Issued December 2018 Nippon Suisan Kaisha, Ltd. CSR Department NISSUI Telephone: +81-3-6206-7079 Fax: +81-3-6206-7080 SUS TA I N A BIL I T Y Nishi-Shimbashi Square, 1-3-1, Nishi-Shimbashi, Minato-ku, , 105-8676 RE PORT Website http://www.nissui.co.jp/english/ 2 018

Out of the consideration for the environment, this report has been printed with vegetable oil ink on FSC®-certi ed paper. Message from the President Company Overview (As of March 31, 2018) Company Name Nippon Suisan Kaisha, Ltd. The Nissui Group contributes to Head Office Nishi-Shimbashi Square, 1-3-1, Nishi-Shimbashi, Minato-ku, Tokyo, 105-8676 Japan the healthy lives of people across Founded 1911 the world through the sustainable use Established 1943 of marine resources. Capital 30,685 million yen Main Businesses Marine Products Business: Fishery, aquaculture, purchasing, processing and sales of marine products (fresh sh, frozen sh, oils and fats [ sh oil] and meal [feed]) Food Products Business: Development, manufacture and sales of frozen foods, shelf-stable foods, and other processed foods (seafood sausage and ham, surimi-based products, Akiyo Matono chilled foods and seasonings) Representative Board Member, Fine Chemicals Business: Manufacture and sales of general pharmaceuticals, pharmaceutical ingredients President & CEO and health foods Logistics Business: Frozen and refrigerated storage, transport of frozen and refrigerated freight Nippon Suisan Kaisha, Ltd. Employees 1,158 (non-consolidated) 9,003 (consolidated)

We at the Nissui Group issued our CSR Action Declaration Sustainable Development Goals (SDGs) adopted by the in 2016, where we identi ed three key issues (material United Nations in 2015. Sales (FY2014–2017: Consolidated) Operating income (FY2014–2017: Consolidated) areas) based on opinions expressed to us by stakeholders. The Nissui Group cannot solve these societal issues [Billion yen] With the goal of solving those issues, we independently alone; cooperation and collaboration is essential—with 700 683.0 [Billion yen] 638.4 637.1 635.9 established a committee system and are proceeding with companies both in and outside of Japan, non-governmental 25 22.6 23.4 a number of initiatives. and non-political organizations, and government agencies 600 20 19.4 In its business activities, a company faces a variety from around the world. To this end we have begun to 500 18.1 of societal issues that often include the environment or communicate with a range of af liated organizations, and 400 15 human rights. We believe it is vitally important to tackle joined the Seafood Business for Ocean Stewardship 300 those issues while pursuing sustainable growth. We need (SeaBOS), an initiative aimed at promoting sustainability in 10 to face each of these problems head on and continue to marine resource businesses. 200 5 engage in dialogues and other forms of communication The Nissui Group is extending its efforts to further 100 with our stakeholders to actively remind ourselves not to reduce the amount of carbon dioxide and waste 0 0 become complacent. materials it produces, along with the water and other 2014 2015 2016 2017 [FY] 2014 2015 2016 2017 [FY] In April 2018, we launched our new Mid-Term resources it uses. We are committed to the sustainable Sales breakdown Business Plan, entitled “MVIP + (Plus) 2020” in which we use of marine resources and are working as part of the by business segment Sales breakdown by region set ourselves the aim of creating value by leveraging our international community to actively establish rules for unique technologies and utilizing marine resources in a marine resource utilization and to ensure compliance as Logistics Business Marine-related/ sustainable way to help people be healthy around the a way to ful ll our corporate citizenship responsibility and 2.4% Engineering Business 1.3% 0.7% world. We believe that tackling the key issues to ful ll this promote healthy living among people across the globe. 8.8 billion yen 4.6 billion yen 3.8% promise is inextricably linked with working to achieve the Fine Chemicals Business 3.8% Marine Products 13.0% Business 89.1 billion yen Japan Contents 42.0% Food Products 71.6% 13.4% Company Overview / Editorial Policy 1 (Key Issue) Contribute to a healthy lifestyle Business 488.8 billion yen 91.5 billion yen with food safety and security 12 48.0% The Nissui Group’s CSR Initiatives Food Loss and Waste 13 Nissui Group Businesses and CSR 2 Quality/Health, R&D and Innovation The New Mid-Term Business Plan, 14 MVIP + (Plus) 2020, and Key Issues Facing (Key Issue) Aim to be a company where diverse the Nissui Group 3 human resources play an important role to Editorial Policy address the social agenda 15 CSR Key Issues and Activities Reports Editorial policy This report is published to provide information on the CSR initiatives of Nippon Suisan Kaisha, Ltd. to its stakeholders. 16 (Key Issue) Preserve the bountiful sea and Diversity and Personnel Development Report period The report mainly covers activities conducted from April 1, 2017, to March 31, 2018, but includes some contents regarding events in promote the sustainable utilization of April 2018 or later. Employee Health 17 This report covers Nippon Suisan Kaisha, Ltd., (non-consolidated) and consolidated subsidiaries and certain other Group companies marine resources and their procurement 4 Report boundary in Japan. The data on environmental impact represents the combined total of the business sites of Nippon Suisan Kaisha, Ltd. and its 24 consolidated subsidiaries in Japan. Sustainable Procurement 5 Activity Report: Contributing to the Region and Society 18 Referenced guidelines Environmental Reporting Guidelines 2012 (Ministry of the Environment) Sustainability of Marine Resources/Marine Environment 6 Contact information CSR Section, CSR Department, Nippon Suisan Kaisha, Ltd. Nishi-Shimbashi Square, 1-3-1, Nishi-Shimbashi, Minato-ku, Tokyo, Exchange of Views with Stakeholders for the organization 105-8676 Japan Activity Focus: Marine Eco-Labels 8 publishing this report Telephone: +81-3-6206-7079 Fax: +81-3-6206-7080 Email: [email protected] Activity Report: Preserving the Earth’s Environment Stakeholder Dialogue The Nissui Sustainability Report 2018 Japanese page: https://nissui.disclosure.site/ja/themes/121 10 20 is also available on Nissui’s website. English page: https://nissui.disclosure.site/en/themes/121

SUSTAINABILITY REPORT 2018 1 Nissui Group Businesses and CSR The New Mid-Term Business Plan, MVIP + (Plus) 2020, and Key Issues Facing the Nissui Group

The Nissui Group established its new Mid-Term Business Plan, MVIP + (Plus) 2020, We carry out initiatives to fulfill with goals we aim to achieve by fiscal 2020, to further improve our CSR management. the UN’s Sustainable Development Goals (SDGs), We plan to resolve the three key issues (material areas) we have identified through The Group’s Nissui CSR Initiatives based on the “five genes” carried forward our business activities. since the company’s foundation. MVIP+2020 In March 2016, the Nissui Group announced its CSR Action Declaration. Make Value through Innovative Plan Most Valuable Impressive Player The “five genes” (sense of mission, innovation, hands-on approach, global mindset, Stimulating value for individuals and Creating value through innovation and commitment to customers) we have held true to since the company’s beginning companies throughout society form the basis for the way we create value in myriad forms, and we pursue CSR-driven management that contributes to society through our business activities. MVIP+2020

