Sustainability

CSR Management

Basic approach to CSR

The Fuji Oil Group’s CSR is to continuously fulfill the mission of the Group Management Philosophy: "The Fuji Oil Group seeks to develop the potential of food ingredients. We will contribute to the happiness and well-being of the people by offering delicious and healthy food." Recognizing that a company is a social entity, we believe that CSR entails working to understand the expectations and concerns of stakeholders and contributing to the sustainable development of society through our business activities.

Overview of activities

Four categories of CSR activities

The Fuji Oil Group has classified its CSR activities into the following four categories and sets forth activity guidelines for each.

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Category Activity guidelines
1.Strategic activities Contribute to resolving social issues through businesses and products.
2.Basic activities Reduce and rectify the adverse impacts on society from our business processes.
3.Social contribution activities Contribute to the development of local communities as a good corporate citizen.
4.Communication with stakeholders Communicate with stakeholders in a highly transparent manner and in good faith.

Promotion System

Promotion system

Based on the idea that CSR is the essence of management, we have established the ESG Committee as an advisory body to the Board of Directors of Fuji Oil Holdings. The ESG Committee meets twice a year or more to discuss issues and strategies for the Fuji Oil Group to continue fulfilling its corporate social responsibilities. We invite outside experts as advisors to the committee so that it can incorporate the perspective of society. The committee submits the results to the Board of Directors twice a year and receives reviews from the Board of Directors.
As of April 2018, the ESG Committee consists of five subcommittees; the Solutions through Creation of Foods Subcommittee; the Safety, Quality and Environment Subcommittee; the Human Resources Development Subcommittee; the Sustainable Procurement Subcommittee; and the Governance Subcommittee. The chairperson of each subcommittee is responsible for the group-wide application of the themes dealt with by his or her subcommittee.

Promotion System

Educational and awareness-raising activities

We conduct educational and awareness-raising activities for the Fuji Oil Group employees to inform them of the Group’s basic approach to CSR, its CSR activities, and society’s expectations of the Fuji Oil Group so that each employee practices CSR through his or her work.

<Examples of activities>

  • Dissemination of CSR information via the intranet (Japanese/English)
  • Explanation of social trends (human rights/climate change risk) and the Fuji Oil Group's initiatives at the 26 group companies where a Risk Management Committee has been established, etc.

Priority themes for contributing to society through our business

Basic approach

To realize contributions to the sustainable development of society as well as its own sustainable growth and the creation of value for society through its business activities, the Fuji Oil Group has set topics requiring particular effort as CSR priority themes.

Specification process

In light of society’s progressively growing and changing expectations toward companies, we reviewed our CSR priority themes (materiality) between December 2017 and March 2018.

特定プロセス

Specified priority themes

The Fuji Oil Group specified 15 priority themes and classified them into seven priority areas.

Specified priority themes

Business and Human Rights

Basic approach

The Fuji Oil Group has expressed the core value of "Work for people" in its Group Management Philosophy. This means that thinking from the position of people who could be affected as we conduct our business is the very spirit of respecting human rights. Our participation in the 2016 United Nations Forum on Business and Human Rights and dialogue with our stakeholders gave us the opportunity to reformulate our way of thinking about human rights, and in April 2017 we announced the Fuji Oil Group Human Rights Policy.

Fuji Oil Group Human Rights Policy PDF(400KB)

Promotion System

We recognize that various business activities of the Fuji Oil Group, including employment, procurement and sale of products, can have an impact on human rights. The CSR and Risk Management Group of Fuji Oil Holdings promotes respect for human rights throughout the Company, conducts overall control of human rights risk and works to put respect for human rights into practice in each department and workplace.
In addition, respect for human rights in the value chain has been incorporated in the CSR priority themes, and the ESG Committee, which is an advisory body to the Board of Directors, makes progress reports and examines issues for submission to the Board of Directors.

Educational and awareness-raising activities

The Fuji Oil Group promotes educational and awareness-raising activities on business and human rights.
In FY 2017, we explained human rights and environmental risks and the Fuji Oil Group’s basic approach to CSR to all Risk Management Committees established in Group companies (26 companies). As a result, some Group companies took measures to prevent human rights risks (risks associated with human rights violations through business activities). In addition, at Group companies in Japan, business and human rights were incorporated as an essential theme of the training conducted by each division in each company.
Going forward, we will promote the practice of respect for human rights in each employee’s work by using the Company intranet system to proactively share information on business and human rights.

