TNFD

Our Approach to Biodiversity

For more than 140 years, the Maruha Nichiro Group has continued its business by making a living from nature's bounty, mainly marine products caught and farmed in oceans. The Maruha Nichiro Group's business also relies heavily on a variety of other natural resources, or ecosystem services, such as agricultural and livestocks , water and soil, and pollinators such as insects.

We recognize that this is an important social issue aiming to contribute to “Nature Positive,” the mission of the Kunming-Montreal Framework for Biodiversity adopted at COP15. An action to halt and reverse the loss of biodiversity in order to put nature on a recovery track. The Maruha Nichiro Group are committed to understanding its dependence on and impact on biodiversity, as well as risks and opportunities, in its business activities throughout the entire value chain, from raw material procurement to product disposal, and to promoting initiatives for its conservation and restoration.

Governance

Maruha Nichiro Group Sustainability Management

The Maruha Nichiro Group established the Sustainability Committee in 2018 directly under the Management Committee in order to promote sustainability strategies. The committee is chaired by a director and managing executive officer, and consists of executive officers who also serve as directors of Maruha Nichiro Corporation, directors in charge of related departments, and heads of related departments as committee members, and outside directors and auditors as observers. The Sustainability Committee meets quarterly to review the progress of each materiality, including the materiality “Biodiversity and Ecosystem Conservation” and “Biodiversity and Ecosystem Conservation. Discussions are reported to the Board of Directors at least four times a year through the Executive Committee.

Maruha Nichiro Group Organization Structure for Sustainability Promotion

Participation in Initiatives Related to Biodiversity

The Maruha Nichiro Group conducts business through its global supply chain, with marine products at its core. In particular, its procurement activities are closely related to marine resources, and we are concerned that there are many sustainability issues in the broad value chain that cannot be solved by a single company or the private sector alone. To promote comprehensive efforts, we believe it is essential to collaborate with other companies in the industry, government, scientists, and NPO/NGOs. The Maruha Nichiro Group voluntarily participates in various domestic and international initiatives, and reports progress at management meetings and Sustainability Committee meetings.

List of Biodiversity-related Initiatives which We Participate

United Nations Global Comapact

Roundtable on Sustainable Palm Oil (RSPO)

Clean Ocean Material Alliance (CLOMA)

Japan Business Federation's Biodiversity Declaration

30 by 30 Alliance for Biodiversity

Japan Blue Economy Research Group (BERG)

Participation in Seafood Business for Ocean Stewardship (SeaBOS)

The SeaBOS (Seafood Business for Ocean Stewardship) is a global initiative that was launched in 2016 together with the world's eight largest seafood companies and scientists who research the ocean, fishing, and sustainability through cooperation and strategy and activities based on scientific evidence to ensure sustainable seafood products production and a healthy ocean environment.

We will actively contribute to the UN Sustainable Development Goals (SDGs), especially Goal 14: Protect the Abundance of the Oceans.
Members are currently divided into the following five task forces to discuss solutions.

Maruha Nichiro has participated in SeaBOS since its inception, and in September 2018, upon the organization's establishment, our President (at the time), Shigeru Ito, was appointed as the first Chairman and served as Chairman until October 2020. We are currently a co-leader of Task Force V and a member of Task Forces I, III and VI.

SeaBOS Inititive

Biodiversity-related Stakeholder Engagement

The marine products handled by the Maruha Nichiro Group have many risks and opportunities. Recognizing the need to eliminate as many risks as possible and maximize opportunities in order to sustainably provide society with valuable protein sources with high health value, we exchanged opinions with external experts with expert knowledge and broad insight on these issues (World Wildlife Fund Japan, General Incorporated Association Ethical Association of Japan) who have expert knowledge and broad insight on these issues.

Dialogue on Sustainable Marine Products

Risk and Impact Management

The Maruha Nichiro Group has established a system in which the Legal Affairs & Risk Management Department, as well as risk management managers and risk management personnel from each department of Maruha Nichiro Corporation and each Group company, work together to perform risk management tasks. Although we have not yet identified nature-related risks and opportunities in this analysis, the identification and assessment of nature-related risks, opportunities, and impacts planned for the future will apply to all stages of the value chain, upstream and downstream, in addition to the Group's direct operations, and will cover all time horizons: short-term (0 to 5 years), medium-term (5 to 10 years), and long-term (10 years and beyond). In this envisioned process, the Secretariat, a subordinate body of the Sustainability Committee, will first gather information and assess the situation in order to identify risks and opportunities, in cooperation with the planning staff of each unit of the Company, environmental managers and environmental officers of business units and Group companies, and corporate departments. The Sustainability Committee will also discuss nature-related issues and will evaluate nature-related risks, impacts, and responses reported and recommended by the Secretariat.

