President’s Message Profile Strategies and Results in Platform for Sustainable Growth Value Creation Environmental Value Environmental Value Environmental Management Combatting Climate Change

The Maruha Nichiro Group, which has operated thus far thanks to the abundant blessings of nature, believes that Under our Medium-term Sustainability Management Plan we are proactively investing in the environment by taking building a business model that allows us to exist together with the Earth’s environment is indispensable to sustain- into account societal trends such as the Paris Agreement (on climate change), setting reduction targets for reduc- able growth as a company. We endeavor to create environmental value based on the three objectives of “Combatting ing CO2 emissions, introducing new energy-efficient equipment, improving energy efficiency, and switching to non- climate change,” “Building a recycling-oriented society” and “Protecting marine resources.” CFC freezers.

■ Basic policy management systems, at our production plants in Japan Medium-term Sustainability Management Plan The Maruha Nichiro Group will work to reduce the envi- and other countries. As of April 2020, we have obtained Medium-term goal Main objective Action plan ronmental impact of our global business activities and this certification at eight companies. Item Target strive to create a sustainable society in order to contribute • Enhance energy-saving facilities to the enrichment of people’s lives and their happiness. Environmental audits Reduce CO2 emissions per • Improve energy efficiency Reduce CO2 Combatting climate change unit of sales by more than 4% • Switch to non-CFC freezers At the Maruha Nichiro Group, we understand the risks emissions from FY2017 to FY2021 • Reduce electricity usage Principles posed by deviation from regulatory standards for waste- • Reduce heavy oil and gas usage 1. We will use sustainable resources effectively and work to water discharged from plants, spills of stored chemicals minimize our environmental impact and mitigate climate change. and oils, and improper management of waste matter *Details on the state of progress of the Medium-term Sustainability Management Plan are included in our Sustainability Report (on our website). 2. We will actively engage in environmental conservation efforts, and are working to strengthen our management system taking biodiversity into consideration. 3. We will provide environmentally friendly products and accordingly. The Maruha Nichiro Group Corporate Plan- services. ning Department has been conducting environmental ■ Progress toward attainment of goals ■ Switched to natural refrigerants in freezers 4. We will implement our environmental management system audits at our companies in Japan since FY2016 to check Although the Maruha Nichiro Group (in Japan) introduced used in frozen pasta production lines effectively and work on continuous improvements to boost our environmental performance. the status of compliance with environmental laws and equipment such as high-efficiency boilers, high-efficiency In FY2018 two freezers used in the production of frozen 5. We will observe environmental laws and regulations. ordinances at each company in more detail. In FY2019, freezers, eco-cars and LED lighting in FY2019 with the pasta (dried noodle production line) at Maruha Nichiro 6. We will disclose company information related to these audits were conducted at 36 locations. goal of reducing emissions for each company, CO2 emis- Kyushu were upgraded from machines that used fluoro- environmental management as appropriate and work on our sions per unit of sales for our entire domestic group rose carbon refrigerants to the latest energy-efficient non- communication with society. FY2017 33 business units and sites to 32.6 t/100 million yen—an increase of 1.4 t/100 million fluorocarbon devices employing ammonia and CO2. As a Audits conducted FY2018 33 business units and sites yen (4.6%) compared to the previous period. result, we achieved a CO2 emissions reduction of 422 FY2019 36 business units and sites ■ Management structure Our domestic production and distribution sites made tons in FY2019. Environmental management structure at the Maruha good progress towards meeting our FY2021 targets by Nichiro Group ■ Adopting an environmental data and large. But factors including, primarily, an increase in In FY2018, the Maruha Nichiro Group established a new management system the number of vessels, had an outsize effect and the Sustainability Committee. This committee puts together At the Maruha Nichiro Group, we have adopted NEC Cor- Group as a whole failed to meet our targets. Henceforth, the general plans for the Group’s environmental manage- poration’s environmental data management system we will strive to strengthen management to achieve our ment, establishes goals, and evaluates the activities of “Green Globe X” starting from FY2018, with the aim of goals and have all companies work together to reduce Maruha Nichiro Kyushu Non-fluorocarbon freezers group companies. It also assigns responsible persons improving the accuracy and productivity of management CO2 emissions. and persons in charge of environment at group compa- of various kinds of data relating to the