The Nissui Group’s CSR Initiatives CSR Nissui Group’s The MVIP2017 New Value Water is to the water service what marine resources are to the production Founding Philosophy and supply of marine products. Fine Chemicals Business Respond to lifestyle changes Strengthen combined efforts Initiatives We will champion the sustainable utilization of marine resources and the across business domains to solve preservation of the earth’s environment, continue to create diverse values Food Marine Expand overseas Basic societal from resources including marine resources and provide individual Products Products issues Management Policy consumers with safe and high quality products, thus helping them to Business Business Work to reach (CSR) maintain a fit and healthy lifestyle. the next stage R&D Strengthen technological Quality Assurance & CSR capabilities and management foundation The Nissui Group will appreciate the earth and the sea, and create diverse forms of value from the “five genes” (sense of mission, innovation, CSR hands-on approach, global mindset, and commitment to customers) Action Declaration Helping people across the world stay healthy through inherited since its foundation and try to solve social issues through its The ideas behind business activities. the new Mid-Term the utilization of sustainable marine resources Business Plan Aiming to become a manufacturer that creates value by leveraging unique technologies • We provide safe and secure, high quality products which are valuable for customers. For the customer • We utilize the bounty of the sea and provide the delights of food and a rich and healthy life through innovation. Key Issues Selected by the Nissui Group 2020 2030 Associated SDGs

• We act in accordance with the norms of the society with sound ethics and aim to build a Preserve the bountiful sea For the employee socially trusted company. and promote Access to sustainable resources We respect diverse values and individualities, and achieve growth through teamwork by • the sustainable Improve aquaculture learning from others. utilization of (on-land, new fish species, Sustainable procurement We maintain fair and transparent business relationships with all of our business partners. marine resources and overseas expansion) For the business • We try to build mutually trusting relationships with business partners and seek a sustainable their procurement partner • society with them. Acquisition of ASC & MSC certification Overseas expansion of We work hard to reduce environmental impact and preserve natural environment and • Contribute to pharmaceutical ingredients For biodiversity. Health-oriented product lines a healthy lifestyle the environment We recognize that our business relies on the bounty of the earth and the sea, and work hard to • with food safety Improve EPA-extraction techniques utilize resources in a sustainable manner. and security Prevent food loss We operate in a transparent manner and improve disclosure of information. For • Strengthen manufacturing We try to enhance corporate value and continue a proper distribution of profit to the Respond to lifestyle changes the shareholder • and processing capabilities shareholders through stable business growth. Aim to be a company where diverse human Overseas business expansion • We work hard to develop local society and cultivate the next generation through the knowledge resources play (Marine Products and Food Products) For society and the technology of the Nissui Group. an important role We respect diverse cultures and customs in the world and try to contribute to keeping the local • to address Employee health & workstyle reform Diversity and female participation society alive with the development of our business. the social agenda

2 SUSTAINABILITY REPORT 2018 SUSTAINABILITY REPORT 2018 3 Preserve the bountiful sea and promote the sustainable Key Issue utiliation of marine resources and their procurement

Key Issue

Social Issue We are working with our business partners to build a sustainable system for procuring raw materials and

Preserve the bountiful sea and and Activities Reports products that take into consideration human rights and

Sustainable Key Issues CSR promote the sustainable Procurement the global environment.

Initiatives for Sustainable Procurement

CSR Issues Key utilization of marine resources We are taking the following three steps with regard to building a procurement system for raw materials and

and Activities Reports Activities and goods (Nissui brand products) that incorporate consideration for issues such as human rights and environmental and their procurement protection. STEP 1 STEP 2 STEP 3 Conducting Deciding on a procurement policy uilding a system and management The preservation of resources and resolution of labor-related human rights issues is and supplier guidelines setting targets and rules with concrete targets Sustainable Procurement called for when using and procuring marine resources. Our fundamental ideas concerning We selected 32 companies by In response to procurement are presented in the Nissui volume of procurement and self-assessment sheet The Nissui Group is grateful for the bounty of the oceans and Group Basic Procurement Policy. In fiscal amount of potential risk, and answers, we conducted 2017, we also established a set of CSR held a sustainable procurement consultations with our will continue to develop technologies that promote the sustainable utilization of Supplier Guidelines to enable collaboration seminar for them in February partners, requested with our partners on sustainable 2018 at which we asked Nissui Group sustainable improvements, and carried resources in fishing, aquaculture, and related industries, procurement. participants to fill in a procurement seminar out other actions. We will self-assessment sheet based on the Basic Procurement proceed with our initiatives to protect the environment and Policy and CSR Supplier Guidelines. based on concrete targets. resources for the next generation. Also, we are working with our suppliers to Nissui Group Basic Procurement Policy

implement sustainable procurement that maintains respect The Nissui Group declares that it will appreciate the bounty of the earth and sea, and create diverse value through following the for human rights. company’s “five genes,” carried forward since its foundation, and will try to solve social issues through the business activities covered in our CSR Action Declaration. Based on that, the Nissui Group developed its Nissui Group Basic Procurement Policy in order to meet the expectations of stakeholders, and to contribute to society when purchasing raw materials and products. The Nissui Group is promoting procurement through relationships built on trust, with suppliers who understand and cooperate with this policy.

(1) Procurement Policy (3) Awareness of Environmental Preservation 1. Suppliers and partners shall be selectively chosen, taking 1. The Nissui Group shall promote purchasing of raw materials quality, cost, delivery timing, and service into consideration. and products that take environmental preservation of the earth 2. The Nissui Group shall be open to new supplier candidates. and local regions into consideration. 3. Transactions shall be conducted with fair quality and price 2. The Nissui Group shall seek con rmation that the raw materials maintained by getting material safety data sheets and and products it purchases have been harvested or produced competitive quotes. having regard to principles of sustainability, biodiversity and of 4. The Nissui Group shall promote cost reduction in a positive preservation of ecosystems. manner on the condition of safety assurances and quality 3. The Nissui Group shall purchase raw materials and products improvement. from suppliers that are conscious of cyclical usage of resources and energy. (2) Compliance, Procurement Ethics (4) Respect for Human Rights 1. The Nissui Group shall comply with laws and regulations of 1. Suppliers are requested to provide raw materials and products all relevant countries, including Japanese law and internal that are not associated with forced labor, child labor or the company rules. inhuman treatment of employees. 2. The Nissui Group shall ful ll its contracts faithfully with 2. The Nissui Group shall purchase raw materials and products Sustainable Procurement Sustainability of Marine Resources suppliers and partners. provided by suppliers who ensure that their working Social Issues 3. The Nissui Group shall understand the signi cance of environments respect employees’ freedom of association and Marine Environment information it obtains through transactions and preserve the are free from discrimination. con dentiality of such information. 3. The Nissui Group shall purchase raw materials and products 4. The Nissui Group shall build relationships of trust with produced in safe and clean work environments. suppliers and partners through fair, open and transparent (5) Collaboration with Suppliers and Partners procedures. 1. The Nissui Group shall promote close collaboration with 5. Corrupt or dishonest behavior, including granting and/or suppliers as important business partners. receipt of inappropriate bene ts, is entirely rejected by the 2. The Nissui Group shall ask suppliers and partners to Nissui Group. acknowledge this policy and support and cooperate with the principles set out in this policy. 3. Various proposals by suppliers and partners are examined and seriously considered by the Nissui Group.

