Maruha Nichiro Corporation

The company currently lacks a 1.5°C science-based target validated by the SBTi and is not in the process of establishing one. Additionally, it has no specific methane emission reduction target and is not developing one.

The company, in its CDP Climate Report, has disclosed a domestic group-wide CO2 reduction target of 30% by 2030, based on 2017 levels, covering Scope 1 and Scope 2 emissions with a phased roadmap leading to 2030. It does not have a Scope 3 emission reduction target.

The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.

The company does not engage in innovative projects to reduce or mitigate emissions from feed farming.

The company has implemented a non-fluorocarbon refrigeration facility featuring a high-efficiency natural refrigerant chiller, anticipated to reduce annual CO2 emissions by 247 tonnes.

The company reports Scope 1 emissions of 83,959 tCO2, Scope 2 emissions of 140,981 tCO2, and Scope 3 emissions of 6,004,617 tCO2 for FY2023. However, this data is limited to group companies in Japan, indicating a restricted geographic scope.

The company discloses Scope 1 emissions by business division: fisheries (26,314 tCO2e), aquaculture (3,649 tCO2e), and livestock (3,795 tCO2e). Scope 2 location-based emissions for these divisions are 489 tCO2e, 1,809 tCO2e, and 4,213 tCO2e, respectively, and market-based emissions are 568 tCO2e, 2,013 tCO2e, and 6,213 tCO2e, respectively. However, the company does not provide a detailed breakdown of emissions from animal farming within its supply chain, nor does it disclose GHG emissions from feed production or land-use change.

The company has responded to the CDP Climate Change Questionnaire 2023. It has disclosed that SOCOTEC Certification Japan conducted a limited assurance engagement on its GHG emissions data. The specified geographic scope covers its 70 group companies in Japan and 83 overseas.

Between FY2022 and FY2023, the company's total Scope 1, 2, and 3 emissions rose by 3.03% from 6,050,543 to 6,229,557 tCO2e. The data pertain solely to its group companies in Japan, with Scope 3 emissions being reported only from 2022. From FY2020 to FY2023, Scope 1 and 2 emissions fell by 8.4% from 245,536 to 224,940 tCO2e, averaging an annual decrease of 2.8%. The company does not provide quantitative data on emissions reductions from feed, enteric fermentation, or manure management. For FY2023, the company reports Scope 1 emissions of 83,959 tCO2, Scope 2 emissions of 140,981 tCO2, and Scope 3 emissions of 6,004,617 tCO2, again limited to its operations in Japan.

In 2021, the company joined the TCFD Consortium and participated in the Climate Risk and Opportunity Scenario Analysis Support Project, sponsored by the Ministry of the Environment. The project analysed 2°C and 4°C scenarios using data from the IEA, IPCC, and other organisations. Parameters considered included changes in precipitation, weather patterns, seawater temperatures, dissolved oxygen levels, ocean acidification, and extreme weather events, following IPCC RCP7.0 guidelines.

The company faces challenges in global marine resource procurement due to rising temperatures, which may affect the sustainability of fish farms and investment recovery. It is also impacted by rising procurement prices for rice, wheat, and fish, attributed to abnormal weather, which could lead to sales declines. Nonetheless, the company has not detailed any measures to address these risks. In marine aquaculture, the company recognises the difficulty in securing suitable sites due to the need for appropriate topography, water temperature, and quality. It acknowledges the risk of climate change impacts, such as changing ocean currents and red tides, but does not discuss the potential effects on productivity or mortality rates. The company does not address the impact of increased veterinary and medicine costs. In its Logistics Segment, it notes significant rises in power costs due to higher electricity prices but does not discuss the broader effects of increased electricity or energy demand and prices. The company expects a carbon tax on Scope 1 and 2 emissions to increase its tax burden by approximately 3.4 billion yen by 2030. To mitigate this, it conducted surveys and interviews at domestic bases to identify energy-saving opportunities and introduced solar power and renewable energy sources. It also assessed the cost impact of non-fossil fuel certificates. The company does not disclose the number of financially material events resulting from climate risk during the reporting period.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

The company sources soy for animal feed but does not disclose the percentage of feed ingredients this represents. 100% of soy is not sourced from deforestation-free areas or suppliers. The company has not undertaken a deforestation-related risk assessment to identify high-risk sourcing locations.

The company does not disclose having a deforestation/conversion-free target for soy.

