Environmental Management

Sustainability Management

Sustainability Areas

Priority Actions

Our approach to the environment

The Fuji Oil Group’s business activities are supported by the benefits provided by natural capital, including air, water, soil, forests, and plants. At the same time, our operations also impact the global environment and local natural environments throughout the value chain, from raw material production to manufacturing and sales. As the impacts of climate change intensify and biodiversity loss accelerates, these changes in the natural environment pose significant management challenges and risks to raw material procurement and business continuity.

Figure: Environmental issues across the Fuji Oil Group’s value chain

Image links to a PDF file（154KB）

Managing climate- and nature-related impacts, risks and opportunitiesGRI:3-3,201-2

TCFD (Climate) TNFD（Nature） Relevant webpages
Policy
(GRI:2-23,101-1)		 Taking into account our dependencies on natural capital and the impacts of our business activities, the Fuji Oil Group treats environmental issues as key management priorities. Building on the Basic Policy of Environmental Integrity established in 2015 and the Fuji Oil Group Policy on Biodiversity established in March 2023, we revised our medium- to long-term targets in April 2025 under the Environmental Vision 2030/2050. The revised vision clearly sets out our commitment to addressing climate change and conserving and restoring the natural environment in an integrated manner. Under these policies, our Group is working to appropriately identify and address climate- and nature-related risks and opportunities through environmental management and disclosure aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD).
Governance
(GRI:2-12,2-13,2-14)

The Group identifies material ESG issues from the perspectives of environmental and social impacts, including those related to climate change and nature, as well as risks and opportunities for the Group, and assigns a chief officer in charge for each priority action. The Sustainability Committee,*1 an advisory body to the Board of Directors, deliberates on and monitors*2 the targets and progress for each priority action. The committee then reports the results and recommendations to the Board. Chaired by the President and Chief Executive Officer (CEO), the committee comprises the Chief Operating Officer (COO) and the Chief Financial Officer (CFO), both of whom are Directors, the heads of business and functional divisions, and two outside directors serving as ESG Advisors. The committee meets at least twice a year. Among the material ESG issues, the chief officers in charge oversee the priority actions classified under the sustainability area*3 Environmentally Responsible MONOZUKURI (Product Development and Manufacturing Practices) and Sustainable Procurement, and advance them through cross-functional collaboration.

Material ESG issues Chief officer in charge
Sustainability area Priority action
Environmentally Responsible MONOZUKURI
(Product Development and Manufacturing Practices)		 Creation of Diverse Plant-based Ingredients Head of R&D Headquarters, Executive Officer
Reduction of Food Loss and Waste and Upcycling
Establishment of Circular Food Systems
CO2 Emissions Reduction Head of Safety, Quality and Production Technology Headquarters, Executive Officer
Water Use Reduction
Waste Reduction
Environmentally Responsible MONOZUKURI / Sustainable Procurement Biodiversity Conservation and Restoration Head of Corporate Planning Headquarters, Executive Officer
Sustainable Procurement
Sustainable Procurement of Palm Oil Head of Oils & Fats Business Headquarters, Senior Executive Officer
Sustainable Procurement of Cocoa Chief Operating Officer (COO)
Head of Chocolate Business Headquarters, Senior Executive Officer
Sustainable Procurement of Soybeans Head of Soy Ingredients Business Headquarters, Executive Officer
Sustainable Procurement of Shea Kernels Head of Oils & Fats Business Headquarters, Senior Executive Officer

Our Group also manages climate- and nature-related risks and opportunities company-wide as part of its internal control. The Risk Management Committee of Fuji Oil Co., Ltd. discusses these, and their results are reported and approved in the Management Committee Meeting and the Board of Directors meeting at least once a year.
Moreover, we follow the relevant policies in responding to Indigenous peoples, underrepresented social groups, local communities, and other groups who may be affected by our business operations, and engage in 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 and management aligned with the TCFD and TNFD recommendations, we will contribute to the achievement of international goals such as carbon neutrality and a nature-positive world.
Strategy
(GRI：2-24)