Risk Management Framework

Strategy

Under the Maruha Nichiro Group Mid-Term Management Plan, “MNV2024: Creating the Future of the Ocean and Life,” we are working to integrate our management strategies and sustainability. As our business is closely related to climate change and biodiversity, we conducted a scenario analysis based on the TCFD framework in FY2023, and this year we assessed the relationship between our business and nature based on the framework released in September 2023 by the Task Force on Nature-related Financial Disclosure (TNFD) . In addition, in pursuing this initiative, we conducted a briefing session on TNFD disclosure and its trends for the entire company, including directors and officers.

Analysis and Scoping of Biodiversity Dependencies and Impacts Related to Value Chains of All Business Units

The analysis and scoping of the dependence and impact of biodiversity was conducted in the following sequence

STEP1～3 Determination of Target Unit

In order to visualize the relationship between our business and biodiversity, we conducted a primary assessment of the degree of dependence/impact on biodiversity upstream to downstream in the value chain of all business units using ENCORE*, followed by a secondary assessment of the degree of dependence/impact according to the actual business conditions of the Group. The results of the secondary assessment of dependence/impact were organized as shown in the dependence/impact mapping chart below, and therefore, the Fishery Unit, Overseas Unit, and Aquaculture Unit were selected as the units to be analyzed and assessed.

Dependency and Impact Scores

Step 4 Determination of Fish Species to Be Assessed

Due tolarge number of fish species handled by each unit, target fish species were selected with further analysis. The Overseas Business Unit handled 38% of the Group's wild marine resources and targeted Alaska Pollack, which is also caught by the Group. The Aquaculture Business Unit targeted bluefin tuna, yellowtail, and amberjack, which are the main species of sea-based aquaculture.

Breakdown of Wild Marine Resources/Breakdown of Aquaculture Production (%)

* Breakdown of wild marine resources and breakdown of aquaculture production based on the second marine resources survey (conducted in FY2022)

Analysis of Sensitive Locations (Locate)

The fishing and aquaculture areas for each of the target species were analyzed for “priority areas,” defined as Sensitive Locations and Material Locations in the TNFD Guidance.The analysis of the main catch areas for Alaska pollock handled by the Maruha Nichiro Group, off the coast of Alaska and west of the Kamchatka Peninsula, identified the possibility that some or most of the potential pollock catch areas are in or near ecologically and biologically significant sea areas (EBSAs) or protected waters. The Maruha Nichiro Group has recognized the possibility that some or most of the waters where Alaska Pollack are caught may be in or around Ecologically and Biologically Significant Sea Areas (EBSAs) or protected sea areas. Based on the above, all major catch areas for Alaska Pollack handled by the Maruha Nichiro Group were identified as “priority areas”.As a result of analyzing 13 domestic Maruha Nichiro Group aquaculture farms, we confirmed that 11 farms (excluding those in Saiki City, Oita Prefecture and Kagoshima City, Kagoshima Prefecture) fall within the 1km range from the farms, which are considered highly important marine areas from the perspective of biodiversity (Ministry of the Environment). In addition, all 13 aquaculture farms were confirmed to be included in the Marine Protected Area (MPA) of the protected planet®. All 13 aquaculture farms have been identified as “priority areas”.

Confirmed that Alaska Pollock Catch Areas and All 13 Aquaculture Farms Are “Priority Areas”

Analysis of Dependence and Impact of Fisheries (Alaska Pollack) and Aquaculture (Yellowtail, Amberjack, Bluefin Tuna) (Evaluate)

Next, in order to refine the relationship between the relevant dependencies and influences, in addition to the information on dependencies and influences that we researched using ENCORE during the scoping process, we also researched papers, reports, and other sources. As a result, we identified significant dependencies and influences that could lead to risks and opportunities for our business as shown in the table below.

Analysis and Scoping of Biodiversity Dependencies and Impacts Related to Value Chains of All Business Units

Significant Dependencies for Maruha Nichiro Group’s Alaska Pollock Fishing/procurement

Target of dependency			(Reference) Scale of dependency based on ENCORE assessment				Reasons for determining dependency as significant					Maruha Nichiro Group’s efforts to address dependency
Spawning grounds, nursery grounds, and habitats			Very high				As assessed with ENCORE, spawning grounds, nursery grounds, and habitats have a very strong relationship to the reproduction of individuals of a particular species, and the stock of Alaska pollock is highly dependent on these locations.					Action against climate change Initiatives of SeaBOS Task Force IV Procurement of marine products sourced from MSCcertified fisheries (Alaska, Western Kamchatka)
Water quality			Very high				As assessed with ENCORE, ecosystem services that maintain the chemical state of seawater have a significant impact on the spawning, growth, and habitation of marine organisms, and the stock of Alaska pollock is highly dependent on these services.

