J-OIL MILLS' materiality (things we value)

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)
The Sustainable Development Goals (SDGs) are the successor to the Millennium Development Goals (MDGs) formulated in 2001, and are part of the 2030 Agenda for Sustainable Development adopted at the United Nations Summit in September 2015. The international goal is to aim for a sustainable and better world by 2030. Consisting of 17 goals and 169 targets, it pledges to "leave no one behind" on earth. The SDGs are universal goals that are addressed not only by developing countries but also by developed countries themselves, and Japan is also actively working on them. (“What are SDGs?” JAPAN SDGs Action Platform. Ministry of Foreign Affairs. https://www.mofa.go.jp/mofaj/gaiko/oda/sdgs/about/index.html, reference: February 27, 2024)

J-OIL MILLS will review its Sixth Medium-Medium-Term Business Plan (hereinafter referred to as the Sixth Medium-Term Plan) in 2022, extending the four-year plan from 2021 to 2024 by two years to a six-year plan. It was extended. As a result of this, various stakeholders pointed out that there was a discrepancy between the year in which we achieved our goals related to materiality and the final year of the 6th medium-term plan, and that the materiality identification process was unclear. In response to this, we are reviewing our materiality. In 2023, the materiality related to our business strategy is "Achieving a sustainable society through a stable food supply" and "Contributing to the well-being of all people through food safety and security," and the materiality related to our business foundation is "Diversity." We have identified four areas: respecting gender and improving employee job satisfaction, and Strengthen Corporate Governance. In the future, we will organize sub-materiality linked to each area and set goal images and KPIs.

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

Specific activity items

We plan to reorganize each materiality we have worked on so far into sub-materiality linked to the four areas of materiality identified in 2023.

Resources and cultivated land Sustainability guarantee	We contribute to the sustainability of the earth's limited resources by using raw materials efficiently and developing products with low environmental impact.
Contributing to reducing the work and workload of customers	long-lasting oil " Cho Toku" and Oishisa design oil " JOYL PRO Series ®" not only improve Good taste but also reduce work and workload.
Climate change mitigation and adaptation	We will initiatives to reduce greenhouse gas emissions throughout the supply chain, including continuous initiatives in raw material procurement, production, and logistics processes, as well as the development of environmentally friendly products.
Protein crisis response	Amid concerns about food shortages due to global population growth and economic growth, we are contributing to people's health and reducing environmental impact through delicious, low-impact plant-based foods (PBF).
Food loss reduction and Stable supply	Through our unique technology to suppress deterioration over time and improve texture, we contribute to reducing food loss, and as a company that supports people's dietary habits, we fulfill our responsibility to provide a stable supply of food.
Meat and fishery resources Retention	By utilizing meals, PBF, etc., we will contribute to maintaining the livestock and fisheries industries and reducing the burden of livestock farming.
Food safety and security	In order to continuously provide safe, secure, and high-quality products and services, we will promote legal compliance and ensure food safety.
Contribution to health maintenance	Through products such as PBF that utilize our unique materials and technology, we provide opportunities to consume plant-based nutrients and contribute to maintaining health.
Responding to aging society	By proposing efficient calorie intake through oil and improving Good taste, we will enrich the eating habits of Japan's aging society.
Lifestyle Diversification	We provide food that is compatible with today's diverse lifestyles and dietary cultures such as vegans and flexitarians.
Contribution to nutritional intake and management	We contribute to nutritional intake and management by utilizing our proprietary technology and nutritional components generated during the manufacturing process.
Corporate Strengthening governance	We will realize honest and highly transparent management that earns the trust of all our stakeholders.
Strengthening risk management	We appropriately manage risks that may arise in corporate management in order to continuously improve corporate value.
Promoting compliance	In order to remain a company that is always trusted by society, we strive to ensure thorough compliance for all employees.
Supply chain management	We will initiatives to establish a system for appropriate management of the supply chain, including consideration for the environment and human rights, and ensuring quality and safety throughout the supply chain.
Diversity & inclusion	We are promoting the creation of an organization and work environment where diverse human resources can fully demonstrate their individual characteristics and abilities.
Work style reform & engagement	We are promoting reforms with the aim of creating a workplace where diverse human resources can work autonomously and voluntarily to achieve results.
Reforming our corporate culture and mindset	We are working to create an environment that is open and allows each employee to freely express their opinions.
Contribution to and cooperation with local communities	We will work together in various ways to develop together with the local community.
Timely and appropriate information disclosure	Through timely and appropriate information dissemination, we will achieve two-way communication with our stakeholders and build stronger relationships of trust.

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

Materiality of J-OIL MILLS (Things we value)

Overview

Specific activity items

Achievements

Materiality for FY2024 and beyond

Materiality until fiscal 2023