Environmental Management

Managing climate- and nature-related impacts, risks and opportunitiesGRI: 2-24, 27, 3-3, 101-1, 4, 201-2

TCFD (Climate) TNFD (Nature) Relevant webpages
Policy Fuji Oil Group’s business operations are supported by natural capital: air, water, soil, forests, and plants. At the same time, our business activities may impact this natural capital through our supply chain. We also recognize that the adverse impacts of climate change on nature and biodiversity loss in recent years pose risks to our performance to operate our business sustainably.
In light of our understanding of our dependencies and impacts on such natural capital, we announced a revision of our environmental vision to the Environmental Vision 2030/2050 in April 2025, building on the Basic Policy of Environmental Integrity established in 2015 and the Fuji Oil Group Policy on Biodiversity established in March 2023. This revision raises our CO2 emissions and water consumption reduction targets set in the Environmental Vision 2030 formulated in 2018, with the goal of accelerating our initiatives toward a sustainable future for food across the Group.
Governance

From the perspective of climate- and nature-related impacts, as well other environmental and social impacts, and the Group’s risks and opportunities, the Group identifies material ESG issues and assigns chief officers in charge to oversee them. The Sustainability Committee,*1 an advisory body to the Board of Directors, deliberates on and monitors*2 the targets and progress of each priority action. The committee then reports the results and makes recommendations to the Board. It meets at least twice a year and is chaired by the President and CEO. Its members include the COO (Director), CFO (Director), the heads of each business and functional divisions, and two outside directors who serve as ESG Advisors. The chief officers in charge of priority actions, who also oversee initiatives across divisions under Environmentally Responsible MONOZUKURI (Product Development and Manufacturing Practices) and Sustainable Procurement,*3 areas of sustainability matters that address material ESG issues, are as follows:

Material ESG issues Chief officer in charge
Area of sustainability matters Priority action
Environmentally Responsible MONOZUKURI
(Product Development and Manufacturing Practices)		 Creation of Diverse Plant-based Ingredients Head of R&D Headquarters, the Executive Officer
Reduction and Upcycling of Food Loss and Waste Head of R&D Headquarters, the Executive Officer
Establishment of Circular Food Systems
CO2Emissions Reduction Head of Safety, Quality and Production Technology Headquarters, the Executive Officer
Water Use Reduction
Waste Reduction
Biodiversity Conservation and Restoration Head of Corporate Planning Headquarters, the Executive Officer
Sustainable Procurement
Biodiversity Conservation and Restoration Head of Corporate Planning Headquarters, the Executive Officer
Sustainable Procurement of Palm Oil Head of Oils & Fats Business Headquarters, the Senior Executive Officer
Sustainable Procurement of Cocoa Chief Operating Officer (COO)
Head of Chocolate Business Headquarters, the Senior Executive Officer
Sustainable Procurement of Soybeans Head of Soy Ingredients Business Headquarters, the Executive Officer
Sustainable Procurement of Shea Kernels Head of Oils & Fats Business Headquarters, the Senior Executive Officer

The Fuji Oil Group manages climate- and nature-related risks and opportunities as part of its internal control. These are discussed and managed by the Subcommittee on Group Significant Risks. Following deliberations by the newly established Fuji Oil Risk Management Committee, their results are reported and approved in the Management Committee Meeting and the Board of Directors meeting at least once a year.
Moreover, in order to realize a sustainable future for food, we follow the relevant policies in responding to Indigenous Peoples, social minorities, local communities, and other groups who may be affected by our business operations, and strive to build a foundation for ongoing dialogue and collaboration with our stakeholders.
Our Group also announced the endorsement of the Task Force on Climate-related Financial Disclosures (TCFD) in May 2019, and registered as a TNFD adopter*4 in July 2025, endorsing the TNFD recommendations. Through disclosures aligned with the CFD and TNFD recommendations, we will contribute to the achievement of international goals such as carbon neutrality and a nature-positive world.
https://tnfd.global/engage/tnfd-adopters/
Strategy
GRI: 2-24