The company does not report progress against its commitment. Nor did it respond to the CDP Forest Questionnaire in 2022.

The company does not disclose whether all sourced cattle come from regions free of deforestation risk. Additionally, it has not conducted a risk assessment or identified all high-risk locations.

The company does not report having a deforestation/conversion-free target for cattle.

The company does not disclose the proportion of cattle sourced which complies with its commitment. It does not state that progress against its commitment undergoes a third-party audit, nor did it respond to the CDP Forest Questionnaire in 2022.

The company encourages suppliers to use sustainable resources, taking biodiversity and ecosystems into account in their business activities. However, it does not specifically address deforestation in its supplier code of conduct or selection process. While the company states it will assist suppliers in resolving issues identified during site inspections, it is unclear if this support extends to soy producers for deforestation-free production or improved traceability.

The company conducts regular inspections and onsite visits with suppliers, who are expected to cooperate. However, it does not specify whether third-party inspections occur. Suppliers are expected to improve if non-compliance is detected, with the company providing necessary support, but further details are lacking. Enhanced disclosure on processes and actions in cases of non-compliance is recommended. Additionally, the company does not disclose the level of traceability in its soy supply chain.

The company does not discuss innovations or practices to move towards sustainable feed sources.

Deforestation is not referenced in the company's supplier code of conduct. Furthermore, the company does not disclose providing support to cattle producers to encourage deforestation-free production or improve traceability.

The company states that its staff carries out regular inspections and onsite visits with supplier cooperation, but it does not specify if third-party inspections occur. While suppliers are expected to make improvements upon detecting non-compliance, and support will be provided, further details on this process are not disclosed. The company lacks traceability in its cattle supply chain. It has not been linked to deforestation in the reporting year.

The company does not disclose information regarding innovative and sustainable farming practices implemented to improve biodiversity and soil health.

The company promotes MSC/ASC-certified seafood, handling 2,010 tonnes of consumer frozen foods with the MSC Eco-Label in 2022. ASC-labelled products decreased to 1.3 tonnes from 3 tonnes in 2021, primarily due to rising raw material costs. Two farms have received ASC certification, including the Maruha Nichiro Corporation AQUA Kunezu fishery for greater amberjack in July 2019 and the Kamiura Fishing Grounds for yellowtail in April 2018. However, there are no plans to certify all farming operations in Japan and overseas, limiting its geographic scope.

The company does not disclose feed ingredients by percentage or indicate purchasing certified soy and marine animal products. While it reports that the Forage Fish Dependency Ratios for fishmeal (FFDRm) and fish oil (FFDRo) at Kamiura Farm are 1.7 and 0, respectively, for FY2022, this data is limited to a single unit. Additionally, the company does not disclose forage fish dependency ratios by operating region.

The company does not disclose information about the sourcing of fishmeal and fish oil used in its feed basket, nor does it specify whether marine and soy ingredients are 100% certified. Furthermore, the company does not provide information on improvements in feed conversion efficiency or its reliance on foraged fish during the reporting period.

The company does not disclose collaboration with industry entities to develop new ingredients beyond high-risk ones. It utilises by-products from its Aomori Plant in aquaculture feed but lacks a comprehensive strategy for using seafood trimmings and processing waste. The company also does not provide a strategy for increasing the use of alternative feed ingredients such as algae, insects, or single-cell proteins. Although it conducted a TCFD-aligned scenario analysis on climate change impacts on fisheries and marine products, it has not specifically assessed marine and soy ingredient availability risks.

The company does not disclose the percentage of R&D allocated to novel ingredient development. Furthermore, 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.

The company does not disclose any information on sea lice counts or compliance with regulatory limits.

The company does not discuss non-medicinal or 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.

The company does not disclose data on escapes, nor does it disclose the financial cost of all escape events or provide a discussion on escapement prevention. Finally, the company does not disclose a time-bound target for zero escapes.

The company participates in the Seafood Business for Ocean Stewardship (SeaBOS) initiative to promote sustainable seafood and support the UN SDG Goal 14. It is also a member of the Clean Ocean Material Alliance to advocate for sustainable plastic use and reduce ocean plastic waste. Additionally, the company is part of the Japan Business Initiative for Biodiversity (JBIB) to share information on biodiversity initiatives, and joined the 30by30 Alliance for Biodiversity in April 2022, aiming to conserve 30% of land and sea ecosystems by 2030. Furthermore, it is involved with the Japan Blue Economy Research Group (BERG) for coastal conservation and restoration research. The company has developed a 'Bird-proof fish cage' for tuna aquaculture to prevent bird interference but lacks a timebound target for eliminating human-wildlife conflict.

