Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change mitigation and adaptation
• Sustainable procurement
• Assurance of product quality and safety
• Occupational health and safety
• DE&I
• Conservation of water resources
• Resource circularity
• GRC

Environmental Achievements

• Listed in the S&P/JPX Carbon Efficient Index (fifth consecutive year)
• Triple A (highest rating) in CDP A List 2020, scoring an “A” in all three categories: forests, climate change, and water security
• Environmental Vision 2030: Reduce Scope 1 and 2 CO2 emissions (total volume) by 40% and Scope 3 (Category 1) emissions by 18% compared with 2016 (base year) by 2030
• 20% reduction in water intensity by 2030 (base year: 2016)
• 10% reduction in waste intensity by 2030 (base year: 2016)

Social Achievements

• Named among the top 500 in the large enterprises category (White 500) of the 2021 Certified Health & Productivity Management Outstanding Organizations Recognition Program by Japan's Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi
• Listed in national rankings of most fulfilling workplaces in Brazil
• Launched and successfully proceeded with operations of our new Chiba Plant
• Plant-Based Food Solutions (PBFS) initiative focusing on resolving social issues through plant-based food ingredients
• Community investment through various programs in Ghana and Côte d'Ivoire

Governance Achievements

• Grand Prize in the ESG category of the 2nd The Japan Times Satoyama & ESG Awards 2020
• Listed in the FTSE4GOOD Developed Index, FTSE4GOOD Japan Index, and FTSE Blossom Japan Index
• Listed in the MSCI Japan ESG Select Leaders Index (fifth consecutive year), MSCI Japan Empowering Women (WIN) Index (third consecutive year), and MSCI Japan Empowering Women (WIN) Select Index (third consecutive year)
• Award of Excellence in the 23rd Nikkei Annual Report Awards organized by Nikkei Inc. (third consecutive year)
• Selected as an Excellent Integrated Report by domestic equity asset managers of the Government Pension Investment Fund (GPIF)

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices (palm oil, cocoa, soybeans)
• Food safety risks
• Supply chain disruptions due to disasters, accidents, and infectious diseases
• Human resource challenges (hiring and development)
• Business transformation/reform challenges
• Environmental and human rights risks in the supply chain
• Country risks in various regions
• Inadequate response to COVID-19
• Insufficient profitability in Industrial Chocolate Business (Blommer, Harald)
• Production efficiency issues at Blommer
• Impact of COVID-19 on Harald's sales volume and raw material costs
• Management of raw material markets (palm oil)
• Differentiation strategies for competitors in markets of strength
• Maintaining and expanding market share in Japan and overseas
• Traceability of raw materials to their origin
• Complexity of supply chains, especially for cocoa and palm oil
• Social issues associated with cocoa and palm oil production (child labor, deforestation, etc.)
• Addressing the needs of a changing society (plant-based foods, health concerns, etc.)

Mitigation Strategies

• Strengthening Group headquarters’ functions and strategies
• Improving productivity and operational efficiency
• Implementing a global risk management system
• Investing in new mills in the U.S. and Germany
• Expanding production capacity at Blommer and Harald
• Improving precision for managing the position of raw materials
• Revising the Group’s portfolio and acquiring new raw materials
• Raising the standard of products to differentiate them from competitors
• Boosting the value of each product
• Developing new technologies and products
• Implementing responsible sourcing policies with traceability targets
• Engaging in dialogue with stakeholders and industry associations
• Implementing Supplier Code of Conduct
• Establishing a grievance mechanism
• Implementing CLMRS (Child Labour Monitoring & Remediation System)
• Supporting educational opportunities for underprivileged children
• Agroforestry and reforestation activities
• Expanding cocoa farmer support program
• Developing plant-based food solutions
• Strengthening global management structure
• Digital transformation initiatives
• Strengthening financial governance and capital efficiency
• Implementing a new executive compensation system
• Establishing regional headquarters
• Global Sustainable Sourcing Committee
• Global Chocolate Committee
• Environmental Vision 2030
• Science Based Targets initiative (SBTi)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Palm Oil Sourcing Policy
• Responsible Cocoa Beans Sourcing Policy
• Supplier Code of Conduct
• Sustainable procurement targets for palm oil, cocoa, soybeans, and shea kernels
• Traceability initiatives
• Grievance mechanism

Climate-Related Risks & Opportunities

Physical Risks

• Intensifying natural disasters due to extreme weather

Transition Risks

• Increased cost of complying with environmental regulations
• Increased cost possibly arising from carbon tax

Opportunities

• Expansion of plant-based food market
• Addressing new health concerns arising from climate change

Reporting Standards

Frameworks Used: IIRC

Certifications: ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Sugar-free chocolates
• Dairy-free chocolates
• Low-trans-fatty-acid oils and fats
• Plant-based cheese alternatives
• Plant-based whipping cream
• Plant-based protein ingredients