4 SUSTAINABILITY REPORT 2018 SUSTAINABILITY REPORT 2018 5 Preserve the bountiful sea and promote the sustainable Key Issue utiliation of marine resources and their procurement

Cooperation with NGOs/NPOs Social Issues Activities with SeaBOS

We aim to minimize the impact of our business activities As one of the signatories to the SeaBOS* initiative, along with other leading and Activities Reports Sustainability of companies in the global seafood industry, Nissui is working to resolve Key Issues CSR on the ocean environment and marine resources and obstacles to a sustainable marine business. At the Tokyo Sustainable Marine Resources promote the sustainable utilization of resources. Seafood Symposium held in October 2017, Nissui expressed the thinking behind SeaBOS to preserve and make sustainable use of the marine environment and resources. We also declared our commitment to the Marine We are working to reduce the impact of our business SeaBOS initiative as part of our CSR activities. *SeaBOS: Seafood Business for Ocean Stewardship CSR Issues Key activities on the oceans and global environment. Environment Photo by Embassy of Sweden and Activities Reports Activities and

The First Japanese Company to be a Funding Partner of Initiatives for Sustainable Ocean Resources the GSSI The Global Sustainable Seafood Initiative (GSSI) is an international Sustainability of Marine Resources/Marine Environment With the world’s marine resources running out, ensuring their sustainability is paramount. The Nissui Group, partnership that verifies programs assessing the sustainability of marine looking at its dealings and results for 2016, conducted a survey of the status of the main primary wild- products, and in April 2017, Nissui was the first Japanese company to caught fish procured by the group’s constituent companies (28 in Japan and 16 overseas), and summarized become a Funding Partner. As of September 2018, seven companies of its findings into indicators of sustainability, namely fish species, catch regions, habitats, and sizes of catch (live weight equivalent). the Nissui Group are registered as Funding Partners. As a company that promotes global resource sustainability, the Nissui Group will actively We analyzed conditions for the natural marine resources procured by Nissui using the following four steps. support the activities of the GSSI.

STEP 1 STEP 2 STEP 3 STEP 4 Approved and Fisheries Management Endangered Species FA FishSource Agencies Promoting Aquaculture Marine resources are divided into Analysis with UN Food Fish species identified in Step 2 Species classified as being of those receiving and Agriculture as being exhausted, unevaluated or unclear status or a cause for concern marine eco-label certification, Organization (FAO) data. as falling outside the area of and endangered species are surveyed Automation of Farmed Fish Measuring through AI which are not a cause for concern, evaluation are assessed a second time. and IoT Technologies Measurement points detected (to gauge length and height) and those that are with FishSource. We check national or endangered species, regional fisheries management In collaboration with NEC, which possesses cutting-edge artificial intelligence which are a cause for concern. agencies’ resource recovery plans, and Internet of Things technology, Nissui has developd an automated and regulations concerning fishing methods and seasons. farmed fish measuring solution. Simply by uploading images of the farmed Fish body detection fish as they swim about their tank, the technology is able to calculate the *¹ FAO: Food and Agriculture Organization of the United Nations *² FishSource: an international database for evaluating marine resources fish’s size and lengths and report that information. In aquaculture, there is a need for such solutions to constantly manage the growth status of the Sustainability of Marine Resources/Marine Environment Sustainability of Marine Resources/Marine Trends in the world’s fish stocks Status of wild-caught fish resources fish. This solution alleviates the risk of stress or disease that comes from (%) procured by the Nissui Group (2016) 100 people physically handling fish. It also reduces labor and inconvenience, and improves measurement accuracy, thereby boosting productivity. verexploited Unclear Image showing AI detection of yellowtail 80 , t Cause for concern Approved Promoting Aquaculture Technology Innovation , t 60 In order to use marine resources in a sustainable manner, the Nissui Fully exploited Group works to advance its aquaculture technologies. Within Japan we are opening up new possibilities, from farming yellowtail and coho salmon 40 Wild-caught using our independent technologies; to producing entirely farmed tuna; fish researching the aquaculture of vannamei (white) shrimps at domestic approx. 30 mm 20 ,, t on-land sites; and creating the technology needed to fully farm common Non-fully exploited octopuses, an endeavor previously thought too challenging. Nissui is also 0 making progress with the development of aquaculture technology that 1975 1980 1985 1990 1995 2000 2005 2010 2015 No cause prevents water pollution and minimizes the effect on marine ecosystems, ■ Resources for which catches are deemed biologically unsustainable for concern ■ Resources for which catches fall within limits deemed biologically sustainable such as solid feed mix EP pellets that aren’t accidentally dispersed out into Artificially incubated EP pellets ,, t common octopus Note: The white line serves to delineate the two categories that fall within sustainable catches, the category above the white line shows sea and the automatic feeding Aqualingual®. those species considered fully exploited, while the category below it shows species considered to be not fully exploited. hatchlings Source: amended by Nissui from The State of World Fisheries and Aquaculture 2018—Meeting the sustainable development goals, FAO, 2018. Compared to minced fish meat or According to the results of our survey, marine resources procured by the Nissui Group amounted to 1.6% of the global catch. Of those, 88% powdered feed, the advantages of of fish species were categorized as being no cause for concern, while 37% were approved by marine eco-label certification. Fish species EP pellets are that: classified as being a cause for concern, which include endangered species, were judged acceptable to use only after confirmation of the They are less likely to pollute the water presence or absence of resource recovery plans, net or seasonal restrictions, or fisheries management. We did not use such resources • Their well-balanced nutrients are if they were clearly not managed or if their status continued to be unclear, nor if we had any doubts that they might be caught through • easily consumed illegal, unreported or unregulated (IUU) fishing or caught using forced labor. The Nissui Group will undertake surveys of actual conditions of They are easily digested procured marine products on a regular basis, aiming to have the items the Nissui Group procures confirmed as sustainable by the year 2030. • They are well-suited to automated feeding *For details on the survey, see the Sustainability page on the Nissui website. http://www.nissui.co.jp/english/news/20181206_NISSUI_TSE.pdf •

Large-scale, ocean aquaculture system

6 SUSTAINABILITY REPORT 2018 SUSTAINABILITY REPORT 2018 7 Activity Focus Supplying products using the technologies we have developed in surimi (ground fish) production and aquaculture to promote marine eco-labels. and Activities Reports In a 2017 resource status survey, 37% of the wild-caught sh used by the Nissui Group was caught by sheries with MSC or Marine EcoLabels Key Issues CSR other certi cation. As one of our key pledges, the Nissui Group aims to preserve To more widely promote products approved by the Marine Stewardship Council (MSC) and Aquaculture Stewardship Council (ASC), we supply Alaska pollock, scallops, yellowtail and other certi ed sh species, along with high-quality marine products the bountiful sea and improve the sustainability of marine resources. using the same technologies we have developed in manufacturing surimi products and in aquaculture. In future, we will continue to work to manufacture and sell marine products demanded by the market and processed goods derived from them, which One way in which we aim to do that is by acquiring ASC conform to our procurement policy on marine products grounded in sustainability. CSR Issues Key

and Activities Reports Activities and and MSC certification, and by using marine products that have marine eco-label certification. Certification systems and marine eco-labels help to Activity Focus: Marine Eco-Labels ensure optimal resource management and prevent illegal fishing.

Marine resources are a shared resource, and as such need protecting. To preserve this resource for those who will come after us, there are a number of issues that need resolving. Using certi cation and marine eco-labels, we can conduct planned shing based on current stocks of global marine resources, preserve marine environments and ecosystems, and combat over- shing, problems of shing crews’ human rights, and IUU shing*. All of these contribute to raising the sustainability of marine resources through effective resource management. *Fishing that is Illegal, Unreported, or Unregulated.

