Maruha Nichiro Corporation
1333:JP JP3876600002
Key Information
HQ:
Japan
Market Cap:
$0.91bn
Primary Market:
Asia
Company Information
Company Summary
Maruha Nichiro Corporation engages in the fishing, fish farming, food processing, trading, meat products, and distribution businesses in Japan and internationally. The company offers seafood products; and operates Bluefin tuna and other farms. It also provides frozen and processed food products, including canned, fish sausage, nursing care, supplement, cosmetic, institutional, pet, and space food products, as well as desserts and retort pouch foods. In addition, the company engages in the trade and supply of shrimps and octopus in approximately 70 countries worldwide; production of beef, pork, chicken, and processed products; distribution of fish; and development of freezing technology for a network of cold storage businesses. Maruha Nichiro Corporation was founded in 1880 and is headquartered in Tokyo, Japan.![Maruha Nichiro](http://images.ctfassets.net/kc2xclar6nri/5qiyro7EsKOlPeNW3XIxFy/2fbcd826b84922f756b57f13c1b861c2/Maruha_Nichiro.jpg?fit=scale&w=1320&fm=webp)
Revenue
Total revenue:
$7.7bn
Revenue by Geography
Revenue by Protein
Revenue by Product Type
Disclosures
CDP ScoresLast Reviewed: 11/10/2023
CDP Climate | CDP Forests | CDP Water |
---|---|---|
Yes | No | No |
Science Based Target initiativeLast Reviewed: 03/10/2023
Target classification | Status | Date |
---|---|---|
Has not set SBT | - | - |
Coller FAIRR Protein Producer Index
Analysis Overview
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins
Analysis Breakdown
Risk Score
18/100
High Risk
Greenhouse Gas Emissions
24/100
Scope 1, 2 & 3 Target
25/100
Type of Target
The company has set a medium- to long-term reduction target and intends to acquire SBT certification in the future, but it has not disclosed that it is in the process of setting an SBT.
0/3
Strength of Target - Non-SBT
Maruha Nichiro Corporation is a Japan-based company principally engaged in the fishing, aquaculture, food manufacture, processing and sale business. It also procures, processes, and sells meat products such as beef, pork and chicken. The company has established a group-wide target to reduce its CO2 emissions by 30% or more from FY2017 levels by FY2030.
1.25/2
Innovation on GHG Emission Reduction
20/100
Innovation to Reduce Agriculture Emissions
The company does not report engaging with suppliers to reduce emissions from agriculture.
0/1
Feed Farming Innovation
The company has formulated a test feed to reduce the usage of fishmeal. However, it does not mention if this test feed project aims to reduce feed emissions.
0/2
Animal Farming Innovation
The company mentions several innovative projects which can reduce emissions, such as non-CFC freezers. However, it does not mention if these projects can reduce emissions from animal farming.
1/2
Quality of GHG Inventory
30/100
Quality and scope of GHG inventory Completeness
The company discloses Scope 1 emissions to be 99,759 t-CO2 and Scope 2 emissions to be 148,846 t-CO2. The data only covers the group operations in Japan. Therefore, the geographic scope is limited.
1/1.5
Feed & Animal Farming Emissions
The company does not disclose any information on GHG emissions from animal farming. The company does not disclose any information on GHG emissions from feed production. The company does not disclose any information on GHG emissions from land use change.
0/2
Transparency of GHG Inventory
The company has submitted its response to the 2022 CDP Climate Change questionnaire.
0.5/1.5
Emissions Performance
5/100
Overall Emission Performance
The company discloses that total emissions have increased by 3.9%. From 239,258 t-CO2 in FY2020 to 248,605 t-CO2 in FY2021. However, the emission data reported is only for group companies in Japan.