Awards & Recognition

• Grand Prize in the ESG category of the 2nd The Japan Times Satoyama & ESG Awards 2020
• Award of Excellence in the 23rd Nikkei Annual Report Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Resources
• Circular Economy
• Biodiversity
• Sustainable Procurement
• Creation of Sustainable Food Resources
• Health and Nutrition
• Product Safety and Quality
• Occupational Health and Safety
• DE&I
• GRC

Environmental Achievements

• 21% reduction in Scope 1 and 2 CO2 emissions (52% achievement rate towards 40% reduction target)
• 25% reduction in water use intensity (124% achievement rate towards 20% reduction target)
• 6.1% reduction in waste intensity (61% achievement rate towards 10% reduction target)
• Triple A rating from CDP in 2021 for climate change, water security, and forests (second consecutive year)

Social Achievements

• Launched a soil conditioner made from soy whey
• Formulated the Fuji Oil Group Supplier Code of Conduct
• Issued sourcing policies for soybeans and shea kernels
• Zero cases of serious accidents and serious property damage accidents
• Marketed 10 soy meat food products and ingredients
• Marketed 5 plant-based milk and cream products
• Increased work-style options by revising the contracted reemployment program

Governance Achievements

• Established a framework that integrates sustainability initiatives into corporate and regional strategies
• Introduced an evaluation system linking executive performance to ESG (10% weighting)
• Revised the system for monitoring management execution to align with the transition to a company with an Audit and Supervisory Committee
• No serious compliance violations

Climate Goals & Targets

Environmental Challenges

• Increase in the volume of purchased raw materials leading to increased Scope 3 emissions
• Complexity of supply chain hindering improvement in traceability to plantation
• Deforestation, land rights, and rights of production workers in palm oil supply chain
• COVID-19 pandemic impacting on-site visits and data collection
• Difficulties in achieving traceability to primary collection points for soybeans
• Language barrier and physical distance hindering direct procurement of shea kernels

Mitigation Strategies

• Constant monitoring using satellite images to prevent deforestation
• Implementation of Labour Transformation Programme (LTP)
• Virtual communication and local staff site inspections using wearable cameras
• Development of a self-assessment tool for suppliers
• Close cooperation among Group companies to manage non-GM soybeans
• Frequent and effective communication with shea kernel cooperatives

Supply Chain Management

Responsible Procurement

• Fuji Oil Group Supplier Code of Conduct
• Responsible sourcing policies for palm oil, cocoa, soybeans, and shea kernels
• CSR Procurement Guidelines (3rd Edition)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Increased cost of complying with environmental regulations
• Carbon taxes

Opportunities

• Growth of the market for plant-based foods

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Third-party verification for more than 70% of Scope 1 and 2 CO2 emissions data and Scope 3 Category 1 CO2 emissions data

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• GRANDMOIST
• SoyBio MA
• Almond Whip
• Soy Delice KOJI

Awards & Recognition

• Nikkei Integrated Report Awards
• GPIF Excellent Integrated Report Award
• MSCI Japan ESG Select Leaders Index
• FTSE4Good Index Series
• FTSE Blossom Japan Sector Relative Index
• CDP Triple A rating
• Others

Environmental Metrics

ESG Focus Areas

• Creation of Sustainable Food Resources
• Health and Nutrition
• Sustainable Procurement
• Climate Change
• Water Resources
• Circular Economy
• Biodiversity
• Occupational Health and Safety
• DE&I
• Securing and Developing Human Resources
• GRC

Environmental Achievements

• 26% reduction in CO2 emissions (Scopes 1 & 2) compared to 2016 baseline
• 27% reduction in water use intensity compared to 2016 baseline
• 4.7% reduction in waste intensity compared to 2016 baseline
• 99.69% recycling rate

Social Achievements

• Launched flagship GOODNOON initiative for plant-based foods
• Child Labour Monitoring & Remediation System operational in 100% of direct cocoa bean supplier farmer groups
• 93% traceability to plantation for palm oil
• 70% traceability to primary collection points for soybeans
• 93% traceability to regional level for shea kernels
• Increased diversity of the Management Committee Meeting to 45% (foreign nationals and women)

Governance Achievements

• Established the Fuji Oil Group Policy on Biodiversity
• Established the Fuji Oil Group Human Rights Guidelines
• Introduced an executive performance evaluation system linking 10% of the score to ESG targets
• Transitioned to a company with an Audit and Supervisory Committee

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical risks
• Rising resource prices
• Increased Scope 3 Category 1 CO2 emissions (12% increase)
• Deforestation and human rights violations in raw material production regions
• Maintaining high recycling rate despite expanding production
• One serious accident at Fuji Vegetable Oil (U.S.)

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented Labour Transformation Programme (LTP) at palm oil suppliers
• Introduced Child Labour Monitoring and Remediation Systems (CLMRS)
• Supplier engagement for CO2 emissions reduction
• Improved dewatering equipment to reduce waste
• Continuous improvement of occupational health and safety management system
• Internal carbon pricing system trial

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Responsible sourcing policies for palm oil, cocoa, soybeans, and shea kernels
• Traceability initiatives
• Supplier self-assessments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Increased cost of complying with environmental regulations
• Carbon taxes

Opportunities

• Growth of plant-based food market

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001

Third-party Assurance: Third-party verification for more than 70% of Scope 1, 2, and 3 Category 1 CO2 emissions data

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land

Initiatives contribute to these goals through sustainable food production, health and well-being programs, responsible sourcing, climate change mitigation, biodiversity conservation, and community development.

