Nisshin OilliO "Natural Power of Plants"

Supply chain connected by trust

05Supply chain connected by trust

Building a strong, flexible supply chain based on integrity

As a supplier of the key ingredients and energy that underpins the supply of food in Japan, we strive to build a supply chain that will remain dependable into the future by using sustainably produced raw materials and by always respecting the gravity of our responsibility to deliver quality products to customers. We also strive to build trusting relationships with our customers and society at large by supplying safe products and ensuring highly transparent communication.

Shared values

  • Procure materials in ways that are considerate of the environment and human rights.
  • Use our network to ensure stable material procurement even amid growing global demand for oils and fats.
  • Continue sustainability efforts in logistics, the infrastructure that underpins society.
  • Deliver safe, reliable products to fulfill our responsibility as a manufacturer of oils and fats.

CSV goals for FY2030 (major KPIs)

Advance and fortify business operations based on respect for human rights

Lay the groundwork and establish mechanisms to prevent human rights violations from occurring in the supply chain

100%

Traceability rate improvement to plantation areas (palm oil)

Promote sustainable soy procurement

Promote sustainable cacao procurement

30%

Establish a sustainable, competitive logistics system by increasing the F-LINE co-distribution rate to make transport and loading more efficient

30
minutes or less (average)

Establish a sustainable, competitive logistics system by reducing truck driver time spent at Company plants

Sustainable palm oil procurement

We have formulated and are implementing an action plan to build a traceable, transparent palm oil supply chain that enables us to fulfill our commitment to NDPE (No Deforestation, No Peat, No Exploitation). To further increase the effectiveness of our efforts, we will take proactive steps to improve the traceability rate, including plantation areas, and establish a monitoring system. (Action plan indicators: Ensure 100% certified palm oil and at least 50% RSPO SG certified palm oil)

Social environment and issues

  • Water and food shortages will increase in severity due to global population growth and other factors.
  • Human rights and environmental issues will become more serious in areas where raw materials are produced.
  • The Japanese Government will make progress in reviewing and legislating logistics policies to address various issues stemming from labor shortages in logistics.
  • Demand for quality will increase.

Impact on the Group ▲: Risk ●: Opportunity

  • ▲ Global demand for grains drives up the cost of raw materials and hinders stable procurement.
  • ▲ Involvement in areas where raw materials are produced becomes essential as environmental/human rights issues in those areas become more serious. Additionally, sourcing unsustainable raw materials increases reputational risk.
  • ▲ Logistics costs increase due to the growing severity of issues in the logistics industry. It also becomes difficult to maintain conventional logistics systems.
  • ● Stricter safety requirements increase the number of quality control items, requiring more advanced analytical techniques.

Specific efforts to resolve issues

Efforts policy

The Nisshin OilliO Group Basic Procurement Policy is our overall policy, and we have also established procurement policies for each raw material.

Efforts policy

Specific efforts

  • Promoting education on human rights and pursuing an attitude of respect for human rights in all business operations.
  • Promoting dialogue with suppliers and other efforts to improve sustainability in palm oil procurement.
  • Sourcing raw materials in ways that are considerate of forests and marine ecosystems.
  • Expanding sustainable procurement efforts to include soy, cacao, and other materials.
  • Strengthening involvement in areas where rapeseed, olives, flaxseed, and other raw materials are produced, and continuing to strengthen relationships for stable procurement.
  • Promoting local industries in cooperation with areas in Japan where raw materials are produced.
  • Establishing a sustainable logistics system through our own activities and industry alliances to resolve labor shortages, harsh working conditions, and other issues.
  • Developing proprietary technologies (e.g., trace ingredients control) for supplying high-quality products that boost our competitiveness.