The Nissui Group has designated “Preserve the bountiful sea and promote the sustainable utilization of marine resources and their procurement” as one of the key issues of CSR, and aims to have the items that the Nissui Group procures confirmed as sustainable by the year 2030.
The preservation of resources and resolution of labor-related human rights issues is called for when using and procuring marine resources. We are working with our suppliers to implement sustainable procurement that maintains respect for human rights.
Nissui has formulated the Nissui Group Basic Procurement Policy by summarizing the basic approaches to the procurement of raw materials and products.
The Nissui Group declares that it will appreciate the bounty of the earth and sea, and create diverse value through following the company’s “five genes”, carried forward since its foundation, and will try to solve social issues through the business activities covered in our CSR Action Declaration.
Based on that, the Nissui group developed its Nissui Group Basic Procurement Policy in order to meet the expectations of stakeholders, and to contribute to society when purchasing raw materials and products.
The Nissui Group is promoting procurement through relationships built on trust, with suppliers who understand and cooperate with this policy.
Nissui has formulated the CSR Supplier Guidelines in order to achieve sustainable procurement in cooperation with its suppliers and partners. These guidelines are divided into the seven major headings of “Legal Compliance, Procurement Ethics,” “Consciousness of Environmental Preservation,” “Respects for Human Rights,” “Collaboration with Suppliers and Partners,” “Ensuring Quality and Safety,” “Information Security” and “Contribution to Society.”
Nissui, in accordance with the Nissui Group Basic Procurement Policy and CSR Supplier Guidelines, promotes CSR procurement based on a 3-point checking system, in an effort to eliminate human rights and environmental risks of the suppliers with which the Nissui Group deals.
This is a self-check sheet for suppliers that maintain close relationships with the Nissui Group, including relationships based on large transaction amounts and relationships with a high degree of dependence. The self-check sheet asks the supplier to provide the status of its initiatives relating to “Compliance, Procurement Ethics,” “Awareness of Environmental Preservation,” “Respect for Human Rights,” “Ensuring Quality and Safety,” “Information Security” and “Contribution to Society.” The self-check sheet comprises 132 items with many of the questions emphasizing the environment and human rights. Seminars are held for suppliers who are required to conduct this self-check sheet (Sustainable procurement seminar).
This is a check sheet for potential Nissui suppliers. The check sheet is conducted in an interview format and comprises 17 basic questions on CSR. The check sheet is conducted to confirm the potential supplier’s intentions to work with Nissui and to have the potential supplier express consent to the concept and ideals of Nissui’s CSR procurement.
This check sheet applies to all of the more than 650 suppliers, with which Nissui currently has transactions. The items on the check sheet have been narrowed down and only contain nine items relating to “Respect for Human Rights” which is integral to CSR procurement but Nissui employees conduct physical checks of the supplier sites and goods.
The Nissui Group uses this 3-point checking system to confirm and understand the situation of its suppliers, and in the event that potential risks are detected, works to improve the situation with the supplier. Nissui is aiming to achieve sustainable procurement across its entire supply chain.
The Sustainable Procurement Seminar is held as a preliminary briefing for suppliers in Japan who will be replying to the “Self-Check Sheet of Nissui CSR Purchasing Initiatives” for the first time. In addition to communicating the CSR initiatives of the Nissui Group including the “Nissui Group Basic Procurement Policy” and the “CSR Supplier Guidelines” and a summary of the “Self-Check Sheet of Nissui CSR Purchasing Initiatives,” the seminar offers lectures on “The CSR Required in the Procurement of Marine Products and Foods” by outside lecturers in order to share the basic concepts of CSR procurement.
In February 2019, a seminar was held for the 16 suppliers who replied to the “Self-Check Sheet of Nissui CSR Purchasing Initiatives” for the first time in fiscal 2019.
Sustainable Procurement Seminar
In fiscal 2019, Nissui received replies to the “Self-Check Sheet of Nissui CSR Purchasing Initiatives” from 33 suppliers both in Japan and overseas (New: 19 suppliers, Repeat: 14 suppliers). As well as summarizing the results of the survey into a graph, feedback sheets with comments that focused on the suppliers’ understanding and initiatives toward “Respect for Human Rights” and “Awareness of Environmental Preservation” were returned to the suppliers, requesting each supplier to further reinforce their efforts going forward. Furthermore, to confirm the suppliers’ intentions and their actual situations, Nissui visited ten of the suppliers and conducted interviews.
Nissui also used the “Simplified Check Sheet” to confirm the labor environment and the labor management of five of the suppliers in Japan.
In fiscal 2020, Nissui will have 36 suppliers (New: 23 suppliers, Repeat: 13 suppliers) reply to the “Self-Check Sheet of Nissui CSR Purchasing Initiatives” and also plans to carry out confirmation using the “Simplified Check Sheet,” whenever necessary.
| FY2018 | FY2019 | FY2020 (Planned) |
|
|---|---|---|---|
| Number of suppliers replying to the Self-Check Sheet of Nissui CSR Purchasing Initiatives (Including repeat respondents) |
32 （-） |
33 （14） |
36 （13） |
| Number of suppliers replying to the Simplified Check Sheet |
Not carried out | 5 | As needed |
| Number of suppliers replying to the Check Sheet of CSR Purchasing Initiatives for New Suppliers |
Not carried out | Not carried out | As needed |
In August 2018, a stakeholder dialogue was held with two experts. Opinions were exchanged on the surveys on the status of the marine resources procured by the Nissui Group and the experts expressed their views and gave assessments on the evolution of CSR procurement.
In the dialogue, the experts commented, “The development of a system of CSR procurement involving the suppliers is a potent IUU fishing measure. In the future, Nissui will reach a stage where it will need to consider how to incorporate third-party assessments,” and “Expanding IUU fishing measures will become a means of self-defense against the problems of slave-labor, which is increasingly becoming a problem.”
Stakeholder Dialogue
Gorton’s Inc., member of the Nissui Group is promising sustainable procurement of raw materials including seafood, palm oil and packaging materials with its “Gorton’s Trusted Catch”.
Gorton’s has been making efforts to improve sustainability of marine resources by procuring wild-caught fish only with MSC certification and farmed seafood only with BAP (Best Aquaculture Practices) and ASC (Aquaculture Stewardship Council) certification.
The Nissui Group company, King & Prince Seafood Corp. (“K&P”) manufactures and sells frozen foods, mainly seafood, in the US. K&P values “Fairness” in its business operations and requires the suppliers involved in the manufacture of its seafood to sign a pledge that they do not engage in unfair labor practices including slavery. As of December 31, 2019, 58 suppliers have signed the pledge. In addition to conducting its own audits on the labor environment, K&P is also scheduled to become a member of SEDEX and will continue to promote initiatives that will further enhance the reliability of its CSR procurement.
(Note) SEDEX: A non-profit organization in U.K. that promotes social and environmental concerned business practices. It operates one of the world's largest supply chain management systems and has more than 50,000 member companies and organizations in 150 countries.