In recent years, escalating climate change and biodiversity loss have led to a decline in the ecosystem services that society relies on and which underpin all economies. The global deterioration of the natural environment is seriously impacting corporate business operations and people’s lives. Forest and soil degradation, biodiversity loss, higher water stress, and more frequent extreme weather events are interfering with the stable supply of the agricultural products we use as key raw materials to make our products, and are becoming a threat to our business operations.
Our Group’s businesses are benefitting from nature and ecosystem services while also affecting them through the global value chain, which includes raw material production, procurement, transportation, and product processing. We believe that changes in climate and nature are critical to our businesses in terms of both risks and opportunities. For these reasons, we strive to face these risks appropriately by working to reduce CO2 emissions, conserve natural ecosystems, and use natural capital sustainably. At the same time, we have incorporated the concept of a nature-positive future*1 in the development of our technologies and products. They are developed to have a positive impact on the natural environment to open up better business opportunities in the future.
With the goal of reducing our negative impacts and creating positive impacts, we will accelerate our sustainability initiatives at each Group company based on material ESG issues*2 and co-create the solutions with our stakeholders.

  • *1 Nature Positive: A global goal defined as halting and reversing biodiversity loss in order to put nature on a path to recovery
  • *2 Material ESG issues: Climate change, water resources, circular economy, biodiversity, sustainable procurement, and creation of sustainable food resources

We performed the climate change scenario analysis recommended by the Taskforce on Climate-related Financial Disclosures (TCFD) to select climate change risks and opportunities, and qualitatively assessed their financial impact for a major Group company in Japan in FY2019, and for eight major Group companies outside Japan in FY2020. In FY2022, we conducted a quantitative assessment of the financial impacts by conducting the scenario analysis based on 1.5°C/4°C climate scenarios instead of 2°C/4°C, with the goal of achieving a more aggressive climate intervention.

Identifying dependencies and impacts on nature:

In FY2022, we classified how all of our Group’s business activities relate to nature and biodiversity across the value chain. We then used ENCORE, a natural capital risk assessment tool, along with other resources to evaluate and identify key nature-related risks along two axes: (1) nature-related issues stakeholders expect the Group to address, and (2) nature-related issues that could significantly impact our business. As a result, we identified four risks as highly significant: land use conversion and soil use; impacts on ecosystems in areas surrounding farmland; GHG emissions and climate change; and water resource use and wastewater discharge. All of them are strongly linked to our palm oil and cocoa supply chains.

In FY2023, based on the LEAP approach* developed by the Taskforce on Nature-related Financial Disclosures (TNFD), we conducted a nature-related risk analysis in countries where the Group sources key raw materials, palm oil and cocoa. Through a literature review, and using location-based Geographic Information Systems (GIS), we analyzed farmlands through an integrated set of nature-related indicators to assess our dependencies and impacts on nature and ecosystem services. See “Biodiversity Conservation and Restoration” for details on the assessment results.

Palm oil and cocoa were selected for analysis based on the following points:

  • They are closely related to the biodiversity issues we identified in FY2022
  • They are the main raw materials for the Group’s main businesses, vegetable oils and fats and industrial chocolates, and have relatively high traceability
  • Oil palm and cocoa are included in the High Impact Commodity List of the Science Based Targets Network (SBTN)
  • * LEAP approach: An integrated approach developed by the TNFD for assessing nature-related issues including interfaces with nature, nature-related dependencies, impacts, risks and opportunities

