Environmentally Responsible MONOZUKURI
(Product Development and Manufacturing Practices)

Sustainability Management

Material ESG Issues

Environmentally Responsible
MONOZUKURI

Sustainability Areas

Priority Actions

PolicyGRI:2-23,101-1,103-1

Given the nature of its business that relies primarily on agricultural products as raw materials, the Fuji Oil Group recognizes its dependency on natural capital such as air, water, soil, forests, and biodiversity, as well as the impact of its business operations on these resources.
We view climate change, the degradation of natural capital, and worsening natural resource constraints as significant risks that could negatively impact our stable procurement of raw materials as well as the production and supply systems of our products. On the other hand, we see the growing demand for technologies and products that help reduce environmental impact and improve resource efficiency as potential business opportunities over the medium to long term.
With this understanding, and guided by Fuji Oil Group Basic Policy of Safety, Quality and Environment*1 established in 2015 and the Fuji Oil Group Policy on Biodiversity*2 established in March 2023, we position the reduction of environmental impact across our business operations and throughout our entire value chain and the conservation and restoration of natural capital as key management priorities. We are working not only to avoid or mitigate negative impacts on nature but also to support nature conservation and restoration. We drive such initiatives through dialogue and co-creation with diverse stakeholders, including suppliers, customers, local communities, and experts, with the goal of becoming nature positive.*3

Furthermore, in order to take an integrated approach to advancing these policies, we revised our Environmental Vision 2030 to the Environmental Vision 2030/2050 in April 2025, expressing our commitment to implementing initiatives that pursue more ambitious targets for priority themes such as reducing greenhouse gas (GHG) emissions and water use.
The Fuji Oil Group positions Environmentally Responsible MONOZUKURI (Product Development and Manufacturing Practices) not merely as a matter of regulatory compliance, but as a strategic initiative that both strengthens our business foundation and enhances corporate value in a sustainable manner. We are committed to continuously enhancing our technologies and processes for environmental impact reduction, developing products and raw materials designed for resource circulation, and engaging in collaborative efforts with stakeholders across our entire supply chain to realize a sustainable future for food.

GovernanceGRI:2-12,2-13,2-14,3-3,101-1,101-3

Our Group established the Sustainability Committee*1 as an advisory body to the Board of Directors that is chaired by the President and Chief Executive Officer (CEO).
From a multi-stakeholder perspective, the committee deliberates on and monitors priority actions on material ESG issues in light of the medium- to long-term impacts of risks and opportunities related to sustainability issues, including environment and natural capital, on our business and corporate value, and makes recommendations to the Board.
Furthermore, we appoint a Chief Officer for each priority action to drive initiatives based on policies, strategies, and metrics and targets.*2 We have established a framework that enables the Sustainability Committee and the Board of Directors to continuously monitor the progress of these initiatives.
This approach enables us to integrate and manage our Environmentally Responsible MONOZUKURI initiatives with our business strategy and risk management, aiming to address natural capital risks and opportunities and enhance corporate value in a sustainable manner.

Table: Chief officer in charge of each priority action

Priority action Chief officer in charge
Reduction of Food Loss and Waste and Upcycling Executive Officer
Head of R&D Headquarters
Establishment of Circular Food Systems
CO2 Emissions Reduction Executive Officer
Head of Safety, Quality and Production Technology Headquarters
Water Use Reduction
Waste Reduction
Biodiversity Conservation and Restoration Executive Officer
Head of Corporate Planning Headquarters

CO2 Emissions Reduction, Water Use Reduction, and Waste Reduction

The Group implements initiatives on priority actions listed above with the goal of achieving our Environmental Vision 2030/2050.*

Biodiversity Conservation and Restoration

In addition to Environmentally Responsible MONOZUKURI, our Group regards this priority action as closely connected to the sustainability area, Sustainable Procurement, undertaking initiatives across all divisions.
In advancing initiatives, we prioritize minimizing the negative environmental and social impacts on Indigenous peoples, underrepresented social groups, and local communities in production regions of our raw materials. Adhering to the policies outlined below, we are committed to engaging in responsible practices across our entire value chain through ongoing dialogue and collaboration with stakeholders.
More specifically, we require suppliers to comply with the Supplier Code of Conduct. We also call for suppliers to establish environmental conservation and remediation mechanisms, and to ensure human rights and free, prior and informed consent (FPIC), respecting the land rights of Indigenous peoples and local communities.
Furthermore, the Group endorses the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) and registered as a TNFD Adopter* in July 2025. Going forward, we will continue to provide disclosures aligned with the TNFD recommendations, working to help achieve global goals such as those outlined in the Kunming-Montreal Global Biodiversity Framework, which aims to realize a nature-positive world.