Human rights due diligence

Human rights due diligence

The Fuji Oil Group conducts human rights due diligence as a way of fulfilling its human rights responsibilities. As a result, we identify important risks that deal with preferentially, and then we will carry out~ education on human rights, promote sustainable procurement, and operate a grievance mechanism and other measures while consulting with and receiving evaluation from experts.

Human rights due diligence

Human rights impact assessment

Human rights risk specification process

In FY 2016, the Fuji Oil Group conducted a human rights impact assessment to identify and evaluate the adverse impacts on human rights involved with its business activities and to identify key issues for priority handling. In the process of implementing the assessment, we gained insight not only from the involvement of related internal departments but also from Verisk Maplecroft and Caux Round Table Japan as external experts. For the first stage, based on Verisk Maplecroft’s expertise, we quantitatively assessed the human rights risks in which the Group’s business activities and operational areas could be involved. For the second stage, based on the results of the first stage, we conducted interviews with related parties in the company with the involvement of Caux Round Table Japan to reflect the actual situation of the Group as much as possible in specifying human rights risks.

Specified human rights risks and countermeasures (Progress)

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Risks for priority handling Progress of risk countermeasures
Risk of the occurrence of problems relating to forced labor, human trafficking, occupational safety and health, appropriate wages, working hours, freedom of association and collective bargaining, particularly with respect to contract or temporary laborers used at overseas group companies in Southeast Asia, China and Africa In FY 2017, the CSR and Risk Management Group of Fuji Oil Holdings explained human rights risks to the Risk Management Committees of 26 group companies and evaluated human rights risks in each company's risk assessment
Risk of violations of the human rights of laborers in areas including working hours, appropriate wages, occupational safety and health, workplace discrimination, freedom of association and collective bargaining, forced labor and human trafficking at joint venture companies that are not substantially under the control of Fuji Oil Holdings or recently acquired group companies
Risk of unintentional violations of the human rights of laborers in areas including working hours and workplace discrimination, particularly at overseas gro
Risk of human rights violations in areas including human trafficking, forced labor, child labor, inappropriate wages, long working hours and seizure of land in the upstream portion of the palm oil supply chain
  • In FY2017, the Fuji Oil Group promoted supply chain improvement activities at Palmaju Edible Oil Sdn. Bhd. (Malaysia), its primary palm oil refining company
  • In March 2018, conducted engagement (active approach) with major suppliers
  • In May 2018, established and announced a grievance mechanism (for processing complaints) based on the Responsible Palm Oil Sourcing Policy
Risk of human rights violations in areas including child labor, forced labor, human trafficking, appropriate wages and long working hours in the upstream portion of the cacao supply chain
  • We began considering our Responsible Cacao Sourcing Policy in the second half of 2017 and formulated it in August 2018.
Risk that the Fuji Oil Group Human Rights Policy will not be reflected at an operational level in employee behavior due to absence of human rights training
  • In FY 2017, the CSR and Risk Management Group of the Company explained human rights risks to the Risk Management Committees of 26 group companies and evaluated human rights risks in each company's risk assessment
  • In FY 2017, “business and human rights” was handled as an essential theme in training by divisions at Group companies in Japan
Risk of inability to accept and handle complaints from laborers at suppliers and from local residents (absence of grievance mechanism)
  • In May 2018, established and announced a grievance mechanism (for processing complaints) based on the Responsible Palm Oil Sourcing Policy

Grievance mechanism

Grievance mechanism for employees

We have established an internal reporting system for employees of group companies inside and outside Japan and employees of some cooperating companies.

Note: See the Fuji Oil Group website for details.

https://www.fujioilholdings.com/en/csr/human/

Grievance mechanism for supply chain

In May 2018, we established and announced a grievance mechanism based on our Responsible Palm Oil Sourcing Policy. We have established a Grievance Mechanism web page in English on the Fuji Oil Group website to announce the mechanism and its progress.

https://www.fujioilholdings.com/en/csr/grievance_mechanism/

Communication with stakeholders

Basic approach

As a member of society, the Fuji Oil Group considers honesty, transparency and two-way communication with stakeholders essential for understanding and meeting their expectations. Stakeholder opinions and comments are used to improve the Group's business activities.

Dialogue and cooperation with stakeholders

The Fuji Oil Group's stakeholders

The Fuji Oil Group has identified major stakeholders on whom its business activities can exert a positive or negative impact as follows.