Climate change and biodiversity loss are degrading ecosystem services provided by forests, soil, water resources, and other elements of nature, and nature-related risks are increasing worldwide. For the Fuji Oil Group, which relies primarily on agricultural raw materials, these environmental changes are significant factors that could affect business continuity and corporate value over the medium to long term through lower raw material yields, price fluctuations, and unstable procurement.
Throughout the value chain, which ranges from raw material production, procurement and transportation, to product processing and sales, the Group both depends on and affects nature and ecosystem services. Climate change and biodiversity are therefore important management issues from the perspectives of both risks and opportunities.

Based on this understanding and the Group’s material ESG issues,*1 we place the prevention of deforestation, the conservation and restoration of biodiversity, and the sustainable use of natural capital at the core of our strategy, alongside efforts to reduce environmental impacts by lowering CO₂ emissions, water use, and waste. Through these initiatives, we aim to reduce nature-related risks while enhancing the stability of raw material procurement and the resilience of our business.
We also incorporate the concept of a nature-positive future*2 into our approach and seek to create business opportunities and establish competitive advantages through environmentally responsible technologies and products. Our initiatives include advancing sustainable procurement, establishing circular food systems, reducing food loss and waste and advancing upcycling, and developing plant-based ingredients and alternative raw materials.
The Group will extend these strategies throughout the value chain and collaborate with stakeholders to strengthen our ability to address nature-related risks and opportunities, thereby contributing to the sustainable enhancement of corporate value.

  • *1 Please refer to the list of relevant material ESG issues in the Governance section of this table.
    Governance
  • *2 Nature Positive: A global goal defined as halting and reversing biodiversity loss in order to put nature on a path to recovery

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:
(GRI:101-4)

To strategically manage nature-related risks and opportunities, our Group is working to better understand its dependencies and impacts on nature across the entire value chain.
In FY2022, we classified how all of our 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 assess 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, land use conversion and soil use; impacts on ecosystems in areas surrounding farmland; greenhouse gas (GHG) emissions and climate change; and water resource use and wastewater discharge were identified as nature-related issues of particularly high significance. The assessment also found that these issues are closely associated with the supply chains for palm oil and cocoa, the Group’s principal raw materials.

In FY2023, based on the LEAP approach,* we conducted a nature-related risk analysis in countries where the Group sources 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 for a detailed assessment of our dependencies and impacts on nature and ecosystem services. An outline of the results is available in “Biodiversity Conservation and Restoration.”

Palm oil and cocoa were selected for analysis based on the following three 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, and have relatively high traceability
  • ・Oil palm and cocoa are included in the High Impact Commodity List of the Science Based Targets Network (SBTN)

We use WRI Aqueduct, a water-risk evaluation tool provided by the World Resources Institute (WRI) to assess water risks at our Group’s manufacturing sites.
As the Aqueduct analysis conducted in FY2025 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.

  • * LEAP approach: An integrated approach developed by the TNFD for assessing nature-related issues including interfaces with nature, and nature-related dependencies, impacts, risks and opportunities
Risk management
（GRI：2-27）		 The Management Committee Meeting serves as the Fuji Oil Group’s central body for enterprise-wide risk management and manages risk across the Group in an integrated manner. In addition to risks identified by executive teams, the Management Committee Meeting considers information on material ESG issues, operational risks, and other matters to comprehensively assess these risks in terms of their potential impact on Group business, likelihood of occurrence, and expected timing of onset, and to select the risks that are significant to the entire Group (Group significant risks).
The Group has established a framework for managing identified risks through the development and implementation of response measures, progress monitoring, and ongoing evaluation and improvement.
Nature-related risks, particularly those associated with climate change and biodiversity, are also designated as Group significant risks. After being assessed for materiality and prioritized, these risks are managed within the Group-wide risk management framework and reported to the Board of Directors through the Management Committee Meeting at least once a year.
Assessment of risks and opportunities

For details, please refer to the following section: “Assessment of our climate change-related risks and opportunities and their financial impact.”

