Sustainability

Environmental Management

Basic approach

In recent years, global issues such as global warming and climate change have become increasingly severe, affecting people's lives and companies' business activities. As a member of society that conducts activities on the Earth, the Fuji Oil Group supports a sustainable society as advocated by the United Nations through the SDGs , and will seek not only to create economic value, but also to engage in business activities while taking the global environment into consideration to the global environment. Being a food manufacturer, we recognize that our business activities can have an impact on the environment through CO2 emissions, water use and waste generation. Under such recognition, we established our Basic Policy of Environmental Integrity, which comprises the following four items.

Basic Policy of Environmental Integrity

  • We strive to continuously improve our activities on environmental protection
  • We work in full compliance with environmental laws & regulations and spirit thereof
  • We endeavor to develop environmentally-friendly products and technologies
  • We make efforts to well communicate with society

Objective

Formulation of New Environmental Vision 2030

Recent years have seen the development of international environmental frameworks, such as the Paris Agreement on climate change and global warming, and SDGs. Efforts by the international community for global environmental issues are accelerating. As a member of society, the Fuji Oil Group aspires to contribute to achieving the Paris Agreement, to which the international community is committed. To this end, in FY2018 after analyzing the progress of our Environmental Vision 2020, which was formulated in 2010, and the suitability of its targets we formulated a new environmental vision with a target year of 2030. This new vision will replace the Vision 2020. The Environmental Vision 2030 sets much higher targets to challenge ourselves and contribute more to protecting the global environment. In the future, we will promote environmental activities more vigorously to achieve the Environmental Vision 2030.

Previous targets: Fuji Group Environmental Vision 2020

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In Japan
Global warming prevention: 20% reduction in CO2 emissions by 2020 (compared to base year*)
Conservation of water resources: 20% reduction in the amount of water usage/discharge by 2020 (compared to base year*)
Recycling of resources: Recycling rate of at least 99.8% by 2020
Active earth greenery and biodiversity conservation activities

*Base year: Mean value of the period 2003-2005 (Tokyo Cap-and-Trade Program)


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Reduction at Group Companies Outside Japan
Global warming prevention: 20% reduction in CO2 emissions by 2020 (compared to base year*)

*Base year: 2006

New targets Environmental Vision 2030

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(1) CO2 emissions reduction
24% reduction in total CO2 emissions by 2030 (base year: 2016)
(2) Water usage reduction
20% reduction in per unit of production by 2030 (base year: 2016)
(3) Waste reduction
10% reduction per unit of production by 2030 (base year: 2016)
Resource recycling
Recycling rate of at least 99.8%

*Targets (1)–(3) applied to all Group companies, while (4) applied to Group companies in Japan.

Progress

In Japan

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Targets FY 2018 results Achievement rate
Reduction of CO2 emissions
(All Group companies)
24% reduction in total CO2 emissions by 2030 (vs. base year*) 14.1% reduction 59%
Reduction of water usage
(All Group companies)
20% reduction per unit of production by 2030 (vs. base year*) 14.1% reduction 71%
Reduction of waste
(All Group companies)
10% reduction per unit of production by 2030 (vs. base year*) 1% increase 0%
Resource recycling
(In Japan)
Maintain a recycling rate of at least 99.8% until 2030 99.33% Not achieved

*Base year: 2016

Promotion System

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.
To promote ESG management, Fuji Oil Holdings established the ESG Committee as an advisory body to the Board of Directors. The ESG Committee meets regularly to discuss important matters relating ESG, including environmental issues, and make reports and proposals to the Board of Directors.
In FY 2018, under the leadership of the Chief Quality Officer (CQO), various Group-wide environmental initiatives were undertaken.
Each Group company sets environmental yearly targets and KPIs. Fuji Oil Holdings' Productivity Promotion Group provides expert knowledge to support and guide Group companies to help them achieve their targets.

Educational and Awareness-Raising Activities

Fuji Oil Holdings established the Productivity Promotion Group, as a strategy development unit with specialized knowledge in the fields of safety, quality and the environment. The Productivity Promotion Group visits Fuji Oil Group companies regularly to provide training and awareness-raising on these topics.
The Productivity Promotion Group also provides education on Environmental Vision 2030 and other environmental issues via video conferencing for senior management at Group companies outside Japan.

Incentives for Employees

As of FY 2016, we established a Safety, Quality & Environment category in our management awards program to recognize departments and group companies that have made excellent efforts to contribute to society through their business activities. Once a year, we present awards to companies and departments among the group companies that have achieved outstanding results.

Acquisition of Management Certifications

ISO 14001 Certification

Fuji Oil Group promotes the acquisition of ISO 14001 certification (2015 version), an international standard for environmental management systems. This is done to improve public trust through compliance with applicable laws and regulations and promotion of environmental conservation activitie.

Out of the eight consolidated Group companies in Japan with production sites, three companies have obtained ISO 14001 certification, including Fuji Oil Co., Ltd., which produces the largest volume among Group companies in Japan. These three companies account for about 96% of the Group's production volume in Japan. Out of the 15 consolidated Group companies outside Japan with production sites, seven companies are certified.