The company does not disclose a management plan in the event of algal blooms.

The company claims compliance with water regulation laws and ordinances but has not disclosed any risk assessment for its processing facilities or identified operations in low-water stress areas. It has not conducted a risk assessment for facilities in high or medium water stress areas. In FY2023, the company reported total water usage in Japan as 5,872,000 m3 and discharged 1,467,000 m3, resulting in a water consumption of 4,405,000 m3. However, it has not disclosed measures to save water.

The company does not disclose a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.

The company reports water usage in Japan for FY2023 as 1,612,000 m³ of clean water, 1,337,000 m³ of industrial water, 2,924,000 m³ of groundwater, and 0 m³ of surface water. It has not disclosed water withdrawals or consumption by water stress level, nor water-related CAPEX or OPEX. The data is not audited by a third party, and the company did not respond to the CDP Water Security in 2023. The company notes a decrease in total water usage from 6,205,158 m³ in 2022 to 5,872,000 m³ in 2023 and a reduction in water consumption from 4,697,158 m³ in 2022 to 4,405,000 m³ in 2023.

The company does not address water usage in its feed supply chain. It does not discuss comprehensive guidance, support, or incentives offered to suppliers/growers on water usage and has not established a partnership with a third party to input into sourcing/farming strategy.

The company does not disclose feed water intensity or the proportion of feed sourced from water-stressed areas. Furthermore, the company does not provide evidence that it is investing in sustainable feed production from a water-use perspective.

The company does not disclose the proportion of animal protein commodities produced or sourced in water-stressed areas. It does not disclose information addressing water scarcity in its animal supply chain, nor does it discuss guidance it offers to animal farmers/suppliers on water usage.

The company does not disclose having established partnerships with third parties to input into sourcing/farming strategy, including water use.

In FY2023, the company reported two environment-related accidents and subsequently implemented measures to enhance equipment and review its monitoring management system. However, it has not identified processing facilities in areas with high or medium water stress from a quality perspective, nor has it set any water-related quality or volume targets.

The company reports 1,508,000 m³ of wastewater discharged, limited to its production plant, without disclosing the quality of the wastewater. The wastewater data is not audited by a third party, and the company did not respond to the CDP Water Security 2023 questionnaire.

The company discloses that its biogas plant at the Oh-e Plant generates power from biogas derived from methane-fermented food residues and scrap materials. However, it does not recover nutrients or animal by-products from wastewater at this facility. At the Maruha Nichiro Kitanippon, Inc. Kushiro Plant, "froth" produced during canned Pacific saury and sardine production is used as fertiliser. Wastewater quality has not improved at an aggregate level compared to the previous reporting period, and wastewater volume increased from 1,452,000 m³ in FY2021 to 1,508,317 m³ in FY2022.

The company does not address nutrient management in its code of conduct. It does not disclose a requirement for feed suppliers to have a nutrient management plan in place, nor does it provide guidance, support, or incentives to suppliers/growers on nutrient management or fertiliser use in crop production.

The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.

The company does not outline processes for manure management, conversion to biogas, or sustainable slurry application. Additionally, it has not specifically identified farms located in areas at high risk of nutrient pollution.

The company does not make site-specific nutrient management plans part of its supplier’s contractual agreement or its own farms management. Nor does it provide technical or financial support to suppliers or its own farms to develop nutrient management plans and improve manure storage.

The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovations in manure or provide evidence of a community engagement plan in relation to pollution.

The company does not disclose whether it undertakes risk assessments to identify farming locations at high risk of nutrient pollution. Additionally, it does not provide metrics or methods used to measure organic and inorganic loading at these sites, nor does it outline a strategy to prevent the accumulation of organic matter.

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.

The company acknowledges the significance of antimicrobial resistance and has taken steps to reduce antibiotic use through vaccination and other measures, demonstrating its commitment to antibiotic stewardship, particularly through its involvement with SeaBOS and the Japanese Vaccine Study Group. However, the company does not have a formal antibiotics policy outlining conditions for use, such as growth promotion, prophylaxis, metaphylaxis, or therapeutic purposes. It supports proactive health management in aquaculture by implementing measures such as reducing stocking density by 10% with large copper alloy cages to mitigate disease risk and improve fish welfare. Additionally, it has introduced automated vaccination machines to reduce fish stress and enhance health. Nonetheless, there is no mention of strategies regarding biosecurity, sterilisation, nutritional supplements, or reduced routine mutilation.

