Materiality

Setting Appropriate Priority Issues (Materiality)

The Maruha Nichiro Group considers it an issue to connect its business activities to medium- to long-term corporate value enhancement and sustainable growth, and has identified nine priority issues (materiality) in the field of sustainability and is promoting the achievement of KGI.

In the previous medium-term management plan, we achieved steady results in all nine indicators and were able to lay a solid foundation for the next level of growth. As a result of repeated considerations on whether or not to change materiality in the formulation of the new medium-term management plan from fiscal 2025, we have not changed the materiality itself, but have reviewed and added some KPIs in response to changes in progress and importance.

Some of these goals cannot be achieved through the efforts of one company alone, but as a leader in the industry, we will strive to improve them through co-creation with stakeholders. We will continue to promote the achievement of KGI and continuously review materiality and KPIs based on the three-year medium-term management plan.

Identified Materiality

Materiality Identification and Review Process

Step 1: Extracted Items to Be Evaluated as Candidates for Materiality

In the materiality reevaluation, in addition to GRI, ISO 26000, SDGs, and other standard items, 484 items were extracted from a comprehensive long list of social issues based on the Company's materiality in the current Medium-term Management Plan, the materiality of other companies, and policy issues raised by the Japanese government were used as candidates for the materiality evaluation. The items on the long list were narrowed down in consideration of their relevance to the Group's value chain after sorting out similar items, and 43 items were compiled as the short list of items to be evaluated.

Step 2: Evaluated by External Stakeholders, Stakeholder Engagement (Dialogue), and Evaluated from Our Own Company’s Perspective.

A short list of 43 items was sent to the external stakeholders below who were asked to rate the importance of each item to our Company and to provide reasons for their rating. For the evaluation of our own Company's perspective, we conducted an internal questionnaire. In addition to collecting opinions from 1,576 employees of Maruha Nichiro Corporation, including 66 executive officers, unit heads, and department heads, opinions were collated from 50 President & CEOs of Japan and overseas consolidated Group companies, to ensure an extensive perspective, including a group perspective.

Also, one of the external stakeholders, Executive ESG Analyst Mr. Megumi Sakuramoto of Asset Management One, Co., Ltd., and the Company's President & CEO Masaru Ikemi, discussed the sustainability issues that should be emphasized.

Key Opinions from Stakeholders (May 2021)

Step 3: Management Discussed, Reviewed, and Identified Materiality

The items to be evaluated by external stakeholders were plotted on the vertical axis and the items to be evaluated by our own Company on the horizontal axis to form a materiality matrix. Subsequently, in addition to the materiality evaluation, the management team discussed and reviewed the possibility of integrating each of the items to be evaluated, their expressions, etc., and identified the nine items below as materiality.

- Creation of Environmental Value

1. Action for climate change
2. Contributing to a recycling-oriented society
3. Action for marine pollution by marine plastics
4. Action for preserving biodiversity and ecosystem

- Creation of Social Value

5. Provision of safe and secure food
6. Food provision contributing to creating health value and sustainability
7. Building a work environment that diversified employees can work with a sense of security
8. Respect for human rights in business operations
9. Development of Sustainable Supply Chain

Step4: Review of Materiality, KGI (What We Want to be in 2030), and KPIs

As a result of various initiatives to achieve the KGI (2030 vision) and KPIs for each of the nine materialities in the sustainability strategy of the medium-term management plan from fiscal 2022 to fiscal 2024, progress through fiscal 2024 has been generally smooth.

Progress of Each Materiality KPI in the Medium-Term Management Plan “MNV2024 for the Future of the Sea and Life” (PDF: 2.2 MB/ 33 pages)

However, in the new medium-term management plan starting from fiscal 2025, we considered reviewing our materiality again in response to the fact that social and environmental issues and the external environment are changing day by day. We conducted a questionnaire to determine whether any of the items that were not identified as materiality in the short list in FY2021 should be considered materiality and whether there are any issues that are omitted from the short list due to social and environmental issues. In addition to collecting the opinions of 1,453 employees, including 65 executive officers, unit managers, and department heads of Maruha Nichiro Corporation, we also collected opinions from 35 presidents of consolidated group companies in Japan and overseas in order to ensure a wide range of perspectives, including those from the Group's perspective. In addition, we collected opinions from outside stakeholders, including three institutional investors, three human rights and biodiversity experts, one NGO representative, and three outside directors, and as a result of discussions at the Sustainability Promotion Committee, we decided to continue the previous nine materiality without changing the materiality.
On the other hand, the status of KPI achievement varies depending on the materiality, and since some items have achieved FY2030 KPIs by FY2024, some KPIs have been reviewed or new KPIs have been added.
Going forward, we will aim to achieve KGI (what we want to be in 2030) by working to achieve new KPIs.