0.25/5
Climate-related Scenario Analysis
39/100
Climate-related Scenarios Analysis Conducted
The company joined the TCFD Consortium and entered a project sponsored by the Ministry of the Environment to support scenario analysis of climate risks and opportunities in 2021. It established two scenarios, 4°C and 2°C, referencing materials published by the International Energy Agency (IEA), the United Nations Intergovernmental Panel on Climate Change (IPCC), and other domestic and international organisations. It has also conducted a physical scenario analysis according to IPCC RCP7.0.
1/1
Disclosure of Analysis Results on Material Risks
The company discloses the impact of high water temperatures based on its climate scenario analysis. It provides actions to address the risks and explore new opportunities. These include the development of aquaculture technology and aquaculture environment improvement technology, as well as implementation of disaster prevention measures. It acknowledges the potential impact of a carbon price mechanism on its Scope 1 and 2 emissions of up to 160 million yen. It has set an emissions reduction target to mitigate this risk and is investing in solar power generation.
0.93/3
Disclosure of Financial Material Events & Alignment of CAPEX
The company does not disclose its commitment to align capital expenditures with its GHG targets.
0/1
Deforestation & Biodiversity
16/100
Deforestation/Conversion-free Target - Soy for Animal Feed
0/100
Risk Assessment to Identify High-risk Locations
The company sources raw feed materials, though the composition and ingredients of the feed are not disclosed. Therefore, it is unclear whether soy is one of the constituent ingredients.
0/0.5
Strength of Deforestation Commitment
The company does not disclose having a deforestation/conversion-free target for soy.
0/3.25
Transparency - Progress Against Commitment
The company does not report progress against its commitment. Nor did it responded to the CDP Forest Questionnaire in 2022.
0/1.25
Engagement, Monitoring & Traceability - Soy for Animal Feed
10/100
Supplier Engagement
For the reporting year, the company does not disclose how it engages with soy suppliers on deforestation risks. Last year points were awarded based on the Supplier Guidelines, which state that suppliers must make efforts to reduce and prevent deforestation. However, the company has revised its Supplier Guidelines as of July 2022, and notably it no longer details the requirement for suppliers to make efforts to reduce and prevent deforestation.
0/1.25
Compliance monitoring & Traceability
The company mentions that its staff conducts regular inspections and on-site visits at supplier locations. The suppliers are expected to cooperate in this process. However, there is no mention of a third-party inspection of the sites. It states that suppliers are expected to conduct improvements in cases of non-compliance and discloses that it will support them with the necessary resolutions. However, no further details on the process are provided.
0.5/3.25
Feed Innovation
The company does not discuss innovations and/or practices to move towards sustainable feed sources.
0/0.5
Aquaculture Certification (ASC, BAP, GlobalGAP, SSP)
70/100
Proportion of Farms Certified
The company actively promotes MSC and ASC certifications in its Japanese-based value chain, but it is unclear what proportion of total sites are certified by a GSSI recognised scheme. The company does disclose that two out of eleven sites are ASC-certified.
3.5/5
Feed Ingredients & Conversion Ratios
4/100
Feed Disclosure
The company does not disclose information about feed ingredients and does not publicly state that it has a policy to procure certified soy or marine products. The ASC audit report references a procurement policy published in 2020, which requires fish meal and fish oil for feedstock to come from certified fisheries compliant with ISEAL member standards. However, further information on this cannot be found. The company report FFDRo and FFDRm for ASC-certified operations only.
0.2/2
Performance of Feed Metrics
The company does not disclose that marine and soy ingredients are 100% certified or that it does not source these ingredients. It did not disclose a quantitative decrease in FCR by species, or a decrease in FFDRm/FFDRo. The company does not discloses the absolute volumes of fishmeal/fish oil sourced including a breakdown of sourcing from whole fish vs sourcing from by products. Further, it did not disclose the protein conversion efficiency with calculation methodology and workings.
0/3
Feed Innovation
15/100
Strategy
The company has conducted a TCFD-aligned scenario analysis which includes the impacts of climate change on fishery resources and feed prices and availability. However, this assessment does not equate to a complete, sector-specific risk assessment of marine and soy ingredient availability. The company has previously mentioned conducting research and development on feed that effectively utilizes plant proteins and insect meal, but it is unclear whether the research has been implemented in the current reporting year. We advise the company to provide an update on the progress of this research.
