Initiatives for TNFD Recommendations

Environment

Initiatives for TNFD Recommendations

TNFD Report

TNFD Report 2025

TNFD Report 2025 (PDF) (22.6MB)

Past reports

TNFD Report 2023 (PDF) (3.20MB)

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Disclosure of Information Based on TNFD Recommendations (Excerpt from the TNFD Report)

The Nissui Group recognizes the preservation of biodiversity as a vital management issue. The Group joined the Task Force on Nature-related Financial Disclosures (TNFD) Forum in September 2023, and registered as a TNFD Adopter in December 2023.
The Nissui Group has issued the “Nissui Group TNFD Report,” which organizes our dependencies and impacts on nature in our business activities, as well as the related risks and opportunities and our response measures, in accordance with the TNFD framework. The following is an excerpt from the report. For further details, please refer to the “Nissui Group TNFD Report.”

TNFD Report
Participation in External Initiatives

Governance

Efforts related to natural capital and biodiversity in the Nissui Group are primarily handled by six subcommittees: the Marine Resource Sustainability Subcommittee, the Sustainable Procurement Subcommittee, the Marine Environment Subcommittee, the Plastics Subcommittee, the Environmental Subcommittee, and the Human Rights Subcommittee. Each subcommittee develops and implements policies and strategies, and reports to the Sustainability Committee.
At the meeting of the Sustainability Committee, which is convened six times a year, specific targets, policies and measures for sustainability-related issues are examined based on reports and proposals made by each subcommittee, and the Board of Directors’ opinions and advice are reflected in its initiatives through periodic reports made to the Board of Directors.

Sustainability Committee

Chair: President & CEO
Members: All of the Executive Officers and the Outside Directors
Secretariat: Sustainability Department
Report to: Board of Directors
Holding frequency: Six times a year

Strategy

Scoping of the evaluation

In selecting the target categories and scope of the assessment, we referred to the Science Based Targets Network (SBTN) High Impact Commodity List v1.1. “Wild capture seafood” and “farmed seafood,” which form the core of the Nissui Group’s value chain, are lassified as High Impact Commodities. According to SBTN literature review, the drivers of impacts on nature for wild capture seafood include “marine ecosystem use,” “marine ecosystem change,” “other resource use,” “climate change,” and “marine pollution,” while for farmed seafood they include “marine ecosystem conversion,” “marine pollution,” and “climate change.”
In addition, we used the 2024 updated version of ENCORE (Note), an online tool recommended by TNFD, to narrow down the activities within the value chain to be assessed. As a result, we confirmed that fisheries and aquaculture business activities within our Group’s value chain have a high level of dependence on nature and the potential to exert significant impacts on nature. Accordingly, we selected “fisheries” and “aquaculture,” which are upstream processes with substantial direct interfaces with nature, as the scope of this assessment.

(Note) ENCORE: Exploring Natural Capital Opportunities, Risk and Exposure. A tool for evaluating dependence and impact on natural capital for each business sector and production process. Developed under the leadership of the Natural Capital Finance Alliance, in collaboration with UNEP-WCMC (United Nations Environment Programme World Conservation Monitoring Centre).

Identification of dependencies and impacts

Based on the actual operations and value chain of the Nissui Group, we assumed representative pathways of dependencies and impacts and conducted our own assessment. As a result, we organized the relationship between our dependencies on nature and our impacts on nature as follows.
To identify dependencies and impacts, online tools such as ENCORE are widely used. However, assessments conducted using online tools tend to remain at a general level common across industries, making it difficult to conduct analyses that sufficiently reflect the characteristics of our own business. Therefore, we place emphasis on assessments conducted internally.