To identify nature-related risks, in FY2022 the Fuji Oil Group conducted a materiality assessment of issues related to nature and biodiversity across all of its businesses and identified potential nature-related risks*1 and opportunities.*2
In FY2023, we also conducted location-based analyses of the countries from which we procure palm oil and cocoa and assessed our dependencies and impacts on nature. Based on the results, we identified nature-related risks and opportunities and developed the corresponding response measures. These findings are reflected in strategy development and the prioritization of initiatives.
For details of the nature-related risks and opportunities identified, please refer to the following section “Nature-related risks and opportunities across our 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
  • Nature-related risks and opportunities across our value chain
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. Fuji Oil Co., Ltd. collects and analyzes the data monthly to track trends in GHG emissions, water use, and waste.
We have also obtained third-party verification for our GHG emissions to ensure the reliability of our disclosed information.
Environmental audits (GRI:2-27)
Our Group has established environmental management systems that reference or conform to 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. In FY2025, no environmental nonconformities were identified in either external or internal audits at Group companies in Japan.
The Group also conducts environmental audits to review compliance with environmental laws, regulations, and internal environmental rules, confirm progress toward the targets of the Environmental Vision 2030/2050, and enhance awareness of the Vision. While using online methods where appropriate, we conducted on-site verification wherever possible. By inspecting equipment conditions and actual operating practices at each site, we accurately identify issues and take corrective action. This ensures effective implementation of the Plan-Do-Check-Act (PDCA) cycle and drives continuous improvement.
Outside Japan, we conducted environmental audits at four of the 18 production sites, giving advice on areas for improvement to help raise environmental management standards at each company.
Going forward, we will further strengthen the foundations of our environmental conservation activities by enhancing environmental management systems, including preparations for revisions to ISO 14001, and expanding the audit framework. We will also promote greater understanding among employees as we work toward achieving the Environmental Vision 2030/2050.
Acquisition of management system certifications
For the Group companies’ achievement of management system certifications, please refer to Certification Information page.
Training (GRI:2-24)
Fuji Oil Co., Ltd. provides regular training on safety, quality, and the environment among management and staff in relevant departments of our Group companies outside Japan.
In FY2025, environmental staff at Group companies and the Energy Management & Control Department conducted on-site environmental awareness activities in a dialogue format at four production sites outside Japan. We implement the program with the aim of covering all sites on 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 (GRI:2-25)
Our Group operates a grievance mechanism under our Responsible Palm Oil Sourcing Policy to address environmental, social, and human rights issues in the palm oil supply chain. Through this mechanism, we receive grievances and concerns raised by stakeholders, take corrective action, and publish quarterly progress updates on our website.
To comply with confidentiality obligations and the Unfair Competition Prevention Act, we ask stakeholders to contact the Group directly for details on specific cases.
Significant environmental violations and corrective measures (GRI:2-27)
In FY2025, the Fuji Oil Group had no significant violations of environmental laws or regulations.
Metrics and targets Environmental Vision 2030/2050 (GRI:102-4)

Greenhouse gas (GHG) emission reduction targets

Our Group regards the impacts of climate change on its business as a key management issue and is working to reduce GHG emissions toward achieving carbon neutrality by 2050.
Under the Environmental Vision 2030/2050, revised in April 2025, we set GHG emission reduction targets covering the entire value chain and clarified our medium- to long-term reduction levels for FY2030 and FY2050. The Group’s FY2030 GHG emissions reduction targets have been revalidated by the Science Based Targets initiative (SBTi) as science-based targets aligned with the 1.5°C goal.