0.75/2.75
Performance
The company does not dsiclose the percentage of R&D allocated to novel ingredients development. Further, it does not disclose a target related to feed innovation. It also does not disclose the average EPA and DHA content of salmon it produces.
0/2.25
Sea Lice Management - Salmon (Fish at Sea Only)
0/100
Sea Lice Disclosure & Management
The company does not disclose information about sea lice management.
0/2
Cleaner Fish
The company does not discuss non-medicinal/non-chemical approaches taken to prevent sea lice infestation. It does not disclose investment into cleaner fish husbandry or disclose the mortalities of cleaner fish used.
0/3
Ecosystem Impacts
15/100
Escapes
The company does not disclose data on escapes, or disclose the financial cost of all escape events and/or provides a discussion of escapement prevention. Finally, the company does not disclose a timebound target for 0 escapes.
0/3.25
Reducing Biodiversity Impacts
The company has participated in the Seafood Business for Ocean Stewardship (SeaBOS) initiative since its inception. The main goal is to lead the world toward sustainable seafood production and a healthy ocean environment. The company is also a member of the Clean Ocean Material Alliance, a Japanese initiative that promotes sustainable plastic use and strives to reduce plastic waste in the ocean. It is also a facilitation partner of the Japanese Business Federation's Biodiversity Declaration, a forum for exchanging information and opinions on biodiversity initiatives. In addition, in April 2022, the company participated in the 30by30 Alliance for Biodiversity with the goal of halting and restoring biodiversity loss by 2030. However, the company does not set a time-bound target to reduce human-wildlife contact in its operations.
0.75/1.25
Algal Blooms
The company does not disclose a management plan in the event of algal blooms.
0/0.5
Water Use & Scarcity
1/100
Water Use & Scarcity in Facilities
4/100
Monitoring Water Consumption & Withdrawals
The company discloses its total water usage in Japan for the last reporting year. The company actively participates in the Seafood Business for Ocean Stewardship (SeaBOS) initiative. The company has discussed the various water-saving measures undertaken in previous years, but the disclosure has been omitted from this year's reporting.
0/0.75
Target to Reduce Water Consumption & Withdrawals
The company has not set a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.
0/1
Disclosure & Performance of Water Risks in Facilities
In FY2021, the company reported water use volume by source. It did not respond to CDP Water Security 2022. The company's water usage increased in 2021 and it did not disclose its water consumption data.
0.2/3.25
Water Use & Scarcity in Feed Farming
0/100
Supplier Engagement in Water Use in Feed Farming
In addition to aquaculture, the company procures, processes, and sells meat products such as beef, pork, and chicken. In its Supplier Guidelines, the company writes of its expectation of suppliers to promote the sustainable use of resources. However, it does not disclose information relating to water scarcity risks in feed farming.
0/2.5
Disclosure of Water Risks in Feed Farming
The company does not disclose feed water intensity, or the proportion of feed sourced from water stresses areas. Further, the company does not provide evidence that it is investing in sustainable feed production from a water use perspective.
0/1.5
Water Use & Scarcity in Animal Farming
0/100
Supplier Engagement in Water Use in Animal Farming
The company does not disclose information relating to water scarcity risks in animal farming.
0/3
Disclosure of Water Risks in Animal Farming
The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.
0/2
Waste & Pollution
5/100
Wastewater at Facilities
18/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
The company reports zero violations related to environmental pollution. It has a target to reduce its waste emission intensity. However, the target is not specific to wastewater discharge.
0.5/1.5
Transparency on Water Pollution Risks
The company does not disclose the quality or volume of wastewater discharge. No evidence was found that wastewater related data has been audited, and the company did not respond to the CDP water questionnaire in 2022.