Activity Focus: Marine Eco-Labels We work to acuire an d promote certification, with an eye on improv ing the sustainability of marine resources. First in the world to receive ASC certification for Expanding marine eco-label products throughout yellowtail farming, which we hope to acquire for tuna. our Food Products Business.

The Marine Stewardship Council is one of the foremost certi cation agencies. Its role is to verify shing The Nissui Group is endeavoring to spread the use of marine eco-label ingredients throughout our Food that is sustainable and that protects the ocean’s natural environment and resources. Marine products Products Business, by promoting the use of certi ed sh species, and through processed goods such as caught using MSC-certi ed shing methods can be traced to their global source—traceability that encourages frozen or tinned products, and chikuwa. good marine resource management. MSC certi cation is recognized as trustworthy and rigorous, and is approved by the Products displaying a marine eco-label in supermarkets and food retailers are testimony to the behind-the-scenes Global Sustainable Seafood Initiative (GSSI), a third-party benchmarking efforts to improve sustainability of marine resources. agency. Nissui has now received MSC certi cation for several sh grounds FARMED RESPONSIBLY and species, including Alaska pollock. The Aquaculture Stewardship Council (ASC) has a certi cation program that asc Efforts to commercialize fully farmed bluefin tuna produced here in Japan CERTIFIED ensures that sh farming is environmentally responsible. In December 2017, ASC-AQUA.ORG In March 2018, our blue n tuna was shipped with the Kitsuna Gold Nissui was the rst in the world to receive certi cation for yellowtail Label brand name for the rst time. Thanks to processing at the site aquaculture. In 2014 we were successful in producing fully farmed tuna, and where they are landed, in the Kagoshima Prefecture city of we are aiming to follow on from our success with yellowtail to receive ASC Satsumasendai, we have produced rst-rate blue n tuna with a certi cation for our tuna. focus on quality, freshness and taste. Domestically produced, fully ™ farmed blue n tuna is one of the key elements in the Nissui Aquaculture ASC-C-01759 MSC-C-51733 Business, and our plans to improve the sustainability of marine resource.

8 SUSTAINABILITY REPORT 2018 SUSTAINABILITY REPORT 2018 9 Activity Report Preserving the Earth’s Environment

2% reduction compared to Target Progress Amount of CO2 emissions FY2015 level (to FY2018) 2% reduction and Activities Reports

Making Progress with the Groups hreeear Key Issues CSR The Nissui Group has established numerical targets and is systematically working to reduce CO2 emissions, one of the

factors in global climate change. When using the CO2 coefcients of electric power suppliers in each scal year, CO2 Plan to Reduce Environmental Impact. emissions for scal 2017 amounted to 171,902 t-CO2, a 2% reduction from scal 2015. Amount of CO2 emissions by business Percentage of CO2 emissions by Marine Products Business Food Products Business Fine Chemicals Business type of energy used in FY2017 Logistics Business Others

CSR Issues Key Heavy fuel oil A Natural gas Three-Year Plan to Reduce Environmental Impact Kerosene 1.3% When using the CO2 coefficients of When using the CO2 coefficients of % 2.6% 3.7 Gasoline and Activities Reports Activities and electric power suppliers in FY2015 electric power suppliers in each The Nissui Group has set these reduction targets and aims to achieve them over the three-year period from scal 2016 to Diesel 3.9% 0.4% [t-CO2/year] 175,368 176,271 180,511 175,368 2018—2% in CO2 emissions, 1% in total water usage, and 3% in total waste production from scal 2015 levels. 180,000 171,505 171,902 14,002 LPG 15,071 15,071 12,655 150,000 4.6% 14,107 13,308 Activity Report: Preserving the Earth’s Environment 120,000 Reducing Environmental Impact through Business Activities 106,400 108,978 110,338 106,400 106,370 105,965 City gas Electricity 90,000 22.8% 60.7% Flow of Resources and Energy in F 60,000 20,380 19,545 5,120 22,465 20,380 19,409 4,708 21,884 Raw materials/Ingredients Procurement/Processing Logistics/Other Products and Services Customers 30,000 28,714 28,629 28,587 28,714 27,565 26,690 4,803 5,012 4,803 4,854 0 F F F F F F

Note: The amounts of CO2 emissions from purchased electricity are calculated using the CO2 INPUT OUTPUT coefficients of electric power suppliers. Waste 3.632 million m3 of city water, Recycling rate: Animal and Generated: 42,412 t well water and industrial water around 96.9% Water resources plant residue, Recycled: 41,111 t for the Himei General Plant waste oil and Awarded an Honorable Mention at the ansai Ecoffice Awards Purchased electricity: 210.955 million kWh sludge Amount processed/disposed: 1,301 t Heavy fuel oil A: 2,362 kL Diesel: 2,569 kL The Kansai Eco-Ofce Awards are a prize to recognize registered ofces that are making Drained into water Emitted into the atmosphere exceptional efforts to save energy. Nissui’s Himeji General Plant launched an Eco-Promotion Kerosene: 918 kL LPG: 2,648 t systems/sewers Energy CO2 and other gases: Team, which plans eco-promotion activities where employees take an active part, and follows Natural gas: 1,648 t Gasoline: 327 kL Ef uent and 3 up by implementing those initiatives. These include “ecoxercise,” a portmanteau of “eco” and City gas: 17.558 million m BOD, etc. 171,902 t-CO2 “exercise,” where employees are urged to use the stairs instead of elevators, or a contest that Activity Report: Preserving the Earth’s Environment the Earth’s Activity Report: Preserving encourages employees to design “eco-art” posters. We publicize these measures both within and outside the company to great acclaim, which led to our receiving the prize. 1% reduction compared to Target Progress Water Usage Reduction FY2015 level (to FY2018) 0.6% decrease Initiatives to ut Greenhouse Gases The basis of sustainable marine resources is water. We are thus continually striving to reduce the amount of water we use, such as by saving or reusing water at our plants. In scal 2017, we used a volume of water totaling 3,632,000 m3. That was Reducing methane emissions by generating electricity Reducing CO2 emissions using oil produced in a 0.6% reduction from scal 2015. We will continue to concentrate on water-saving measures in the future. from biomass at Hachioji General Plant the manufacturing process at Kashima Pharmaceutical Plant

Volume of Water Used (by business) Percentage of water usage by type of At Hachioji General Plant, Nissui Since beginning operations in January started biomass electricity generation 2018, surplus oil produced when Marine Products Business Food Products Business Fine Chemicals Business water for FY2017 Logistics Business Others by using the methane that is produced manufacturing products has been as part of our waste water treatment used to fuel the plant’s boilers. This [1,000 m3/year] process. By burning the methane in effort will lessen CO2 emissions as 4,000 3,653 3,685 3,632 electricity-producing generators, we compared to using city gas. 140 159 3,500 152 Industrial water plan to reduce our CO2 emissions for 16.7% scal 2018 by 2,380 t. 3,000

2,500 Well water iodiversity Preservation City water 54.7% 2,000 2,975 3,073 3,050 Nissui has been conducting initiatives whereby employees can experience rsthand the 28.6% importance of biodiversity and learn how forests, rivers and seas are all interconnected. 1,500 On June 17, 2017, the fth hands-on village woodlands preservation class was held at Utsunuki 1,000 Field, Hachioji, adjacent to the Nissui Tokyo Innovation Center. Later in the year, on September 24, we held an Arakawa River biodiversity seminar, where participants observed the diverse 500 440 351 334 organisms that make the river their home, as well as working to clean up the river area to 72 26 70 32 70 25 0 preserve the ecosystem. F F F