The company does not disclose the quantity of antibiotics used.

The company supports the Five Freedoms as defined by the International Organisation for Animal Health, focusing on animal welfare from a wellbeing perspective. However, it does not commit to employee engagement or training on animal welfare issues, nor does it specify actions taken if its animal welfare policy is breached. Additionally, the company does not show leadership through involvement in research and development programmes to advance animal welfare.

The company has reduced farming density by approximately 10% by increasing the size and volume of cages, aiming to lower disease risk and improve fish health monitoring. However, the company lacks commitments to avoid routine mutilation, long-distance transportation, and does not ensure humane slaughter. It also does not provide an enriched environment for animals or exclude breeds with traits increasing anatomical or metabolic disorders.

The company does not disclose information on animal welfare certifications or farm assurance programs.

The company does not disclose information on animal welfare certifications or assurance programs for its beef operations.

The company does not disclose information on key animal welfare risks in beef.

The company promotes animal welfare by adhering to the "Five Freedoms" as defined by the International Organisation for Animal Health (OIE). Initiatives include enhancing the well-being of aquatic animals through the use of copper alloy fish cages, which offer improved rearing environments and thermal comfort, a 10% reduction in stocking density, adaptability to sea temperature changes, and prevention of shellfish and seaweed attachment, thereby reducing disease and health risks. An AI camera has been introduced for non-intrusive fish length and weight measurements, minimising stress from handling. However, the company does not disclose information on handling protocols or the use of higher welfare stunning techniques, such as electric or percussive stunning, across all regions before slaughter.

The company does not disclose sufficient information to ascertain if it ensures a stocking density of lower than 17 kg/m³ for salmon at all times.

The company does not disclose information regarding eye-stalk ablation of shrimp.

The company does not disclose mortality rates or incident-based mortality information and has not set a time-bound target for reducing mortality rates.

The company does not disclose incident-based mortality.

The company's Human Rights Policy affirms support and respect for the rights outlined in the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. This policy applies to all officers and employees within the group.

The company mentions implementing a human rights due diligence process, conducting a self-assessment questionnaire in 2021 focused on Foreign Technical Intern Trainees, who faced human rights violations. Of the 62 domestic sites surveyed, 23 are employing these trainees, and two are considering it. Feedback was provided in May FY2022, but significant actions taken since 2021 are not disclosed. Information on monitoring human rights risks and next steps for the reporting year is also lacking. The company has implemented several actions to mitigate human rights risks in its operations, including annual in-house training for all employees and the establishment of a human rights awareness promotion committee. Awareness is further raised through activities and e-learning sessions, attended by 5,870 participants across the group. It has also formulated guidelines for employing foreign technical interns, trialled in FY2023, yet how it addresses human rights risks in its supply chain remains unspecified.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence.

The company prohibits child labour, forced labour, discrimination, and workplace harassment. However, it does not confirm if all employees receive a living wage or permanent sick pay. While the company has a corporate auditing system, it is unclear if audits in direct operations ensure policy compliance, though one site underwent an ASC audit in the reporting year. Additionally, the company expects its suppliers to prohibit child labour, forced labour, harassment, and discrimination, but it does not promote fair wages for supply chain employees.

The company requires its business partners to participate in inspections and on-site visits by company staff as needed, but it is unclear if it conducts audits on its supply chain policies. An internal reporting system for employees is in place, allowing anonymous reporting to protect whistleblowers, with designated internal and external contacts for reporting non-compliance. However, the company does not disclose if this system was developed with input from stakeholders such as employees or unions. The company does not describe any grievance mechanisms for its supply chain. It received 16 whistleblower reports in FY2022 and 19 in FY2023, but it does not categorise these reports.

The company acknowledges that maintaining employee health and safety enhances productivity and awareness, which are crucial for sustainable growth. It has achieved ISO 45001 certification for its six directly managed plants and the Chemical Bioscience Production Group. Occupational safety and health committees are established at each business site, although it does not disclose the percentage of these that include worker representatives. Additionally, the company has not assessed or discussed antimicrobial resistance risk for its workforce.

