Sustainability

Environment

Basic Concept
Giving utmost consideration to the global environment not only leads to reduced costs and the creation of economic value, but is also the very essence of our social responsibility to help resolve environmental issues. The Fuji Oil Group has established and carries out four items as its Basic Policy of Environmental Integrity: (1) We strive to continuously improve our environmental protection activities; (2) We work in full compliance with the environmental laws & regulations and spirit thereof; (3) We endeavor to develop environmentally-friendly products and technologies; and (4) We make efforts to well communicate with society.

Environmental Management

Group Environmental Management System

In the Fuji Oil Group Management Philosophy, we have declared "safety, quality, and the environment" as values that inform the actions of all our employees. On that basis, we have established our Basic Policy of Environmental Integrity, and promote its practice throughout the Group in our business activities, as well as initiatives to raise environmental awareness. Specifically, to apply the Basic Policy of Environmental Integrity to our business activities, we have established Group production management regulations and conduct Group-wide audits and monitoring of environmental measures. We also bring together the people in charge from each group company to hold Meetings of Safety, Quality & Environment for each region to share initiatives.

Safety, Quality and Environmental Audits

  • Audit in progress

To improve management of production at group companies, the Fuji Oil Group conducts quality audits and safety and environmental audits in accordance with its Basic Policy of Safety, Quality and Environment. In FY 2016, we conducted quality audits at twelve sites in Japan and seven sites outside Japan, and safety and environmental audits at seven sites outside Japan.

Audits are not a matter of simply checking, but are conducted along with an explanation of their importance. By verifying, evaluating and providing advice on each company’s efforts through audits, we strive to prevent incidents related to occupational safety, quality and environmental protection and improve productivity in both quantitative and qualitative terms.

Meetings of Safety, Quality & Environment

  • Meeting of Safety, Quality & Environment

Meetings of Safety, Quality & Environment are held both in and outside Japan to improve each group company’s performance in "safety, quality and the environment" by promoting awareness, information sharing and exchange of views. Seven Group companies in China participated in a meeting held at Shandong Longteng Fuji Foodstuffs Co., Ltd. in August 2016, and ten group companies from Southeast Asia participated in a meeting held at Fuji Oil Asia Pte. Ltd. in September 2016. These meetings brought together persons in charge of health and safety, quality assurance, environment and maintenance, mainly plant managers and general managers of production.

Each company shared the details of the activities they conducted during the previous fiscal year and their results, plans for future initiatives, and information on occupational accidents that occurred and other matters. To thoroughly instill Group policies, participants were also briefed on the Fuji Oil Group Basic Policy of Safety, Quality and Environment, as well as on overall Group performance toward the environmental vision and preventive maintenance. Each group company reported its current situation, and an active question and answer session followed. After the meetings, positive comments included, "I was able to learn about other companies’ problems and specific efforts being made to cope with these problems" and "I think I can apply what I have learned to my company. The meeting was very useful."

We will continue to hold meetings regularly in these regions to further promote the sharing of our corporate values that emphasize "safety, quality and the environment" throughout the Group.

ISO 14001 Certification and Environmental Audits

ISO 14001 Certification

To more rigorously manage the environmental impacts of its production activities, the Fuji Oil Group’s production bases and group companies have obtained ISO 14001 certification, a globally recognized standard for environmental management systems.

In September 2000, the Hannan Business Operations Complex, which accounts for 85% of the Group’s production in Japan, obtained ISO 14001 certification. By December 2010, our eight remaining production plants and research laboratories in Japan had obtained the certification.

Status of ISO 14001 Certification

Fuji Oil Co., Ltd.
Production Base Month/Year Certified
Hannan Business Operations Complex Sep. 2000
Kobe Plant Sep. 2002
Sakai Plant Jul. 2003
Kanto Plant May 2004
Protein Foods Tsukuba Plant Dec. 2004
Tsukuba Research & Development Center Dec. 2004
Ishikawa Plant May 2007
Chiba Plant May 2008
Rinku Plant Dec. 2010
Group Companies
Outside Japan Omu Milk Products Co., Ltd. Mar. 2005
Fuji Oil (Singapore) Pte. Ltd. (Singapore) Feb. 2012
Woodlands Sunny Foods Pte. Ltd. (Singapore) Feb. 2001
Palmaju Edible Oil Sdn. Bhd. (Malaysia) Mar. 2009
PT. Freyabadi Indotama (Indonesia) Sep. 2006
PT. Musim Mas-Fuji (Indonesia) Oct. 2013
Tianjin Fuji Protein Co., Ltd. (China) Dec. 2013
Shandong Longteng Fuji Foodstuffs Co., Ltd. (China) Sep. 2014

Environmental Audits

Fuji Oil Co., Ltd. and its group companies in Japan perform in-house environmental audits every year that cover production bases and every department to monitor compliance with all applicable environmental laws and regulations. In addition, every year these same bases and departments are inspected by an external ISO certification body.

