Climate Change Data

Environmental Metrics

ESG Focus Areas

• Good health for all
• Quality of life
• Global environment
• Contribution to the food value chain
• Supply chain connected by trust
• Human resource management

Environmental Achievements

• Reduction of CO2 emissions (Scope 1 and 2): 18.6% (compared with FY2016, preliminary figures) [20%]

Social Achievements

• Management positions held by women: 7.3%
• Certified as “White 500” (Health & Productivity Management Outstanding Organization)
• Investment in human resources: ¥2.4 billion* (Cumulative estimate for 2022–2024)

Governance Achievements

• Enhanced dialogue with institutional investors to increase our corporate value
• Promoting shareholder returns

Climate Goals & Targets

Environmental Challenges

• Historically high price of olive oil
• P/B ratio persistently remaining below 1.0x
• Risks in the procurement of raw materials due to climate change, geopolitical risk, and other factors

Mitigation Strategies

• Steadily implementing measures focused on profitability
• Shifting to a capital efficiency-conscious management structure and boosting profitability
• Engaging in and enhancing dialogue with investors
• Improving the efficiency of working capital at the site level
• Rebuilding and strengthening supply chains

Supply Chain Management

Responsible Procurement

• Sustainable procurement of soybean and cacao

Climate-Related Risks & Opportunities

Awards & Recognition

• White 500 (Health & Productivity Management Outstanding Organization)

Environmental Metrics

ESG Focus Areas

• Environmental Targets for 2030
• Sustainable palm oil sourcing
• Smart factory transformation
• Decarbonization
• Sustainable supply systems

Environmental Achievements

• Introduced biomass boiler at Sakai Plant, reducing CO2 emissions and shifting away from fossil fuels
• Achieved 5.9% ratio of electrical energy and 9.2% ratio of thermal energy from non-fossil sources at Sakai Plant
• Introduced solar power generation equipment at multiple sites using PPA model

Social Achievements

• Joint venture with J-Oil Mills, Inc. to build a next-generation mill addressing environmental and social issues
• Developed new products with enhanced “naturality” in cosmetics, focusing on plant-based materials and environmental considerations
• Improved shipping management system at Nagoya Plant, leading to positive workstyle reforms and reduced waiting time for drivers

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Intensifying competition in health-targeted market
• Shift away from cooking oils in households due to reduced cooking opportunities
• Risks of unstable raw material procurement, rising costs, and geopolitical risks due to climate change and increasing global demand
• Slowdown in market growth due to prolonged geopolitical risks
• Decline in competitiveness due to handling of unsustainable raw materials and lack of certification
• Risk of unstable raw material procurement and rising costs due to climate change and geopolitical risks
• Intensifying competition among environmentally friendly businesses

Mitigation Strategies

• Revising prices based on detailed discussions with customers regarding cost environment
• Promoting product differentiation based on value improvement and new market formation
• Formulating a new price equilibrium by increasing the value based on reducing body fat, low oil absorption, and reduced calorie intake
• Improving palm oil processing technology to better meet global market needs
• Developing new products with enhanced “naturality” while addressing limitations of functionality and quality in naturally-derived ingredients
• Strengthening technological proposals for increasing sales in Asia, Europe, and North America
• Developing a global solutions business in collaboration with overseas bases

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable palm oil sourcing (RSPO certified)

Climate-Related Risks & Opportunities

Physical Risks

• Drastic climate change

Transition Risks

• Rising costs due to climate change and geopolitical risks
• Unstable raw material procurement due to climate change and geopolitical risks

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: RSPO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New products with enhanced “naturality” in cosmetics

Awards & Recognition

• Awards for two consecutive years at an international chocolate competition

Environmental Metrics

ESG Focus Areas

• Good health for all
• Quality of life
• Global environment
• Contribution to the food value chain
• Supply chain connected by trust
• Human resource management

