NISSIN FOODS GROUP

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Material Issues

Identification of Material Issues

The NISSIN FOODS Group aims for sustainable growth by addressing social issues and creating economic value. To achieve this, we identify material issues that are directly linked to our businesses and which affect the enhancement of the Group’s medium- and long-term corporate value, taking into consideration changes in society and our business environment.

In FY 3/2025, we reviewed and analyzed our material issues, referencing the guidance on double materiality assessment published by CSRD/ESRS*. Based on the ESG-related topics stipulated by CSRD/ESRS, we identified both the impacts our business activities have on changes in the environment and society (impact materiality), and the impacts those changes have on our business (financial materiality).

Going forward, we will embody the philosophy of the founder by working on the identified material issues while taking on the challenge of “Planetary Health” and “Human Well-being,” which are social issues for the Group.

  • *Corporate Sustainability Reporting Directive/European Sustainability Reporting Standards
Identification Process
The NISSIN FOODS Group used the following steps to identify material issues.

Step1: Identification of affected stakeholders

Through discussions at the Sustainability Advisory Board—where members include external experts—and surveys conducted on employees, we identified stakeholders who may be affected by our businesses across our entire value chain.

Step2：Identification of issues and analysis of the issues’ impacts, risks, and opportunities

For the stakeholders identified in Step 1, we analyzed the impacts that our businesses have on ESG issues—such as climate change and sustainable procurement—as well as the accompanying risks and opportunities. For the ESG-related topics, we referenced the topics stipulated by ESRS as well as the requirements of ESG evaluation agencies and other parties, which are of relevance to the NISSIN FOODS Group.

Step3：Evaluation and identification of importance

For each ESG issue, we quantified severity and likelihood from two perspectives—the impacts that changes in the environment and society have on our businesses (financial materiality) as well as the impacts of our businesses on changes in the environment and society (impact materiality)—and formulated the assessment map.
Based on the assessment map, taking into consideration the Group’s mission, vision, and values (MVV), overall business structure, and alignment with our strategies, appropriateness as the Group’s material issues was confirmed with the top management and the material issues were decided through resolutions by the Management Committee and the Board of Directors.

Material Issues in Management Strategies

As important management issues to be undertaken with priority by the NISSIN FOODS Group, the seven material issues—which are all extremely important from the perspectives of either financial materiality or impact materiality—are also linked to the Mid- to Long-Term Growth Strategy. The Group views material issues not merely as a risk response, but as an opportunity to strengthen the foundation of its existing businesses, expand profits (economic value), and create social value, thereby enabling the Group to achieve sustainable growth.
“Health and Nutrition” is being undertaken through the rollout of the KANZEN MESHI (Perfect Meal) brand under the growth strategy theme of “Pursue New Businesses” stated in the Mid- to Long-Term Growth Strategy. The implementation of energy-saving measures, introduction of renewable energy, and procurement of raw materials with consideration for the environment are being promoted under “Climate Change,” “Biodiversity,” “Deforestation,” and “Sustainable Value Chain Management” while also linking these issues to the targets stated in the environmental strategy EARTH FOOD CHALLENGE 2030. For “Human Resource Development,” human resources are seen as the foundation for implementing the Mid- to Long-Term Growth Strategy, and various measures—such as the Group philosophy training—are being undertaken to invigorate employees and organizations.
In addition, from FY 3/2026, the degree of achievement of targets related to the material issues—such as climate change and sustainable procurement—is also reflected in the performance evaluation for officer remuneration, including that for directors.*

  • *The performance-linked basic remuneration for directors fluctuates from 0 to 50%, while that for executive officers fluctuates within a maximum range of 40%, from -20% to +20%. The weight of the evaluation of ESG-related objectives differs for each officer.

Officer Remuneration [PDF 20.3MB]

Impacts, Risks, Opportunities, and Targets

The NISSIN FOODS Group analyzed the impacts of the Group’s material issues as well as the accompanying risks and opportunities to enhance its medium- and long-term corporate value. For those materials issues considered extremely important from both the perspective of “financial materiality” or “impact materiality” we have set the following targets and are working to achieve them.