The company reports a reduction in occupational accident frequency from 5.89 in FY2021 to 2.95 in FY2022. While fatality data are included in these frequency calculations, they are not disclosed separately. Additionally, the company does not disclose historical fatality data, fatality rates, or turnover rates.

The company acknowledges workers' rights to organise, bargain collectively, and associate with labour unions, reporting that 60% of its employees are union members. In FY2022, labour-management consultations occurred 31 times, primarily to revise collective bargaining agreements. However, the company does not disclose measures to support freedom of association rights. Its Supplier Guidelines request suppliers to respect their workers' rights to organise and join trade unions.

The company reports that 60% of its employees are members of a labour union. In FY2022, it had 12,843 employees and 13,380 temporary staff, including contract, part-time, and seasonal workers. A clearer breakdown distinguishing full-time, part-time, temporary, permanent, and subcontracted workers is encouraged.

The company's Quality Assurance System ensures the supply of safe, high-quality food by providing quality assurance training to employees and conducting workshops on food defence and FSSC/ISO22000 standards, including introductory FSSC 22000 auditor training. However, it has not disclosed holding food safety certifications. The company intends to promote MSC and ASC certifications for product evaluation and improvement. It has not disclosed whether suppliers are expected to have GFSI certification, nor does it disclose the proportion of suppliers with this certification.

The company does not report the number or frequency of food safety audits conducted during the reporting year. It also does not specify associated corrective action rates, nor does it disclose whether it has implemented or is in the process of developing consumer-facing technology for food safety.

The company details its strategy for managing product recalls, focussing on identifying causes and implementing corrective actions to prevent recurrence. Its recall system includes establishing a communication framework, preventing defective items from being distributed, and promoting inspection equipment. However, it lacks specifics on roles, responsibilities, documentation, and disposal procedures. In FY2022, the company experienced four serious quality-related incidents leading to product recalls. These incidents involved missing allergen and expiry date labels, incorrect country of origin labelling, and product spoilage. The company identified the causes, took corrective actions, and shared these measures within the group. Specific preventative actions included establishing a communication system, preventing distribution of defective items, and enhancing inspection equipment usage.

The company does not disclose the number or locations of market bans for the reporting year, and no market bans were detected in the media during this period.

The company has established a Sustainability Committee, led by the President & CEO and Representative Director, responsible for planning and setting sustainability objectives. In FY2022, the committee reassessed its materiality issues, which encompass climate change action, promoting a recycling-oriented society, combating marine plastic pollution, preserving biodiversity, ensuring safe food provision, promoting health and sustainability in food, securing a diverse work environment, respecting human rights in operations, and developing a sustainable supply chain. The company discloses its board members' skill matrix, noting that three directors have expertise in sustainability. However, no board member possesses expertise in food safety. Additionally, one director has expertise in research and development.

The company states that its executive management and directors' medium-term remuneration is linked to ESG indicators. However, it does not disclose the percentage of variable compensation tied to these ESG metrics. The company engages with several initiatives and organisations, including SeaBOS, the 30by30 Alliance, the Plastic Package Recycling Council, the Japan Blue Economy Research Group (BERG), the UN Global Compact, the Japan Business Initiative for Biodiversity, and the Clean Ocean Material Alliance (CLOMA). These engagements focus on promoting sustainable plastic use, reducing ocean pollution, recycling plastics, addressing climate change, and restoring biodiversity. Through SeaBOS, the company works to eliminate IUU fishing, forced and child labour, address endangered species, reduce antibiotic use, tackle ocean plastics, and combat climate change. While the company has disclosed its involvement with sustainability-focused initiatives, further disclosure of its memberships with additional trade associations and alliances is encouraged. Furthermore, in its CDP Climate Change Questionnaire 2023, the company indicated having a process to align its policy engagement with the Paris Agreement.

The company is working on technology to measure fish abdominal thickness without harm. We recommend it enhances disclosure regarding its sustainability innovation approach. While the company is included in several ESG indexes, such as the S&P/JPX Carbon Efficient Index, the FTSE Blossom Japan Index, and the MSCI Japan Empowering Women Index, it does not explicitly state its benchmarking position relative to peers in these indexes.

The company does not explicitly acknowledge that protein diversification is a material business issue. Furthermore, it has not yet set a time-bound target to diversify protein sources, nor does it report revenue or sales linked to alternative protein sources.

The company does not indicate an approach to diversifying its product range to include plant-based and alternative protein options.