0/2
Performance on Wastewater Quality & Volume Discharged
The company's biogas plant at the Oh-e Plant effectively utilises discharged food waste as feedstock for the generator. Although the company discusses the conversion of food waste into biogas, it does not mention recovering nutrients or animal by-products from wastewater at this plant. The company does disclose that at its Maruha Nichiro Kitanippon, Inc. Kushiro Plant, it utilises a by-product from the production of canned Pacific saury and sardines as a fertiliser.
0.4/1.5
Nutrient Management in Feed Farming
0/100
Supplier Engagement in Nutrient Pollution Risks
In addition to aquaculture, the company procures, processes, and sells meat products, such as beef, pork, and chicken. It sources raw feed materials, though the ingredients of the feed have not been disclosed. Maruha does not explicitly mention nutrient management in feed farming.
0/4
Innovation to Improve Nutrient Management in Feed Farming
Within its Supplier Guidelines, the company requests that suppliers make efforts to properly manage and reduce chemical substances used. However, it is unclear if this relates to a reduction in the use of pesticides.
0/1
Manure Management in Animal Farming
0/100
Disclosure of Pollution Risks from Manure
In its Supplier Guidelines, the company discusses efforts to promote the sustainable use of resources and reduce environmental waste. However, it does not disclose information relating to manure management in animal farming.
0/1.25
Supplier Engagement in Manure Management
The company does not make site-specific nutrient management plans a part of its supplier's contractual agreement and/or own farms management. Nor does it provides technical and/or financial support to suppliers and/or own farms to develop nutrient management plans and improve manure storage.
0/1.5
Innovation to Improve Nutrient Management in Animal Farming
The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovation in manure or provide evidence of a community engagement plan in relation to pollution.
0/2.25
Nutrient Management in Aquaculture
0/100
Disclosure of Pollution Risks in Animal Farming Operations
The company does not disclose undertaking risk assessments to identify high-risk locations. It does not disclose metrics or methods to measure organic and inorganic loading, or disclose the percentage and location of sites that exceed carrying capacity of local environment by operating country. The company also does not disclose measures of nitrogen or phosphorous and does not disclose a stragey to eliminate faecal matter and uneaten feed deposited to the seabed. Further, the company does not state that it it did not discharge of sludge to public waterways in the reporting year.
0/4.5
Performance on Pollution Management
The company does not disclose the treatment or metrics of effluent pond water. It does not disclose a neutral impact on water, or provide evidence of a community engagement plan.
0/0.5
Antibiotics
3/100
Policy on Antibiotics Use
5/100
Policy on Antibiotics Use
The company commits to formulating a roadmap by 2023 to scrutinise the use of critically important antimicrobials (CIAs) as delineated by the WHO. However, it does not disclose further details on its antibiotic use policy.
0.25/5
Disclosure of Quantity of Antibiotics Used
0/100
Disclosure of Quantity of Antibiotics Used
The company does not disclose the quantity of antibiotics used.
0/5
Animal Welfare
0/100
Animal Welfare Policy
0/100
Welfare Policy
The company does not disclose any commitments regarding animal welfare issues.
0/2
Key Welfare Issues
The company does not state a commitment to engaging and training employees on animal welfare issues.
0/3
Assurance & Certification
0/100
Auditing & Assurance by an Animal Welfare Organisation
The company does not disclose the presence of third-party auditing, monitoring, or assurance for animal welfare.
0/4
Public Reporting on Welfare
The company does not disclose information in relation to animal welfare certifications or assurance programs for its beef operations.
0/1
Performance on Key Material Risks
0/100
Performance on Key Material Welfare Risks by Protein
The company does not disclose information on prohibiting gestation crates, routine tail docking, surgical castration, or barren and unsuitable environments.
0/5
Aquatic Animal Welfare
0/100
Welfare Policy
The company does not disclose any information relating to aquatic animal welfare.