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Main stakeholders Communication
Employees
  • Employee training
  • Compliance hotline
  • Employee satisfaction survey
  • Intranet, company newsletter, etc.
Shareholders and investors
  • General Meeting of Shareholders
  • Informal shareholder gatherings
  • Results briefing/teleconference
  • Small meetings, etc.
Customers
  • Daily sales activities
  • Co-Creation Forum, etc.
Consumers
  • Customer inquiry desk
  • Dissemination of information through mass media, etc.
Business partners and subcontractors
  • Daily purchasing activities/ transactions
  • Supplier engagement
  • Procurement Policy presentations, etc.
Local communities
  • Participation in and support of regional events
  • Contribution activities for the local community (food education project)
  • Support after natural disasters, etc.
NGOs/NPOs and experts
  • Expert panel dialogue
  • Grievance mechanism
  • Promotion of joint projects, etc.
Academic organizations
  • Joint research
  • Lectures, etc.

Accelerating CSR promotion through dialogue with stakeholders

Case study: Dialogue with experts on business and human rights

In September 2017, we engaged in a dialogue with experts on business and human rights to receive advice on our future CSR activities. It was the second time we had the opportunity for a dialogue on the theme of business and human rights since FY 2016. Puvan J. Selvanathan, CEO of Bluenumber Foundation, and Cathrine Bloch Veiberg of The Danish Institute for Human Rights participated as experts. Participants from the Fuji Oil Group included President and CEO Hiroshi Shimizu, other related officers and members of CSR departments.
In the dialogue, we explained the basic approach of the Fuji Oil Group as well as the progress of efforts and recognition of issues related to business and human rights. The experts advised that, particularly in the area of sustainable procurement, engagement with suppliers is important for promoting sustainable procurement and risk mapping of the supply chain enables identification of issues to be addressed with particular priority. Since the dialogue, we have been putting the advice we received to use in our basic approach to planning sustainable procurement strategies for main raw materials and building a grievance mechanism.

  • 事例:ビジネスと人権に関する有識者ダイアログ01
  • 事例:ビジネスと人権に関する有識者ダイアログ02
  • 事例:ビジネスと人権に関する有識者ダイアログ03
A scene from the dialogue with experts on business and human rights held in September 2017
<Participants> (as of September 2017)
  • Experts
    Puvan J. Selvanathan, CEO, Bluenumber Foundation
    Cathrine Bloch Veiberg of The Danish Institute for Human Rights
  • FUJI OIL HOLDINGS INC.
    Hiroshi Shimizu, President and CEO
    Tomoki Matsumoto, Director and Managing Executive Officer, CFO
    Takeshi Takasugi, Managing Executive Officer, Business Development Division
    Toshio Shikata, Senior Manager, CSR and Risk Management Group
    Haruka Yamada, CSR and Risk Management Group
  • Moderators
    Caux Round Table Japan
    Hiroshi Ishida, Executive Director
    Sayaho Noda, Director
<Dialogues with experts on business and human rights and Fuji Oil Holdings’ response>

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September 2016
First dialogue with experts
September 2016 -
September 2017
September 2017
Second dialogue with experts
As of September 2017 -
May 2018

<Advice>

  • Business and human rights guiding principles
  • Sustainable procurement focused on the site (plantation)

<Response>

  • Drafting and announcement of human rights policy
  • Implementation of human rights due diligence and response to issues
  • Start and promotion of palm oil supply chain improvement activities at Group company (primary refining plant) Palmaju Edible Oil Sdn. Bhd. (Malaysia)

<Advice>

  • Supplier engagement
  • Understanding supply chain risks

<Response>

  • Engagement with major palm oil suppliers
  • Construction and announcement of grievance mechanism
  • Start of improvement activities for high-risk supply chain (Indonesia)

Participation in external initiatives

We are participating in external initiatives to help resolve social issues in cooperation with stakeholders.

【Major external initiatives】

  • UN Global Compact
  • The Consumer Goods Forum
  • RSPO(Roundtable on Sustainable Palm Oil)
  • CDP
  • Global Shea Alliance
  • World Cocoa Foundation
Network Japan WE SUPPORT

The Fuji Oil Group signed the United Nations Global Compact in January 2013. We are contributing to improving the sustainability not only of our group but also of the entire society by practicing the ten principles in the four areas of human rights, labor standards, the environment, and anti-corruption.

The Fuji Oil Group has agreed to and signed the UN Global Compact.

Evaluation from society

As of March 2018, we have received the following evaluation for the Fuji Oil Group’s CSR.