In FY 2016, 54 departments from Fuji Oil Co., Ltd. and its group companies in Japan underwent in-house environmental audits and external audits. No nonconformities were found. We are quickly devising improvements for matters identified as requiring monitoring.

We will continue to carry out environmental auditing while simplifying the auditing system, reviewing auditing procedures and making on-site improvements.

Environmental Audit Results (Group Companies in Japan)

(Number of departments)

In-house Environmental Audits External Inspections
FY 2012 Nonconformity 0 0
Monitoring required 64 3
FY 2013 Nonconformity 0 0
Monitoring required 59 2
FY 2014 Nonconformity 0 0
Monitoring required 79 6
FY 2015 Nonconformity 0 0
Monitoring required 67 6
FY 2016 Nonconformity 0 0
Monitoring required 54 8

Environmental Vision 2020

In FY 2010, the Fuji Oil Group set forth Fuji Group Environmental Vision 2020, which includes targets for reducing CO2 emissions and the amounts of water usage and discharge by 20% from base year levels by the year 2020. All group companies in and outside Japan are promoting environmental activities to achieve these targets. In FY 2016, group companies in Japan reduced CO2 emissions by 8.2%, the amount of water usage by 16.4% and the amount of water discharge by 16.3% from the base year. Although CO2 emissions increased by 2.85% from the previous fiscal year due to increased production volume, CO2 emissions per unit of production*1 decreased by 2.9%. We will continue efforts to promote day-to-day energy-saving activities, and reduce the amounts of water usage and discharge.

Outside Japan, 16 group companies are included in the calculation, and CO2 emissions in FY 2016 were 99.6% of the previous fiscal year. Moreover, emissions decreased by 29.7% from the base year, significantly surpassing the set target.

Fuji Group Environmental Vision 2020

Efforts to reduce CO2 emissions

In FY 2016, CO2 emissions at group companies in Japan were 169,952 t-CO2, up 0.77% from the previous fiscal year. Due to a 2.8% increase in the production volume and the effects of energy-saving activities, CO2 emissions per unit of production 1 decreased by 2.02%. Since CO2 emissions per unit of production are largely affected by fluctuations in the production volume, we are raising employees’ energy-saving and environmental awareness, and conducting activities that lead to improved productivity.

As for group companies outside Japan, we were able to reduce CO2 emissions by implementing the following measures.

  • In March 2015, Woodlands Sunny Foods (Singapore) converted its boilers from diesel to gas, and reduced CO2 emissions by an absolute amount of approximately 16% (384 t-CO2/year).
  • In July 2016, Shandong Longteng Fuji Foodstuffs (China) stopped using its coal boiler and started purchasing steam from outside the company. As a result, coal consumption at the company is now zero.
  • The plant at 3F Fuji Foods (India), which began operation in July 2015, is working to reduce CO2 emissions by introducing two woody biomass 2 boilers. Ongoing efforts to reduce CO2 emissions include fuel conversion and introduction of cogeneration 3 equipment at group companies.
  • Two woody biomass boilers
    at 3F Fuji Foods (India)

1 Unit of production
Amount of production factors such as raw materials, power and labor required to produce a fixed amount of product
2 Woody biomass
A renewable resource derived from lumber
3 Cogeneration
Generating multiple forms of energy, such as heat and electricity, from a single energy source

Total energy consumption (crude oil equivalent) and energy consumption per unit of production

graph

Total energy consumption (CO2 emissions equivalent) and energy consumption per unit of production

graph

Greenhouse gas emissions by scope

graph

Energy-saving efforts

The Fuji Oil Group is working to conserve energy and reduce CO2 emissions through the design and development of production facilities. Specifically, we are implementing measures to reduce our energy load such as introducing energy-efficient equipment, expanding heat recovery facilities using pinch technology, introducing solar power generation equipment and switching from mercury lamps to LED lighting.

We also strive for further improvements and energy conservation activities, raising environmental awareness among all employees by conducting cross-departmental rollouts of energy conservation case studies at all production bases and educational activities.