We use WRI Aqueduct, a water-risk evaluation tool provided by the World Resources Institute (WRI), to identify catchment-level risks such as water stress or water quality and to assess water risks at our Group’s manufacturing sites. As the Aqueduct analysis conducted in FY2024 identified our production site in Belgium as being located in a basin at high risk of water stress, we continue to implement appropriate measures to reduce water withdrawal risks, including the use of canal water for industrial purposes and the recycling of wastewater. Moreover, while certain production sites in the United States, Japan, and Southeast Asia are located in areas with high risks of water pollution, all these sites comply with their respective national laws and regulations regarding wastewater discharge.
Risk management
GRI: 2-27		 The Group has positioned the Management Committee Meeting as its Group-wide risk management body. The committee uses information sources that reflect the Group — including risks identified by executive teams, our material ESG issues, and operational risks — to comprehensively determine the level of impact on Group business, likelihood of occurrence, and time of onset, and to select the risks that are significant to the entire Group (Group significant risks). We have developed a Group-wide risk management system aimed at managing these risks through a process of developing and implementing responsive measures, monitoring progress, evaluating results, and making improvements.
Risks related to climate change, biodiversity and the natural environment are also identified as Group significant risks. These risks are managed through the Group-wide risk management system by assessing their degree of significance, assigning priorities to initiatives, and planning and implementing responsive measures, which are reported to the Board of Directors at least once a year.
Assessment of risks and opportunities
See the section “Assessment of climate change-related risks and opportunities and their financial impact on the Fuji Oil Group” for details. Based on materiality analyses of nature and biodiversity issues across all our business activities conducted in FY2022, we compiled potential nature-related risks*1 and opportunities*2 for the Group. Furthermore, in FY2023, through assessments of our dependencies and impacts using location-based analyses in palm oil and cocoa sourcing countries, we identified our nature-related risks*1 and opportunities,*2 and outlined countermeasures to address them.
See the section “Nature-related risks and opportunities across the Fuji Oil Group’s value chain.”
  • *1 Nature-related risks: Potential threats posed to an organization that arise from its and wider society’s dependencies and impacts on nature
  • *2 Nature-related opportunities: Activities that create positive outcomes for organizations and nature through positive impacts or mitigation of negative impacts on nature
Environmental monitoring
Since FY2021, we have implemented environmental data collection and management systems to monitor energy efficiency, resource conservation, and the progress of reuse and recycling at each of our Group’s business locations. Environmental data are collected and analyzed monthly at our head office to track trends in GHG emissions, water use, and waste. We have also obtained third-party verification for our CO2 emissions to ensure the reliability of our disclosed information.
Environmental audits
The Fuji Oil Group has established environmental management systems that refer to or comply with the international standard ISO 14001, with the aim of reducing environmental risks and promoting environmental conservation efforts. Each year, ISO 14001-certified operating sites undergo verification through external audits by certification bodies and also conduct their own internal audits covering safety, quality, and environmental performance. In addition to checking for compliance with all relevant environmental laws, regulations and internal rules, internal audits also serve as opportunities to communicate to employees our initiatives to achieve Environmental Vision 2030/2050 goals and their importance, in order to foster deeper and widespread understanding. Through these overall efforts, we strengthen the foundation of our environmental conservation efforts and continuously advance, improve, and enhance our initiatives.
At Group companies in Japan, external and internal audits in FY2024 identified a case of environmental non-compliance, which was addressed appropriately.
Outside Japan, we conducted internal audits at four of our 18 production sites, providing guidance on areas requiring improvement to help raise compliance levels at each company. Moving forward, we will continue to work to develop our environmental management systems and enhance our auditing system.
Acquisition of management certifications
Training
Fuji Oil Co., Ltd. provides regular training on safety, quality, and the environment among management and staff in relevant departments of Fuji Oil Group companies outside Japan. In FY2024, the team held awareness-raising activities at four production sites of Group companies outside Japan. These activities are scheduled such that all sites are visited in a three- to four-year cycle. In Japan, we publish a monthly environment and energy newsletter on our internal messaging board and cafeteria display monitors to share updates on the progress of our environmental targets and other related information, which help raise employee awareness.
Grievance mechanism
The Fuji Oil Group accepts grievances from all stakeholders and takes remedial action on human rights, and other social and environmental issues through a grievance mechanism in line with our Responsible Palm Oil Sourcing Policy. We disclose all grievance cases and their progress on a quarterly basis via a publicly available grievance list on our corporate website. To comply with confidentiality obligations and unfair competition prevention laws, we ask that stakeholders contact the Group directly for more detailed information on specific cases.
Compliance with environmental laws and regulations
We had one case of failure to disclose information to authorities within the required date. The case was promptly investigated, and we implemented corrective actions and measures to prevent recurrence.
Metrics and targets Environmental Vision 2030/2050

We revised the previous FY2030 targets and announced the Fuji Oil Group Environmental Vision 2030/2050 in April 2025.

Key revision points

  • Set a new net zero GHG target for FY2050 across the entire value chain, including our own sites
  • Revised our previous CO2 emissions reduction targets for FY2030 (approved SBT of well below 2°C) to the SBT 1.5°C standard for all GHGs
  • Set a new FLAG target for FY2030
  • Raised our FY2030 target for water use

New targets (revised targets)

