NISSIN FOODS GROUP

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Sustainable Procurement

Institution of Sustainable Procurement Policies

There are various underlying problems regarding raw materials production processes, including child labor, forced labor, poor working conditions, and the negative environmental impact on the areas around the production site.

The NISSIN FOODS Group instituted the Basic Policy on Green Procurement in May 2007 and is promoting procurement of environmentally friendly raw materials. In addition, we build a traceability system from raw materials to finished products and product shipment for the purpose of ensuring product quality.

To strengthen these initiatives, in September 2017 we instituted the NISSIN Group Policy on Sustainable Procurement. This policy addresses food safety, respects the global environment and human rights, and proclaims our commitment to procuring legally produced raw materials. For realizing this policy, the cooperation of our tier 1 suppliers is important. We therefore inform them of the policy and obtain signed documents on the confirmation.

Status of Sustainable Procurement for Each Raw Material

Palm oil

Palm oil is a vegetable oil extracted from oil palms. Oil palms are grown mainly in tropical areas such as Indonesia and Malaysia. Some plantation farms have been cited for destroying rainforests and ecosystems, emitting greenhouse gases (GHG) from peatland fires, and violating the human rights of plantation workers, and other issues.

Commitment to the Procurement of Sustainable Palm Oil

The NISSIN FOODS Group supports the No Deforestation, No Peat, No Exploitation (NDPE) requirement. We have committed to cooperating with our suppliers and other stakeholders to procure sustainably sourced palm oil which has been produced in consideration of the environment of the palm's habitat and workers' rights.

  • Protect high Conservation Value (HCV) areas and High Carbon Stock (HCS) forests, zero deforestation
  • Prohibit the new development of peatland regardless of depth
  • Prohibit burning for planting, land development, and other types of development
  • Respect the rights of indigenous people and local residents, and prohibit infringement of land rights
  • Comply with the Principles and Criteria for the Production of Sustainable Palm Oil* set forth by the Roundtable on Sustainable Palm Oil (RSPO)
  • Confirm traceability, extending all the way to plantation farms

Principles and Criteria for the Production of Sustainable Palm Oil set forth by the RSPO

We comply with human rights policies to respect for human and labor rights
NISSIN FOODS Group Policy on Human Rights

Implementing assessments

  • The NISSIN FOODS Group, together with Japanese domestic oil and fat manufacturers that supply the Group, is confirming that there are no violations of local laws at the primary refineries and oil mills from which domestic oil and fat manufacturers are sourcing their products.
  • In case if we find some local suppliers potentially have negative impacts on the environment or human rights, we cooperate with oil and fat manufacturers to investigate the issues and implement some measures. In specific, we monitor oil mills and plantation farms for potential problems by looking at the grievance list managed by oil and fat manufacturers. We also take actions, including providing corrective guidance or the suspension of business transactions. We confirmed with oil and fat manufacturers that since 2019, there were 7 cases of providing corrective guidance, including strengthening traceability to plantation farms, and 3 cases of suspended trading with oil mills and plantation farms.

Issues Pointed Out in the Procurement of Raw Materials (Palm Oil) for NISSIN FOODS Products: July 2020 [PDF 163KB]

Future Initiatives
  • Together with the Caux Round Table (CRT) Japan, a group of outside experts, members of the Resourcing Division and the Sustainability Committee of NISSIN FOODS HOLDINGS plans to visit plantation farms and local residents, conduct environmental and social field surveys, and conduct an interview with local human rights NGOs.
  • The assessment sheet to be used in these field surveys and interviews reflect the various standards established by countries and international institutes, including the NDPE, RSPO, MSPO*1, ISPO*2 and ISCC*3, and will be established with the cooperation of the Caux Round Table Japan Committee.
  • *1MSPO: Malaysian Sustainable Palm Oil
  • *2ISPO: Indonesian Sustainable Palm Oil
  • *3ISCC: International Sustainability & Carbon Certification

Procure RSPO-certified palm oil

To procure palm oil that has received third-party certification that production takes into consideration factors including the prevention of deforestation and protection of biodiversity, the NISSIN FOODS HOLDINGS became a member of the Roundtable on Sustainable Palm Oil (RSPO)*1 in October 2017. From March 2019, all domestic plants that manufacture CUP NOODLES began procuring RSPO-certified palm oil. At present, the CUP NOODLES*2 packages bear the RSPO certification mark.
The NISSIN FOODS Group endorses the Principles and Criteria of the RSPO, which are determined after discussions with many stakeholders. And in April 2019, NISSIN FOODS HOLDINGS joined, as a board member, the Japan Sustainable Palm Oil Network (JaSPON) - which promotes the use of RSPO-certified palm oil.