See the following website for the latest status of ISO 14001 certification.
https://www.fujioilholdings.com/en/about/authen/iso14001/

Audits

Environmental Audits

In addition to external audits in accordance with ISO 14001, the Fuji Oil Group conducts internal audits on safety, quality and the environment. The aim of this is to improveproduction control at Group companies. In FY 2018, 66 departments from Group companies in Japan underwent internal audits and external audits. No nonconformities were found. Outside Japan, internal audits were performed on six Group companies. Our internal audits do not simply check if all relevant environmental laws and regulations are complied with. They also serve as opportunities for auditors to explain important environmental matters. Through environmental audits, we examine and evaluate each Group company's environmental efforts and give advice on areas needing improvement, thereby promoting and improving the Group's environmental protection activities.

Serious environment-related violations and measures

In FY2018, there were no serious environemntal violations in the Fuji Oil Group.

External Evaluation

  • We were awarded B-List status in CDP (Carbon Disclosure Project) Climate Change Questionnaire 2018.
  • We were awarded A-List status in CDP Forest Questionnaire 2018 for the first time in Japan.
  • We received a top-level ranking in the Development Bank of Japan (DBJ)'s Environmental Rating Loan.
  • We have been rated as Class S (excellent energy-saving business operator) for four consecutive years, in terms of regular reports on energy-saving efforts at factories/business establishments.

Data

Overview of Environmental Impacts (Input/Output)

The Fuji Oil Group records and analyzes the input of materials and energy, and the output of emissions and waste at all stages from raw material procurement to production and logistics. This is done to mitigate the environmental impacts of its business activities.

Overview of Environmental Impacts from Business Activities of Group Companies in Japan

Overview of Environmental Impacts from Business Activities of Group Companies in Japan

Environmental Audit Results (Internal Environmental Audits and External Audits) (Group Companies in Japan)

(Unit: Department)

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Internal environmental audits External audits
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
FY 2017 Nonconformity 0 0
Monitoring required 26 5
FY 2018 Nonconformity 0 0
Monitoring required 59 7

*In FY 2017, a total of 56 departments were audited. This includes R&D centers located in the Hannan Business Operations Complex and in Tsukuba, with each counted as one department. In FY 2018, audits were conducted in each section of the R&D centers, making the total number of audited departments 66. This was done to allow conducting more detailed audits.

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 2018 to March 2019

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 10 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

(unit: million yen)

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Category Major activities FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Investment Expenses Investment Expenses Investment Expenses Investment Expenses Investment Expenses
Business area cost   108 991 360 908 401 1,202 846 1,313 1,095 1,187
Details 1) Pollution prevention cost 36.6 353 67 351 67 407 352 420 167 461
2) Global environmental conservation cost 54.2 326 271 223 287 374 486 486 913 434
3) Resource recycling cost 16.9 312 22 334 47 422 8 407 15 292
Upstream/
downstream cost
Introduction of cardboard-free equipment, premiums of green purchases, etc. 118 35 1 27 0 3 0 3 0 1
Administration cost Development/maintenance of the ISO 14001 management system, employee training, the creation of environmental reports, etc. 248 0 238 0 236 0 236 0 252
R&D cost Research on advanced use of resources, etc. 142 0 139 0 142 0 130 0 146
Social activity cost Cleanup activities around plants, support for organizations engaged in environmental conservation, etc. 4.07 0 3.65 0 3.51 0 3.51 0 4.26
Environmental remediation cost Pollution load charges 8.13 0 7.27 0 5.93 0 5.93 0 6.73
Total 226 1,429 361 1,323 401 1,593 846 1,691 1,095 1,597
 

Environmental benefits

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Category Environmental Performance Indicator Unit FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Benefit related to resources input into business activities Energy consumption per unit of production L/t 158.7 153.4 149.1 152 148
Amount of water usage 1,000m3 2,759 2,845 2,859 2,713 2,555
Water usage per unit of production m3/t 5.16 5.16 4.90 4.83 4.46
Benefit related to waste or environmental impact originating from business activities CO2emissions per unit of production kg- CO2 /t 309 300 291 299 282
Amount of water discharged 1,000m3 1,993.00 2,073.00 2,069.00 1,969.00 1,925.66
Water discharged per unit of production m3/t 3.73 3.60 3.54 3.51 3.36
Amount of waste discharged /t 18,456 18,439 19,850 18,529 19,742
Waste discharged per unit of production kg/t 21.7 12.4 17.0 33.0 34.5
Benefit related to goods and services produced from business activities Waste recycling rate % 99.96 99.97 99.94 99.96 99.33

*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

(Unit: million yen)

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Category Details Amount
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Revenue Profit from sale of valuable materials obtained through waste recycling
(soy pulp, waste oil, used cardboard)
18 20 21 14 30
Cost reduction Cost reduction through waste reduction activities 173 176 156 164 158
Total 191 196 177 177 188
 

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