Environmental Achievements

• Reduced GHG emissions (Scope 1 and 2) by 8.6% vs. FY2016
• Introduced solar power generation at three domestic plants and a biomass boiler at the Sakai Plant
• ISF (Malaysia) planted 2,500 mangrove trees in fiscal 2022 as part of a three-year plan to plant 8,000 trees
• Launched edible oil in carton containers, reducing plastic use by roughly 55% compared to PET bottles

Social Achievements

• Launched 11 health-focused products, including foods with functional claims and nutritional supplements
• Increased the number of people provided with health information relating to optimal lipid intake to 34.84 million (cumulative)
• Improved growth rate for sales of products that realize “beauty” by 126.6% (vs. FY2019)
• Improved growth rate for customer support solutions by 112% (vs. FY2019)
• Conducted plantation working environment surveys in collaboration with stakeholders
• Formulated a sourcing policy for soybeans and cacao

Governance Achievements

• Established the Management and Sustainability Committee
• Revised the Code of Conduct
• Implemented a new personnel system focused on employee growth and job satisfaction
• Improved the effectiveness of the Board of Directors through off-site meetings and enhanced communication

Climate Goals & Targets

Environmental Challenges

• Historically high raw material prices (soybeans, rapeseed) due to increased global demand, biofuel use, and adverse weather conditions
• Weakening yen against other major currencies
• Rising energy costs
• Supply chain disruptions due to geopolitical risks (e.g., Russian invasion of Ukraine)
• Labor shortages in logistics
• Need for improved traceability and sustainability in palm oil, soybean, and cacao supply chains
• P/B ratio remaining below 1x

Mitigation Strategies

• Cost reduction measures across procurement, production, logistics, and sales
• Careful explanation of cost increases to customers and setting appropriate sales prices
• Expanding sales of high value-added products
• Developing new markets in North America
• Improving asset efficiency and profitability
• Reducing cross-shareholdings
• Investing in digital transformation (DX) to improve SCM
• Strengthening customer contact points
• Implementing human rights due diligence
• Improving traceability to plantations (palm oil)
• Formulating sustainable sourcing action plans for palm oil, soybeans, and cacao
• Building a sustainable logistics system through alliances and operational efficiency improvements

Supply Chain Management

Responsible Procurement

• Nisshin OilliO Group Basic Procurement Policy
• Palm Oil Sourcing Policy (NDPE)
• Soybean Sourcing Policy
• Cacao Sourcing Policy
• Human rights due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (storms, floods)
• Climate change impacts on plant growth

Transition Risks

• Regulatory changes
• Market shifts towards decarbonization

Opportunities

• Development of energy-efficient products and processes
• Utilization of renewable energy sources
• Hydrogen combustion technology

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IFRS Foundation), Guidance for Integrated Corporate Disclosure and Company–Investor Dialogues for Collaborative Value Creation (METI)

Certifications: RSPO, Rainforest Alliance, White 500, Platinum Kurumin, Eruboshi

Sustainable Products & Innovation

• Carton container edible oils
• Products with reduced plastic resin
• MCT-based health products

Awards & Recognition

• Awards at an international chocolate competition (Daito Cacao)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Growth
• Aggressive Investment
• Efficiency
• Good health for all
• Quality of life
• Global environment
• Contribution to the food value chain
• Supply chain connected by trust
• Human resource management

Environmental Achievements

• Reduced GHG emissions by -10% (Scope 1 and 2)

Social Achievements

• Improved employee health KPI
• Increased female manager ratio to 6.3% (target 8%)
• Achieved 90.9% traceability to plantations (target 100%)
• Disseminated nutritional information on lipids to 34.84 million people in Japan (target 60 million)

Governance Achievements

• Added ROIC to performance targets
• Implemented an IR Strategy to improve communication with shareholders
• Held in-house study sessions to promote understanding of ROIC among employees