FY2050 target
GHG emissions
(base year: FY2020) 		Scopes 1, 2 & 3: Net zero in total (All Group companies)
FY2030 targets
GHG emissions
(base year: FY2020)		 Scopes 1 & 2*1: 42% reduction in total (All Group companies)
Scope 3 (Category 1*2): 25% reduction in total (All Group companies)
FLAG: 30.3% reduction in total emissions (All Group companies)
Water use
(base year: FY2020)		 20% reduction in water use intensity (All Group companies)
Waste
(base year: FY2016)		 10% reduction in waste intensity (All Group companies)
Resource recycling Maintain a recycling rate of at least 99.8% (All Group companies in Japan)
  • *1 Scope 1: Direct emissions of greenhouse gases from our own operations
    Scope 2: Indirect emissions of greenhouse gases from the use of electricity, heat and steam supplied by third parties
  • *2 Scope 3: Of emissions from the activities of non-Group companies, Category 1 refers to the indirect emissions from purchased goods and services

Note that Sustainability Report 2025 reports on performance for the previous fiscal year compared to our previous targets.
From Sustainability Report 2026, we will report on our progress relative to the revised targets.

Performance on previous targets:

2030 targets*1 FY2024 results Progress
CO2 emissions
(base year: FY2016)		 Scopes 1 & 2: 40% reduction in total (All Group companies) 31% reduction 78%
Scope 3 (Category 1): 18% reduction in total CO2 emissions (All Group companies*1) 16% increase Not achieved
Water use
(base year: FY2016)		 20% reduction in water use intensity (All Group companies*2) 36% reduction 180%
Waste
(base year: FY2016)		 10% reduction in waste intensity （All Group companies*2） 23% reduction 230％
Resource recycling Maintain a recycling rate of at least 99.8% (All Group companies in Japan) 99.84% 100％
  • *1 Calculated emissions for FY2016 using emissions factors of LCI database IDEA ver. 3.3. Recalculated emissions for FY2023 and FY2024 using emissions factors of LCI database IDEA ver. 3.4.
  • *2 Excluding Fuji Brandenburg GmbH (Germany)

NOTE: Scope of the Group is as of March 31, 2025. See the List of Fuji Oil Group Companies:
https://www.fujioil.co.jp/pdf/en/sustainability/download/esg2025.pdf#page=14
Nature-related targets in countries producing our major raw materials
Medium- to long-term commitment FY2025 targets FY2030 targets FY2024 results
NDPE*1 across palm oil supply chain DCF*2: 100%
Traceability to mill (TTM): 100%		 Traceability to plantation (TTP): 100%
Deforestation prevention and forest conservation, improvement of farm living conditions across cocoa supply chain 500,000 trees planted One million trees planted
No deforestation, no exploitation across soybean supply chain Traceability achieved to primary collection points, or 100% procurement of RTRS*3-certified products or products certified to equivalent standards Traceability achieved to the community level, or 100% procurement of RTRS-certified products or products certified to equivalent standards
Parkland conservation and No deforestation across shea kernel supply chain － 6,000 trees planted/year in shea kernel growing regions
  • *1 NDPE: No Deforestation, No Peatland Development and No Exploitation
  • *2 DCF: Deforestation and Conversion Free
  • *3 RTRS: Round Table on Responsible Soy Association
Analysis

The updated planetary boundaries* (2023) revealed that six of the nine planetary systems’ boundaries have already been exceeded. Recognizing the growing urgency to mitigate climate change and prevent deforestation amid the planetary-scale risks posed by the degradation of our natural environment, we set new environmental goals in FY2024.

We revised our existing FY2030 CO2 emissions reduction targets, setting FY2030 targets for GHG emissions under Scope 1 & 2 and Scope 3 in line with a net zero goal by FY2050 and the 1.5°C pathway defined by the SBTi. We also set a new FY2030 FLAG target to account for land-related GHG emissions.
Additionally, we set a goal of achieving zero deforestation and land conversion across our palm oil supply chain by 2025, in line with the Guidance on the Forest Positive PPP Roadmap established by the Accountability Framework Initiative (AFi) and the Consumer Goods Forum (CGF), a global consumer goods industry coalition.

