Sustainable Approach to Procurement

As part of the Corporate Social Responsibility (CSR) efforts to realize a sutainable society, The Nisshin OilliO Group established “The Nisshin OilliO Group Basic Procurement Policy” in June 2018, which serves as a guideline for procurement activities for all raw materials and services. To realize and develop a sustainable society, it is important for the entire supply chain to comply with the Policy, based on which we aim to expand our efforts.

At the same time, in order to deeply understand and recognize the environmental and social issues related to palm oil industry and to contribute to its sound development, we established the “Palm Oil Sourcing Policy” in June 2018, followed by the NDPE (No Deforestation, No Peat and No Exploitation) declaration in December 2018.

Furthermore, we have disclosed the “Certified Volume Sourced” and “Traceability to Mill” along with the “Supplier Mill List” in July 2019. The information will be updated regularly on The Nisshin OilliO Group’s website.

Certified Volume Sourced / Traceability to Mill

Certified Volume Sourced(*) SG ratio of RSPO-certified oil Traceability to Mill Traceability to plantation
Palm Oil, Palm Kernel Oil, Derivatives Palm Oil Palm Oil Palm Oil, Palm Kernel Oil, Derivatives Palm Oil Palm Kernel Oil
January to December 2022 52.3% 59.6% 51.1% 98.8% 90.9% 72.7%
July to December 2022 51.5% 59.5% 51.0% 98.7% - -
January to June 2022 53.1% 59.7% 51.1% 98.9% - -
January to December 2021 48.4% 54.9% 49.6% 99.0% 68.5% 30.5%
July to December 2021 52.9% - - 99.1% - -
January to June 2021 43.2% - - 99.0% - -

* Certified by RSPO, MSPO, ISPO or other third-party organization

We have established a roadmap regarding palm oil products that are traded and processed by the The Nisshin OilliO Group.

Roadmap (Action plan and Milestones)

Action plan Milestones Target date Status
1 Certified Sustainable
Palm Oil
Palm Oil Publish certified volume sourced (Group total).
- Jan. – Dec. 2020　41.9% (For palm oil: 46.9%)
- Jan. – Dec. 2019　43.5% (For palm oil: 50.3%)
- Jan. – Dec. 2018　43.8% (For palm oil: 53.3%)
 July 2019 Accomplished
Source 100% certified (*1)
sustainable palm oil (*2) 		2022 On-going
Increase the SG ratio of RSPO-certified oil to at least 50% of the total amount procured (palm oil *2).
- Jan. – Dec. 2020　46.8%
 2024 On-going
2 Improvement of Supply Chain ①Grasp and evaluate palm plantations and mills Publish supplier mill list. July 2019 Accomplished
Implement risk assessment based on supplier mill list. Nov. 2019
March. 2022		 Accomplished
Implement supply chain improvement. 2025 On-going
②Share sourcing policy and business solution with suppliers Explain NDPE and Palm Oil Sourcing Policy to major suppliers. Dec. 2018 Accomplished
Assess procurement status(*3) by conducting a questionnaire to the major suppliers in collaboration with NGO. April 2021 Accomplished
③Support smallholders Supporting smallholder program together with group companies. - In progress
④Establish grievance procedure Establish and disclose grievance procedure on website. July 2019 Accomplished
3 Transparency ①Certified volume sourced Publish certified volume sourced on website and update twice a year. July 2019 Accomplished
(Update continuously)
②Traceability to mill and to plantation Publish rate of traceability-to-mill on website and update twice a year. July 2019 Accomplished
(Update continuously)
Grasp 80% by 2022 and 100% by 2024 traceability to plantation for palm oil(*2). 2024 On-going
Grasp 100% traceability to plantation for palm kernel oil. 2030 On-going
③Mill list Publish supplier mill liston website and update twice a year. July 2019 Accomplished
(Update continuously)
④Grievances Publish grievance procedure on website. July 2019 Accomplished
Publish grievance log on website. As needed -
⑤Policy implementation plan Establish and publish roadmap. June 2020 Accomplished
(Update continuously)
4 Social contribution activity Organizing together with group companies. 2021 Accomplished
(On-going)

*1 Certified by RSPO, MSPO, ISPO or other third-party organization

*2 Does not contain palm kernel oil or derivatives

*3 Responsible sourcing policy, human resources policy, supplier code of conduct, etc.