environment. This ■ Renewable energy use nies who work on environmental activities tailored to the system allows us to centrally manage all data relating to In March 2019, we installed solar panels on the roof of CO2 emissions targets and progress characteristics of each company’s business. the environment, including the amount of various forms the building at the Maruha Nichiro Central Research In addition, we strive to share and spread information of energy, water and other materials used, and the Emissions per unit of sales (t/billion yen) Institute. This has enabled us to supply part of our pur- about things such as the roles of responsible persons amount of waste output. It also helps to improve data 323 312 326 310 chased electricity through solar power. In FY2019 we and persons in charge of environment, regulations accuracy for data input/update history management, were able to generate approximately 70,000 kWh and related to environmental management, and frameworks and provides other features, leading to faster data col- reduce CO2 emissions by approximately 32 tons. for compliance with environmental laws and ordinances, lection and analysis. by holding a meeting of responsible persons and persons in charge of environment at the start of each fiscal year. ■ Environmental education FY2017 FY2018 FY2019 FY2021 At the Maruha Nichiro Group, we emphasize training and (reference year) (target) ISO 14001 certification status internal education to raise the environmental awareness *Scope of survey is group companies in Japan *The data for FY2018 has been amended as there were errors in the data published in FY2019. The Maruha Nichiro Group has obtained ISO 14001 certi- of each of our employees and promote proactive Central Research Institute Photovoltaic modules fication, the international standard for environmental engagement. We also hold regular briefings for our employees to educate them about environmental laws Maruha Nichiro Group Companies with ISO 14001 and ordinances. •••• VOICE certification (as of April 1, 2020) In FY2019, we held a legal briefing for those in charge Company name Offices of waste disposal within the Group. In addition, we share In pursuit of an environmentally friendly frozen/refrigerated Head Office (Production Management Department), information related to the environ- Foods & Fine Chemicals Department (Mori, distribution infrastructure Maruha Nichiro Corporation Utsunomiya), Yu-bari Plant, Shin-Ishinomaki Plant, Oh-e ment both inside and outside the Plant, Shirataka Plant, Gunma Plant, Utsunomiya Plant, Maruha Nichiro Logistics maintains approximately 580,000 tons of refrigerated warehouse Hiroshima Plant, Shimonoseki Plant Group through our intranet, which space throughout Japan. We aim to reduce CO2 emissions by 2,640 tons between FY2019 and Maruha Nichiro Yamagata Co., Ltd. — is a tool for sharing information FY2022 through measure such as converting to refrigeration equipment with low global Maruha Nichiro Kyushu, Inc. — among group officers and employ- Head Office, Sapporo Plant, Nayoro Plant, Tokachi Plant, warming potential, introducing energy-efficient equipment, and reducing electricity usage. Nichiro Chikusan Co., Ltd. Hassamu Distribution Center ees. We are working to increase From FY2011 up to the present, we have updated the HCFC (R22)* refrigeration equipment in Production Division, Shimizu Plant, Kyushu Plant, Yayoi Sunfoods Co., Ltd. environmental awareness among 17 locations, including equipment that had worn out. Hereafter, we plan to work on moving to Nagaoka Plant, Kesennuma-Matsukawa Plant even more energy-efficient refrigerators that use renewable energy. As a logistics company Production Management Department, Furano Plant, our employees by compiling infor- Maruha Nichiro Kitanippon, Inc. Takeshi Imazu that is part of the societal infrastructure, we will continue to implement various initiatives Kushiro Plant, Mori Plant, Aomori Plant mation related to sustainability Zhejiang Industrial Group Co., Ltd. — Maruha Nichiro Logistics, Inc. aimed at contributing to Sustainable Development Goals (SDGs). into our “Sustainable News,” which Facilities Division Manager Southeast Asian Packaging and *HCFC (R22): Hydrochlorofluorocarbon — Canning Ltd. Sustainable News we publish periodically. A type of chlorofluorocarbon gas, this substance is linked not only to ozone layer depletion but global warming. By international agreement, its production and consumption (production + import - export) are to be completely abolished by 2020.

Due to space limitations, only a few of these initiatives are introduced here. For more information see our Sustainability Report (on our website).

48 Maruha Nichiro Group Integrated Report 2020 Maruha Nichiro Group Integrated Report 2020 49 President’s Message Profile Strategies and Results in Platform for Sustainable Growth Value Creation Environmental Value Building a Recycling-oriented Society

Under our Medium-term Sustainability Management Plan we are advancing initiatives such as setting numerical tar- gets for waste output volume and recycling ratios for waste and other materials, reducing production problems, and turning waste into valuable resources in order to “reduce waste and improve recycling rates.”