StrategyGRI:3-3,306-1

Strategy for building a nature-positive value chain

Amid changes in the business environment — growing demand for protein sources and increasing environmental impact driven by population growth, together with uneven distribution of food resources — our Group positions Environmentally Responsible MONOZUKURI as a key management issue that may impact our corporate value over the medium to long term. As a Group that relies on agricultural products as key raw materials, we view climate change and the degradation of natural capital as risks that could negatively impact our business foundation through reduced yields of raw materials, price volatility, and rising costs of regulatory compliance. On the other hand, we see the growing demand for environmentally responsible raw materials, technologies, and products as important opportunities to establish a competitive advantage and create new market opportunities.
In light of these risks and opportunities, we are working on strategic initiatives that include developing low-impact plant-based food ingredients and alternative raw materials; improving resource efficiency through reduction and upcycling of food loss and waste; establishing circular food systems; conserving and restoring biodiversity across the entire supply chain; and reducing environmental impact by cutting CO₂ emissions, water use, and waste. Through these initiatives, we aim to enhance the functionality and health-related value of our products and technologies, driving sustainable growth and increasing corporate value.
To ensure the effectiveness of this strategy, we are focusing on strengthening our business capital: natural, social and relationship, manufactured, intellectual, and human capital. With the aim of contributing to a nature-positive value chain and establishing a resilient business foundation through co-creation with stakeholders, we are working on conserving and restoring natural capital, collaborating with local communities, building sustainable raw material procurement systems in partnership with suppliers, driving technological innovations that help reduce environmental impact, developing products that meet customers’ diversifying values, fostering talent, and promoting shared values.

Strategy matrix

Fuji Oil Group’s Approach

Reasons for importance Initiatives to enhance business capital
  • Concerns rise about increasing pressure on protein sources and escalating environmental impacts driven by population growth, and uneven food distribution.
  • With a business structure reliant on agricultural products as key raw materials, reduced yields of raw materials, price volatility, and rising regulatory compliance costs driven by climate change and natural degradation may significantly impact our corporate value over the medium to long term. On the other hand, growing demand for environmentally responsible raw materials, technologies, and products presents new opportunities to establish a competitive advantage.
 Natural capital
  • Prevent deforestation and implement reforestation
  • Conserve and restore nature and ecosystem services, including biodiversity, soil, and water resources
  • Reduce climate change risks
  • Promote sustainable land use in collaboration with local communities
Social and relationship capital
  • Strengthen supplier collaboration to reduce environmental impact
  • Build a stable and sustainable raw material procurement system
  • Provide transparent disclosure to strengthen stakeholder trust
Direction of initiatives Manufactured capital
  • Drive technological innovation and further improve manufacturing processes to reduce environmental impact
  • Prevent deforestation and implement reforestation
  • Conserve and restore nature and ecosystem services, including biodiversity, soil, and water resources
  • Reduce climate change risks
  • Promote sustainable land use in collaboration with local communities
 Intellectual capital
  • Develop plant-based ingredients that meet diversifying consumer values
  • Design products resilient to raw material price fluctuations
  • Create new value through improved shelf life of food and effective use of waste
  • Establish technological competitive advantage through the above initiatives
Human capital
  • Foster environmental talent, promote nature-positive values