0/2.5
Reporting on Animal Welfare Metrics
The company does not disclose sufficient information to ascertain if it assures a stocking density of lower than 17kg/m3 for salmon at all times.
0/2
Reporting on Measures to Improve Welfare
The company does not disclose information in relation to the eye-stalk ablation of shrimps.
0/0.5
Disease Management - All Fish
0/100
Mortality Rates
The company does not disclose mortality, disease incidence, management or prevention information.
0/3.5
Disease Outbreak
The company does not disclose the incident-based mortality.
0/1.5
Working Conditions
37/100
Human Rights
60/100
Strength of Policy
The company commits in writing to respect human rights articulated by the International Bill of Human Rights and the core ILO conventions.
1/1
Due Diligence Process
The company has implemented a human rights due diligence process to assess human rights risks. Furthermore, it has identified foreign technical intern trainees as vulnerable to human rights violations. The company explains how it is working to address the issues in its operations by formulating new guidelines. The company has also conducted a supplier self-assessment questionnaire for 253 business partners and recognised the existence of human rights violation risks. However, it does not discuss how it would identify any next action steps resulting from the questionnaires.
The company conducts extensive human rights training for employees at all levels to mitigate risk. It promotes awareness of human rights by holding in-house seminars and training sessions for its employees. However, the company does not mention how it mitigates risk in its supply chain.
2/3
Evidence of Remediation
The company does not disclose any details of any human rights violation it has identified or any remediating actions it has taken in response to any identified risk.
0/1
Fair Working Conditions
43/100
Policy for Direct Operations
The company commits in writing to prohibit child labour, forced labour, discrimination, and harassment and expects its suppliers to do the same. However, it does not mention the promotion of fair wages. Moreover, the company does not specify if the compliance or audit team audits any of its HR policies.
1.4/3
Monitoring & Discosure
The company does not discuss auditing its suppliers to ensure compliance with the policies concerning child labour, forced labour, discrimination, and harassment.
The company has implemented an internal reporting system for all its employees and protects whistleblowers by accepting anonymous notifications. The company discloses that in FY2021, it received 22 whistleblower reports. However, the company does not reveal a categorisation of the complaints. Furthermore, it does not mention whether its whistleblowing mechanism was designed in consultation with stakeholders or if suppliers also have a channel to submit grievances.
0.75/2
Safety & Turnover Data
18/100
Committee representation of workers
The company recognises that its employees' occupational healare and safety are essential to sustainable growth. Seven directly managed plants and the company's Foods & Fine Chemicals Department have acquired ISO 45001 certification. Also, the company mentions that it has established occupational health and safety committees in each business site based on work regulations and labour agreements. However, the percentage of facilities with committees with worker representatives has yet to be disclosed.
0.65/2
Disclosure of safety and turnover data
The company discloses the frequency of occupational accidents as 5.89 in FY2021 but does not publicly disclose data for the previous reporting year. The rate provided for work-related accidents also includes fatality data. However, it is unclear what proportion of the rate is attributable to fatalities. Furthermore, the company does not provide turnover rates for the reporting year.
0.25/3
Freedom of Association
25/100
Strength of Policies
The company does not explicitly mention respecting employees' right to freedom of association or the unionisation rate. Moreover, it does not discuss details of the actions it takes to support the rights of its workers. The company's Supplier Guidelines require suppliers to respect their workers' right to organise and join trade unions.
1/3
Disclosure of Collective Bargaining Metrics
The company gives a breakdown of its workforce as permanent and temporary staff. However, the company does not disaggregate further by contract type or mention the percentage of its workforce covered by collective bargaining agreements.
0.25/2
Food Safety
20/100
Food Safety System
5/100
Certifications
The company has a quality management system that improves defence levels based on its Food Defense Management Rules. It also promotes the acquisition of certifications and the effective operation of food safety management systems following global standards. It conducted an introductory training session on FSSC 22000 and a standards study session on FSSC/ISO22000 for its employees. However, it does not disclose food safety certifications nor confirm whether suppliers are expected to hold certifications.
