Materiality of J-OIL MILLS (Things we value)

Overview
Achievements

Overview

As the impact of corporate activities on society increases, there is a need for business operations that take the environment, society, and governance (ESG) into consideration, and ESG is being emphasized as one of the evaluation indicators of corporate value. J-OIL MILLS views ESG initiatives as the foundation of business activities and an important element that influences competitiveness, and promotes ESG Management that is integrated with business. As social issues become more complex, we identify Materiality our company should prioritize and regularly address in order to realize our corporate philosophy and solve SDGs* issues, taking into account trends in international society. We are conducting a review.

*Sustainable Development Goals (SDGs)
A set of global issues and shared goals agreed upon by the United Nations that define the world's ideal state for 2030

In 2022, J-OIL MILLS reviewed its Sixth Medium-Term Business Plan (hereinafter referred to as the Sixth Medium-Term Plan), extending the four-year plan from 2021 to 2024 by two years to a six-year plan. As a result, there was a discrepancy between the achievement years of the goals linked to the company's materiality and the final year of the Sixth Medium-Term Plan, and in response to comments from various stakeholders that the materiality identification process was unclear, the company reviewed its materiality and identified four areas in 2023 as materiality related to its business strategy: "Realizing a sustainable society through a stable supply of food" and "Contributing to the well-being of all people through food safety and security," and as materiality related to its business foundation: "Respecting diversity and improving employee job satisfaction" and "Strengthen Corporate Governance."

Related to business strategy	Realizing a sustainable society through a stable food supply Contributing to everyone's well-being through food safety and security
Materiality related to business foundations	Respecting diversity and improving employee motivation Strengthen corporate governance

Regarding materiality
Activities so far

Achievements

Materiality for FY2024 and beyond

Scheduled to be published after June 2025

Materiality until fiscal 2023

Theme	Materiality	Main 2030 Goal image and quantitative targets	FY2023 results
Reducing environmental impact	Resources and cultivated land Contributing to reducing the work and workload of customers Climate change mitigation and	100% traceability to the plantation (palm) 50% reduction in CO ₂ emissions (Scope 1, 2, compared to fiscal 2013)	Maintaining 100% traceability to palm oil mills Traceability rate to palm oil plantations: 35% (January-June 2023 results) Purchase ratio of RSPO (※1) certified oil: 20% (including Group company PF (※2) results from January to December 2023) 32% reduction in CO ₂ emissions (Scope 1, 2, compared to 2013)
Maintaining food resources	Protein crisis response Food loss reduction and stable supply Preserving livestock and fishery resources Food safety and security	By making it possible to reproduce Good taste, satisfaction, functionality, health value, and nutritional value of animal-based foods using only plant-based ingredients, we will create new value unique to plant-based foods and contribute to social issues. Providing Good taste, satisfaction, functionality, and health value that only plant-based ingredients can provide Achieving low-impact food processing by reducing food waste and improving work efficiency from the perspective of "long-lasting oishisa" 70% of products are sustainable or use customer feedback	Variety of protein foods -Expanding meat-based PBF applications (continuation) - Expanding water mixing, conditions for using starch in livestock products, and applications (continued) Obtained additional CFP (Carbon Footprint of Products) mark for products using "SUSTEC^®" technology with long-lasting function, promoting market expansion Increase the proportion of "SUSTEC^®" products in Business use oils and fats products Penetration of environmental standards within the company to realize "low-impact" value Confirmation of the implementation of checks and operations for the above environmental standards, and expansion of the scope of application
Contributing to health through food	Contribution to health maintenance Responding to aging society Contribution to nutritional intake and management Responding to diversifying lifestyles	Establishment of technology that can promote oils and fats and oils and fats and the ingredients they contain, which will contribute to improving immune strength and preventing health problems. Providing nutritional functional ingredients to improve health issues faced by the elderly, such as frailty (by providing optimal solutions according to the status of the target person) Providing "delicious and healthy foods and ingredients" that utilize the benefits of plant-based ingredients and are suited to a variety of lifestyles Providing functional ingredients and foods to solve health issues such as lifestyle-related diseases. Continuously improving customer benefits through evaluation and feedback to development.	In order to achieve the goal image for 2030 shown on the left, we will focus on research and development related to prevention of ill health, health issues of the elderly such as frailty, and lifestyle-related diseases. Research and development is still underway as of fiscal 2023 Variety of protein foods -Expanding meat-based PBF applications (continuation) - Expanding water mixing, conditions for using starch in livestock products, and applications (continued)
Business continuity infrastructure	Strengthen corporate governance Strengthening risk management Promoting compliance	Realizing corporate governance that contributes to increasing corporate value Ensuring diversity on Board of Directors Improving stakeholder engagement Improving corporate value by strengthen our management foundation and reforming organizational culture	Increase the ratio of Member of the Board(Outside Director) on Board of Directors (March 31, 2024 = 62.5% → June 24, 2024 = 66.7%) Activating the internal reporting system (increasing the number of staff at reception desks) Conduct company-wide e-learning and feedback regarding compliance Conduct compliance training (will be conducted in five departments in FY2023, covering all departments in three years) Introduce an ownership system for business risks, and appoint a risk manager for each business risk (Executive Officer, etc.; from fiscal 2024, unified to CxO) through Risk Management Committee Monitor the implementation status of each measure for the 14 management risks set at the beginning of the fiscal year
	Supply chain management	The evolution of sustainable procurement Reconstruction of the logistics system (FY2025) *In FY2025, connect to the logistics platform under consideration in the Cabinet Office's "Strategic Innovation Program (SIP)"	We will create a "Voluntary Action Plan" in line with government guidelines for shippers and businesses aiming to streamline logistics and improve productivity. After approval by the government, we will submit the plan to the government in December. As a shipper, we will implement improvement activities based on a survey of logistics companies regarding delivery conditions (delivery from on-street parking, long waiting times, ancillary work, etc.), while also explaining to customers and modifying systems in preparation for the extension of delivery lead times from April 2024 (delivery two days after the order date). As a recipient, we conducted a survey of approximately 150 suppliers and began improvement activities. Plans to introduce truck berth reservation systems to the Yokohama Plant, Chiba Plant, and Wakamatsu Plant in fiscal 2024 *Already introduced at Shizuoka Office and Yokohama Plant
	Diversity, Equity, and Inclusion (DE&I)	Please refer to “(2) Human Capital and Diversity” in the 22nd Annual Securities Report.
	Work style reform & engagement
	Reforming our corporate culture and mindset	Strengthening dialogue between top management and employees	26 dialogues between management and employees
	Contribution to and cooperation with local communities	Strengthening of social contribution activities, increased expenses (1% of ordinary profits)	Strengthening social contribution activities, spending on social contribution activities in fiscal 2023: 22 million yen
	Timely and appropriate information disclosure	Increase in the ratio of individual and institutional shareholders (15% increase compared to FY2020) Increase in media exposure (advertising equivalent effect: 1.5 billion yen)	Achieve the 2030 target by increasing the ratio of individual and institutional investors by 20% (compared to 2020) Increase in media exposure and advertising conversion effect The 2030 target was achieved in 2022, so the target is currently being reviewed.

*1 RSPO (Roundtable on Sustainable Palm Oil): Roundtable on Sustainable Palm Oil
*2 PF (Premium Fats Sdn Bhd): A consolidated subsidiary of the Company