To achieve these targets, we are working to further improve energy efficiency and to introduce renewable energy at our own sites, while also engaging with suppliers to reduce emissions across our supply chain. We also obtain third-party assurance over our GHG emissions calculations and disclosures to ensure the validity and reliability of the calculation process.
Going forward, we will use our SBTi-validated, 1.5°C-aligned GHG emission reduction targets to guide our climate strategy and transition plan. While continuing to monitor progress, we will steadily reduce emissions and enhance our disclosure practices.

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*2 (Category 1)*3: 25% reduction in total (All Group companies)
FLAG*4: 30.3% reduction in total (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: Emissions from other companies associated with the reporting company’s activities (categories 1–15).
  • *3 Scope 3 (category 1): Covers only non-FLAG-related GHG emissions associated with raw materials, supplies, and other purchased goods and services.
  • *4 FLAG-related: GHG emissions and removals associated with land-use change, agriculture/land management, and carbon sequestration. FLAG: Forest, Land and Agriculture
    The scope of calculation covers Fuji Oil Group companies as of March 31, 2026, excluding Provence Huiles S.A.S. (France).
Nature-related targets in countries producing our major raw materials
Medium- to long-term commitment FY2025 targets FY2030 targets FY2025 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
Shea parkland conservation and no deforestation across shea kernel supply chain 6,000 trees planted/year 6,000 trees planted/year
Analysis

Our Group is enhancing its environmental management by addressing climate change, water, biodiversity loss, and other environmental issues not in isolation, but as interconnected management issues requiring an integrated approach.
In FY2025, our GHG emission reduction targets covering the entire value chain were approved by SBTi as 1.5°C-aligned targets, which shows that our climate action is science-based and aligned with global goals.
We are also advancing nature-related initiatives in countries where our principal raw materials are produced, in coordination with our responsible sourcing policies and supply chain management. We are strengthening our long-term business resilience by reducing environmental impacts across the value chain through both climate (decarbonization) and nature-positive action.
GHG emissions (Scope 1 & 2)
For FY2025 results and progress against the base year (FY2020), see the CO₂ Emissions Reduction page.
GHG emissions (Scope 3 Category 1)
For FY2025 results and progress against the base year (FY2020), see the CO₂ Emissions Reduction page.
Water use (intensity)
For FY2025 results and progress against the base year (FY2020), see the Water Use Reduction page.
Waste (intensity)
For FY2025 results and progress against the base year (FY2016), see the Waste Reduction page.
Resource recycling
For FY2025 results, see the Waste Reduction page.
Prevention of deforestation and reforestation

Visit the links on the right 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
  • Received an “A” rating for Water Security and “A−” ratings for Forests and Climate Change in CDP 2025
  • Received an “A” rating in the CDP 2025 Supplier Engagement Assessment (SEA)
  • Selected as one of the Asia-Pacific Climate Leaders 2025
  • Fuji Oil Co., Ltd. received an “S” rating under the business operator classification system of Japan’s Act on Rationalizing Energy Use
  • The Fuji Oil Group’s climate- and nature-related initiatives received a certain level of recognition in the 2026 Just Transition, Nature, and Food and Agriculture Benchmarks conducted by the World Benchmarking Alliance (WBA).*

Assessment of our climate change-related risks and opportunities and their financial impactGRI：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

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  • *1 Calculated based on projected carbon tax rates by country from the International Energy Agency (IEA) and the Fuji Oil Group’s projected CO₂ emissions
  • *2 Scope 1: Direct emissions of greenhouse gases from our own operations
  • *3 Scope 2: Indirect emissions of greenhouse gases from the use of electricity, heat and steam supplied by third parties
  • *4 Scope 3: Emissions from the activities of non-Group companies in our value chain (categories 1 to 15)
  • *5 Category 1: Emissions related to raw materials. Purchased goods and services
  • *6 FLAG: Forest, Land and Agriculture, sectors related to land use. FLAG-related emissions represent the combined greenhouse gas emissions of changes in land use, land management and carbon removal.
  • *7 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

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  • *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 our value chain

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