Identification of Material Issues

The NISSIN FOODS Group used the following steps to identify material issues. A review of the material issues is also conducted at least once each year at the Sustainability Advisory Board, an advisory committee of the Board of Directors.

Step1: Extraction of Issues

Issues were extracted using means such as international standards—such as the areas of emphasis of the Dow Jones Sustainability Index (DJSI)* and other ESG evaluation agencies and the guidelines of the Sustainability Accounting Standards Board (SASB) of the United States—as well as dialogue with external stakeholders (investors and analysts), employees, and external organizations.

• *Index for investors which evaluates companies from the three aspects of the economy, the environment, and society

Step2: Prioritization of Issues

Using international guidelines such as the principle of double materiality, the extracted issues were evaluated under the two aspects of importance to stakeholders and importance to business to prioritize the issues. The issues were also evaluated for alignment with the Group’s mission, vision, and values.

Step3: Management Decision-Making

To evaluate the appropriateness of the order of priority, after being discussed at the Sustainability Advisory Board that included the participation of external experts, reporting and approval at the Management Advisory Committee—which included the participation of the CEO, COO, and outside directors—were undertaken for a decision.

Material Issues in Management Strategies

As important management issues to be undertaken with priority by the NISSIN FOODS Group, the four material issues identified are also linked to the Mid- to Long-Term Growth Strategy. “Contribution to Health and Nutrition Improvement” is being undertaken through the rollout of the KANZEN 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 Mitigation and Adaptation” and “Sustainable Procurement” while also linking these two issues to the targets stated in the environmental strategy EARTH FOOD CHALLENGE 2030. For “Training and Utilization of Creative Human Resources,” 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, the degree of achievement of ESG-related targets—such as CO₂ reduction and the rate of sustainable procurement and including the four material issues—is also reflected in the performance evaluation for directors’ basic remuneration.*

• *The weight of the evaluation of ESG-related objectives differs for each director in charge. The performance-linked remuneration of directors’ basic remuneration fluctuates within a maximum range of 40%, from -20% to +20%

Risks and Opportunities of Material Issues

Integration of Material Issues into Group-Wide Risk Management

As sustainability-related risks—such as the material issues—impact the achievement of the Group’s growth strategy, they are managed as Group-wide risks in collaboration with the Comprehensive Risk Management Committee.

• Risk Management