Curbing CO2 emissions during transportation

The Fuji Oil Group has been promoting the use of trailers with larger freight capacity for in-house transportation to curb CO2 emissions from transportation and to address the shortage of drivers in Japan.

Total CO2 emissions and CO2 emissions per unit of production during transportation

graph

Round-trip use of maritime shipping containers (measures for container sharing with exporters)

The Fuji Oil Group is actively working to realize efficient and sustainable logistics. In May 2016, we initiated measures to use shipping containers that have been emptied of our import cargo as export containers for other companies. Round-trip use of containers with other companies leads to more efficient container transport and CO2 reduction. It also helps to relieve the shortage of drivers in Japan.

Diagram illustrating round-trip use of containers

graph

Reduction of wastewater

Group Companies operating in areas at high risk of water shortage are taking measures to address this problem. The area where Fuji Oil Europe (Belgium) operates is faced with the problem of declining levels of ground water, which is the source of tap water in the area. In FY 2015, the company commenced operation of a water treatment facility for converting canal water to industrial and drinking water in cooperation with neighboring companies and water companies. Since then, the company has used treated canal water for production activities and tap water, accounting for almost 100% of total water use at the company. Fuji Oil Europe plans to improve the function of the water treatment facility in order to produce industrial water for use in wider applications.

Annual water usage and water usage per unit of production

graph

Annual wastewater and wastewater per unit of production

graph

Recycled water volume for the Hannan Business Operations Complex of Fuji Oil Co., Ltd.

graph

Waste reduction

In FY 2016, the amount of waste discharged by group companies in Japan was 19,850 tons, an increase of 7.6% from the previous fiscal year. The main factor was an increase in production volume. The recycling rate remained at a high level of 99.94%. At group companies outside Japan, the amount of waste discharged increased 42.0% from the previous fiscal year. This was due to waste discharged at three companies newly added to the scope of calculations.

Total waste discharged and recycling rate

(Group companies in Japan)

graph

Total waste discharged and the amount of waste discharge per unit of production

(Group companies outside Japan)

graph

Efforts to recycle food

The amount of waste categorized as "food waste" under the Food Recycling Law totaled about 39,813 tons in FY 2016, down by about 1,700 tons from the previous fiscal year. Much of this waste is effectively reused as resource, with the recycling rate at 98.7% in FY 2016, down 0.6 percentage points from the previous year.

The Food Recycling Law sets a target for the food industry of at least an 85% actual rate of recycling for recyclable food. When the law was enacted in 2007, Fuji Oil Group had a 97.3% recycling rate. We have maintained this high level ever since and we will continue to do so.

Overview of Environmental Impacts

Reducing environmental impact of business activities (Input/Output)

The Fuji Oil Group records and analyzes inputs, such as materials and energy, and outputs, such as waste, from raw material procurement to production and logistics, in order to mitigate environmental impacts of its business activities.

Overview of environmental impacts of Fuji Oil Co., Ltd.’s business activities

graph

Environmental accounting

Environmental costs and benefits were calculated in accordance with the Environmental Accounting Guidelines 2005 published by the Ministry of the Environment of Japan.

Scope of tabulation

Fuji Oil Co., Ltd. (non-consolidated)

Period

April 2016 to March 2017

Calculation methods

  • Investment amount: Where 50% or more of the investment amount was for environmental protection, the entire amount was considered an environmental investment.
  • Depreciation: The declining-balance method of depreciation was used for all investments in the prior six years for which 50% or more of the amount was for environmental protection. The depreciation period was set at 12 years in all cases.
  • Costs that were directly known were tabulated in their entirety. Costs that could not be directly known were calculated and tabulated based on the percentage pertaining to the actual application.
  • Economic benefit realized from environmental protection was recorded only where demonstrated.

Environmental costs (Million yen)

