Sustainable Procurement
The NISSIN FOODS Group instituted the Basic Policy on Green Procurement in May 2007 and is promoting the procurement of environmentally friendly raw materials. To build a traceability system, we also instituted the NISSIN Group Policy on Sustainable Procurement in September 2017, which respects the global environment and human rights, and proclaims our commitment to procuring legally produced raw materials. As cooperation from our primary suppliers is important to achieve this sustainable procurement, we inform them of the details and obtain signed documents on the confirmation.
Among the raw materials in our products, palm oil (a vegetable oil extracted from oil palms) in particular is cited for deforestation, violations of human rights of plantation workers, and other issues in some plantations and palm oil mills. Our group is focusing efforts on the sustainable procurement of palm oil.
Efforts to Achieve 100% Sustainable Palm Oil Procurement Ratio
In the NISSIN FOODS Group’s environmental strategy, EARTH FOOD CHALLENGE 2030, we set a goal to raise the procurement rate for palm oil that is assessed to be sustainable to 100% for the entire group by FY 3/2031. We are undertaking measures to achieve this goal as quickly as possible. In addition, we aim to raise the procurement rate for palm oil that is assessed to be sustainable to 100% for our instant noodle business in Japan by FY 3/2026.
Furthermore, we established guidelines in May 2022 for efforts to comply with our Commitment to the Procurement of Sustainable Palm Oil. These guidelines cover our NDPE policy*1 as well. We simultaneously released a list of palm oil mills that consolidates the names and locations (location data) of suppliers to improve their traceability. Going forward, we will aim to introduce a forest footprint*2 focused in areas at high-risk of deforestation and peatland destruction, as well as to expand the scope of traceability back to the oil palm plantations.
*1NDPE = No Deforestation, No Peat, No Exploitation
*2Total area of forests and peatlands affected by a company's supply chain or financial institution's investments and financing
Dialogue with Small-Scale Oil Palm Farmers
NISSIN FOODS Group strengthens the supply chain monitoring system by directly confirming the working environments and the existence of human rights infringement of producers (especially small-scale oil palm farmers) who may be prone to labor exploitation and have difficulty voicing their grievances due to their business positions. From January to March 2022, we conducted a survey and held online dialogues with 50 small-scale oil palm farmers assessed to be on our supply chain. This initiative, continued from the previous implementation (2020), was conducted with the support of Caux Round Table (CRT) Japan and SPKS*1, a local union of small-scale oil palm farmers in Indonesia.
In the preceding survey, we confirmed the existence of latent risks in the environment and human rights faced by small-scale plantations through just over 70 questions from the three areas-operation, environment, and human rights-in addition to questions on basic information regarding the farmer’s profile. Based, on the survey results, we then get a more detailed understanding of the situations through direct communication (dialogues). According to our results of the survey and dialogues, none of the small-scale farmers surveyed in this study were facing human rights violations, environmental destruction , or other issues that require immediate action. On the other hand, we confirmed concerns regarding economic sustainability, such as the lack of understanding of RSPO and other certifications by farmers as well as the rising cost of farm maintenance due to price hikes in fertilizers.
The NISSIN FOODS Group will continue to conduct such surveys, dialogues, and other similar measures to strive to understand the environmental and social situations surrounding small-scale farmers and other parties as well as the problems obstructing compliance with and implementation of our sustainable procurement policy. In addition, we will study and implement measures toward improvement together with suppliers.
*1
About Serikat Petani Kelapa Sawit (SPKS)
This is a union of small-scale oil palm farmers established in Indonesia in 2006. It supports production of oil palm with consideration for the sustainability of farmers. The union has a network of more than 8,000 small-scale farmers in seven regions across Indonesia. Some of its activities include data collection and mapping of small-scale farmers, organization of farmers, training to improve productivity, and supporting the acquisition of certification—such as ISPO and RSPO—by farmers.
Online dialogue with small-scale oil palm farmers in Indonesia who grow palm oil
