JAPANESE CHINESE

Value for Business Partners

Basic Approach

The Maruha Nichiro Group carries out stable procurement of marine resources from Japan and around the world.  We are also working to build a safe and secure supply chain for meat 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 Basic Procurement Policy

In FY2017, we established the Maruha Nichiro Group Code of Conduct as well as Maruha Nichiro Group Basic Procurement Policy and Maruha Nichiro Group Supplier Guidelines following 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 Anti-Corruption Declaration.

We make these policies and guidelines known to our business partners and monitor their compliance. In addition, we also have prepared an explanatory manual on the guidelines and we are working to reinforce our management structure in place to encourage improvement of initiatives based on commentary. We are promoting efforts to construct a supply chain in which the Group and its business partners engage in honest business activities.

Medium-term Sustainability Management Plan (FY2018–2021)

Practice sustainable procurement

Medium-term Goal

Implement CSR-oriented supply chain management based on the Basic Policies of Procurement, Supplier Guidelines, and the Decla-ration of Anti-corruption

FY2020

Action Plan (Key measures)

  • Raise awareness among suppliers of the Basic Procurement Policy, Supplier Guidelines, and Declaration of Anti-corruption
  • Conduct monitoring of suppliers

Achievements

  • Conducted Self-Assessment Questionnaires on suppliers of business departments and directly managed factories to inform them of the Guidelines and confirm their compliance status
  • Conducted Self-Assessment Questionnaires with selected suppliers
FY2021

Action Plan (Key measures)

  • Conduct Self-Assessment Questionnaires with an expanded scope
  • Provide feedback based on the results of supply chain Self-Assessment Questionnaires and human rights Self-Assessment Questionnaires
  • Create explanatory documents for Supplier Guidelines and establish management systems by creating rules and regulations
Targets

Maruha Nichiro Group (Japan and Overseas)

Department in charge

Corporate Planning Department, Maruha Nichiro Corporation

Management Structure

Maruha Nichiro Group’s businesses cover a wide range of supply chains, and each business division is responsible for selecting suppliers of raw materials, resources, and products for these business activities. For this reason, each business division will take the lead in supply chain management for the Maruha Nichiro Group, and implement CSR procurement through communication with suppliers based on the Basic Procurement Policy and Supplier Guidelines established in FY2017.

Main Initiatives in FY2020

Monitoring of Suppliers

Conducting Self-Assessment Questionnaires of Suppliers

At Maruha Nichiro Corporation, we conducted surveys of 1,097 suppliers in Japan and overseas in FY2020 in order to check their compliance with the Supplier Guidelines. All 294 plants certified by Maruha Nichiro that manufacture Maruha Nichiro brand products deemed particularly important suppliers were sent the survey, with responses received from 293 (127 domestic and 166 overseas certified plants) for a response rate of 99.7%. Responses were also received from 804 other suppliers, such as raw materials suppliers of directly managed plants and suppliers of marine products and meat products.

Going forward, we will strive to achieve fair business activities by working to improve the situation collaboratively while communicating with suppliers along with preparing and distributing commentary on the guidelines containing specific examples of actions and required standards, aimed at reliable implementation of the Supplier Guidelines. We will continue to build partnerships with suppliers based on further penetration of the Supplier Guidelines and mutual trust.

Number of Suppliers Surveyed in FY2020 1097 companies
Target Suppliers Number of Suppliers Surveyed in FY2020
Domestic plants certified by Maruha Nichiro 127 companies
Overseas plants certified by Maruha Nichiro 166 companies
Suppliers of directly managed plants 242 companies
Other suppliers providing raw materials and other companies’ products 562 companies

Self-Assessment Questionnaires conducted by area

Self-Assessment Questionnaires conducted by area

Conducting Surveys of Human Rights and Labor Practices in the Supply Chain

At Maruha Nichiro, in FY2020, we began conducting a survey on some suppliers regarding their human rights and labor practices in order to verify human rights risks in the supply chain. In FY2021, we will expand targeted suppliers and conduct surveys of certified plants that manufacture Maruha Nichiro products. In turn, countermeasures will be implemented for suppliers determined by the survey to pose risks.

Educating Suppliers through “Quality Assurance Meetings” for Partner Factories

At Maruha Nichiro, we hold "Quality Assurance Meetings” for partner factories in Japan helping to manufacture our products in order to increase the quality assurance level through stronger collaboration with the supply chain.

In FY2020, in addition to receiving reports on quality initiatives along with complaints and incidents, we planned to hold a presentation led by a representative from the Corporate Planning Department on CSR procurement as well as the Basic Procurement Policy and Supplier Guidelines. However, the meeting was canceled due to the COVID-19 pandemic and information was shared through the provision of meeting materials only.

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.

Looking Ahead

In FY2021, we will tabulate the responses for the FY2020 survey, and we plan to provide suppliers who responded with commentary on the guidelines along with feedback. Additionally, we are considering visiting a selection of suppliers in person to conduct interviews based on the survey results in order to confirm their actual management practices.