Past Action Plans
- Sustainability
- Efforts for sustainable procurement (action plans)
- Past Action Plans
Palm Oil Action Plan
Action plan and progress in FY2024
| Activities | Progress in FY2024 (including some results to date) | ||
|---|---|---|---|
| 1 | Establish a traceable, transparent supply chain | (1) Engage with suppliers | Participated in a workshop hosted by Kuala Lumpur Kepong Berhad in March 2024, attended by 110 people from 63 companies involved in oil production, oilseed processing, and plantations. Shared information about strengthening measures, collaborating with suppliers, improving traceability, and other efforts to comply with policy for NDPE.*1 Also participated in an NDPE workshop hosted by Cargill in August 2024. Shared information about progress on NDPE with companies involved in oil production, oilseed processing, and plantations. |
| (2) Procure certified palm oil and ascertain traceability to plantations | Set KPIs of over 50% SG RSPO-certified oil for palm oil and 100% certified oil for palm oil and palm kernel oil by 2030 as the basis for ascertaining traceability to plantations (70.5% and 67.3%, respectively, from January to December 2024). | ||
| (3) Ensure transparency in all routine procurement activities | Administered a survey of progress on NDPE commitments to all companies involved in oilseed processing that directly supply CPO and CPKO*2 to ISF. (1) Confirm plant management status and traceability information (quarterly) (2) Visit plants to confirm systems and operating status for safety and health management, etc. (quarterly) (3) Confirm expiration date of RSPO certification (monthly) (4) Administer questionnaire on environment and human rights, disseminate Group policy and Code of Conduct |
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| 2 | Protect forests and respect human rights by helping smallholders increase their productivity and profitability | (1) Plan and promote a Small Holder Support Program (direct support) | Began helping smallholders acquire RSPO and other certifications with ISF, Ferrero, and Hap Seng, one of the Group’s main sourcing plantations. Provided free technical support (conducting training, building training facilities, etc.). Planning to expand measures in 2025. Supported four smallholders (total area 166 ha). |
| (2) Participate in various working groups (indirect support) | • POCG*3 Participation of companies at each stage of the palm oil supply chain Frequency: Six online meetings and two in-person workshops per year Discussion topics: Issues in aligning NDPE commitments with land rights and labor standards • Collaboration with Inovasi Agriplot In October 2024, as part of EUDR compliance efforts, conducted traceability and risk assessment for EUDR-compliant suppliers of CPO and CPKO. |
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| 3 | Promote human rights efforts and collaboration with stakeholders | (1) Engage with plantations | With support from the NPO Earthworm Foundation, surveyed and provided support for improving work environments and hiring of plantation workers at ISF, Ferrero, and Johor Plantations (one of the Group’s sourcing plantations). Monitoring the action plans of plantations that received support. Planning to do the same with other plantations. |
| (2) Engage with oil mills | Worked with Dara-Lam Soon, a plantation and oilseed processor in Pahang, Malaysia, to conduct due diligence on employment practices, and investigated the actual working conditions of laborers at oil mills and plantations. | ||
| 4 | Reduce Scope 3 CO2 emissions in the palm oil supply chain | (1) Lobby Malaysian palm oil related government agencies to reduce CO2 emissions for palm oil and utilize a certified oil system | In 2024, certified oil comprised 72% of ISF’s supply. ISF’s goal is to reach 100% RSPO- or MSPO-certified oil supply by 2025. |
| (2) Use methane fermentation gas |
ISF signed a new gas supply agreement with Gas Malaysia in November 2024, and began using certified biomethane (green gas) in January 2025. Related article 1: ISF Takes Leading Step Towards Renewable Energy with Gas Malaysia’s First Certified Biomethane Supply Agreement Related article 2: ISF receives First Green Certificate from Gas Malaysia under Certified Biomethane Gas Supply Agreement |
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| (3) Absorb CO2 through afforestation | Planted 8,000 mangrove trees as of 2024, spending RM525,000 over three years. Planning to continue the planting project to expand the forest area. | ||
| 5 | Social contribution activities | Social contribution for residents living near the Dengkil Plant (ISF) | In March 2025, began providing support to indigenous people and local communities in collaboration with the Dengkil Local Indigenous Community Project. Participating in farming and handicraft making with respect for indigenous traditions helped understand the traditional values the local indigenous community has preserved, as well as the roles of that community in protecting the surrounding peatlands and the impact of mangrove planting on the local community (helping improve livelihoods and conserve the environment). |
*1 NDPE: An international standard aiming for sustainable palm oil procurement under the policy of “No Deforestation, No Peat, No Exploitation.” Used to guide corporate palm oil procurement and evaluate palm oil certification systems.