Medium-term Sustainability Management Plan ■ Efforts to address the problem of we produced approximately 340 tons of feed, which not marine plastics only reduced losses from waste, but led to stable pro- Medium-term goal Main objective Action plan In FY2019 the Maruha Nichiro Group, established a Item Target curement of feed materials. This initiative has been policy to prioritize the execution of the following four extremely effective from the perspective of sustainable • Reduce the volume of waste initiatives and began to carry out various initiatives. per unit of sales by more aquaculture. We aim to maximize resource efficiency Reduce waste and • Reduce manufacturing problems Building a recycling-oriented than 4% from FY2017 to improve recycling • Reduce waste of raw materials, resources and products through these kinds of partnerships between group society FY2021 rates • Turn waste into valuable resources • Aim for 99% waste recycling 1) Work in tandem with SeaBOS companies. rate by FY2021 Cooperate with the GGGI (Global Ghost Gear Initiative)—which SeaBOS participates in through its SeaBOS task force—and work to ■ Waste management visualization *Details on the state of progress of the Medium-term Sustainability Management Plan are included in our Sustainability Report (on our website). reduce fishing gear such as nets, ropes and buoys as a measure specific to the seafood industry. Within the Maruha Nichiro Group (Group companies in Japan), we have adopted the “Smart Management” 2) Manage fishing gear in aquaculture operations We have created a policy regarding the management of plastic waste management system (provided by AMITA CORPO- ■ Progress toward attainment of goals ■ Saving resources on product containers fishing gear and disseminated it among group companies (in RATION) to make our waste management processes The Maruha Nichiro Group (within Japan), led by group and packaging Japan) engaged in fisheries and aquaculture operations. visible. Introducing this system has allowed us to companies with plants, has made efforts to curtail prod- Within the Maruha Nichiro Group, we are working to 3) Proactively participate in local cleaning activities manage important informational data needed for waste uct defects by improving processes, reduce waste mate- develop containers with a low environmental impact. We In addition to the cleaning activities hosted and joined in by each management, including waste disposal contracts, per- group company, we also participate in international coastal cleanup rial generated by equipment by enhancing maintenance, expect lighter containers to not only save resources, but campaigns sponsored by the general incorporated association “JEAN”. mits, and manifests for industrial waste. We want to and reuse resources, among other initiatives. Neverthe- to decrease CO2 emissions during distribution due to more effectively utilize this system as a system for 4) Save resources on product containers and packaging less, due to influences such as a sudden unexpected lower weights, increase delivery efficiency through We will continue to promote downsizing and weight reduction of contributing to the creation of a recycling-oriented soci- increase in waste matter, the volume of waste per unit of smaller packaging sizes, and bring other benefits. product packaging, just as we have up until now. ety, which will lead not only to reducing the risk of vio- sales for our entire domestic group rose in FY2019 to In FY2019 Maruha Nichiro switched to thinner pack- lating laws and regulations in the course of our waste 4.06 t/100 million yen—an increase of 0.14 t/100 million aging film for frozen cooked rice, saving 11 tons of plas- management operations, but assist with switching to yen (3.7%) compared to the previous period. Also, due to tic, or the equivalent of an approximately 35 ton ■ Use and application of foodstuff residues in suppliers with recycling capabilities, and analyzing factors such as a decrease in valuable materials, the reduction in CO2 emissions. In addition, by reconsidering cooperation with group companies recycling data. recycling ratio for waste matter, etc. was 94.9%, 1.1 per- the container and film sizes for retort pouch and bottled Since March 2018 Aquafarm Co., Ltd., which is the pro- centage points worse than the previous period. products, we were able to reduce plastic usage by duction site for our egg-to-harvest bluefin tuna, has approximately 7 tons. We will continue to work on devel- been using residues from canned mackerel production oping containers and packaging with due consideration at Maruha Nichiro Kitanippon, Inc.’s Aomori Plant as feed for its egg-to-harvest bluefin tuna production. In FY2019 Waste emissions targets and progress given to resource conservation. Emissions per unit of sales (t/billion yen)

40.5 39.2 40 .6 38.9

FY2017 FY2018 FY2019 FY2021 (reference year) (target) *Scope of survey is group companies in Japan Mackerel processing residues reused Smart Management screenshot *The data for FY2017 and FY2018 has been amended as there were errors in the data by Aquafarm Co., Ltd. published in FY2019.