  • *1RSPO stands for Roundtable on Sustainable Palm Oil. The goal of the RSPO is to promote and operate a sustainable palm oil industry. It is an international non-profit organization established in 2004 by the World Wildlife Fund (WWF) and companies that are closely connected with palm oil. The organization is headquartered in Kuala Lumpur Malaysia. The RSPO certification mark is given to palm oil produced at RSPO-certified palm oil plantation farms and products distributed and processed by certified business operators. As of June 2020, the RSPO has more than 4,000 members worldwide, including palm oil producers, processors, manufacturers, retailers, and environmental NGOs from various walks of life. These members pledge to produce, supply and use RSPO-certified sustainable palm oil. Numerous stakeholders participate in the RSPO to repeatedly conduct talks while aiming to product and use sustainable palm oil. The members also review RSPO Principles and Criteria to address changes in conditions.
  • *2Only applies to regular flavor/size CUP NOODLES. It does not apply to variations (different sizes and flavors).

Goals and achievements in palm oil procurement

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 FY2031. We are undertaking measures to achieve this goal as quickly as possible.

Palm oil sustainable procurement rate
FY2031 goal: 100%
Usage ratio of RSPO-certified palm oil
FY2020 results: 20% (usage ratio of NISSIN FOOD PRODUCTS, NISSIN FOODS (U.S.A.) and Nissin Foods Kft. to the entier Group*)
Procurement rate from suppliers that can trace products up to oil mills
FY2020 results: 100% (Scope: group companies in Japan)
  • *Certification at NISSIN FOOD PRODUCTS and NISSIN FOODS (U.S.A.) is based on Mass Balance, but Segregation is used for Nissin Foods Kft.
    Mass Balance: Certification model whereby certified palm oil is mixed with other non-certified palm oil during the distribution process. Physically, the palm oil includes non-certified palm oil. The ratio of non-certified palm oil is strictly recorded up to the final stage of use. The purchased certified plantation farm and certified palm oil volume are guaranteed.
    Segregation: This is made up of certified palm oil obtained from several certified plantation farms. Non-certified palm oil is not mixed in. This is a certification model whereby only certified oils are delivered through to the final manufacturer. Although this model cannot identify a single production plantation, it does guarantee raw materials produced by certified plantation farms.
COLUMN

Palm Oil is Essential for Manufacturing Instant Noodles

Chicken Ramen, the world’s first instant noodles, was launched in August 1958. The base manufacturing technology is an “flash frying method.” The noodles are fried in high-temperature oil to extract moisture. The noodles, which are nearly dried, can be stored for a long period of six months without changing in quality or rotting. In addition, when hot water is poured over the noodles, the hot water seeps into the noodles through a countless number of holes on the noodles, returning them to their original texture. This flash frying method is still being used today as the basic technology for oil-fried instant noodles. Palm oil is mainly used to fry these noodles.
Palm oil, extracted from the pulp of the fruit, is the most widely used vegetable oil worldwide. Palm oil boasts superior storability as it does not easily oxidize. Its high level of safety is one of its advantages. It also tastes well and when used for frying, offers a good texture. Oil palms bear fruit throughout the year, contributing to stable supply. The harvest volume per unit area is also higher than other vegetable oils. Compared to soy bean or rapeseed oil, the harvest volume can be 8-10 times higher. Owing to these features of palm oil, it is an essential ingredient for frying instant noodles.

Paper

NISSIN FOODS Group places priority on using FSC®*1 and PEFC*2 certified paper, produced from sustainable forestry management, and used paper mainly for product containers and packaging, various types of printed matter, and as copy paper. Uncertified paper is procured from suppliers that can prove that the production did not involve deforestation, did not entail the cutting of forests with a high conservation value or with a high level of carbon storage, and was conducted in compliance with the local laws and ordinances and those in forest-producing countries.

