Nissui Corporation

Nissui clearly acknowledges the material risk of Illegal, Unreported, and Unregulated fishing (IUU), overfishing, habitat conversion, and human rights issues. This is evidenced in the company’s 2023 TNFD report and the Survey of Procured Marine Resources Sustainability, Supplier Guidelines, and other company policies such as the Environmental Code.

In 2021, Nissui formulates its long-term vision, “Good Foods 2030,” and its mid-term business Plan, “Good Foods Recipe 1”. As part of these plans, the company has set specific sustainability targets, such as assessing all Tier 1 suppliers for compliance with the company’s Supplier Guidelines (parent company suppliers by 2024 and group suppliers by 2030) and only procuring marine products from sustainable sources (80% by 2024, 85% by 2027, and 100% by 2030).

Nissui has also conducted a group-level human rights risk assessment for its value chains and has since revised its Supplier Guidelines to include a requirement to eliminate any ties to forced and child labour. These guidelines require suppliers to reduce their negative environmental impacts and prohibits IUU fishing and deforestation. There is also a requirement for suppliers to ensure the traceability of raw materials “to identify the risk of depleting resources”, but there is no further detail on how this requirement should be implemented. In FY2023, Nissui has achieved 92% of its target of 100% of the parent company Tier 1 suppliers being surveyed for compliance by FY2024, and 100% of the whole group’s Tier 1 suppliers by FY2030.

In addition to these Supplier Guidelines, the company discloses that it undertakes a survey on the sustainability of its procured marine resources every three years. In 2024 (based on 2022 procurement data), the survey found that while 75% came from “well managed” or “managed” resources (4% increase from 2020), 8% came from resources needing improvement (no change from 2020) and the remaining 17% from “not scored” resources (4% decrease from 2020). To improve the results of the survey, the company states it will monitor the policies of its fishing countries (especially regarding IUU fishing) and make proposals to them on scientific resource management as a member of SeaBOS. Nissui discloses that fish oil and fishmeal used in aquaculture feed account for a significant part of the “not scored” category. The company states that it will “strive to enhance traceability in cooperation with external parties” to try to reduce that category.

Nissui discloses that it applies the “Ocean Disclosure Project (ODP) Analysis method (by FishSource score 1-5) to classify its resource management status”, adding that a resource is considered “sustainable” if it has a “score of 8 or higher for all “Well managed” resources, and 6 or higher for “Managed” resources. The next marine resources survey is scheduled to use 2025 data and expected to be published in 2027.

The company has also achieved 28% MSC certification rate but does not disclose any time-bound or numerical targets to increase this or disclose whether it has the MSC Chain of Custody certification to ensure certified seafood is kept separate from non-certified seafood along the supply chain. Nissui also refers to ASC and MEL certifications, but does not disclose the certification rate achieved.

In 2023, Nissui carried out an assessment of the company’s dependencies and impacts on nature and evaluation of the associated risks and opportunities in line with the Taskforce on Nature-related Financial Disclosures (TNFD) framework. The company noted in its feedback to this assessment that the Sustainability Committee’s six sub-committees handled these identified risks and lead the sustainability work which includes the target to procure 100% of seafood from sustainable sources by 2030 and targets to reduce environmental impact (CO2, plastic use, escaped fish, procurement of endangered species). Additionally, the company refers to traceability within its TNFD report, though it is not explicitly linked with the material risks identified in this assessment: the company classifies a lack of traceability as a “market risk” under identified transition risks. Building on this, the company indicates certifications and feed traceability as its main responses to “increased demands from food service and retailers” which is classified as a “market risk”.

Overall, Nissui identifies risks of IUU, overfishing, habitat conversion and human rights issues through compliance with the Supplier Guidelines and assessing the sustainability of marine resources through surveys. However, the extent to which Nissui sees the value in prioritising traceability as a means of mitigating these risks is not clear. Implementing full-chain, digital and interoperable traceability systems would be complementary to the company’s sustainability targets and to its future TNFD reporting.

All sources of information are available in the company assessment PDF.

Nissui does not have a group-level commitment to traceability specifically, but aspects of traceability are covered through various company policies.

Nissui’s Supplier Guidelines are relevant to understand the company’s approach to traceability since they:

• Require suppliers to reduce their negative environmental impacts
• Prohibit IUU fishing and deforestation
• Require suppliers to ensure the traceability of raw materials “to identify the risk of depleting resources”. However, this does not amount to a commitment to implement traceability for all seafood and feed ingredients of the company.

In addition to these Supplier Guidelines, Nissui has a target to source all of its marine resources from “sustainable” sources. More specifically, the company aims to source 80% of its marine resources sustainably by 2024, 85% by 2027, and 100% by 2030.

As part of reporting the results of the marine resources procurement survey, Nissui also states that it will strive to enhance the traceability of marine feed ingredients, in particular through enhanced collaboration with external partners, including supplier roundtable discussions.