Dependencies and impacts on nature

[Fisheries]

Items considered to be particularly important for our Group (activities associated with potentially medium to high dependencies on nature and impacts on nature)

Dependencies/ Impacts	Classification	Items (ecosystem services/ impact drivers)	Description	Representative pathways and examples
Dependencie	Ecosystem services (supporting)	Use of marine areas	Dependence on environmental conditions of fishing grounds and the regenerative capacity of marine resources	Health of marine ecosystems and the maintenance of ocean conditions, spawning grounds and feeding grounds
	Ecosystem services (provisioning)	Provision of biological resources and genetic resources	Dependence on the regenerative capacity and genetic diversity of target resources	Health of stock abundance and age structure, and maintenance of genetic resources
	Ecosystem services (provisioning)	Use of fuel	Dependence on fossil fuels as fuel for fishing vessels	Use of heavy fuel oil
	Ecosystem services (regulating & maintenance)	Habitats, spawning grounds and migratory routes	Dependence on the integrity of critical habitats	Connectivity of coastal seagrass beds, tidal flats and coral reefs, and migratory routes
	Ecosystem services (regulating & maintenance)	Water purification and dilution capacity	Dependence on stable water quality,including transparency and dissolved oxygen	Operations in areas with low levels of eutrophication and pollution
	Ecosystem services (regulating & maintenance)	Climate and ocean condition stability	Dependence on stable ocean conditions	Impacts of climate change–driven shifts in resources and increased severe weather
Impacts	Climate change	Greenhouse gas emissions (fuel consumption)	Impact on global warming	CO₂ emissions from fuel combustion by fishing vessels
	Land/freshwater/ ocean-use change	Habitat disturbance	Physical disturbance of benthic habitats	Seabed contact by bottom trawl fishing
	Resource use/ replenishment	Harvesting of biological resources (including overexploitation)	Potential to impair stock abundance and age structure	Overfishing
	Resource use/ replenishment	Impacts on bycatch and ETP species	Capture and incidental mortality of non-target species	Bycatch of seabirds, marine mammals, etc.
	Pollution/ pollution removal	Leakage of fishing gear into the ocean	Harm to marine organisms, habitat damage and plastic pollution	Loss and drifting of nets and ropes
	Pollution/ pollution removal	Pollution (effluents, waste, oil, etc.)	Pollution of seawater and seabed sediments	Discharge of organic matter and solid waste, and leakage of fuel oil
	Pollution/ pollution removal	Disturbance from noise, light, etc.	Behavioral impacts on sensitive species	Underwater radiated noise from vessels and nighttime lighting

[Aquaculture]

Items considered to be particularly important for our Group (activities associated with potentially medium to high dependencies on nature and impacts on nature)

Dependencies/ Impacts	Classification	Items (ecosystem services/ impact drivers)	Description	Representative pathways and examples
Dependencies	Ecosystem services (supporting)	Land/ freshwater/ ocean-use	Dependence on the health of aquatic environments as production spaces	Environmental carrying capacity of coastal and marine areas/inland waters
	Ecosystem services (provisioning, regulating & maintenance)	Water supply and water quality (temperature, salinity, dissolved oxygen levels and transparency)	Strong dependence on a healthy aquatic environment	Quantity, quality, flow conditions and dilution capacity of water abstraction
	Ecosystem services (provisioning)	Provision of biological resources and genetic resources (juvenile and feed)	Dependence on the stable supply of juvenile and feed raw materials	Fishmeal and fish oil, plant-based raw materials, and juveniles
	Ecosystem services (provisioning)	Use of fuel	Dependence on fossil fuels for feeding operations and feed production	Use of heavy fuel oil and diesel oil
	Ecosystem services (regulating & maintenance)	Climate and ocean condition stability	Highly susceptible to extreme weather events and changing ocean conditions	High water temperatures, harmful algal blooms, typhoons and flooding
Impacts	Climate change	Greenhouse gas emissions (fuel, electricity and raw material supply chains)	Impact on global warming	Work vessels, aeration and transport
	Land/freshwater/ ocean-use change	Land, freshwater and ocean ecosystem use change	Impacts on ecosystems	Habitat conversion associated with facility installation
	Resource use/ replenishment, Land/freshwater/ocean-use change	Impacts from the sourcing of feed raw materials (terrestrial and marine)	Pressure on resources and land associated with raw materials	Small pelagic fish stocks and forests in soybean-producing areas
	Resource use/ replenishment	Impacts on wildlife, including species of conservation concern	Interaction with wildlife and incidental mortality	Interactions with wildlife (marine mammals and birds) around aquaculture farms
	Resource use/ replenishment	Use of freshwater	Pressure on regional water resources	Abstraction of river water and groundwater
	Pollution/ pollution removal	Discharge of nutrients and organic matter	Eutrophication and deterioration of seabed conditions	Discharge of uneaten feed, excreta and other waste
	Pollution/ pollution removal	Use of veterinary medicines and chemicals	Water pollution and resistance risks	Veterinary medicines for aquaculture and antifouling agents for net pens
	Pollution/ pollution removal	Transmission of diseases and parasites	Impacts on surrounding marine areas and yield losses	Transmission of fish diseases to surrounding aquaculture farms
	Pollution/ pollution removal	Leakage of fishing gear into the ocean	Impacts on the marine environment and plastic pollution	Leakage of aquaculture floats into the ocean
	Pollution/ pollution removal	Solid waste (materials, uneaten feed, dead fish, by-products, etc.)	Impacts on ecosystems, landscapes and sanitation	Leakage and improper disposal of used materials
	Introduction/ removal of invasive alien species	Escape of farmed fish	Impacts on native species and genetic diversity	Escape during equipment damage or extreme weather events