Category Key Activities FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Invest-
ment
Expens-
es
Invest-
ment
Expens-
es
Invest-
ment
Expens-
es
Invest-
ment
Expens-
es
Invest-
ment
Expens-
es
Business area cost 236 941 108 930 108 991 360 908 401 1,202
Details (1)
Pollution prevention cost
16.0 368 15.9 358 36.6 353 67 351 67 407
(2)
Global environmental conservation cost
181.9 291 16.1 260 54.2 326 271 223 287 374
(3)
Resource recycling cost
37.9 282 76.5 311 16.9 312 22 334 47 422
Upstream/
downstream cost
Introduction of carboard-free facilities, premiums of green purchases, etc. 41.1 6.800 78 18 118 35 1 27 0 3
Administration cost Development/
maintenance of ISO 14001 management system, employee training, creation of environmental reports, etc.
222 239 248 238 0 236
R&D cost Research on advanced use of resources, etc. 122 147 142 139 0 142
Social activity cost Cleanup activities around plants, support for groups engaged in environmental conservation, etc. 3.16 3.44 4.07 3.65 0 3.51
Environmental remediation cost Pollution load charges 8.02 7.85 8.13 7.27 0 5.93
Total 277 1,302 187 1,345 226 1,429 361 1,323 401 1,593
Environmental benefits
Category Environmental Performance Indicator Unit FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Benefit related to resources input into business activities Energy consumption per unit of production L/t 179.9 174.9 158.7 153.4 149.1
Amount of water usage Thousand m³ 2,997 2,870 2,759 2,845 2,859
Water usage per unit of production m³/t 5.95 5.69 5.16 5.16 4.90
Benefit related to waste or environmental impact originating from business activities CO2 emissions per unit of production kg-CO2/t 361 342 309 300 291
Amount of water discharged Thousand m³ 2,140 2,058 1,993 2,073 2,069
Water discharged per unit of production m³/t 4.25 4.05 3.73 3.60 3.54
Amount of waste discharged t 17,372 18,543 18,456 18,439 19,850
Waste discharged per unit of production kg/t 66.7 65.1 21.7 12.4 17.0
Benefit related to goods and services produced from business activities Waste recycling rate % 99.98 99.97 99.96 99.97 99.94
  • Some figures may be different from those published in last year’s report due to changes made to the energy conversion coefficient and other data.

Economic benefit associated with environmental conservation activities (Million yen)

Category Details Amount
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Revenue Profit from sale of valuable materials obtained through waste recycling (soy pulp, waste oil, used cardboard) 19 17 18 20 21
Cost reduction Cost reduction through waste reduction activities 87 160 173 176 156
Total 106 177 191 196 177

Biodiversity Conservation

Procurement focusing on biodiversity

The Fuji Oil Group, which uses agricultural produce as key raw materials, believes that it should actively promote efforts to conserve biodiversity. As for palm oil, whose production causes biodiversity loss due to farmland reclamation, we declare our commitment to the goal of sourcing deforestation-free palm oil in our Responsible Palm Oil Sourcing Policy. We also participate in an educational support project for smallholders, through which we work to improve productivity in the abundantly biodiverse Kinabatangan district of Sabah, Malaysia, with the goal of preventing deforestation for farmland reclamation and chemical pollution of rivers, thereby contributing to the conservation of biodiversity.

  • Note: For more information regarding our Responsible Palm Oil Sourcing Policy and support activities for smallholders, please refer to "Sustainable Procurement."

Continuous implementation of Hannan-no-Mori Project

  • Employees harvesting bamboo

The Hannan Business Operations Complex has implemented the Hannan-no-Mori Project to restore satoyama forest in the Kaminogo area of Izumisano City, under the Adopt-a-Forest* system introduced by Osaka Prefectural Government. In this project, Fuji Oil Group employees participate in forest development activities such as tree planting and forest maintenance.

In 2016, in recognition of its forest development efforts over the past five years under the Adopt-a-Forest system, the Hannan Business Operations Complex received a certificate of appreciation from the Department of Environment, Agriculture, Forestry and Fisheries of the Osaka Prefectural Government.

We will continue activities such as bamboo harvesting, undergrowth cutting, and tree thinning to protect the ecosystem of satoyama forest.

  • Adopt-a-Forest Certificate of Appreciation presentation ceremony

*Adopt-a-Forest system
A system aimed at supporting participation by the general public in forest development through mediation by Osaka Prefectural Government between companies and forest owners.

External Recognition

Tianjin Economic-Technological Development Area Environmental Protection Excellence Award for Tianjin Fuji Protein Co., Ltd. (China)

In connection with World Environment Day in June 2016, 10 companies in the Tianjin Economic-Technological Development Area (TEDA) received awards at the 2015–2016 TEDA Environmental Protection Excellence Awards and Corporate Environmental Evaluations, including Tianjin Fuji Protein Co., Ltd., which received an Excellence Award.

At the same time as the awards, corporate environmental evaluations were also posted on the website of the Tianjin TEDA Environmental Protection Bureau, and Tianjin Fuji Protein received a "very good" evaluation. We will continue to work on environmental management and improvement.

    • Presentation of the award

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