Sustainable Products & Innovation

• Plant-based foods
• Low-TFA oils and fats
• Sugar-reduced products

Awards & Recognition

• CDP A ratings for water security and forests, A- for climate change
• FTSE4Good Index Series constituent
• S&P/JPX Carbon Efficient Index constituent
• Morningstar Japan ex-REIT Gender Diversity Tilt Indexes (GenDi J) Group 1 constituent
• Nikkei Integrated Report Awards Excellence Award (5 consecutive years)

Environmental Metrics

ESG Focus Areas

• Deliciousness and healthiness
• Sustainable food value chain
• Business foundations
• Climate change
• Biodiversity
• Sustainable procurement
• Human rights
• Occupational health and safety
• DE&I
• GRC

Environmental Achievements

• 29% reduction in CO2 emissions (Scope 1+2) compared to FY2016 baseline
• 100% traceability to mills for palm oil, 95% traceability to plantations
• 23% reduction in total CO2 emissions (all Group companies)

Social Achievements

• Launched GOODNOON line of plant-based products
• Implemented Tebma-Kandu shea kernels sustainability program in Ghana
• 70% of suppliers signed the Fuji Oil Group Supplier Code of Conduct

Governance Achievements

• Transitioned to a company with an Audit and Supervisory Committee in 2022
• Established a Sustainability Committee
• Implemented a performance-linked remuneration system for Directors

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices (palm oil, sunflower oil, cocoa)
• Supply chain disruptions
• Blommer's declining profitability
• Cocoa supply falling short of demand
• Labor shortages
• Increasing health consciousness
• Demand for sustainable and ethical products
• EU Deforestation Regulation (EUDR) compliance

Mitigation Strategies

• Strengthening business platform and restoring profitability
• Implementing Blommer structural reforms
• Strengthening sustainable procurement initiatives
• Developing high-value-added products
• Investing in R&D for alternative ingredients
• Improving capital efficiency using FUJI ROIC
• Strengthening global business management
• Implementing human rights due diligence
• Establishing a joint venture with Johor Plantations Group Berhad

Supply Chain Management

Responsible Procurement

• Responsible Palm Oil Sourcing Policy (2016)
• Responsible Cocoa Beans Sourcing Policy (2018)
• Responsible Soybeans and Soy Products Sourcing Policy (2021)
• Responsible Shea Kernels Sourcing Policy (2021)
• Fuji Oil Group Supplier Code of Conduct (2021)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Storm surges

Transition Risks

• Tougher environmental regulations
• Increased demand for certified raw materials
• Changes in consumer behavior

Opportunities

• Development of energy-efficient products
• Expansion of sustainable supply chains

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Sustainable Products & Innovation

• GOODNOON plant-based products
• Vegetable fats for chocolate (CBE)
• Compound chocolate
• MIRACORE® technology

Awards & Recognition

• Prime Soy Meat received the Grand Prize in the 2022 Nikkei Excellent Products and Services Awards

Environmental Metrics

ESG Focus Areas

• Business and Human Rights
• Stakeholder Engagement
• Social Contribution Activities
• Safety, Security and Quality of Foods
• Sustainable Procurement
• Environmental Management
• Hitozukuri (Fostering People)
• Health Management
• Risk Management

Environmental Achievements

• 14.1% reduction in total CO2 emissions (59% of 2030 target)
• 14.1% reduction in water usage per unit of production (71% of 2030 target)
• Achieved A-List status in CDP Forest Questionnaire 2018 (first for a Japanese company)

Social Achievements

• Established a grievance mechanism for palm oil sourcing
• Launched support program for cacao farmers in Ecuador
• Certified as an Excellent Enterprise of Health and Productivity Management 2019 (White 500)

Governance Achievements

• Established the position of Chief ESG Management Officer (C"ESG"O)
• Established the ESG Committee as an advisory body to the Board of Directors
• Improved Board of Directors effectiveness

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events
• Human rights risks in supply chains (forced labor, child labor, etc.)
• Difficulties in achieving diversity targets
• Maintaining high recycling rates

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented human rights due diligence and grievance mechanisms
• Revised diversity promotion strategies and targets
• Improved waste management practices

Supply Chain Management

Responsible Procurement

• Responsible Palm Oil Sourcing Policy
• Responsible Cacao Sourcing Policy
• CSR Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, floods, droughts)

Transition Risks

• Regulatory changes

Opportunities

• Increased demand for plant-based protein products

Reporting Standards

Frameworks Used: GRI Standard

Certifications: ISO 14001, ISO 22000, FSSC 22000, OHSAS 18001, ISO 45001

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Soy meat
• Plant-based whipping cream

Awards & Recognition

• Award for Excellence at the 21st Nikkei Annual Report Awards
• Governor's Award at the Fourth Osaka Prefecture Health Promotion Awards