Significant Impacts for Maruha Nichiro Group’s Alaska Pollock Fishing/procurement

Target of impact			(Reference) Scale of impact based on ENCORE assessment				Reasons for determining impact as significant					Maruha Nichiro Group’s efforts to address impact
Marine ecosystem habitats			Very high				As assessed with ENCORE, fisheries may have a significant negative impact on marine ecosystem habitats depending on their scale of operations, fishing gear, fishing methods, etc.					Operations that adhere to Alaska’s stringent fishing regulations (e.g., restrictions on fishing areas, catch quotas, timing, fishing gear, fishing methods, etc.) Procurement of marine products sourced from MSCcertified fisheries (Alaska, Western Kamchatka)
Wild fish stocks			High				As assessed with ENCORE, overfishing and bycatch may have a significant impact on the status of wild fish stocks and marine ecosystems.					Confirmation of the resource status of marine products handled through marine resources surveys Operations that adhere to Alaska’s stringent fishing regulations (e.g., restrictions on fishing areas, catch quotas, timing, fishing gear, fishing methods, etc.) Procurement of marine products sourced from MSCcertified fisheries (Alaska, Western Kamchatka)
Human rights of fishermen			-				Although not evaluated in ENCORE, IUU fisheries, for example, could lead to impacts on human rights violations in the supply chain.					Develop a sustainability- conscious seafood procurement policy Procurement of marine products sourced from MSC-certified fisheries (Alaska and Western Kamchatka)

Significant Dependencies for Maruha Nichiro Group’s Aquaculture

Target of dependency			(Reference) Scale of dependency based on ENCORE assessment				Reasons for determining dependency as significant					Maruha Nichiro Group’s efforts to address dependency
Biological raw materials			Very high				As assessed with ENCORE, biological raw materials such as wild fish, etc., are indispensable as feed for farmed fish.					Implementation of marine resources surveys Establishment of voluntary management standards for aquaculture farms Acquisition of ASC certification for yellowtail and amberjack
Water quality (seawater)			Very high				As assessed with ENCORE, the deterioration of seawater quality, including the occurrence of red tides and an increase in biochemical oxygen demand (BOD), has a significant impact on aquaculture productivity.					Establishment of voluntary management standards for aquaculture farms Acquisition of ASC certification for yellowtail and amberjack Initiatives that take animal welfare into account
Water flow (seawater)			Very high				As assessed with ENCORE, seawater quality, which has a significant impact on aquaculture productivity, is in turn significantly impacted by seawater flow.					Introduction of large floating copper-alloy marine cages that take into account the cultivation environment of farmed fish
Floddding			High				As evaluated by ENCORE, floods and storms have the potential to cause rapid changes in the aquaculture environment.
Atmosphere & Ground			High				As evaluated in ENCORE, rapid changes in the atmosphere and ground (floods, storms, etc.) can cause drastic changes in the aquaculture environment, and climate change is feared to cause an increase in sea water temperature, which may change the suitable sites for aquaculture.

Significant Impacts for Maruha Nichiro Group’s Aquaculture

Target of impact			(Reference) Scale of impact based on ENCORE assessment				Reasons for determining impact as significant					Maruha Nichiro Group’s efforts to address impact
Marine ecosystems			High				As assessed with ENCORE, farmed fish primarily feed on wild fish, and fisheries may have a significant negative impact on marine ecosystem habitats depending on their scale of operations, fishing gear, fishing methods, etc.					Implementation of marine resources surveys Establishment of voluntary management standards for aquaculture farms Acquisition of ASC certification for yellowtail and amberjack
Seabed soil/ seawater quality			High				As assessed with ENCORE, contamination of seabed soil and seawater quality by antibiotics and discharged plastics, etc., and an increase in biochemical oxygen demand (BOD) due to the cultivation of farmed fish are impacts that require attention in sea-based aquaculture, which is in direct contact with marine ecosystems.					Establishment of voluntary management standards for aquaculture farms Acquisition of ASC certification for yellowtail and amberjack Initiatives of SeaBOS Task Force III Initiatives of industry, government, and academia to reduce the use of antibiotics Action against marine pollution by marine plastics
Marine ecosystems			High				Although this has not been assessed with ENCORE, drug-resistant bacteria that do not respond to antibiotics may cause die-offs of farmed fish and pose health risks to humans.					Establishment of voluntary management standards for aquaculture farms Acquisition of ASC certification for yellowtail and amberjack Initiatives that take animal welfare into account

Future Plans

Going forward, we will analyze the kinds of risks and opportunities that exist (“Assess” under the LEAP approach) and consider measures in response to the risks and opportunities identified (“Prepare” under the LEAP approach) based on the results of the current analysis, and ensure the timely disclosure of relevant information, with the goal of achieving our KGI (ideal state in 2030) of “confirming that there is no risk of resource depletion in the fish stocks we handle.”