10 SUSTAINABILITY REPORT 2018 SUSTAINABILITY REPORT 2018 11 ontribute to a healthy lifestyle Key Issue with food safety and security

Key Issue

Social Issue Nissui works to reduce food waste in each aspect of

ontribute to a healthy lifestyle and Activities Reports Food Loss and Waste manufacturing, logistics and consumption. with food safety and security Key Issues CSR Initiatives to Combat Food Loss and Waste

As a company whose operations cover a variety of industries, the Nissui Group is working to solve the problem

CSR Issues Key of food loss, a significant societal issue. In fiscal 2017, we defined food loss, which aided our understanding of how it occurs, and we set up targets for its reduction. and Activities Reports Activities and Different issues plague different parts of the world when it comes to health. Food loss is left-over animal or plant matter—the amount of which could Target potentially be reduced through our own efforts—and products that are discarded. In some places, people suffer from hunger due to regional conflict or poverty, What is Food Loss? In fiscal 2018, Nissui aims to Left-over animal or plant matter does not include inedible fish parts produced in produce 2% less than it did in the manufacturing process, or parts of vegetables such as stems or outer leaves. fiscal 2017.

while advanced nations face such issues as societal aging, over-nutrition, Food Loss and Waste and food loss. Marine products are a valuable food resource and are recognized worldwide as a healthy food for their functional components. FY2017 Food Loss Reduction Activities The Nissui Group has been developing technologies and innovations to utilize The Nissui Group produced 11,075 t of food loss and waste between April 2017 and March 2018. Our target is to cut that amount by 2% in fiscal 2018. the bounty of the sea for over 107 years. “Let’s eat everything on our plates!” Food Loss Reduction Campaign We aim to utilize limited resources effectively and Between July 2017 and January 2018, a total of 1,133 people took part in our campaign to have people not leave any food over at parties and similar gatherings. Taking the amount without waste to enable people to experience the delights of of loss saved per person as 100 yen, we donated the total amount saved, 113,300 yen, to food and a rich, healthy life. the United Nations’ World Food Programme. That money will go towards the Programme’s School Feeding Program to help impoverished children around the world.

The screening of Wastecooking – Make Food, Not Waste, a film to promote awareness of the food loss problem Aware of the fact that a full third of the world’s food is discarded, the film’s director created a road trip movie about traveling through five European countries while living off food for which the best-before date had expired, and Nissui held a screening of the film at its head office.

©Mischief Films Initiatives to extend food’s best-before dates Nissui is proceeding with efforts to rethink the way we display best-before dates to reduce the amount of food that is wasted. For shelf-stable products, we are investigating a change from dates comprising day, month and year, to just month and year. We have also begun work on extending the longevity of our major products, such as frozen foods.

Waste Reduction and Recycling Target 3% reduction from FY2015 (to FY2018) Progress 25.1% increase

Due to a major increase in the amount of sludge waste produced, total waste for fiscal 2017 amounted to 42,412 t, 25.1% more than the total for fiscal 2015. However, we have been recycling all of the extra sludge produced.

Waste generated / Recycled (by business segment) Marine Products Business Logistics Business Percentage of waste generated by Food Products Business Others Fine Chemicals Business Waste recycling rate (%) type of waste for FY2017 [t/year] General waste 45,000 42,412 Other industrial waste (office waste) 1.4% 40,000 4,566 41,111 2.9% 34,487 3,997 Food Loss and Waste Quality 35,000 33,907 Waste oil 32,453 33,101 Social Issues 4,423 4,238 3.7% Animal 30,000 3,678 3,585 Plastic Health R&D and Innovation [%] waste and plant 25,000 100 13.9% residue 20,000 80 24,601 24,326 25,690 25,328 33,177 32,787 36.4% 15,000 60 Paper waste 14.3% 10,000 40 3,303 3,466 3,346 3,180 3,086 3,257 Sludge 5,000 20 823 885 873 832 829 594 793 310 495 229 534 242 27.6% 0 0 Generated Recycled Generated Recycled Generated Recycled F F F

12 SUSTAINABILITY REPORT 2018 SUSTAINABILITY REPORT 2018 13 ontribute to a healthy lifestyle Aim to be a company where diverse human resources Key Issue Key Issue with food safety and security play an important role to address the social agenda

Key Issue

Social Issue Ensuring food safety through international standards certification for food safety

Aim to be a company and Activities Reports Quality management systems. where diverse human resources Key Issues CSR Quality Control Initiatives

The Nissui Group holds FSSC 22000 food safety system certification for plants directly

CSR Issues Key play an important role to address managed by the Marine Products, Food Products, and Fine Chemicals businesses, as

and Activities Reports Activities and well as for the group’s 17 offices. FSSC 22000 certification is based on adherence to a systematic HACCP (Hazard Analysis and Critical the social agenda Control Points) approach, and covers a broad range of requirements for food safety. We will continue to acquire management system certifications like FSSC 22000 for our manufacturing bases in future, and will strengthen our quality assurance capabilities. At the Nissui Group, we believe that actively hiring people from diverse backgrounds stimulates the organiation “Excellent Lab” Program and encourages business development In order to improve the reliability of quality testing at each of our plants, we are expanding our Excellent Lab program. With the Food Safety Research Department at its core, the campaign In our business activities, we actively encourage publishes shared manuals, decides equipment standards, approves inspectors’ techniques, conducts quality control examinations, and holds instructional seminars for different levels of our employees to be engaged with social issues employee, among other activities. The program has strengthened collaboration between quality testing offices at each plant. During fiscal 2017, 41 plants were added to the program, and the both locally and globally number of evaluation staff grew to 108. We will expand the program, and implement regular promotion meetings and seminars. Through such efforts, we aim to be a company

Quality, Health, R&D and Innovation Quality, where diverse human resources play an important role Social Issues We are contributing to healthy lifestyles through Health, R&D technologies and innovations that utilize the bounty of and Innovation the seas.

Initiatives in Health, R&D and Innovation

We began research into the health benefits of EPA in 1978, focusing on the functional lipids found in fish, such as EPA*1 and DHA*2. In 1980, we developed the technology to extract high-purity EPA from fish oil, from which we were able to produce a pharmaceutical product. In addition to pharmaceutical uses, the Nissui Group has also developed functional foods that include EPA or DHA; a way of contributing to healthy lifestyles unique to the Nissui Group. *1 EPA: Eicosapentaenoic Acid *2 DHA: Docosahexaenoic Acid

Research into Increases in Muscle through Protein Found in White Fish

At the Food Function Research Center, we have been participating in the Cabinet Office’s Cross-ministerial Strategic Innovation Promotion Program, researching the functionality of white fish. Recently, It has been suggested that eating white fish has a number of positive effects on health, from increasing the amount of fast-twitch muscle, responsible for explosive power, in the body, to giving the same benefits as exercise, and through trials with older people that it can even increase muscle mass*. Going forward, we aim to put these benefits to practice in everyday life, as well as working with medical facilities to investigate the effect of white fish on extending healthy lifespans. *Muscle mass is calculated by subtracting the weight of bones and fat from a person’s total weight. Social Issues Diversity Personnel Development SPORTS EPA

Paying attention to the effect EPA can have on playing sports, such as increasing stamina, we are continuing research, and raising awareness and provide education about the acid and its effects. At the National Dietitians Congress, held by the Japan Dietetic Association in August 2017, we explained the mechanisms whereby EPA can improve the efficiency of the body’s oxygen supply. Nissui also expanded its SPORTS EPA brand, designed to support athletes, as a result of its support for the Japan Masters Swimming Association in 2013.