<Evaluation from society (examples)>

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Environment October 2017: CDP Climate Change Questionnaire "B" rating
Overall ESG July 2017: Selected as a constituent stock in the MSCI Japan ESG Select Leaders Index
January 2018: Fuji Oil Holdings’ Sustainability Report 2017 selected as one of the “most-improved integrated reports” in a report published by the Government Pension Investment Fund
Health Management February 2018: Certified as an Excellent Enterprise of Health and Productivity Management 2018 (White 500) by the Ministry of Economy, Trade and Industry
Empowerment of Women August 2017: Received the Platinum “Kurumin” certification from the Ministry of Health, Labor and Welfare
July 2017: Selected as a constituent stock in the MSCI Japan Empowering Women (WIN) Select Index

Social Contribution Activities

Basic approach

In “Our Principles” in the Fuji Oil Management Philosophy, we state that we will engage in corporate activities rooted in our communities and actively contribute to society. As a member of local communities, we are engaged in social contribution activities that are related to the regions where our business sites are located and to the nature of our businesses.

Food education project

Since FY 2014, the Fuji Oil Group has been conducting a nutrition education project in cooperation with the NPO After School, to convey the importance of food and the power of soybeans to children, who will lead the next generation. In FY 2017, we provided a total of 21 classes to teach 584 elementary school students about the power of soybeans to improve people’s health and save the world from food resource shortages, with two types of programs: soybean snacks (soymilk pudding) and a soybean workshop.
In recognition of our activities to stimulate interest in food and global issues through these experiences, we received an award in FY 2017 at the 11th Kids Design Awards, sponsored by the Kids Design Association.

<Visiting class>
<Visiting class>
<Messages from children who attended the class>
  • Thank you very much for teaching us how amazing soybeans are today. The pudding was also delicious.
  • Thank you for telling us about soybeans. Please teach us more about soybeans.
  • I learned that soybeans are the most important thing on Earth, and I want to grow soybeans at home so that there is no food shortage on the Earth.
  • Thank you for a very enjoyable time.
  • I enjoyed making sweets for the first time. I will find out more about soybeans and try to appreciate food more. Thank you very much.

The Fuji Foundation for Protein Research

In 1979, we inaugurated the Research Committee of Soy Protein Nutrition to support the promotion of academic studies on soybean protein. Based on its activities over 18 years, we established the Fuji Foundation for Protein Research, operating under the jurisdiction of the former Ministry of Education, Science and Culture, in 1997. Since 2012, it has been working to carry on and expand operations as a public-interest foundation under the jurisdiction of the Cabinet Office. Aiming to stimulate wider academic research as well as popularization and use of soy protein, the foundation subsidizes a wide range of research on topics from food basics and applications to food culture, and announces the results by holding lectures open to the general public and other events. The cumulative number of grants, including those from predecessor organizations, has totaled 1,050 over the past 39 years. In addition, well-attended lectures for the general public have been held 21 times and soy protein food tasting meetings have also been positively received. In FY 2018, we celebrate the 40th anniversary of the establishment of this research organization and intend to contribute to society by publicizing the information it has accumulated more widely.

<Lecture held in Osaka>
<Lecture held in Osaka>

Providing chocolate for teaching materials to stimulate interest in problems at palm oil producing regions at the “SDGs for School” visiting class for high school students by the NGO Think the Earth.

“SDGs for School” is a project for teaching about the realization of a sustainable society conducted by the NGO Think the Earth to promote understanding of and popularize the SDGs among junior high and high school students. For this visiting class, the Fuji Oil Group provides two kinds of chocolate for teaching materials (one that uses palm oil and another that does not). We support this activity that shows high school students the difficulty of doing without palm oil in daily life and gives them information for consuming sustainably sourced palm oil.

<Message from a high school student who attended the class (excerpt)>

As a high school student today, I think I have more power than someone from any other generation to change the world. However, when I was growing up, I became fearful and I was unable to do anything specific, which felt very distressing. At that time, I got a specific idea of what I should do from my teacher through my classes. From now on, I would like to be able to do what I want with many other people.
I was also interested in Think the Earth and Fuji Oil 's activities and corporate philosophies. The thought that such companies exists in the world fill me with a very happy feeling.

It is difficult to develop the economy while thinking about the environment and society. I think that Japan should give more thought to other countries and the future of the world, rather than making and buying lots of cheap products. Since I cannot find a clear answer about what Japan should do, I would like to find out what companies are doing.

Note: See the following website for details (Japanese only).

http://www.thinktheearth.net/sdgs/

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