Frozen cooked rice products with thinner packaging film Waste recycling rate target and progress (%) •••• VOICE 95.7 96.0 94.9 99.0 As a partner for waste management and MSC/ASC certification Your company is using the “Smart Management” waste management system provided by our company to promote the adoption of electronic manifests and the centralization, management and standardization of waste information throughout your entire group. We also interact through our role as a certification and inspection organization for MSC Fisheries Certification FY2017 FY2018 FY2019 FY2021 and ASC Aquaculture Farm Certification, which is shown by the “Umi no Eco label (marine eco (reference year) (target) label)” on certified products. *Scope of survey is group companies in Japan Hereafter, we look forward to seeing your company take on various challenges, as a general *The data for FY2017 and FY2018 has been amended as there were errors in the data Previous products: Updated products: Actual product published in FY2019. 130 mm × 170 mm 125 mm × 165 mm “oyakodon (chicken and food company under the theme of building a recycling-oriented society, starting with those egg rice bowl)” Mr. Yasuo Shimoda facing marine resources. As a company whose self-affirmed mission is to realize a sustainable Making retort pouch products more compact AMITA CORPORATION society, our company will give you our full support in this endeavor. Sustainability Design Group Solutions Team Task Leader

Due to space limitations, only a few of these activities are introduced here. For more information see our Sustainability Report (on our website).

50 Maruha Nichiro Group Integrated Report 2020 Maruha Nichiro Group Integrated Report 2020 51 President’s Message Profile Strategies and Results in Platform for Sustainable Growth Value Creation Environmental Value Protecting Marine Resources

Strengthening traceability of seafood products, including sustainable fishery and aquaculture certification (MSC and ASC), is an important issue for any company whose core business is seafood products. In addition, we are advancing towards medium-term goals such as increasing the production volume of egg-to-harvest bluefin tuna and expanding into other fish species, strengthening our technological development framework for aquaculture, and commercial- izing recirculating land-based aquaculture.