14 SUSTAINABILITY REPORT 2018 SUSTAINABILITY REPORT 2018 15 Aim to be a company where diverse human resources Key Issue play an important role to address the social agenda

Social Issue Initiatives for Employee Health We will make efforts toward global personnel To maintain and improve the health of our employees and to give this issue top priority, we issued our Employee and Activities Reports Diversity Health Declaration in February 2017. Our efforts are focused on three principles: promoting individual health,

development, the participation of diverse personnel, Key Issues CSR and Personnel and health management, with a medium-to-long-term supporting a good work-life balance, and creating places where people can, and want to, work. Development perspective. In fiscal 2017, we: • Measured employees’ EPA/AA ratio as part of the IMARK S 100-Day Challenge • Removed smoking areas from our head office • Introduced a cafeteria plan • Trialed a teleworking system Initiatives for Greater Diversity and Personnel Development CSR Issues Key At the Nissui Group, we consider our employees to be our most valuable asset, and we want to see

and Activities Reports Activities and In June of 2017, we assembled a project team to promote more active involvement by women in the workforce. Its members all employees be able to fully demonstrate their abilities. We also aim to improve the quality of life of are female employees drawn from a wide range of job roles: human resources, sales, research and manufacturing. Using Employee our employees and their families by ensuring proper workplace conditions and by actively supporting online and other resources, the team meets twice a month, and selects issues from each department or field to discuss and Health both mental and physical health. try to find counter-measures for. Nissui also conducted gender diversity awareness surveys of directors, managers, and all As a company that works with resources from the sea, we offer suggestions for healthy diets, try to employee union members. The team has given feedback on the survey results and is working to raise awareness of the issues. Declaration maximize the use of functional components derived from seafood, and aim to contribute to the healthy

lives of people everywhere, from our employees and their families to customers around the world. Employee Health • Females workers to make up 30% or more of newly hired employees Current targets • Increase the number of female employees working in the marketing and Plan period: April 2016 to March 2019 manufacturing departments by 15% or more For Our Employees • Increase the number of female managers to 150% or more of the current total EPA/AA Health Rankings and the IMARK S 100-Day Challenge “We aspire to be a great company where people from To reduce the risk of employees developing lifestyle-related diseases, since fiscal 2016 we have included the measuring of EPA/AA ratios* in our employees’ regular health checks. We have various backgrounds can be actively involved.” announced these health rankings for each division, an average of its employees’ EPA/AA ratios, and awarded the top five healthiest divisions. To improve our employees’ ratios, we conducted the IMARK S 100-Day Challenge. For the one hundred days prior to their regular health check, employees were able to sample the Nissui “Food for Specified Health Use” product, IMARK S, which contains EPA. The result of the campaign was Akiyo Matono

Diversity and Personnel Development that participants’ EPA/AA ratio rose by 0.2% point from the previous year. Representative Board Member, President & CEO *The EPA/AA ratio expresses the balance between eicosapentaenoic acid and arachidonic acid in the body. It can be an indicator of circulatory disease occurrence. Now, however, we are aware of the the nature of their duties, that should Introduction of a Cafeteria Plan That Supports Individual Working Styles Reasons for problem and if we can change, I think not rob them of any opportunities. From February 2018, we launched a new cafeteria plan, “N-Café,” to benefit our employees. The system not only reinforces our awareness of Nissui as a company As an employee, workers should Pursuing Diversity employee health measures by helping to improve worker health and minimize the risk of disease, it also supports workers who that welcomes diversity, where know what it is like to stand on the front also care for children or relatives. Employees are given a points allowance that can be used to choose from a menu of employee Japan faces population decline and, as female employees are better able to lines, as it were, and their perspective benefits. The name of the system, N-Café, was selected from suggestions from within the company. such, worsening labor shortages in the play leading roles, will spread. If we will be broadened by experiencing future cannot be avoided. Furthermore, can do that, we will be able to gather a range of job roles. Whatever their Implementation of a Teleworking Trial although women make up half of the together even more gifted individuals, academic background or specialism, Over the course of October and November 2017, Nissui trialed a teleworking system. Under the system, employees were able to use population, as it currently stands, regardless of gender. it is how they are trained after they information and communications technologies to work in a way that isn’t limited by time or location. Combining regular work patterns female employees do not come close Diversity is an important management join the company and how they adapt with working from home or mobile working, Nissui trialed its use to see how it could flexibly match different working styles. Taking to making up half of our workforce, an issue for any company. While “diversity” that has the biggest effect on the the results of the trial into consideration, we are currently investigating the possibility of a full-scale rollout of the teleworking system. issue that I believe needs remedying. is comprised of many elements, the first capabilities they come to show. In When I worked in North America, step for us at Nissui is to place a priority that, there is no difference whatsoever Recognition from Society having female directors for the group on female participation, and aspire to be a between men and women. companies was considered par for the great company where people from various Our company provides products First in the Marine Products Industry to Receive the DBJ’s Highest Health course, and I remember being surprised backgrounds can be actively involved. and services that are needed by Management Rating society, and the profit we earn is a by that at the time. In comparison, the On March 29, 2018, Nissui was awarded the highest rank in the Development Bank of Japan’s resource we can use to train people. number of women actively involved in Sharing Values Across DBJ Employee’s Health Management Rated Loan Program, the first given in the marine products With that, we will create an atmosphere management at Nissui is still very low. the Entire Group industry, which led to our receiving financing. The first of its kind in the world, the DBJ’s Health where diverse human resources can Those companies that have large Management Rating adds a condition to its financing that evaluates and identifies companies that Training is another key issue for us. play an important role. I would like us numbers of highly talented personnel take measures that demonstrate excellent consideration and measures for ensuring the health of its We will train those employees who to create this kind of virtuous circle, taking an active part are also those employees. Nissui was praised for the public announcement of its Employee Health Declaration, its enter the company, whether male or where the talented individuals we that have created policies and stress check program for all employees, and the analysis of its results. environments that make it easier for female, equally. Limiting the type of gather together under our banner lead women to work. At Nissui, we are still work someone does because of their to greater profit, and vice versa. Chosen as a “White 500” Company failing to provide a place where women gender is a form of discrimination. On February 20, 2018, Nissui was recognized as a “White 500” company in the large enterprise are sufficiently involved. In other words, While there may sometimes be cases category of the 2018 Certified Health and Productivity Management Organization Recognition we’re stuck in a rut in terms of using, where gender should be taken into Program. Under the system, the Ministry of Economy, Trade and Industry and the Nippon Kenko and increasing the participation of, our consideration, such as where an Kaigi award companies that display exceptional health management as a way of highlighting human resources. employee is assigned or dispatched, or exemplary health management initiatives. The program also aims to make it easier for employees, job applicants, associated companies and financial bodies to socially evaluate a company.