The ideal state of each materiality in 2030, their basic approach, and the main SDGs to which they will contribute are listed below.

Materiality	KGI (ideal state by 2030)	Basic approach	Main SDGs to which we contribute
1. Action for climate change	We are leading the industry on decarbonization and climate change	Climate change, an issue of global importance, is also an important issue to the Maruha Nichiro Group. There could be an impact on marine resources due to rising seawater temperatures, and an impact on agricultural and livestock raw materials due to abnormal weather conditions. Maruha Nichiro is aware that addressing climate change is an important issue on a company-wide level, and we will respond to climate change issues by reducing greenhouse gas emissions through the use of sustainable energy.
2. Contributing to a recycling-oriented society	We are spreading a recycling-oriented economy through efficient use of resources and practicing within the Group	In order to realize a recycling-oriented society, it is important to manage and reduce waste generated by business activities. For companies that handle food products, the occurrence of food loss and the low effective utilization rate of plastic waste have become an issue. Maruha Nichiro is working to reduce the occurrence of waste and food loss throughout the product life cycle, and to reduce the environmental impact of packaging and containers and packaging, by reducing the amount of plastic resources used in accordance with the plastic resource recycling strategy.
3. Action for marine pollution by marine plastics	We practice zero discharge of plastics into the ocean along our supply chain, including from our own Company	Environmental pollution caused by marine plastic spills is an issue of global importance, and the Maruha Nichiro Group, which is deeply involved in the ocean, sees it as an equally important issue. We will promote our response to the marine plastic issue in cooperation with industry associations, related NGOs, and others to make our activities more effective.
4. Action for preserving biodiversity and ecosystem	We confirm that there is no risk of depletion of the marine resources we handle	For the Maruha Nichiro Group, which conducts its business activities while receiving blessings from a wide variety of living organisms, including marine resources from around the world, the conservation of biodiversity is an important issue. In order for the Group to sustainably carry out its business activities, we will promote the conservation of marine and onshore biodiversity and ecosystems by promoting activities that are in line with our business, such as the promotion of international resource management and aquaculture business practices in consideration of the environment.
5. Provision of safe and secure food	We provide food that people can eat with peace of mind to tables around the world	We believe that quality is the most important factor in providing wholesome, safe, and healthy food. We will always be aware that each and every employee is responsible for quality in all processes of the value chain, from design and development, procurement, production, logistics, and sales and communication, and we will work to improve quality.
6. Food provision contributing to creating health value and sustainability	We established our brand as a top food enterprise that contributes to the creation of health value and sustainability	The Maruha Nichiro Group's philosophy is to contribute to the enrichment of people's lives by providing wholesome, safe, and healthy food. To realize this philosophy, we believe it is essential to contribute to improving the health value of consumers and to continue to provide consumers with a stable supply of sustainable food that takes into consideration social and environmental issues. The Maruha Nichiro Group will continue to provide food that contributes to the creation of health value and sustainability, thereby contributing to the enrichment of everyone's daily life.
7. Building a work environment that diversified employees can work with a sense of security	We have built a work environment where diversity is respected and employees can work with peace of mind	The Maruha Nichiro Group believes that the growth of its people contributes greatly to the growth of the Company, based on its Company Credo “People: Loyal to our people, the most important asset of our company,” and strives to respect the human rights of its employees, provide fair and good working conditions, and build a safe and comfortable working environment. We both realize diversity and inclusion by accepting and recognizing diverse human resources, while proactively investing in human resources who can play a key role in the sustainable growth of the Maruha Nichiro Group and creating an organizational culture that enables employees to demonstrate their abilities.
8. Respect for human rights in business operations	We have achieved zero human rights abuses, including forced labor, in our supply chain, including our own Company	The Maruha Nichiro Group's business activities are conducted while using marine products, agricultural and livestock products, and other blessings of nature from all over the world as raw materials. In order to conduct our business activities in a sustainable manner, we are aware that it is essential to build a supply chain that takes into consideration human rights and labor practices, such as the prohibition of forced labor and child labor, and we will promote sustainable procurement practices.
9. Development of sustainable supply chain	We are able to build a sustainable procurement network through collaboration with our suppliers.	The Maruha Nichiro Group's business activities are conducted while using marine products, agricultural and livestock products, and other blessings of nature from all over the world as raw materials. In order for the Group to carry out its business activities, it is essential to establish a socially responsible, environmentally sound, and sustainable supply chain. We will promote sustainable procurement practices, taking into consideration coexistence and co-prosperity with our suppliers.

KGI and KPI for Each Materiality (PDF: 53.4 KB/ 3 pages)