Sustainable Procurement of Soybeans

Soybeans are cultivated in a wide range of regions, from cool temperate zones to the tropics, and are one of the most widely used raw materials for food products in the world. In recent years, demand has continued to grow as soybeans gain importance as a crop with the potential to help address future food challenges, amid global population growth and rising health awareness. Since 1957, the Fuji Oil Group has worked to unlock the potential of soybeans through our Soy Ingredients Business.
At the same time, major soybean-producing regions face a range of environmental and human rights issues, including deforestation, impacts on biodiversity, the environmental burden associated with pesticide use, and, in some areas, infringements of the rights of Indigenous peoples and local communities. We recognize these concerns as key management issues that may directly affect sustainable raw material procurement and business continuity.

Soy-based ingredients procured by Fuji Oil Group and our products

The raw materials covered by our Responsible Soybeans and Soy Products Sourcing Policy are as follows.

Improving traceability of the supply chain to primary collection points(Location/scope: United States, Canada, China)

Based on our Responsible Soybeans and Soy Products Sourcing Policy, we have been working with suppliers to map our supply chains to strengthen traceability.
For raw materials produced in North America and China, we are working to further improve traceability of the supply chain to primary collection points, where the soybeans are collected from the farm and stored.
Although progress in supply chain mapping and traceability varies by region, we are working with suppliers to improve these systems while enhancing our ability to identify procurement-related risks.
From 2026 onward, we will further strengthen traceability by extending its scope upstream to include communities in soybean-producing regions, with the aim of building a more robust and effective sustainable procurement.

Gathering information through RTRS (Location/scope: United States, Canada, China)

In 2020, our Group joined the Round Table on Responsible Soy Association (RTRS), a global initiative for sustainable soybean production, and have used the platform to gather information and apply relevant knowledge and insights. As part of these efforts, we established our Responsible Soybeans and Soy Products Sourcing Policy in June 2021.
We will continue to gather and analyze information on global trends related to sustainable soybean procurement through international frameworks such as the RTRS, and use the findings to strengthen our procurement policy and related initiatives.

Analysis

In FY2025, we engaged with suppliers to improve visibility into traceability in North America and China, achieving 100% traceability to primary collection points.

Next steps

To gain a deeper understanding of issues in soybean-producing regions, it is essential to strengthen traceability beyond the primary collection points and extend visibility further upstream to communities in production areas.
Companies are also expected to address environmental and social considerations throughout their supply chains. In FY2026, we will therefore work to enhance initiatives based on the following targets to make our procurement practices more responsible, robust and effective.

• Achieve traceability to the community level, or 100% procurement of RTRS-certified products or products certified to equivalent standards by 2030
• Discuss continuing actions to achieve Scope 3 emissions reductions by implementing regenerative agriculture programs

Ensuring procurement of non-genetically modified soybeans

To meet our stakeholders’ demands, our Group’s Soy Ingredients Business procures soybean raw materials from North America, China, and Japan, all of which are non-genetically modified (non-GM) soybeans.
As GM soybeans^* and non-GM soybeans are both widely distributed in North America, we implement strict identity preservation (IP) processes at every stage of cultivation, transportation, and storage.
In China, meanwhile, the registration and approval of GM soybean varieties are expanding, while imports into China of GM soybeans for oil extraction are also increasing. As a result, the need for rigorous segregation of GM soybeans is becoming even more crucial. In response, our Group companies involved in procuring soybeans produced in China are working together to maintain and strengthen strict control systems, drawing on the management expertise developed by Fuji Oil Co., Ltd.

• * Genetically modified (GM) soybeans: Soybeans that have been engineered through gene recombination to produce a more stable yield by adding functions such as herbicide resistance

Study tours to farms practicing regenerative agriculture

One of our Group’s key raw material suppliers offers a program that supports grain farmers, including soybean growers, in adopting regenerative agricultural practices. The program is regarded as an initiative to improve soil health, an essential foundation for more sustainable agricultural production.
In August 2025, Group representatives visited participating farms in the United States to gain a better understanding of how the program is being implemented and the specific practices being adopted in the field.
The program is also expected to contribute to reductions in greenhouse gas emissions. As a purchaser of agricultural raw materials, we will pay close attention to the program as an important initiative that supports more environmentally responsible and sustainable production.

Visit to a farm participating in a regenerative agriculture program