Medium-term Sustainability Management Plan Sakurajima Yougyo introduces fish counting machine Shipment volume of egg-to-harvest with AI tracking bluefin tuna Medium-term goal Main objective Action plan Together with Tokyo Artisan Intelligence Co., Ltd., Maruha (t) Item Target 791 Nichiro has developed a system that uses AI image pro- • Promote certification 623 acquisition for sustainable • Promote the use of marine products obtained through cessing technology to automatically count fish in an fishing and farming sustainable fishing/aquaculture certificates (MSC*1/ASC*2) aquaculture setting. Beginning in April 2020, this system 409 • Strengthen efforts to abolish • Promote acquisition of sustainable aquaculture certificates Promote Protecting Marine illegal, unreported, and • Implement a stricter verifications of imported fishery product was put into operation at our group company Sakurajima sustainable use of Resources unregulated fishing (IUU) traceability Yougyo Co., Ltd., which farms yellowtail and greater marine resources • Expand egg-to-harvest *3 • Promote dialogue in Japan and abroad amberjack. business • Increase production of egg-to-harvest bluefin tuna FY2018 FY2019 FY2020 • Promote eco-friendly • Strengthen R&D systems for aquafarming technologies Automating farmed fish counting work that had been (projected) farming technology carried out manually on-board boats at sea, has not only decreased toil for workers who had previously spent an *1 MSC certification: A certification system for natural seafood products operated by the MSC (Marine Stewardship Council).It certifies that a fishery is environmentally friendly and sustainable. *2 ASC certification: A certification system for aquaculture operated by the ASC (Aquaculture Stewardship Council). It proves that seafood products have been certified as produced by a entire day at sea counting fish visually, but also reduces ■ Joining global dialogues responsible environmentally and human-friendly aquaculture company. *3 Egg-to-harvest aquaculture: Artificially incubated fish eggs are raised to become parent fish whose fertilized eggs are collected to raise into adult fish. human error and has thereby improved efficiency. Not We believe dialogue between diverse stakeholders is only is it employee-friendly and effective at improving essential to promoting the utilization of sustainable *Details on the state of progress of the Medium-term Sustainability Management Plan are included in our Sustainability Report (on our website). efficiency, but it is expected to reduce the risk of ocean marine resources. To this end, the Maruha Nichiro pollution by allowing the amount of feed to be properly Group participates in SeaBOS, various symposiums in ■ Starting survey of marine resources Trend in volume of processed calibrated. Going forward we plan to expand this tech- Japan and overseas, many government panels and foods for household use bearing In order to implement sustainable procurement, from nology to smaller juvenile fish and other fish species other organizations and events. the ASC Label FY2020 we began conducting surveys into the products such as yellowtail and greater amberjack. In particular, Maruha Nichiro participated in discus- (t) and raw materials at all group companies and suppliers 150 sions in FY2019–2020 to enact legislation as a panel to (1) ascertain the amount of seafood products cur- member in the “Investigative Commission on Catch rently handled, and (2) determine whether these are Certification Systems.” Development of a legal frame- 70 sustainable marine resources. We will gather and collate work based on the catch certification systems that are standards in Europe and America is being advanced as information on each Maruha Nichiro business division 14 and group company, and take steps to disclose this. a way to work towards thorough resource management 2017 2018 2019 and eradication of illegal, unreported, and unregulated ■ Increasing the volume of MSC/ASC products *Scope of survey is Maruha Nichiro Corporation fishing (IUU) from the standpoint of promoting exports. handled From conventional counting work to automation In June 2020 the committee published the “Summary of The Maruha Nichiro Group actively promotes the han- the State of Catch Certification Systems.” Following dling of MSC/ASC-certified seafood products. The ■ Promote sustainable aquaculture operations enforcement, we will properly implement this system volume of frozen foods for household use bearing the Twenty years of research and development have borne Bluefin tuna aquaculture and forge ahead more powerfully with the construction MSC blue fish label that we handled in FY2019 was fruit to give us the leading market share in the aquacul- A pioneer in egg-to-harvest bluefin tuna aquaculture, of a sustainable seafood products distribution system approximately 2,520 tons, an increase over the approxi- ture industry in Japan today, with 22% for bluefin tuna Maruha Nichiro began full-scale shipments in FY2019 for our group’s entire supply chain. mately 2,430 tons handled in FY2018. The volume of (28% for egg-to-harvest bluefin tuna), and 10% for from group company Aquafarm Co., Ltd., an aquaculture products displaying the ASC label handled in 2019 (from greater amberjack. Now we are also increasing added farm specializing in artificial cultivation of bluefin tuna. Jan 1 to Dec 31) was approximately 150 tons, a large value through acquisition of ASC certification and pro- Shipments for FY2019 totaled 623 tons. The amount increase over the moting exports to areas mainly in Europe and America. shipped is projected to increase to 791 tons in FY2020. approximately 70 tons handled in 2018. We Full-scale shipment of world’s first ASC certified will continue to promote greater amberjack by Amami Yougyo Inc. the handling of these Amami Yougyo Inc. obtained ASC certification for its •••• VOICE Examples of products MSC-C-51737 products. greater amberjack farm in July 2019—making it the first bearing the MSC Marine Eco-Label farm in the world to do so—and began full-scale ship- ment in May 2020. We deliver our products to our cus- Anticipating leadership in the spread of sustainable seafood products Trend in volume of frozen foods for tomers through a coherent value chain that entails Your company adopted ASC certification in Japan early on. And not only do you produce and sell household use bearing the MSC unloading a catch, live transport, fillet processing in a specified plant contracted by Maruha Nichiro, and sale ASC certified products, but you have acquired multiple aquaculture certifications for the Marine Eco-Label aquaculture farms within your group. You have truly implemented a process that creates and (t) through mass retailers. 2,430 2,520 promulgates value for sustainable seafood products from aquaculture farms to market. As of August 2020, the number of ASC certified products in the world has steadily risen to approximately 25,000 in 90 countries. Initiatives in Japan towards achieving SDGs (Sustainable Development Goals) are increasing as well, and expanding into the retail and food and beverage Mr. Koji Yamamoto sectors. As one of the world’s leading seafood companies, we look forward to seeing you take 820 Aquaculture Stewardship Council (ASC) leadership from here out at the forefront of the spread of sustainable seafood products. ASC Japan *The Aquaculture Stewardship Council (ASC) engages in activities to pass on sustainable seafood products to the next generation General Manager by allowing consumers to choose products bearing the ASC label, an international certification for environmentally and socially FY2017 FY2018 FY2019 responsible aquaculture farms. *Scope of survey is Maruha Nichiro Corporation Greater amberjack farming Due to space limitations, only a few of these activities are introduced here. For more information see our Sustainability Report (on our website).

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