Climate Goals & Targets

Environmental Challenges

• Soaring raw materials prices for soybeans and rapeseed due to increased global demand, increased biofuel demand, and decreased harvests due to weather conditions and geopolitical factors.
• High global demand for oils and fats
• Increased demand for oils and fats as biofuels
• Decrease in the harvest of oilseeds due to heat waves and other abnormal weather conditions
• Historically high costs for edible oils
• High costs for energy and logistics
• Logistics issues
• P/B ratio remaining below 1x

Mitigation Strategies

• Formulating sales prices commensurate with rising costs through dialogue with business partners
• Improving profit margins in domestic oils and fats
• Implementing management practices focused on asset efficiency
• Reducing cross-shareholdings
• Reducing working capital and inventory through digital investments and a data-driven production plan
• Improving profitability in various business segments
• Improving operating margin and reducing assets to improve ROIC

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Build a procurement and logistics network to refine “OilliO quality” and competitiveness
• Aim for 100% traceability back to the plantation

Climate-Related Risks & Opportunities

Physical Risks

• Decrease in the harvest of oilseeds due to heat waves and other abnormal weather conditions

Transition Risks

• Increased demand for oils and fats as biofuels

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Certified as “White 500”

Environmental Metrics

ESG Focus Areas

• Global environment
• Supply chain connected by trust
• Preventing Global Warming
• Resource Recycling
• Plant Resources/Nature Conservation
• Human Rights
• Food Safety and Quality Control
• Diversity and Inclusion
• Occupational Health and Safety
• Compliance

Environmental Achievements

• Reduced Scope 1 + 2 GHG emissions to 292,825 t-CO2 in FY2023 from 344,061 t-CO2 in FY2019.
• Reduced water consumption by 8.5% in FY2023.
• Achieved a recycling rate of 99.9% or higher for waste generated since FY2005.
• Increased ratio of natural energy to electricity to 91.5% in FY2023.

Social Achievements

• Established a new personnel system in October 2023 to empower employees.
• Launched a Global Human Resources Registration System to cultivate global human resources.
• Provided training for employees to improve digital knowledge and skills.
• Implemented various systems to support employees' work-life balance, including childcare leave, short-time work, and nursing care leave.

Governance Achievements

• Established The Nisshin OilliO Group Human Rights Policy in March 2022.
• Established The Nisshin OilliO Group Corporate Ethics Hotline for whistleblowing.
• Implemented a new personnel system based on the principle of “Value Up employees and organizations with their diverse strengths.”

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on plant growth and raw material prices.
• Water risks associated with raw material production.
• Supply chain disruptions due to various factors (e.g., driver shortages, stringent regulations).
• Human rights risks in the supply chain.

Mitigation Strategies

• Endorsed TCFD recommendations and disclosed climate change-related risks and opportunities.
• Conducted water risk assessment and confirmed no water intake from high water stress areas.
• Joint initiatives with other food manufacturers to improve logistics efficiency and reduce CO2 emissions.
• Implemented human rights due diligence efforts, including risk assessment, SAQ administration, and dialogue with suppliers.

Supply Chain Management

Supplier Audits: Approximately 40 high-priority manufacturing contractors audited in FY2023.

Responsible Procurement

• Palm Oil Procurement Policy
• Soybean Procurement Policy
• Cacao Procurement Policy
• The Nisshin OilliO Group Basic Procurement Policy
• The Nisshin OilliO Group Supplier Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Meteorological disasters (e.g., earthquakes, tsunamis, extreme weather)

Transition Risks

• Increased costs due to carbon taxes and ETS.
• Increased raw material prices due to decarbonization in agriculture.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines, Environmental Reporting Guidelines (2018) by the Ministry of the Environment of Japan, SASB Standards, TCFD Recommendations, TNFD Recommendations

Certifications: ISO 14001, ISO 9001, HACCP, AIB, ISO 22000, FSSC 22000, GMP, Halal, Kosher, ISO 17025, Rainforest Alliance, Fairtrade International

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Edible-oil products with reduced-weight plastic containers.

Awards & Recognition

• Health & Productivity Management Outstanding Organization 2024 (White 500)