[Figure] Evaluate: Diagnose dependence and impact

Evaluate risks and opportunities

Focusing on the business characteristics of fisheries and aquaculture—namely, their strong dependence on, and potential impacts on, services provided by marine, riverine and coastal ecosystems—we organized nature-related risks and opportunities from a sector-wide perspective. This assessment considers uncertainties in the form of physical risks (changes in ecosystem services) and transition risks (changes in policy, regulation and markets), in line with the TNFD scenario analysis guidance. Given that quantitative nature-related scenarios are not yet sufficiently developed, we designed two assessment scenarios tailored to our circumstances by referring to the exploratory scenarios illustrated by TNFD and combining them with the assumptions of the climate scenarios (1.5°C/2°C and 4°C) that we use for our TCFD-aligned work. While this analysis is simplified and remains at an early stage as scenario analysis, it examines climate change and nature-related risks and opportunities in an integrated manner, consistent with the approach of leveraging existing frameworks while adapting them to our own context.
Scenario 1 depicts a world in which efforts toward nature recovery expand due to strengthened policies and regulations and rising interest among investors and consumers. Scenario 2 depicts a world in which the transition does not progress sufficiently, responses diverge by region, and nature degradation continues. By using these two scenarios, we introduce a range of assumptions regarding future pathways and structure the analysis to avoid undue bias in the consideration of risks and opportunities.

Scenario overview

Scenario (Note)	Outlook of the world	Key points on risks and opportunities
Scenario 1 TCFD: 1.5℃/2℃ (RCP2.6) × TNFD #1 Ahead of the game	Decarbonization advances, and efforts to protect nature also expand. Environmental degradation occurs locally, but its impacts can be contained through appropriate management and measures. Changes in the environment Institutional frameworks and markets become aligned, accelerating the expansion of nature-positive investment, products and procurement. Localized degradation occurs, but major setbacks can be avoided through planned measures. Traceability and certification become more widespread. Impacts on the business (fisheries and aquaculture) In aquaculture, additional costs increase for water quantity and quality management and equipment upgrades, but these can be addressed in a phased and planned manner. As certified seafood becomes more widespread and supply chain visibility improves, opportunities in high-value-added markets expand.	While an increase in compliance costs is expected due to strengthened requirements for nature-related disclosure, traceability and certification, appropriate responses to these requirements and the implementation of sustainable operations can create opportunities such as improved market access and enhanced recognition.
Scenario 2 TCFD: 4℃ (RCP8.5) × TNFD #3 Sand in the gears	Nature degradation is rapid and severe. In addition, rules and measures across countries and industries are fragmented, making it difficult to advance effective responses. Changes in the environment Coastal protective functions weaken, making flood and storm surge damage more likely to increase. Deterioration of river and marine water quality and higher water temperatures also become more frequent. Rules and support measures differ by region, and companies tend to be preoccupied with short-term responses rather than long-term investment. Abrupt deterioration is more likely to occur, and if responses lag behind, the cost burden increases significantly. Impacts on the business (fisheries and aquaculture) In fisheries, fluctuations in stock abundance and the timing of fish migration increase. In aquaculture, rising water temperatures and more frequent harmful algal blooms lead to reduced feeding efficiency, an increase in fish diseases and higher mortality rates. Insurance underwriting restrictions and higher insurance premiums, as well as greater investment burdens for strengthening site protection, relocation or diversification of sites, and measures such as circular water use, are more likely to increase.	In fisheries, a major risk is a decline in procurement volumes and rising costs due to the depletion of marine resources. In aquaculture, higher water temperatures, deteriorating water quality, increased harmful algal blooms and fish diseases, and the intensification of storm surges and flooding are expected to lead to lower productivity, operational shutdowns, and increased insurance and disaster prevention investments. On the other hand, resilience-enhancing measures—such as health management of farmed fish and the circular use of freshwater—represent opportunities that can help mitigate impacts and strengthen cost resilience.