*2 CPO (Crude Palm Oil), CPKO (Crude Palm Kernel Oil): Unrefined palm oil and palm kernel oil
*3 POCG (The Palm Oil Collaboration Group): A group of companies involved in the palm oil supply chain that aims to accelerate effective action on NDPE
Action plan and progress in FY2019
| Activities | Activities/plans | Target date | Status | ||
|---|---|---|---|---|---|
| 1 | Procure palm oil sustainably | Publish the percentage of certified oil for the entire Nisshin OilliO Group | July 2019 | Published | |
| Palm oil*1: Switch to 100% certified oil*2 | 2022 | Ongoing | |||
| Increase the SG ratio of the RSPO-certified oil procurement volume to at least 50% (palm oil*1) | 2024 | Ongoing | |||
| 2 | Improve the supply chain | (1) Examine and evaluate palm plantations and oil mills | Publish a list of oil mills | July 2019 | Published |
| Use the list of oil mills to conduct risk assessment | November 2019 March 2022 |
Complete | |||
| Implement supply chain improvements | 2025 | Ongoing | |||
| (2) Share procurement policies with suppliers and resolve issues | Explain the NDPE Declaration and the Company’s Palm Oil Procurement Policy to major suppliers | December 2018 | Complete | ||
| Survey the procurement status*3 of major suppliers in collaboration with NGOs | April 2021 | Complete | |||
| (3) Support small farmers | Consider joint initiatives with Group companies | - | Under consideration | ||
| (4) Establish grievance procedure | Create a grievance procedure and publish it on The Nisshin OilliO Group website | July 2019 | Published | ||
| 3 | Ensure transparency (disclosures) | (1) Certified oil procurement rate | Publish the percentage of certified oil on The Nisshin OilliO Group website and update it biannually | July 2019 | Published (updates ongoing) |
| (2) Traceability to oil mills and plantations | Update the traceability to oil mills biannually on The Nisshin OilliO Group website | July 2019 | Published (updates ongoing) |
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| Aim for 80% traceability of palm oil to plantations by 2022, 100% by 2024 | 2024 | Ongoing | |||
| Aim for 100% traceability of palm kernel oil to plantations | 2030 | Ongoing | |||
| (3) List of oil mills | Publish a list of oil mills on The Nisshin OilliO Group website and update it biannually | July 2019 | Published (updates ongoing) |
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| (4) Grievance procedure and list of grievance handling (grievance log) | Publish the grievance procedure on The Nisshin OilliO Group website | July 2019 | Published | ||
| Publish a list of grievance handling (grievance log including details of grievances and how they were handled) | As necessary | - | |||
| (5) Action plan for realizing procurement policy | Formulate and publish an action plan | June 2020 | Published (updates ongoing) |
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| 4 | Social contribution activities | Implement joint activities with Group companies | 2021 | Complete (Ongoing) |
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*1 Does not contain palm kernel oil, fatty acids, etc.
*2 Materials certified by RSPO, MSPO, ISPO, or verified by a third-party organization
*3 Responsible procurement policy, personnel policy, Supplier Code of Conduct, etc.
Soybean Action Plan
Action plan and progress in FY2024
| Activities | Progress in FY2024 (including some results to date) | |||
|---|---|---|---|---|
| 1 | Sustainable procurement practices | Reduce CO2 emissions in the supply chain | Lobby foreign producer organizations through the industry | Continued discussions with U.S. producer groups via the U.S.-Japan Partnership program (September 2024) to assess the actual CO2 emissions from production to transportation and establish a science-based CO2 emissions calculation method and reduction targets |
| Efforts led by the Company | Collaborated with key (Tier 1*2) suppliers to research the mechanism and market for visualizing CO2 emissions during soybean production, and began approaching producers | |||
| Establish a traceable supply chain | Leverage initiatives | Set a new 2028 target of achieving 90% procurement from suppliers who have endorsed and signed the Soy Moratorium, aiming to build a supply chain populated with such suppliers | ||
| Ongoing monitoring | Collaborated with key (Tier 1) suppliers to identify collection areas and procurement volumes for each Brazilian shipping port | |||
| Examined ways to utilize satellite data (e.g., Global Forest Watch) for monitoring deforestation | ||||
| Expand engagement | Requested cooperation from key (Tier 1) suppliers regarding policies and initiatives, including the Group’s Supplier Guidelines, and conducted a survey on legal compliance, the environment, human rights, and traceability in November to December 2024 | |||
| Set CO2 emissions reduction targets and also strengthened engagement with key (Tier 1) suppliers to raise awareness of environmental issues, including requesting future initiatives focused on biodiversity conservation and water risk solutions | ||||
| Utilize certification systems | Surveyed demand through dialogue with users to procure RTRS*1-certified soybean | |||
*1 Round Table on Responsible Soy Association (RTRS): A nonprofit organization established in Zurich, Switzerland, in 2006, to promote the expansion of responsible soybean production, trade, and use.
*2 Tier 1: Direct suppliers
Cacao Action Plan
Action plan and progress in FY2024
| Activities | Progress in FY2024 (including some results to date) | ||
|---|---|---|---|
| 1 | Establish new procurement routes that ensure traceability | Establish cacao suppliers that ensure traceability to plantations, and implement support measures for farmers and society to eradicate poverty and child labor, and prevent deforestation | To establish procurement routes that ensure traceability, Daito Cacao evaluated new cacao flavors, their quality, and other attributes. In October 2024, the company began procuring cacao from Nigeria as a new production area. |
| 2 | Expand certified cacao products | Improve the lives of plantation residents and workers and to prevent deforestation by procuring certified cacao | To improve the lives of plantation residents and workers and prevent deforestation, in 2023, Daito Cacao began selling the ANTHEM series of chocolate products for commercial use made from certified cocoa beans. |
| 3 | Conduct flavor sustainability activities | Conserve rare Ecuadorian Arriba cocoa beans and contribute to the cacao industry by improving work environments and productivity | Since 2021, in San Jose Plantation in Ecuador, Daito Cacao has participated in activities to conserve the Arriba variety, which has grown in Ecuador since ancient times. Using the plantation’s state-of-the-art facilities, cuttings from Arriba cacao trees are grafted onto disease-resistant rootstock to maintain flavor and quality and to stabilize the yield. This initiative began in October 2022, and once test harvests are complete in 2025 as scheduled, the farmland will be expanded in 2028. |