holes reduces the risk of entangling wild birds when compared to working with lines on the deck. This method also has the added benefit of ensuring the safety of seafarers on board.

Moon pool

Initiatives by SeaBOS

SeaBOS member companies, including Nissui, have agreed on policies to reduce the impact of their operations on endangered species. The task force on addressing endangered species has resolved to move forward with efforts to prevent bycatch of endangered species in the fisheries/aquaculture industry, beginning with sharks, rays, and seabirds.

Support for SeaBOS

The Forest that Protects Spring Water Nurturing Fish and the Sea

Tottori Prefecture is the home of the Nissui Group companies Yumigahama Suisan Co., Ltd., which is engaged in the aquaculture and processing businesses and Kyowasuisan Kabushiki Kaisha, a fishery company. The farming-related facility of Yumigahama Suisan is located at the foot of Mt. Senjozan which is in Daisen-Oki National Park of Kotoura Town, Tottori Prefecture and trees in certain parts of the surrounding broad-leaved forest have died and required maintenance.
On October 30, 2018, Tottori Prefecture, Kotoura Town and Nissui entered into a forest preservation and management agreement in order to preserve the surrounding 5.933 hectares of forest as the “The forest that protects spring water nurturing fish and the sea.”
On April 7, 2020, the Nissui Group was certified as a collaborative business by the Japan Committee of the United Nations Decade on Biodiversity (UNDB-J) for this forest preservation activities.

Preservation Activities

Continual preservation work is essential to protecting forests.
At the Nissui Group, ever since we entered into the Agreement, we have been conducting employee participation-based preservation activities on a yearly basis. For the participants, these activities become a valuable formative experience in which they get a real sense of the interrelatedness of the “forest, river, and sea,” and their relationships to them. Moreover, through interactions with the people of Tottori Prefecture involved, it is an opportunity for participants to gain familiarity with the local culture and are able to cultivate relations among members of Group companies.

Number of participants

(Note) Green Scouts: The Green Scouts are an organization sponsored by the Tottori Prefecture Planting Trees Promotion Committee. Its purpose is to get the children who will eventually lead the next generation of society to familiarize themselves with greenery, develop an affection for it, and protect and nurture it, and in doing so cultivate an attachment to their home communities and grow into people with well-rounded minds and the capacity to love their fellow human beings.

Number of trees planted (Selected from local tree species)

Since FY2021, we have been collaborating with Tottori University to conduct a forest survey with the aim of making our conservation activities more scientific. The results of the study showed that about 80% of the seedlings planted in our activities in FY2018-2019 were active and growing well as of 2021. We will undertake another survey of the vegetation inside and around the “Forest that Protects Spring Water Nurturing the Fish and the Sea,” and plan to make further use of local species of trees in our tree-planting activities in FY2022 and beyond. We hope to further improve our activities so that we can establish a forest that is closer to one that would naturally occur and that we can preserve the forest in a practical manner.

On September 24, 2023, participants from Nissui Group's operations in the Chugoku and Shikoku regions, such as Yumigahama Suisan Kaisha and Kyowa Fishery, in addition to stakeholders from Tottori Prefecture, gathered for the 6th conservation activity. The “Exchange Meeting of Green Scouts” was also held on the same day, where 18 elementary school students received an introduction to Nissui Group's business and a lecture on “forests, rivers, and seas.” The event saw participation from 8 members of Yumigahama Suisan Kaisha, 21 from Kyowa Fishery, 3 from Nissui's Chugoku-Shikoku branch, 4 from Tottori Prefecture, 7 from the Central Tottori Forestry Association, 1 from the Tottori Prefecture Chubu Regional Office, 1 from Kotoura Town, 3 from the Tottori Prefecture Planting Trees Promotion Committee, 20 from the Green Scouts, and 5 from Nissui’s secretariat, totaling 73 participants. Participants spent approximately 45 minutes cutting underbrush and working up a sweat.

Nissui Forest

On October 2, 2023, a cooperation agreement for corporate forest creation activities was signed between Hyogo Prefecture, Himeji City, the Hyogo Prefecture Greening Promotion Association, and Nissui. Under this agreement, Nissui’s Himeji General Plant as a main body of this activity will participate in forest conservation activities aimed at enhancing the public benefits of forests, including water resource conservation and combating global warming.
The Himeji General Plant has designated the forest area in the Ichikawa River basin, the source of its industrial water, as the “Nissui Forest” within the Kodera Health Forest.

Conservation Activities

Starting in November 2023, the plant began forest conservation activities focusing on water resource conservation, community integration, and raising environmental awareness among employees. These activities, which are held about twice a year, will include underbrush clearing and forest education events conducted under the guidance of forest volunteers.
On 25 November 2023, after attending a lecture on the importance of forest conservation and instructions on the tasks to be carried out and safety precautions, forest conservation activities were carried out. A total of 57 participants attended, including Nissui employees and their families, officials from Hyogo Prefecture and Himeji City, and members of the Hyogo Forest Club. Under the guidance of instructors from the Hyogo Forest Club, the participants engaged in activities such as cutting down sun-blocking evergreen trees and bamboos.

“The Utsunuki Green Zone” is a “satoyama (village forests)” adjacent to the Nissui Tokyo Innovation Center, which was built in 2011. 
Every year since 2013, activities have been conducted, under the instruction of the “Utsunuki-Midori-no-Kai,” to conserve the natural environment in areas surrounding the business location and to promote co-existence with the regional community. The activities begin with a classroom lecture at the log house within the zone, in which participants learn about the connection between the “forest, river and sea,” as well as the flora and fauna of the "satoyama," which is followed by various tasks such as mowing the underbrush in the "satoyama.”
The tenth round of activities was held on November 26, 2023, with a total of 53 participants, including Tokyo Innovation Center employees and their families. The day began with a lecture on environmental protection, after which the participants were divided into four groups. Led by members of Utsunuki-Midori-no-Kai (“Utsunuki Green Society”), they explored the Green Zone and learned about the local vegetation. After the tour, participants engaged in various conservation activities such as repairing stairs, creating trails, and trimming undergrowth. A woodworking workshop for children was also held.
Nissui has been a supporting member of “Utsunuki-Midori-no-Kai” since fiscal 2015.