Sustainable sourcing

Overview

As a company that creates products from natural resources and provides valuable products to our customers, the sustainable sourcing of grain, which is the main raw material for oils and fats, is an important issues. In recent years, the growth of grains has been threatened by climate change and other factors, and as a result, there is an increased risk of large fluctuations in the price of raw materials. In addition to the problems of the natural environment, it is also necessary to actively address issues such as ensuring safety and quality, as well as the human rights of workers. In order to procure sustainable raw materials, J-OIL MILLS has established "Sustainable Procurement Policies and Standards" based on its "Environmental Policy" and "Human Rights Policy" and promotes sustainable procurement activities throughout the supply chain.

Soybean procurement policy

Soybean are one of the important raw materials that support our business activities. In addition to applications such as edible oils and various soybean processed foods, soybeans are also widely used for non-edible purposes such as biodiesel fuel and livestock feed, and the international demand for soybean continues to increase. On the other hand, it has been pointed out that there are environmental problems such as deforestation that may be caused by soybean production activities, as well as social problems such as human rights violations of indigenous peoples and workers.
Recognizing these social and environmental issues, and as part of initiatives to realize a sustainable society, we will implement measures to prevent deforestation and biodiversity in August 2022 in order to procure soybean that are considerate of the environment and human rights. We have established a soybean Procurement Policy based on five commitments: climate change, respect for human rights, and legal compliance, and have joined the Roundtable on Responsible soybean (RTRS*). As a company that supports food, we aim to improve traceability and strive to transparently and responsibly procure soybean in order to fulfill our social responsibility.

*Round Table on Responsible Soy Association: A non-profit organization established in Zurich, Switzerland in 2006 that promotes the expansion of responsible soybean production, trade, and use.

Palm oil procurement policy

Palm oil, which is pressed from oil palms, is an indispensable oils and fats for our lives, but in recent years, deforestation, the resulting loss of biodiversity, and human rights issues of local workers have been pointed out in the production process. In order to carry out responsible sourcing of palm oil, which is one of the most issues raw materials in the oils and fats, J-OIL MILLS joined the "Roundtable on Sustainable Palm Oil" (RSPO) in 2011 and obtained Plant certification for handling RSPO-certified palm oil in Yokohama Plant. In addition, in 2020, we established our approach to palm oil procurement in consideration of the environment and human rights as "Palm oil procurement policy."

Palm supplier traceability survey

2018

Goal: Build traceability

Result:

• 98.9% trace back to palm oil mills
• 99.9% traceability to palm oil refineries

2019

Goal: Continue to build traceability

Result:

• 98.5% trace back to palm oil mills
• 100% trace back to palm oil refineries

2020

Goal: Continue to build traceability

Result:

• 99.7% trace back to palm oil mills
• 100% trace back to palm oil refineries

2021

Goal: Aim for 100% traceability to palm oil mills and palm oil refineries

Result:

• 100% trace back to palm oil mills
• 100% trace back to palm oil refineries

2022

Goal: Aim to trace 10% to the farm

• 100% trace back to palm oil mills
• 100% trace back to palm oil refineries
• Trace to farm is 28.5%

• 18 refineries sites (100% trace)
• 4,127 sites mentioning mills (100% trace)
• Plantation (trace 28.5%)

Initiatives with GH (Good Hope)

Premium Vegetable Oils Sdn Bhd (PVO), which has a capital and business alliance with J-OIL MILLS, is a processed oil and fat products company based in Malaysia. PVO's parent company, Premium Nutrients Private Limited (PNPL), is a wholly owned subsidiary of Goodhope Asia Holdings (GH), a major palm oil plantation and oil production company headquartered in Singapore.
GH applies principles such as No deforestation, No Peat, No Exploitation (NDPE) throughout its supply chain throughout its business, and has earned a high reputation for its sustainability initiatives. are gaining. We also support sustainable economic activities in the areas where our farms are located and the surrounding communities, including support for small farms, healthcare on our farms, and the development of educational facilities. We would like to promote collaboration with GH as initiatives for sustainable procurement.

GH company website
http://www.goodhopeholdings.com/

Initiatives to improve traceability

As a company that creates products from the blessings of nature and provides valuable products to our customers, sustainable procurement of the grains that serve as raw materials for our products is an important issues.
The supply and demand for grains and vegetable oils is tightening due to factors such as a decrease in grain yields due to climate change and a labor shortage due to the global spread of the new coronavirus infection, and as a result, the risk of price fluctuations is increasing.
In addition, when procuring raw materials, it is important to ensure safety and quality, and consider the human rights of workers.
In order to procure sustainable raw materials, we are working to improve the traceability of palm oil and have also begun collecting information on soybean procurement.
Companies must be sensitive to new issues and needs, fulfill their responsibilities, and actively work to resolve environmental and social issues by providing new value. We will pursue sustainability in all areas, including the economy, the environment, and social and labor environments, and promote ESG Management.

Initiatives with suppliers

Collaboration with suppliers is important to increase the effectiveness of sustainable procurement. We have established a "Sustainable Procurement Policy and Standards" and ask not only our own company but all of our suppliers to comply with it.In addition, starting from fiscal 2022, we have adopted the "CSR Procurement Self-Assessment Questionnaire" created by the United Nations Global Compact Network Japan ( We use the GCNJ Common SAQ to conduct surveys of raw material and material suppliers to confirm the status of their sustainability initiatives. This questionnaire is based on international norms and consists of questions that reflect 10 principles related to four areas: protection of human rights, elimination of unfair labor, response to the environment, and prevention of corruption.

• Survey target: Raw materials/materials suppliers
• Survey target company coverage rate: Approximately 80% of raw material/materials procurement amount