Scenario (Note)

Outlook of the world

Key points on risks and opportunities

Scenario 1

TCFD: 1.5℃/2℃ (RCP2.6)
×
TNFD #1 Ahead of the game

Decarbonization advances, and efforts to protect nature also expand. Environmental degradation occurs locally, but its impacts can be contained through appropriate management and measures.

Changes in the environment

Institutional frameworks and markets become aligned, accelerating the expansion of nature-positive investment, products and procurement.
Localized degradation occurs, but major setbacks can be avoided through planned measures.
Traceability and certification become more widespread.

Impacts on the business (fisheries and aquaculture)

In aquaculture, additional costs increase for water quantity and quality management and equipment upgrades, but these can be addressed in a phased and planned manner.
As certified seafood becomes more widespread and supply chain visibility improves, opportunities in high-value-added markets expand.

While an increase in compliance costs is expected due to strengthened requirements for nature-related disclosure, traceability and certification, appropriate responses to these requirements and the implementation of sustainable operations can create opportunities such as improved market access and enhanced recognition.

Scenario 2

TCFD: 4℃ (RCP8.5)
×
TNFD #3 Sand in the gears

Nature degradation is rapid and severe. In addition, rules and measures across countries and industries are fragmented, making it difficult to advance effective responses.

Changes in the environment

Coastal protective functions weaken, making flood and storm surge damage more likely to increase. Deterioration of river and marine water quality and higher water temperatures also become more frequent.
Rules and support measures differ by region, and companies tend to be preoccupied with short-term responses rather than long-term investment.
Abrupt deterioration is more likely to occur, and if responses lag behind, the cost burden increases significantly.

Impacts on the business (fisheries and aquaculture)

In fisheries, fluctuations in stock abundance and the timing of fish migration increase.
In aquaculture, rising water temperatures and more frequent harmful algal blooms lead to reduced feeding efficiency, an increase in fish diseases and higher mortality rates.
Insurance underwriting restrictions and higher insurance premiums, as well as greater investment burdens for strengthening site protection, relocation or diversification of sites, and measures such as circular water use, are more likely to increase.

In fisheries, a major risk is a decline in procurement volumes and rising costs due to the depletion of marine resources. In aquaculture, higher water temperatures, deteriorating water quality, increased harmful algal blooms and fish diseases, and the intensification of storm surges and flooding are expected to lead to lower productivity, operational shutdowns, and increased insurance and disaster prevention investments. On the other hand, resilience-enhancing measures—such as health management of farmed fish and the circular use of freshwater—represent opportunities that can help mitigate impacts and strengthen cost resilience.

(Note): This scenario is an assessment scenario developed by our Group by independently referencing assumptions on temperature pathways related to climate change and the context (e.g., society and policy) of the nature-related scenarios presented by TNFD. It does not imply the existence of any “official scenario” that combines the two.