1. Health and Nutrition / Product Safety

Item Summary Severity Likelihood Overall assessment
Key risks
  • ・Risk of reduction in market purchasing power brought about by health and nutrition issues such as the double burden of malnutrition
  • ・Risk of higher costs necessary for responding to tighter regulations for improvement of nutrition issues
High High Extremely Important
Key opportunities
  • ・Higher sales revenue from development and sales of products with higher nutritional value for health-conscious consumers
  • ・Market expansion from providing diverse products according to the various consumer needs and preferences
  • ・Enhanced brand loyalty by providing consistently high-quality products
Targets
  • ・Increase the sales of wellness products at domestic Group companies to ¥23 billion by FY 3/2031
  • ・Increase the percentage of products with improved nutritional value through NISSIN Nutrient Profiling System (NISSIN-NPS*) to 50% (compared to 2020) by 2030
  • ・Launch 150 nutritious products that meet the criteria of healthy product set by NISSIN-NPS by 2030
  • *Our own nutritional profiling system, "NISSIN-NPS," which scores the nutritional value of products
Progress / Related initiatives Health and Nutrition

2. Human Resource Development

Item Summary Severity Likelihood Overall assessment
Key risks
  • ・Risk of disruption to business activities from inability to recruit or secure human resources at company plants, etc. due to a shortage of human resources in the labor market
  • ・Risk of disruption to development of executive candidates from inability to recruit or secure excellent human resources due to a shortage of human resources in the labor market
High High Extremely Important
Key opportunities
  • ・Creation of innovation and improvement of competitiveness through obtaining diverse human resources
Targets
  • ・Achieve 10% or higher for the percentage of female managers by the end of FY 3/2026
  • ・Achieve 85% for the percentage of male employees taking childcare leave in FY 3/2031
Progress / Related initiatives Human Resource Development
Human Capital Report [PDF 6.8MB]

3. Climate Change

Item Summary Severity Likelihood Overall assessment
Key risks
  • ・Risk of penalties and fines arising from non-compliance with environmental laws and regulations
  • ・Risk of higher costs for complying with tighter environmental laws and regulations
  • ・Risk of lawsuits related to environmental issues in the supply chain
  • ・Risk of difficulties in procuring raw materials and supplying products due to the impact of climate change
 High High Extremely Important
Key opportunities
  • ・Development and use of plant-derived food alternatives using food technology
  • ・Stable raw material procurement due to strengthening of supplier management
  • ・Increase in demand as stockpile products for disaster preparedness due to frequent occurrences of large-scale natural disasters
Targets
  • ・Reduce Scope 1 and Scope 2 emissions by 42% (compared to 2020) and Scope 3 emissions by 25% (compared to 2020) by 2030
  • ・Achieve 60% for the procurement ratio of renewable energy in electricity used for business activities in Japan and overseas by FY 3/2031
  • ・Achieve 100% for the procurement ratio of renewable energy in electricity used for business activities in Japan and overseas by FY 3/2051
Progress / Related initiatives Climate Change
EARTH FOOD CHALLENGE 2030

4. Biodiversity / Deforestation / Sustainable Value Chain Management

Item Summary Severity Likelihood Overall assessment
Key risks
  • ・Risk of lawsuits arising from non-compliance with environmental laws and regulations
  • ・Higher costs for complying with tighter environmental laws and regulations
  • ・Risk of lawsuits related to environmental issues in the supply chain
  • ・Risk of disruptions to raw material procurement due to impacts such as biodiversity loss
 High High Extremely Important
Key opportunities
  • ・Development and use of plant-derived food alternatives using food technology
  • ・Stable raw material procurement due to strengthening of supplier management
Targets
  • ・Achieve 100% for the Group-wide procurement ratio of sustainable palm oil by FY 3/2031
  • ・Achieve 100% for the procurement ratio of sustainable palm oil for the instant noodle business in Japan by FY 3/2026
  • ・Maintain 100% for the procurement ratio from suppliers that can trace products up to oil mills
  • ・Increase the amount of vegetable protein used as instant noodle ingredients in Japan to 1,100 tons per year by FY 3/2031
Progress / Related initiatives Sustainable Procurement

Integration of Material Issues into Group-Wide Risk Management

As sustainability-related risks—such as the material issues—have an impact on the achievement of the Group’s growth strategy, they are managed as Group-wide risks in collaboration with the Comprehensive Risk Management Committee, which is chaired by the Executive Vice President & Representative Director and Chief Operating Officer (COO).

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