Supply Chain Management

overview

As our group imports raw materials such as soybeans and rapeseed from all over the world and manufactures, processes and sells a variety of products, we believe that it is our responsibility as a company to consider the environment and human rights throughout the entire supply chain and ensure quality and safety. In order to build a sustainable supply chain, we are facing social and environmental issues, establishing various policies as indicators for our efforts, and working to establish a system for appropriate supply chain management.

policy

Collaboration with suppliers is important to increase the effectiveness of sustainable procurement. Based on our Human Rights Policy and Environmental Policy, our Group established the Sustainable Procurement Policy and Procurement Standards in 2011, and we ask not only our own company but also our suppliers to comply with them. In addition, to proactively address various issues related to each raw material, we formulated the Palm Oil Procurement Policy in 2020 and the Soy Procurement Policy in 2022. After formulating each policy, we review them from time to time, for example by strengthening descriptions regarding human rights and the environment.

Soybean Procurement Policy

Soybeans are one of the important raw materials that support our business activities. In addition to uses such as edible oil and various soybean processed foods, they are also widely used for non-edible purposes such as biodiesel fuel and livestock feed, and the international demand for soybeans is steadily increasing. On the other hand, it has been pointed out that soybean production activities may cause environmental problems such as deforestation, and social problems such as human rights violations of indigenous peoples and workers.
We procure soybeans mainly from the United States and Brazil, manufacture products, and supply them to our customers. When procuring raw materials, we work to improve sustainability based on the "Sustainable Procurement Policy and Procurement Standards." With regard to soybeans, we have specifically established a "Soybean Procurement Policy" to ensure that procurement takes into consideration the environment and human rights, and we are a member of the Roundtable on Responsible Soy (RTRS*). As a company that supports food, we aim to improve traceability to fulfill our social responsibility, and strive to procure soybeans in a transparent and responsible manner.

*Round Table on Responsible Soy Association: A non-profit organization established in Zurich, Switzerland in 2006 to promote the expansion of responsible soybean production, trade and use.

Palm Oil Procurement Policy

Palm oil, extracted from oil palms, is an essential oil in our lives, but in recent years, issues such as deforestation and the associated loss of biodiversity during its production, as well as human rights issues for local workers, have been pointed out. In order to ensure responsible procurement of palm oil, which is one of the most problematic oil raw materials, J-Oil Mills joined the Roundtable on Sustainable Palm Oil (RSPO) in 2011 and obtained factory certification to handle RSPO-certified palm oil at its Yokohama factory. In 2020, the company also established its Palm Oil Sourcing Policy, which sets out its approach to palm oil procurement that takes into consideration the environment and human rights.

Palm Oil Supplier Traceability Survey

Palm oil traceability is the process of tracing the entire palm oil supply chain and identifying each step, with the aim of ensuring sustainable production methods, environmental protection and social responsibility.
We began traceability in fiscal 2018, achieving a 100% tracing rate to palm oil refineries in fiscal 2019 and a 100% tracing rate to palm oil mills in fiscal 2021. Our current quantitative materiality target is to achieve 100% traceability to plantations by fiscal 2030. The tracing rate to plantations in fiscal 2023 is 40.7%, and the target for fiscal 2024 is 50%.

Collaboration with suppliers

Conclusion of contracts and agreements that include sustainability clauses

We are in the process of concluding contracts and letters of intent that include sustainability clauses so that procurement can be conducted in accordance with our Sustainable Procurement Policy and Procurement Standards.

Checking the status of sustainability initiatives

We ask not only our own company but also all of our suppliers to comply with the "Sustainable Procurement Policy and Procurement Standards," and from fiscal 2022, we will use the "CSR Procurement Self-Assessment Questionnaire" (GCNJ Common SAQ)*1 created by the Global Compact Network Japan to survey business partners who handle raw materials and other materials to confirm the status of their sustainability efforts. In fiscal 2023, we expanded the scope of the survey and conducted additional surveys. We will continue to conduct surveys on a regular basis and strive to build a responsible supply chain.

• Survey target: Business partners handling raw materials, supplies, etc.
• Survey target company coverage rate: Approximately 80% of raw materials and supplies procurement amount

Conducting on-site surveys

We understand that it is important to visit and hold dialogues with raw material producing areas where there may be issues with human rights, the environment, etc., and have begun such efforts. In fiscal 2023, we conducted a survey to grasp the actual situation of the palm oil industry in Malaysia.