Main risks and opportunities for the Nissui Group

[Fisheries]

Risks/ Opportunities	Category	Main risks and opportunities expected	Impact on business	Time horizons	Financial impact		Main countermeasures
Risks/ Opportunities	Category	Main risks and opportunities expected	Impact on business	Time horizons	Scenario 1	Scenario 2	Main countermeasures
Physical risks	Acute	Decline in marine resources	Decline in procurement volumes (supply chain instability) Increase in procurement costs	Medium- to long-term	Small to medium	Medium to large	Further strengthening of resource access Building procurement networks Strengthening the aquaculture business Development of alternative raw materials
Physical risks	Acute, chronic	Changes in resource status, fishing grounds and species due to shifts in sea temperatures	Decline in procurement volumes (supply chain instability) Increase in procurement costs	Short- to long-term	Small to medium	Medium to large
Transition risks	Policy	Stricter fisheries regulations	Decline in procurement volumes (supply chain instability)	Short- to medium-term	Medium to large	-	Further strengthening of resource access Building procurement networks Strengthening the aquaculture business Development of alternative raw materials
	Market	Changes in consumer purchasing behavior and growing requirements from retailers (e.g., traceability and certification)	Loss of sales opportunities due to delayed responses Incurrence of response costs (e.g., certification acquisition costs)	Medium- to long-term	Medium to large	-	Obtaining and maintaining certifications such as MSC Continuing survey of procured marine resources sustainability and information disclosure
	Reputational	Reputational damage among investors and financial institutions (if environmental responses are insufficient)	Withdrawal of investment and financial assets	Short- to medium-term	Medium to large	-	Responsible initiatives and proactive information disclosure and engagement
	Technology/ market	Demand shift from wild-caught marine products to alternative proteins (plantbased, cultivated seafood, etc.)	Decline in sales	Long-term	Small to large	-	Reducing environmental impacts in fisheries LCA assessment and information disclosure to consumers R&D on alternative proteins
	Liability	Non-compliance with laws and regulations	Decline in sales and profits, and erosion of brand value Fines and operational restrictions	Short- to long-term	Medium to large	-	Ensuring thorough compliance with laws and regulations, including local rules
Opportunities	Resource efficiency/ Sustainable use of natural resources	Ensuring the sustainability of procured marine products	Stabilization of the supply chain, expansion of sales channels	Medium- to long-term	Medium to large	-	Confirming resource status in procuring Obtaining fisheries certification and increasing the handling of certified products
Opportunities	Markets/ Reputational capital	Growing demand for seafood produced with sustainability considerations (consumers, retailers)	Increase in sales	Medium- to long-term	Medium to large	-	Obtaining and maintaining certifications such as MSC Sustainable sourcing of marine resources and information disclosure

[Aquaculture]