While Nissui encourages the increased use of seafood certifications, the company does not have a time-bound or numerical target to increase the coverage of such certifications. However, Nissui presents an "increasing demand for sustainable marine products, including products with Marine Stewardship Council (MSC), Aquaculture Stewardship Council (ASC), and Marine Eco-Label (MEL) certification" as an opportunity. Furthermore, certifications are listed as a main response from the company to address fishery risks identified in the TNFD assessment. The company also explains its efforts to obtain Marine Eco-labels for certifications, which would indicate that Chain of Custody is in place (i.e. purchasing seafood certified with eco-label ensures full-chain traceability, rather than only from the fishery to the point of first sale). Lastly, the company shared that it received the "MSC Japan Award” in 2024 and 2025 for its role in the promotion of MSC-certified marine products in Japan.

All sources of information are available in the company assessment PDF.

Nissui does not have a group-level commitment to traceability specifically, but aspects of traceability are covered through various company policies, as described above.

The traceability commitment contained in Nissui’s Supplier Guidelines:

• Scope: unclear whether this covers 100% of Nissui’s marine raw materials.
• Depth: does not explicitly state that marine raw materials can be traced back to the vessel / feed source.
• Breadth: is not explicitly aligned with the GDST.
• Form: not time-bound, nor digital nor interoperable.

With regards to Nissui’s target on sustainable sourcing of marine products:

• Scope: the target covers 100% of Nissui’s marine resources.
• Depth: does not explicitly state that marine resources can be traced back to the vessel/farm/feed source. Nissui only states that it aims to source 100% of its resources “sustainably” as defined by ODP evaluation method (based on FishSource scores 1-5).
• Breadth: is not explicitly aligned with the GDST.
• Form: it is time-bound (interim target in 2024, 2027, and final target in 2030). However, it is not digital nor interoperable.

The marine resources procurement survey highlights that Nissui will “prioritize fish species whose resource status is difficult to determine (particularly those used to make fishmeal, fish oils and surimi), through measures such as participation in round-table discussions and Fishery Improvement Projects (FIPs)”. This is not time-bound, nor aligned to the GDST.

In addition to these disclosures, Nissui’s SeaBOS membership suggests that it is committed to implementing traceability systems aligned with the GDST. Cooperating to achieve the GDST was also noted in the 2018 procured marine resources survey results announcement, but this is not mentioned again in the current year’s reporting, nor on the Nissui website.

Furthermore, the company highlights it is acquiring ASC and MSC certifications, providing evidence of specific species within its operations covered by these certifications. Nissui has obtained Chain of Custody (MSC) certification for certain species, traced to the vessel and processing plant. However, there is limited evidence of the total coverage of certified seafood relative to the company's seafood portfolio.

All sources of information are available in the company assessment PDF.

Nissui does not disclose a traceability commitment and therefore does not have an associated implementation plan.

Nissui has conducted multiple surveys of its procured marine resources, which included an identification that some of the marine products procured by the Group were endangered species. In response to this, Nissui shared that it is "advancing the procurement of fisheries products certified by the Marine Stewardship Council (MSC)", based on the Nissui Group Endangered Species (Marine Products) Procurement Policy. Furthermore, for marine resources at high risk of depletion, Nissui stated that “procurement will be suspended if scientific and practical measures are not taken to recover the resources by 2030”. The company listed MSC certification or other equivalent GSSI-bodies as a method of measurement.

The company seeks to acquire more certified seafood, though there is no quantified commitment or timeline to increase the coverage of these certifications. The company also discloses the sales performance of marine eco-labelled products (MSC, ASC, MEL) for 2022, 2023, and 2024.

All sources of information are available in the company assessment PDF.

Nissui does not disclose whether any operational traceability systems are in place for its seafood supply chains.

Regarding its marine resource procurement survey, the company explains in its response to the FAIRR investor letter that the available information is generally limited to the species’ name, supplier's name, catch location, and country of origin. Nissui also clarifies that while there is “considerable commonality” between the GDST KDEs and the items included in the company’s survey, this survey was designed to assess “marine resource conditions rather than traceability”.

In addition, Nissui promotes the use of certifications in its Sustainability Report. Namely, the company was the first Japanese company to become a “Funding Partner” of the Global Sustainable Seafood Initiative (GSSI) in 2021. The company also promotes the MSC, ASC, BAP and MEL certification schemes.

• For MSC, the Nissui group has acquired MSC certification for multiple fishing grounds and species, including Alaska pollock.
• Various subsidiaries have acquired the ASC and BAP certifications for specific species (e.g. buri yellowtail in Japan, salmon and trout in Chile)
• The MEL certification contains 3 types of certifications: i) fisheries certification ii) aquaculture certification and iii) Chain of Custody (CoC) certification.

Since the 2019 marine resources procurement survey found that some marine products were endangered species, Nissui is now advancing the procurement of fish certified by MSC. Between 2019 and 2023, the number of MSC-certified fish species handled by the Group has risen by 17 species, from 55 to 72, constituting a 4% increase in procured volume. However, the sales volumes of MSC- and ASC-certified seafood (consumer products) have decreased between 2022 and 2023.

All sources of information are available in the company assessment PDF.

Nissui does not disclose any details of operational traceability systems or any plans for third-party verification. Additionally, the company does not disclose information relating to the auditing or compliance processes linked to its seafood certifications - however, the company indicates that it has acquired MSC Chain of Custody for certain products, reporting associated total sales volumes.

In its response to FAIRR’s investor letter the company shares that it recognises the importance of third-party verification, and indicated that it is considering the introduction of third-party social responsibility audits.

All sources of information are available in the company assessment PDF.