Maruha Nichiro Corporation

In 2022, Maruha adopted the For the Ocean, for Life Maruha Nichiro Value (MNV) 2024 plan, which equates to its integrated business and sustainability strategy. In this plan, the company sets several targets and KPIs to enhance environmental and social value within the Maruha group, as it considers this crucial for business continuation and sustainable growth. Seafood supply chain issues such as IUU fishing, human rights violations, overfishing/resource depletion, and biodiversity impacts are also considered within the KPIs, but the role of traceability in identifying them is not fully recognised by Maruha. According to the company, the targets and focus areas were subject to an extensive consultation of both internal and external stakeholders.

Maruha does not have a time-bound target for the elimination of IUU fishing. However, as part of its Group Supplier Guidelines the company asks all suppliers to eliminate any ties to IUU “through thorough traceability.” Maruha has set a target to have sustainable supply chains by 2030, and is targeting a 100% rate of agreement with the Group Supplier Guidelines from its suppliers. According to the Integrated Report, this is assessed through compliance checks within a new supplier survey system. In its response to the investor letter, Maruha stated that only 64% of suppliers are currently registered with this new system. During the call with investors and FAIRR, Maruha stated that there had been news reports implicating certain Chinese suppliers with IUU fishing, and that the voluntary survey has not effectively mitigated this risk. As a result, further measures including more detailed and risk-based surveys and third-party audits are being considered.

Another target is to achieve zero human rights violations in Maruha’s direct operations and supply chain by 2030. The need to respect human rights and prohibit forced and child labour is included in the Group Supplier Guidelines, the Group Code of Conduct and Basic Procurement Policy. The company has also established a framework for human rights due diligence and is working to identify and assess current human rights risks in its business activities.
As an additional measure to control IUU and overfishing within its supply chain, Maruha has set a target to assess that there is no risk of resource depletion in the fish stocks that the company sources by 2030. Maruha states that through its latest Marine Resources Survey, conducted in 2021-2022, it has confirmed the resource status of 81.8% of marine products it handles. The remaining circa 18% are “non-classifiable” (i.e. it is not known whether the fish originates from wild capture or aquaculture) or “not scored” (i.e. the company has insufficient data on the resource status). According to Maruha, the “non-classifiable” proportion of fish relates mainly to raw materials for feed. Maruha recognises this as a major issue that needs to improve and is working to achieve the 100% rate by 2030. The next survey results are scheduled for 2025.

This same Marine Resources Survey stated that 44% of wild-caught fish handled was evaluated as “well managed”, corresponding to the fish sourced from fisheries that are certified, such as MSC-certified fisheries. Maruha states that it will increase its procurement of certified products. The Group Supplier Guidelines also ask suppliers to reduce their environmental load, prevent environmental pollution, protect the global environment and consider biodiversity. Finally, Maruha also has carried out a biodiversity risk assessment by 2024. The company’s TNFD disclosures focus on its direct operations within the aquaculture business and the species most material to the company i.e. Alaska pollock, yellowtail and bluefin tuna.

While Maruha asks its suppliers to consider biodiversity, it does not mention habitat conversion or other risks specific to aquaculture (such as nutrient pollution and feed ingredients originating from unsustainable sources). As part of the company’s TNFD disclosures, we encourage Maruha to disclose more information on how these nature risks are assessed and mitigated, including recognising the role of traceability in identifying such risks.

All sources of information are available in the company assessment PDF.

Maruha’s SeaBOS membership suggests that the company will implement traceability systems aligned with the GDST. However, apart from the above noted statement that suppliers should avoid IUU through “thorough traceability”, there is no mention of traceability in Maruha’s 2023 Integrated Report. In the company’s supplier guidelines, traceability is only discussed in relation to food safety. These statements do not amount to a commitment to implement full-chain, digital and interoperable traceability systems for Maruha’s direct operations and supply chains.

Maruha responded to the investor letter by stating that it considers traceability as the most effective method to combat IUU fishing and that the company “aims to consider and formulate” a commitment for the next medium-term management plan (the current management plan is for the period 2022-2024), with the goal of disclosing such a commitment in its Integrated Report. During the call with investors and FAIRR, Maruha confirmed that the company is considering a traceability commitment for all catch and procured marine products to be traceable by 2030. The company is also planning to draft a marine products procurement policy later this year. However, Maruha does not specify whether this commitment will cover both marine and terrestrial feed ingredients.

All sources of information are available in the company assessment PDF.

Maruha does not have a traceability commitment in place and, therefore, no associated implementation plan.

All sources of information are available in the company assessment PDF.

Maruha has high-level targets and KPIs to improve the social and environmental sustainability of the Maruha Group as part of the For the Ocean, for Life MNV 2024 plan. However, the company does not yet have a traceability commitment in place. It has stated in its response to the investor letter, that it is looking to develop a commitment for the next medium-term management plan, with the goal of disclosing it in the Integrated Report.

All sources of information are available in the company assessment PDF.

Maruha does not publicly report on whether it has any operational traceability systems in place for any part of its seafood supply chain, or any details of such systems' coverage in terms of scope, depth or breadth.

In its response to the investor letter, Maruha states that the company acknowledges the importance of initiatives such as the GDST and that it is considering the implementation of digital traceability systems. The company refers to “tamper-proof digital traceability” as optimal, however, no definition is provided on what this means or how it would go about establishing such a system. The company stated having paper-based traceability in place for all Tier 1 suppliers, and a digital traceability system using QR codes has been implemented for its directly managed plants. This system covers the entire process from the receipt of raw materials to the shipment of products. Maruha did not elaborate on what it means by “directly managed plants” (assuming direct operations only), and what proportion of its seafood operations is already covered by such a system. During the call with investors and FAIRR, Maruha assured the investors that its intention is to expand the coverage of these systems to suppliers further down the supply chain. However, Maruha noted it is facing various challenges such as a lack of data digitalisation, an ageing and not digitally proficient workforce, a vast and complex supply chain, a lack of traceability system providers, and limited oversight as it relates to aquaculture feed ingredients.

According to the company, greater sector-wide collaboration is needed, and the implementation of traceability systems is likely to take time and to happen in stages.

All sources of information are available in the company assessment PDF.

Maruha does not currently disclose information detailing how its existing operational traceability systems are verified.

All sources of information are available in the company assessment PDF.