Risks/ Opportunities	Category	Main risks and opportunities expected	Impact on business	Time horizons	Financial impact		Main countermeasures
Risks/ Opportunities	Category	Main risks and opportunities expected	Impact on business	Time horizons	Scenario 1	Scenario 2	Main countermeasures
Physical risks	Acute	Spread of fish diseases	Loss of assets due to fish mortality and deterioration of aquaculture performance Reputational damage and deterioration of relationships with surrounding fishers	Short- to medium-term	Small	Medium to large	Prevention and management through our proprietary farmed fish health management system, and stress reduction for fish Identification of high-risk sites and relocation of aquaculture farms
	Acute, chronic	Operational shutdown of freshwater aquaculture farms due to drought	Operational impacts due to water withdrawal restrictions Deterioration of juvenile quality due to the spread of fish diseases Increase in aquaculture costs	Short- to medium-term	Small	Medium to large	Selection of sites with low physical water risks, identification and relocation of high-risk sites, and reinforcement of facilities Transition to a recirculating aquaculture system Forest conservation activities at water sources (water source recharge)
	Acute, chronic	Reduced supply of seafood for feed due to changes in the marine environment	Impacts on sourcing volumes and increased sourcing costs due to decreased catch volumes of forage fish for aquaculture feed	Short- to medium-term	Small to medium	Medium to large	Development and use of alternative feeds (low-fishmeal feed, algal oil, etc.) Effective use of by-products
	Acute, chronic	Rising seawater temperatures due to climate change and changes in ocean currents	Deterioration of aquaculture performance (poor growth, outbreaks of disease) Occurrence of red tides Changes in suitable locations for aquaculture Increase in costs associated with adaptation measures to rising seawater temperatures	Short- to medium-term	Small	Medium to large	Introduction of submersible fish cages Establishing underwater feeding technology Development of new aquaculture areas (shifting to higher-latitude regions) Development of high-temperature-tolerant strains through selective breeding
Transition risks	Policy	Stronger environmental regulations in aquaculture	Constraints on business expansion Downsizing of operations and closure of aquaculture farms Financial impacts from fines, taxes, and license fees	Medium- to long-term	Medium to large	-	Environmental monitoring of aquaculture farms Reducing impacts on the marine environment through feed and feeding practices Transition to off-shore aquaculture Transition to a recirculating aquaculture system at freshwater aquaculture farms Preventing fish escape incidents Coexistence with local communities
	Market	Changes in consumer purchasing behavior and expanded requests from retailers (traceability, certification, etc.)	Loss of sales opportunities due to delayed responses Incurrence of response costs (e.g., certification acquisition costs)	Medium- to long-term	Medium to large	-	Obtaining and maintaining certifications such as ASC, BAP, and MEL, etc. Ensuring feed traceability
	Reputational	Reputational damage with investors and financial institutions (if environmental responses are insufficient)	Withdrawal of investment and financial assets	Short- to medium-term	Medium to large	-	Reducing impacts on the marine environment and proactive information disclosure and engagement
	Technology	Delays in transitioning to technologies with lower environmental impacts	Increase in costs associated with the introduction of technologies and equipment Reduction of business competitiveness and advantage if responses are delayed	Medium- to long-term	Medium to large	-	Strengthening responses through concentration of management resources Financing through sustainable finance
Opportunities	Resource efficiency/ products and services/ sustainable use of natural resources	Development of aquaculture technologies that do not depend on wild-caught marine resources, and reducing impacts on natural resources through full-life cycle aquaculture	Establishment of competitive advantages Improvement of quality and realization of stable supply, reduction of aquaculture costs	Short- to long-term	Large	-	Concentrating management resources on aquaculture technology development Continuing 100% full-life cycle aquaculture for Japanese amberjack
	Resource efficiency/ sustainable use of natural resources	Reducing dependence on natural resources by improving feed efficiency	Reduction of aquaculture costs Establishment of competitive advantages	Medium- to long-term	Medium to large	-	Development of superior strains through selective breeding Reducing the use of fishmeal and fish oil in aquaculture feed Improving juvenile quality and feed quality
	Products and services/ sustainable use of natural resource/ ecosystem protection, restoration and regeneration	Obtaining third-party certification	Expansion of business opportunities Development of overseas markets Stabilization of the supply chain	Short- to medium-term	Medium to large	-	Obtaining and maintaining certifications such as ASC, BAP, and MEL, etc.
	Products and services	Development and introduction of aquaculture technologies to adapt to rising seawater temperatures	Improvement of aquaculture performance Establishment of competitive advantages	Short- to medium-term	Small	Medium to large	Introduction of submersible fish cages Establishing underwater feeding technology Development of high-temperature-tolerant strains through selective breeding
	Products and services	Development of land-based aquaculture technologies	Reduction of climate-related risks (rising seawater temperatures, storms and floods) Establishment of competitive advantages, expansion of sales channels, creation of new businesses	Medium- to long-term	Medium to large	-	Deepening current initiatives (shrimp, salmon, chub mackerel) Research on seaweed farming
	Products and services	Transition to smart aquaculture	Reduction of aquaculture costs Improvement of the working environment, talent acquisition	Medium- to long-term	Medium to large	-	Production management using ICT and AI (remote feeding, fish measurement, health management, etc.)
	Markets/ reputational capital	Growing demand for seafood produced with sustainability considerations (consumers and retailers)	Increase in sales Development of overseas markets	Medium- to long-term	Medium to large	-	Obtaining and maintaining certifications such as ASC, BAP, and MEL, etc. Ensuring production traceability Building responsible aquaculture operations and information disclosure

Manage risks and opportunities

The Nissui Group uses material issues as the starting point for risk management to identify significant risks with a focus on medium- to long-term management strategies. In FY2023, a review of material issues was conducted, and accordingly, significant risks were also reassessed. The identified significant risks related to natural capital and biodiversity are as below. The review of material issues incorporated the results from our analysis of “climate-related and nature-related risks and opportunities” as part of our TCFD and TNFD initiatives.
The analysis and countermeasures for risks and opportunities related to climate change are being examined by the “TCFD Compliance Project," a cross-functional initiative led by the CFO, in collaboration with the Environmental Subcommittee. Additionally, the analysis and countermeasures for risks and opportunities related to natural capital along the value chain are being examined by the Marine Resource Sustainability Subcommittee, the Marine Environment Subcommittee, the Sustainable Procurement Subcommittee, and the Human Rights Subcommittee. The results of the discussions in each subcommittee are reported to the Board of Directors after deliberation in the Sustainability Committee, and the Board’s opinions and advice are incorporated into our policies.