  • * Planetary boundaries: A framework that identifies the safe operating range for humanity for nine global change processes. Crossing these boundaries leads to irreversible environmental changes. Nine processes have been defined as indicators for determining the Earth’s limits: climate change, stratospheric ozone depletion, ocean acidification, biosphere integrity, modification of biogeochemical flows, freshwater change, land-system change, novel entities, and atmospheric aerosol loading. In the latest update, boundaries have been exceeded for six processes: climate change, biosphere integrity, biogeochemical flows, freshwater change, land-system change, and novel entities.
CO2 emissions (Scope 1 & 2)
Scope 1 and 2 emissions in FY2024 were 31% lower than the base year, an improvement of one percentage point from the previous fiscal year’s 30% reduction. This represents a 78% achievement rate relative to our target by FY2030. In Japan, our operating sites have been switching to carbon-free electricity and working to reduce energy loss. Group companies outside Japan are also continuing to reduce energy use through activities such as power saving and facility maintenance.
CO2 emissions (Scope 3 Category 1)
Scope 3 (category 1) emissions in FY2024 increased by 16% (base year: FY2016), an improvement of five percentage points from the previous fiscal year’s 21% reduction. This represents a 0% achievement rate relative to our target by FY2030. We have engaged with suppliers in and outside Japan with the aim of achieving our reduction targets.
Water use (intensity)
Water use intensity in FY2024 was 36% lower than the base year (FY2016), an improvement of three percentage points from the previous fiscal year’s 33% reduction. This represents a 180% achievement rate relative to our reduction target by FY2030. We reviewed our water use optimization at production lines in and outside Japan, and worked on initiatives to reuse water. All these actions contributed to the reduction in our water usage.
Waste (intensity)
Waste intensity in FY2024 was 23% lower than the base year (FY2016), an improvement of eight percentage points from the previous fiscal year’s 15% reduction. This represents a 230% achievement rate relative to our target by FY2030. We lowered the minimum amount of bleaching earth added at Fuji Oil Co., Ltd., updated production line cleaning methods at production sites outside Japan, changed waste disposal contractors, and other measures, all of which contributed to the reduction in our volume of waste.
Resource recycling
The resource recycling rate in FY2024 was 99.84%, a decline of 0.01 percentage point from the previous fiscal year’s 99.85%. However, this means that we achieved our target of 99.8% or higher. We will continue to promote recycling by sorting waste more thoroughly.
Reforestation and forest protection & conservation

Visit the following links for details on ensuring traceability of our raw materials and our progress in preventing deforestation and tree planting in countries producing these raw materials.
External recognition
  • “A” rating from CDP in 2024 for water security, and “A-” rating for forests
  • Selected among the top 350 Asia-Pacific Climate Leaders 2024

Assessment of climate change-related risks and opportunities and their financial impact on the Fuji Oil GroupGRI: 201-2

Level of impact

The level of impact categories — small, medium, and large — refers to the magnitude of financial impact that is projected to occur around the year 2050 based on estimates that assume a certain set of conditions, including but not limited to the Fuji Oil Group’s current business portfolio, financial condition, and business performance. This financial impact assessment is based on these impact categories and therefore is subject to change.
Large: Potential profit impact of 10 billion yen or more
Medium: Potential profit impact of 2 billion yen to less than 10 billion yen
Small: Potential profit impact of less than 2 billion yen

Risks

  • *1 Based on carbon tax data for each country in 2030 taken from the Global Energy and Climate Model Documentation 2024 by the International Energy Agency (IEA) (developed countries: USD 140/tonne, emerging countries: USD 90/tonne)
  • *2 Based on carbon tax data for each country in 2030 taken from the IEAʼs World Energy Outlook 2020 (OECD member countries: USD 34/tonne, other countries: not adopted)
  • *3 Scope 1: Direct emissions of greenhouse gases from our own operations
  • *4 Scope 2: Indirect emissions of greenhouse gases from the use of electricity, heat and steam supplied by third parties
  • *5 Scope 3: Emissions from the activities of non-Group companies in our value chain (Categories 1 to 15)
  • *6 Category 1: Emissions related to raw materials. Purchased goods and services
  • *7 FLAG refers to Forest, Land and Agriculture, and sectors related to land use. FLAG-related emissions represent the combined greenhouse gas emissions of changes in land use, land management and carbon removal.
  • *8 Internal carbon pricing: An internal scheme for promoting low-carbon investment and initiatives by placing a price on carbon based on estimates conducted within the organization.

Opportunities

  • *1 One Health: A concept recognizing the fact that safeguarding the health of ecosystems and animals serves the health of humans as well, inviting everyone to think of and work to protect the health of people, animals and ecosystems as one living system.
  • *2 PBF: Plant-based food

Nature-related risks and opportunities across the Fuji Oil Group’s value chainGRI: 304-2

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