0.25/3.5
Performance
The company states that in FY2021, it switched to remote audits using a communications app to conduct plant inspections at its manufacturing sites. This allowed it to maintain and improve food safety and defence by responding flexibly to situations such as the pandemic. However, the number or frequency of such audits and the corrective action rate are not disclosed. Further, it needs to confirm whether it is developing a consumer-facing technology for food safety.
0/1.5
Product Recalls & Market Bans
35/100
Product Recall Systems
The company discusses providing safe and secure food, mentioning that the cost reduction decreased quality-related accidents and complaints. It has a zero-product recall target for 2024 but does not provide details of its recall system. It reported four quality-related severe issues during the reporting period and issued a public notice and apology for product recall in January 2022. The incident involved recalling 241 cans of "Boiled clams 130g" due to no expiration date printed on the top lid. It states that no health issues were reported by the time of the announcement.
1.25/3
Performance
The company does not disclose information on market bans, and none were detected in the media screen during the reporting period.
0.5/2
Sustainability Governance
61/100
Assessment of a Company's Sustainability Governance
61/100
Board Sustainability
The company has established the Sustainability Committee, chaired by the President & CEO and Representative Director. The committee must cover various ESG issues, including food safety, working conditions, GHG emissions, waste, and deforestation. In addition, the company has identified several material sustainability issues. These include climate change, a recycling-oriented society, action against marine pollution by marine plastics, preserving biodiversity and ecosystems, providing safe and secure food, providing food contributing to creating health value and sustainability and respecting human rights. The Sustainability Committee conducted this materiality assessment. The company also disclose board-level expertise in sustainability, innovation and food safety.
1.75/2
Incentives & Policy Engagement
The company does not disclose whether executive remuneration is linked to sustainability performance.
The company engages and collaborates with several initiatives, associations, and organisations, such as the Seafood Business for Ocean Stewardship (SeaBOS), Plastic Package Recycling Council, Japan Business Initiative for Biodiversity, and Clean Ocean Material Alliance (CLOMA). The broad topics of engagement focus on using sustainable plastic products, reducing ocean pollution, recycling plastic, climate change, and preserving biodiversity. The company also provides details on trade association memberships. However, it does not discuss aligning its policy-engagement strategy to restrict global temperature rise to 1.5°C.
1.05/2.5
Innovation & Benchmarking
The company's medium-term management plan keeps innovation at the forefront through enhancing stable resource procurement and technological innovation. The company mentions cooperating with multiple stakeholders, such as universities, research institutions, and companies, to create new marine and food tech businesses and innovation in the ecosystem. However, the company does not disclose how it benchmarks itself against peers in sustainability and innovation.
0.25/0.5
Alternative Proteins
0/100
Diversification of Products to Alternative Protein Sources
0/100
Existing product portfolio
The company does not explicitly acknowledge that protein diversification is a material business issue. Further, it has not yet set a timebound target to diversify protein sources, nor does not report revenue/sales linked to alternative protein sources
0/2.5
Investing for future growth
The company has conducted 4- and 2-degree scenario analyses extending through 2050 and mentions R&D on cultured and plant-based meat. However, it has yet to invest in future growth. It does not yet indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.
0/2.5
Members-only Content
To register as a member of the FAIRR network, please fill out the sign up form or if you need additional information on the FAIRR network, please contact investoroutreach@fairr.org.
Workstream Information
2023 Risk Score:
18/100
Level:
High Risk
Ranking:
43/60
Main Protein:
Aquaculture
Assessed Proteins:
Pork, Aquaculture
Company Feedback Given:
Yes
Last Updated:
31 October 2023
2023 Resources
2023/24 Index Report Summary (Mandarin) 报告总结摘要(中文) Launch of the Coller FAIRR Protein Producer Index 2023/24 2023/24 Company Dialogue Questions 2023/24 Full Report Coller FAIRR Protein Producer Index