MYOJO FOODS CO., LTD. is promoting the use of FSC®-certified paper and biomass ink made from biological resources. The outer packaging of MYOJO CHUKAZANMAI (bag-type noodles) indicates that FSC®-certified paper is used, and the hot water drainage lid of MYOJO IPPEI-CHAN YOMISE NO YAKISOBA indicates that FSC®-certified paper and biomass ink is being used.

  • *1Forest Stewardship Council®
  • *2Programme for the Endorsement of Forest Certification Schemes

Marine Products

The NISSIN FOODS Group aims to procure marine products that are caught in accordance with fishery methods that protect the ecosystem based on systematic marine resources management and give consideration to the human rights of employees. In light of this, the Group is promoting the procurement of MSC and ASC certified marine products. If these certified products cannot be available, products are procured from suppliers that can confirm conditions up to the fishing ground. For example, the Alaskan Pollack, which is used in making fish paste, is all MSC-certified. Meanwhile, squid and shrimp are procured from suppliers that can trace conditions up to the fishing ground.

Soybeans

The soybeans NISSIN FOOD PRODUCTS procures as a raw material for deep fried tofu (applies to deliveries to plants in and after July 2020) are produced using sustainable methods certified by the U.S. Soybean Export Council (USSEC).

Agricultural products

The green onions and cabbage used as raw materials by NISSIN FOOD PRODUCTS are grown under contract, and a representative of the Resourcing Division of NISSIN FOODS HOLDINGS visits the fields to check cultivation and agricultural chemicals use records.

Animal welfare (livestock)

The NISSIN FOODS Group complies with proper usage methods of veterinary pharmaceutical drugs, including antibiotics and growth hormones, in line with national standards. In addition, suppliers that deliver chicken extract confirm that the chickens are not neglected in an unsuitable environment (in other words, neglected at night). In addition, recently the Group is marketing vegetarian products that do not use animal materials and are promoting the use of plant-based meat alternatives.

Development of Low Environmental Impact Plant-Derived Meat Alternatives and Cultured Meat Products

It is said that the livestock industry is the source of about 15% of the world’s greenhouse gases. The methane gas and other gases emitted from livestock excrement and cow burps have an enormous environmental impact, in addition to that of the feed and water necessary for livestock production.

In 2016, the NISSIN FOODS Group developed “soy beef,” made using an original production process with soy protein as the main raw material, and began using it as a product ingredient.
Subsequently, we are promoting the use of “soy meat,” including the development of soy pork and a duck-like ground meat product.

In March 2019, we were the first in the world to successfully produce bovine muscle tissue in the form of a diced steak (1.0 cm × 0.8 cm × 0.7 cm) using beef-derived muscle cells, created in collaboration with the research group of Professor Shoji Takeuchi of the Institute of Industrial Science, the University of Tokyo.* This is called “cultured meat.” It refers to meat that is derived from cells that undergo tissue cultivation, rather than from the body of an animal.
This research group is also undertaking research to artificially produce three-dimensional muscle tissue, with the goal of achieving cultured steak meat that has the same texture as real meat. By developing these technologies, we believe it will be possible to product larger muscle tissue going forward. This is the first step in the commercialization of cultured steak meat that has the same texture as real meat.

Meanwhile, given that cultured meat is an innovative food product made from an unprecedented method, it is unknown whether it will be accepted by society at large. In light of this, NISSIN FOODS HOLDINGS implemented Japan’s first large-scale awareness survey of attitudes toward cultured meat in 2019 to confirm the level of acceptance of cultured meat by general consumers and to examine what type of information disclosure is needed to improve acceptance. In addition, the company is participating in the Cellular Agriculture Institute of the Commons, a group of companies and research institutes that discuss problem-solving for the spread of cultured meat.

  • *A research group that was selected by the Japan Science and Technology Agency (JST) for the Research and Development Program for Future Creation (Search Acceleration Type) to work on “Development of the production technology for next generation-meat using 3D tissue engineering techniques” (R&D representative: Shoji Takeuchi)
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