Strategy

Priority action Creation of Diverse Plant-based Ingredients Reduction of Food Loss and Waste and Upcycling Establishment of Circular Food Systems CO2 Emissions Reduction Water Use Reduction Waste Reduction Biodiversity Conservation and Restoration
Risks
  • Raw material procurement and price increase risks caused by climate change and ecosystem destabilization
  • Higher raw material procurement risks due to concentrated demand and stricter regulations
  • Health and environmental concerns, as well as supply and price uncertainties, associated with animal-based ingredients
  • Damage to social and stakeholder reputation due to inadequate or delayed response to food loss and waste
  • Business continuity risk resulting from non-compliance with environmental regulations and increased regulatory compliance costs
  • Increased costs across the value chain — from raw material procurement, logistics, to manufacturing — due to extreme weather events linked to climate change
  • Increased costs for compliance with environmental regulations and introduction of carbon taxes
  • Suspended supply of products that meet market and customer demand due to raw material procurement shortages, manufacturing restrictions, or reduced production volumes caused by extreme weather events
  • Losses incurred by Group companies due to catastrophic natural disasters caused by extreme weather events
  • Damage to stakeholder reputation due to inadequate or delayed response to environmental issues
  • Increased raw material procurement costs due to yield declines and market price volatility caused by water resource depletion or pollution in key production regions
  • Increased water costs
  • Increased waste disposal cost
  • Increased compliance costs due to new or stricter regulations; long-term loss of market and customer credibility, along with reduced profitability and corporate value, resulting from legal violations
  • Drastically increased raw material procurement costs due to yield declines and market price surges or volatility caused by changes in growing conditions or ecosystem collapse (e.g., decline in pollinators) in key production regions
  • Increased development and production costs driven by growing demand for products that use alternative raw materials to support biodiversity
Opportunities
  • Increased revenue through diverse plant-based ingredients that broaden procurement sources, expand applications, and help stabilize supply amid rising raw material procurement risks and supply uncertainties
  • Added value created by offering the functionalities and applications of diverse plant-based ingredients with market needs placing emphasis on environmental impact reduction and sustainability
  • Growth opportunities created through the expansion of applications that leverage the unique deliciousness and ease of use of plant-based ingredients against the backdrop of diversifying dietary habits and changing preferences
  • Increased profitability by expanding the supply of ingredients that reduce food loss and waste, as well as upcycled products
  • Increased profitability through sustainable raw material procurement aligned with environmental conservation and through the adoption of production processes suitable for high value-added ingredients
  • Expanded supply of low-impact certified oils and plant-based ingredients
 － －
  • Increased profitability by expanding supply of RSPO*1-/RTRS*2-certified raw materials amid stricter regulations, and in response of soaring raw material prices, rising instability in raw material procurement and growing demand from consumer concerns
  • Increased profitability by expanding the supply of products that use alternative raw materials, such as yeast oil, to support biodiversity
  • New market and customer acquisition through enhanced social credibility from addressing unintended release of invasive species and GMO crops*3 into the environment
Financial impact of risks and opportunities Short-term Low Low Low High Low High High
Medium-term High Medium Low Extremely High Low High Extremely High
Long-term Extremely High High High Extremely High Low High Extremely High
Value chain Upstream ● － ● ● ● － ●
Group ● － ● ● ● ● ●
Downstream ● ● ● － － － －
Our vision and goals
  • Provide solutions to food supply problems, and broaden new business fields by making plant-based foods widely and readily available and increasing dietary choices
  • Reduce food loss and waste across the value chain through technology innovation and reuse of byproducts
  • Develop and launch technologies that help to build an environmentally responsible and sustainable circular economy that is resilient to climate change

Environmental Vision 2030/2050:
GHG emissions reduction (base year: FY2020)
FY2050 target: Net zero for total GHG emissions
FY2030 target:
Scopes 1+2 : 42% reduction in total GHG emissions
Scope 3 (Category 1) :

  • Non-FLAG: 25% reduction in total GHG emissions
  • FLAG: 30.3% reduction in total GHG emissions
  • Build a nature-positive value chain
Social and environmental impact Negative impacts to be reduced
  • Inefficient resource consumption and waste generation
  • CO2 emissions across the supply chain
  • Water resource depletion
  • Water resource pollution
  • Loss of natural ecosystems
Positive impacts to be created
  • Provide an abundance of food settings with diverse food options
  • Help eliminate uneven distribution of food resources and improve health through a sustainable supply of protein sources
  • Reduce environmental impact by increasing consumption of plant-based food ingredients (reduce CO2 emissions)
Connection to key policy of the medium-term management plan
  • Establish new business fields
  • Further strengthen growth fields
  • Establish new business fields
  • Establish new business fields
  • Further strengthen growth fields
  • Establish new business fields
  • Further strengthen growth fields
  • Further strengthen growth fields
  • Further strengthen growth fields
  • *1 RSPO: Roundtable on Sustainable Palm Oil
  • *2 RTRS：Round Table on Responsible Soy Association
  • *3 GMO crops: Genetically modified plants using biotechnology. GMO stands for genetically modified organism

Risk managementGRI:3-3

Our Group systematically manages risks and opportunities related to the sustainability area, Environmentally Responsible MONOZUKURI, by positioning them within our group-wide risk management framework and linking them to Group significant risks.
More specifically, we classify these risks and opportunities under the relevant risk types — strategy, environment and human rights, and procurement — and define and assess them in terms of their impacts on our business strategy, business continuity, and the entire supply chain.
This approach enables us to view environmental and nature-related risks not as isolated environmental issues but as integral to our business strategy and procurement activities, thereby supporting effective risk management.

The risk management responses for each priority action are described in the section on priority actions below.

Link to other social issues