16 SUSTAINABILITY REPORT 2018 SUSTAINABILITY REPORT 2018 17 Activity Report Contributing to the Region and Society Initiatives for Dietary Education and Popularizing Fish Consumption Activities uniue to the issui Group allow us The Fish Masters’ “Eat Fish Project”

The Eat Fish Project was started in May 2013 to promote seafood consumption by the and Activities Reports Nissui Group company, Yamatsu Suisan. Employees certi ed as “ sh masters” visit to oin in with local communities and society as Key Issues CSR local elementary and other schools, where they explain to the children how to grill and a whole and help educate the net generation. eat sh, providing a whole sh to each child and checking that the children understand where the sh bones are found at each step of the way. It’s a fun and delicious way for Children’s Research and Artwork Competition: Umi to Sakana the children to learn. (co-sponsored by Nissui, sponsored and organized by Asahi Shimbun Company and Asahi Gakusei Shimbunsha)

A lesson at Sasaguchi Elementary School CSR Issues Key The Umi to Sakana competition aims to instill in more in Niigata children an interest in the sea and sh. Elementary and Activities Reports Activities and Children Get to Enjoy Tours of Our Plants school children are encouraged to submit research or We want children to see how the food they eat is original artwork on the theme of “the oceans, sh, and made, and to take an interest in making things from an us.” The competition was rst held in 1982 and Nissui early age, as well as to understand the importance of has continued supporting the competition ever since. diet, especially a sh-based one. For that reason, we The 2017 competition was the thirty-sixth, and saw The winner of the Nippon Suisan Kaisha Award The winner of the Nippon Suisan Kaisha Award have been welcoming tours of our Hachioji, Himeji, Activity Report: Contributing to the Region and Society in the original artwork category, in the research category, works from all over the country, with the number of The Colossal Bluefin Tuna of Oma Me and the Land Hermit Crab 2017 Anjo, and Tobata food-manufacturing plants by local works amounting to 31, 622 pieces, second only to the elementary school children as part of their dietary previous record set in the 2014 competition. Of those, 16 were selected as winners of various prizes, as well as one special education. Between the four factories, about 3,100 prize for an international entry, and 51 schools and organizations were selected for cooperation awards. children toured our plants during scal 2017. The Hands-on Learning and School Visits Hachioji General Plant also held food-making A tour of Anjo Plant Making food at Hachioji General Plant As part of the same competition, we also held hands-on learning experiences and experiences for local children and their parents. visits to schools to teach classes. In July 2017, Nissui sponsored an event where children could observe the seashore at Hayama’s Isshiki Beach and try snorkeling. In Activities to Teach the Next Generation the Importance of Diet August, with the cooperation of the Japan Agency for Marine-Earth Science and During February and March 2018, we visited three elementary schools, offering three Technology (JAMSTEC), children were given the chance to learn about the deep-sea different themes: “Let’s learn about the importance of food: Fish and good health,” world and its creatures. Researchers and university professors from Nissui or the “Learning about Osaka food culture and local sh and shell sh types through live sh Japanese Society of Fisheries Science visited elementary schools, where they gave and dissection,” and “Fish classroom and hotpot cooking with dissected yellowtail.” lessons on the sea or on the marine industry. These types of activities are Children listened eagerly to the teachers’ explanations as they learned about the value of opportunities to raise children’s knowledge about the sea, and stimulate entries to the nutritionally well-balanced meals and the positive effects of EPA and DHA found in sh. Umi to Sakana competition. A lesson at Miyata Elementary School in the city of Initiatives for Local Communities and Society

Activity Report: Contributing to the Region and Society Other Social Contribution Activities Community Cleanup Campaign The Nissui Group holds community cleanups at each of its business locations, thanks Supporting the World Food Programme’s “End Hunger: Walk the World” Initiative to the participation of its employees. For the 14th community cleanup campaign held The United Nation’s World Food Programme holds the Walk the World charity walk as in June 2017, a total of 1,497 employees participated from 97 group of ces, and 1,425 part of its efforts to put an end to children starving in developing countries. It was held employees from 100 of ces took part in the 15th campaign held later in the year, in in two locations in Japan in 2017, Yokohama and Osaka. This was the rst time Nissui October. Over the course of the two campaigns, about 4,800 kilograms of rubbish took part, with 74 people participating in Yokohama and 20 in Osaka. were picked up. Participants put their minds to trying to solve the global problem of malnutrition as Working Together to Clean Hiroshima’s Peace Memorial Park they strolled the coast by Yokohama or around Osaka Castle. Part of the participation On July 27, 2017, 11 Nissui volunteers from branch of ces in the Chugoku and fee for this event goes to the World Food Programme’s School Feeding Program. Shikoku regions assembled to join in with the Hiroshima City Public Health Promotion Conference-organized cleanup of the city’s Peace Memorial Park. After a moment of silence for the victims of the atomic bombing, the volunteers got to work, spending about an hour picking up small pieces of rubbish and pulling out weeds. The Chugoku “Table for Two” Activities at Hachioji General Plant and Shikoku region branch of ces are currently looking into making participation in Since March 2018, Hachioji General Plant has been running its Table For Two the cleanup a regular event. campaign. In the campaign, when employees purchase certain set meals or foods, a Food Donations to Second Harvest Japan 20 yen donation is made, which, through an NPO organization, is then used to provide Since scal 2008, Nissui has been collaborating with Second Harvest Japan, an NPO school meals to children in developing countries. that provides food to people in need. Second Harvest Japan plays the role of a food At the Hachioji General Plant, we offer a Table For Two menu once a week, designating bank for people who cannot get enough food, providing them with foods from a sh dish rich in healthy EPA and DHA. During March, April and May of 2018, a total manufacturers that cannot be sold, for instance when the outer box is damaged. In of 1,027 meals were sold at the plant for which money was donated to children in scal 2017, Nissui donated about 12.6 metric tons of frozen food, and we will continue developing countries. to do this in the future.