Priority risks	Priority risk management organization	Report to
Risks related to addressing climate change	Environmental Subcommittee TCFD Compliance Project	→	Sustainability Committee	→	Risk Management Committee
Risks related to addressing biodiversity	Marine Resource Sustainability Subcommittee Marine Environment Subcommittee
Risks related to environmental and human rights in the supply chain	Sustainable Procurement Subcommittee Human Rights Subcommittee

Risk Management

Metrics and targets

The Nissui Group positions the sustainability of marine resources and the conservation of the marine environment as key management issues, managing nature-related dependencies, impacts, risks, and opportunities using the following metrics and targets.

Scope	Metrics	Targets	Measurement and assessment method
Fisheries, aquaculture	Procurement of sustainable marine resources	FY2030: Procurement of sustainable marine resources 100%	Using the ODP (Note1) evaluation method (based on FishSource scores 1-5), a score of 8 or higher for all Well Managed and 6 or higher for Managed is considered sustainable
	Procurement of endangered species (marine resources)	For marine resources at high risk of depletion, procurement will be suspended if scientific and practical measures are not taken to recover the resources by 2030	Scientific and practical measures for resource recovery 1.Fishery products certified by the Marine Stewardship Council (MSC) or other certification bodies (equivalent to GSSI4 certification), or Fishery Improvement Project (FIP) products. 2.Scientific fishery management by international resource management organizations such as Regional Fisheries Management Organizations (RFMO (Note 3)). 3.Rated “Managed” or above based on criteria established by the ODP. 4.Any other specific measures being taken to achieve 1-3 above.
	Assessment of Tier 1 suppliers	FY2030: 100% (Key Tier 1 suppliers for Group companies)	Response rate of suppliers to the self-assessment questionnaire aimed at reducing human rights and environmental risks in the supply chain
	CO₂ emissions	FY2030: Reduce by 30%	CO₂ emissions (Scope 1,2, Compared to FY2018)
	Employee training implementation rate (prevention of fishing gear leakage into the ocean)	Implementation rate of employee training on preventing fishing gear leakage into the ocean (once a year): 100%	Percentage of companies implementing the initiative among the target operating companies
Aquaculture	Employee training implementation rate (prevention of escape of farmed fish)	Implementation rate of employee training on preventing escape of farmed fish (once a year): 100%	Percentage of companies implementing the initiative among the target operating companies
	Number of incidents of escape of farmed fish	Zero incidents of escape of farmed fish	Escape incidents (in the event of escape of farmed fish, all incidents are identified, recorded and aggregated regardless of scale)
	Amount of antibiotics used	Internal management targets to reduce antibiotic use are set by operating company and fish species	Antibiotic use per harvest volume (compared with the base year)
	ASC certification ratio	ASC certification ratio for salmon farming in Chile: 100%	ASC certification ratio in the aquaculture production volume of Salmones Antártica S.A. (target species: rainbow trout and coho salmon)

(Note 1) ODP: Ocean Disclosure Project. Online reporting platform for voluntary disclosure of seafood sourcing established by the SFP in 2015.
(Note 2) GSSI: Global Sustainable Seafood Initiative. An international partnership that verifies programs assessing the sustainability of seafood.
(Note 3) RFMO: Regional fisheries management organizations. International organizations established under individual conventions to achieve the conservation and sustainable use of marine resources.

Participation in the TNFD Fishing Sector Use Case

Nissui and our group company Sealord participated in the Fishing Sector Use Case of the Taskforce on Nature-related Financial Disclosures (TNFD). Using the TNFD sector guidance, they collected and assessed relevant data, examined how nature-related issues influence investor expectations, and explored how TNFD metrics can be applied to corporate decision-making, risk management, and disclosure practices.

Applying TNFD nature-related metrics in the fishing sector