Basic Approach
The Maruha Nichiro Group engages in the stable procurement of marine resources from Japan and around the world.
We also strive to build a safe and secure supply chain for livestock meat products and agricultural products.
We recognize that in order to achieve stable and sustainable management into the future, we must cooperate with our business partners and consider social dimensions such as environmental problems, human rights, and occupational safety within our supply chain. Accordingly, we are working to build a CSR-oriented supply chain.
Establishment of Maruha Nichiro Group Basic Procurement Policy / Supplier Guidelines
In FY2017, we established the Maruha Nichiro Group Basic Procurement Policy and Maruha Nichiro Group Supplier Guidelines following the Group Code of Conduct and the approaches of ISO 26000, an international standard for social responsibility, and the Ten Principles of the United Nations Global Compact.
We are also committed to fair competition and anti-corruption in overseas markets through our Declaration of Anti-corruption.
In July 2022, we revised the Supplier Guidelines to the second edition, adding a new requirement on matters concerning the elimination of IUU fishing and requesting suppliers to “confirm that there is no involvement in IUU fishing in the marine products they procure through thorough traceability.”
We make these policies/guidelines known to our business partners and monitor their compliance on a regular basis, and have prepared a guideline commentary in conjunction with the revision to the second edition.
We are promoting activities to strengthen our management system, such as encouraging improvement activities based on the explanatory notes, and to construct a supply chain that will carry out honest business activities together with our business partners.
Code of Conduct (PDF: 43 KB/1 page)
Basic Procurement Policy (PDF: 89 KB/1 page)
Maruha Nichiro Group Suppliers Guidelines, Second Edition (issued July 2022) (PDF: 254 KB/8 pages)
Anti-corruption Declaration (PDF: 87 KB/1 page)
Maruha Nichiro Group Policy on Animal Welfare
Management Structure
The Maruha Nichiro Group maintains a variety of businesses that cover a broad supply chain. The selection of procurement sources for raw materials, resources, and products for these business activities is carried out under the responsibility of each business division.
Therefore, supply chain management within the Maruha Nichiro Group is based on the Basic Policies of Procurement and Supplier Guidelines established in 2017, and the Procurement Department plays a central role in implementing CSR procurement through communication with business partners.
Progress on materiality and KPI achievement
| Materiality | KGI (Ideal state in 2030) | Achievement taget（KPI) | FY2022 results | |||
|---|---|---|---|---|---|---|
| Item | Target value | Target year | Results of progress and comments | Self-evaluation | ||
| Development of sustainable supply chain | Working with suppliers to build a sustainable procurement network | System Coverage (Maruha Nichiro) | 100% | 2024 | Covering 50.1% of Maruha Nichiro's suppliers with a supplier survey system | ★★★☆☆ |
| Rate of agreement with supplier guidelines and rate of improvement in key items (Overall G) | 100% | 2030 | Introduction and start of operation of supplier survey system | ★★☆☆☆ | ||
Message from Representative
Yusuke Sato
Corporate Planning Department
Sustainability Group
Group Director
Our Group conducts its business activities by procuring raw materials and products from a large number of suppliers. In FY2022, we began operating a survey system for these suppliers. Initially, penetration was slow and we had difficulty in compiling the data, but through careful explanation to suppliers and continued requests, penetration has gradually increased. We expect to expand regular implementation of supplier surveys and human rights/labor practices surveys. In order to provide customers with wholesome, safe, and healthy food, which is our Group Philosophy, it is essential that suppliers understand and cooperate with our philosophy and approach. We will carefully and patiently explain the significance of this initiative to suppliers to build a more sustainable and robust supply chain with the aim of maximizing Maruha Nichiro Value (MNV).
Main Initiatives in FY2022
Monitoring of Suppliers
Introduction of Supplier Survey System and Revision of Guidelines
In FY2022, Maruha Nichiro Corporation newly introduced and began operating the Maruha Nichiro Supplier Survey System. By systemizing supplier surveys and analyses, both the Company and our suppliers are able to accumulate data and visualize issues. In addition, we partially revised the Group Procurement Policy and Supplier Guidelines issued in 2017 to clarify items on the abolition of IUU fishing, environmental considerations, and cooperation requests to secondary suppliers, and a handbook of the guidelines was also created. We will continue working to strengthen our management structure by encouraging suppliers to follow these guidelines and urging them to make improvements based on the handbook.
Confirmed Status of Compliance with Supplier Guidelines
In FY2022, using the new Supplier Survey System, we surveyed 1,000 of Maruha Nichiro Corporation’s 1,996 suppliers to confirm the status of their compliance with the revised Supplier Guidelines (the results are shown below).
Going forward, we will seek cooperation on improvements from suppliers identified in the survey as problematic, expand the scope of the survey to all suppliers including those who make spot deliveries, supply packaging, etc., and promote the deployment of this system within the Group in order to achieve related KPIs.
With the aim of building a sustainable supply chain, we have established a working group on purchasing management with the Quality Assurance Department, Production Management Department, and Corporate Planning Department, and are proceeding with cooperative initiatives. The Group’s business is supported by numerous suppliers, and we believe that evaluating them from ESG perspectives as well as on QCD aspects (quality, cost, delivery) will contribute to a more robust supply chain. We will organize our internal operational regulations and aim to create mechanisms to put sustainable procurement into practice.
Status of Supplier Survey
| Targeted scope | No. of surveys | No. of responses | Suppliers recognized as having issues (%) |
|---|---|---|---|
| Domestic in-house certified plants | 125 Companies | 125 Companies | 38 Companies (30.4%) |
| Overseas in-house certified plants | 162 Companies | 155 Companies | 1 Companies (0.6%) |
| Suppliers of directly managed factories (excluding certified plants) | 194 Companies | 194 Companies | 39 Companies (20.1%) |
| Suppliers of other raw materials and third party brand manufacturing suppliers | 519 Companies | 453 Companies | 81 Companies (17.9%) |
| Total | 1000 Companies | 927 Companies | 159 Companies (17.2%) |
| Targeted scope | No. of suppliers | Ratio of agreement with the guidelines | System cover rate |
|---|---|---|---|
| Survey implemented | 1000 companies | 46.4% | 50.1% |
| Response received | 927 companies | ||
| All transacting suppliers (population parameter) | 1996 companies |
Educating Suppliers through “Quality Assurance Meetings” for Partner Factories
At Maruha Nichiro Corporation, we hold “managers' meetings on quality assurance at subcontract factories” for management executives of major contract manufacturers in Japan who cooperate with us in the production of our products, with the aim of improving the quality assurance level by strengthening cooperation with our supply chain.
In FY2021, in addition to receiving reports on quality-related initiatives and the status of complaints and incidents, Maruha Nichiro Corporation held a presentation led by a representative from the Corporate Planning Department on CSR procurement and informed business partners of the "Basic Policies of Procurement" and "Supplier Guidelines," and requested suppliers' understanding of the Maruha Nichiro Group's policies/guidelines and their cooperation in building a CSR-conscious supply chain together.
We intend to continue holding this meeting in the future as an opportunity to educate and share information with partner factories, as well as gain their understanding of the Action Plan and strive for greater collaboration in the supply chain.
KGIs and KPIs from FY2022 to FY2030
In line with formulating the new Medium-term Management Strategy "For the Ocean, for Life MNV 2024,” we reevaluated the new nine important issues (materiality) on March 28, 2022 and formulated the Ideal State in 2030 (KGI) and Achievement Targets (KPI) in each materiality.
From FY2022, we will work on the targets we have formulated and aim to be Ideal State in 2030.