18 SUSTAINABILITY REPORT 2018 SUSTAINABILITY REPORT 2018 19 Exchange of Views with 20 Stakeholder Dialogue Stakeholders SUSTAINABILITY REPORT The expertsgavetheirtakeonthemarinesurveyweconductedintoresource procurement infiscal2017(seepage6). opinions andevaluations. marine resources weprocure. Here wepresent excerptsoftheexperts’ we are makinginsustainableprocurement andlookedintothestatusof fourth stakeholderdialogue,weinvitedtwoexpertstodiscusstheprogress on board theopinionsandsuggestionsfrom all stakeholders. Inthis,our In order tocomeupwithsolutionskeyCSRissues,theNissuiGroup takes oshioki oeki hat isaresultthatissuishouldopenlybroadcast toconsumers.” “lose toofthemarineresourcesissuiprocured weremarineecolabelcertified. IUU fishing. being careful toprocure resources thatare notcaughtusing ground-breaking measure inmyopinion. but alsoconsidersuppliertraining,makesthema guidelines, thattheydon’t justincludemulti-facetedinformation Nissui’sConcerning desire toputinplacearobust setof part increating ongoingcommunicationwithsuppliers. procurement process youare promoting playsanimportant fish speciesthatyouuseiscertifiedbymarineeco-labels. thatnearly40%ofthe stakeholders willbesurprisedtolearn would gotoallthattrouble are rare, evenglobally. Surely your ou’ve puttogethersomefantasticdatahere. Companiesthat Aiko amauchi “ouve puttogethersomefantasticdatagoingtoallthattroubleisrare,evenglobally.” judged bynationalorregional fisheriesmanagementagencies. werelabeled unclearorasacauseforconcern re-surveyed and second timewithFishSource. Afterthosechecks,species as fallingoutsidethescopeofevaluationwere checkeda resource data. Species classified as exhausted, unevaluated, or iftheywere endangered,of concern checkedfirstwith FAO iftheywereconcern marineeco-label-certified,andasacause Marine specieswere categorizedasnotbeingacausefor marine resources method:Survey Analysis ofthestatusprocured wild-caught this trend withfurtherresearch, theJapanFisheriesResearch require thecooperationofsuppliers. but anecessaryandpioneeringone. Suchasurveywouldalso producers, infuture. Thatwillbeadifficult surveytoconduct, the ingredients thatgointothefeeditprocures from other needs toidentifytheregions andfishspeciesitusestosource and evaluation. able tooncemore recognize itsworththrough itsownactivities and usingmarineproduct certificationinformation,Nissuiis Nissui shouldopenlybroadcast toconsumers.Byvalidating procured were marineeco-label-certified. Thatisa result that For theyear2016,closeto40%ofmarineresources Nissui conducts initiativesthatreflect theopinionsofourstakeholders. The NissuiGroup, aimingtoresolve keyissues, Stakeholder Dialogue Concerning ourSurveysontheStatusofMarineResourcesConcerning NissuiProcures Even forthosemarinespeciesfoundtonotbeacause It’s alsogoodthatthedataclearlyshowsNissuiis I thinkthatincludingsupplierquestionnaires inthe Marine eco-labelcertificationisexpanding. To respond to While thissurveyfocusedonwild-caughtfish,thegroup 2018 results Survey *A project toproduce ausageguidefordomesticmarineproducts, promoted stakeholders andthepublic,will bepubliclyannounced. possible, suchasfrom outside commentsasmuch evaluation results incorporate scientific information.The marine speciesanddisseminate and identifyhighlyregarded “U”N)’ seafoodproject toevaluate Healthy and“Umai”Nippon*(SH promoting itsSustainable, and EducationAgencyis that bearsresponsibility forsustainability. and playthevitalrole ofensuringanextendedsupplychain manufacturers andconsumers.IwouldlikeNissuitostepup step forinfluencingeverylinkinthesupplychain, preservation ofmarinebiodiversity, andisalsoanecessary procurement andforthe sustainable marineresource is thefirststepinashifttomore sustainability ofmarineresources, procurement policiesfor require anevendeeperstudy. in thefuture, thenextsurveymay closely atatimefiveortenyears wemayfindthatlooking concern, and EducationAgency by theNationalResearch andDevelopmentAgency, JapanFisheriesResearch Almost90%ofthefishspeciesusedbyNissuiGroup do Wild-caughtfishprocured bytheNissuiGroup madeup1.6% certified bymarineeco-labels. category,not fallintothecauseforconcern withalmost40% of theamountcaughtworldwide. Announcing publicly oshioki oeki selfdefense forcompanies.” “Increasing Ifishingcountermeasures isaformof Aiko amauchi I fishinginthesupplychain” “Is issuidoingenoughtominimietheriskof achieve concrete targets. answers, Nissuiwillproceed withinitiativesto wereto fillinthesheets,andusingthose asked sustainable procurement seminar, attendees complete self-assessment sheets. At Nissui’s and selected 32 supplying companies to The NissuiGroup putinplacesupplierguidelines Promoting sustainableprocurement and counter-measures tocombatIUUfishing. The expertsgavetheirtakeonthesustainableprocurement initiativestheNissuiGroup implementedinfiscal2017(seepage5) with itssuppliers,are cutting-edge, evenconsidered globally. mechanism foravoidingriskbefore itoccurs. This informationcanbeusedfortraceability, animportant emissions, orfrom theAutomatic IdentificationSystem(AIS). use meteorological satellites tomeasure night-timelight IUU fishingaround Japanthrough informationfrom systemsthat At present, weare gettingabetterunderstandingof thescaleof initiatives inplacetodealwiththetwopointsofhowrespond completely eliminated,butitisvitalthatcompaniesput how third-party checkscanenterintotheequation. IUU fishing.Nissuiisnowatthestagewhere itisinvestigating suppliers isanextremely hearteningmoveinthefightagainst Creating asustainableprocurement mechanismthatincludes Concerning SustainableProcurementConcerning andCombatingIUUFishing* taking intoaccounttheadvicewe havereceived here. We moreto learn about thoseand continue to conduct surveys, resources thatwe don’t understandfully, andournexttaskis was wellreceived bystakeholders,butthere are stillsome human rights.Thesurveyintothestatus ofmarineresources products thatshowconsiderationfortheenvironment and the NissuiGroup hasmadeinitsprocurement ofmarine findings, we have been able to confirm anew the progress Thank youforvoicingyouropinions.Through thesesurveys’ Nissui Group’s IUUfishingcounter-measures, incooperation The issueisn’t aboutwhethertheriskofIUUfishingcanbe issui Responds Participants Chairman Board Member, Representative Norio Hosomi President, CraigConsulting Mitsuo Ogawa Facilitator President &CEO Board Member, Representative Akiyo Matono Administration Group Administration CSR, InchargeofCorporate Chief Financial Of cer(CFO), ExecutiveOf cer Managing Board Member, Shinya Yamamoto processed infactoriesoverseasinvolveIUUproducts. for thefuture willbetoestablishmechanismscheckwhetherproducts thatare surveys, thetraceabilityofproducts thatitsources from itssuppliers,anissue present companieswithagreat risk.WhileNissui ensures, through supplier breeding ground foroverfishingandforced labor, andproducts socaughtcan go againstthesustainablemanagementofmarineresources, itisalsoa IUU fishingisthatillegal,unreported orunregulated. Notonlydoesit Combating IUUfishing Development Department and ProductResearch& In chargeofProductionGroup Of cer,Business Operating Commissioned Food Products ExecutiveOf cer Managing Board Member, Shingo Hamada continue ourefforts tokeepmarineresources sustainable. ongoing communicationwithour stakeholders,wewill Group confirmedassustainablebytheyear2030.Through Also, weaimtohavetheresources procured bytheNissui providing consumerswithsustainablemarineresources. scheme. Through these and other measures, wecommitto and commercializeuse and to certifiedproducts to expandthe will alsoworkharder toacquire marineeco-labelcertifications, Nissui Japan (WWFJapan) Japan The World Wide FundforNature, Division Conservation Oceans andSeafoodGroup Leader Aiko Yamauchi influence ontheircontinuedexistence. have beendealingwithCSRactivitiesuntilthatpointwillan becomes more andmore aware oftheproblem, how companies problem. society becoming amodern-day As international issue offorced laborthatis of self-defenseagainstthe counter-measures isaform Increasing IUUfishing for thecompanytoavoidthatrisk. chain. Effective communicationwiththesupplychainisaway of IUUfishinginthesupply enough tominimizetherisk and whethertheyare doing to itwhenisdiscovered, America Latina S.A. America Latina President ofNipponSuisan in South America and and BusinessSupervisor Of cer Business Operating Commissioned Fisheries Executive Of cer Board Member, Seiji Takahashi Experts Department Business Promotion In chargeof Aquaculture Executive Of cer Tomoyuki Maebashi SUSTAINABILITY REPORT Education AgencyEducation FisheriesJapan Researchand Senior Adviser Yoshioki Oozeki, Ph.D. and CSRDepartment Center Customer Services Development Department, In chargeof Technology Department, Quality Assurance of Commissioned GeneralManager Executive Of cer Munehiro Ise 2018

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Stakeholders Stakeholder Dialogue Stakeholder Exchange of Views with with Views of Exchange