Sustainable Procurement
Policies
There are various underlying problems regarding raw materials
production processes, including child labor, forced labor, poor
working conditions, and the negative environmental impact on the
areas around the production site.
The NISSIN FOODS Group instituted the Basic Policy on Green Procurement
in May 2007 and is promoting procurement of environmentally friendly
raw materials. In addition, we build a traceability system from raw
materials to finished products and product shipment for the purpose
of ensuring product quality.
To strengthen these initiatives, in September 2017 we instituted
the NISSIN FOODS Group Policy on Sustainable Procurement. This policy
addresses food safety, respects the global environment and human
rights, and proclaims our commitment to procuring legally produced
raw materials. We actively communicate this policy to our primary suppliers to ensure their cooperation. Furthermore, in May 2025, we established the "NISSIN FOODS Group Supplier Code of Conduct " and requested our suppliers to comply with it.
Targets
In the NISSIN FOODS Group’s environmental strategy, EARTH FOOD CHALLENGE 2030, we set a goal to raise the procurement ratio of palm oil that is assessed to be sustainable to 100% for the entire Group by FY 3/2031. We are undertaking measures to achieve this goal as quickly as possible. In addition, we aim to raise the procurement ratio of palm oil that is assessed to be sustainable to 100% for our instant noodle business in Japan by FY 3/2026.
- Sustainable Procurement Ratio of Palm Oil (Targets)*
-
Group-wide: 100% by FY 3/2031
Instant noodle business in Japan: 100% by FY 3/2026
- Group-Wide Usage Ratio of Palm Oil Certified by the Roundtable on Sustainable Palm Oil (RSPO) (Results)*
-
2020: 26%
2021: 36%
2022: 37.7%
2023: 43.4%
2024: 46.1%
- Usage Ratio of Palm Oil Certified by the RSPO in Domestic Instant Noodles (Results)*
-
2022: 60.5%
2023: 70.9%
2024: 84%
- *Certification of mass balance and segregation. Mass balance is a certification model where certified palm oil is mixed with other uncertified palm oil during the distribution process. While it physically contains uncertified palm oil, the ratio is strictly recorded up until the final use stage, guaranteeing the certified sources from which it was purchased and the amount of certified palm oil. Segregation is a certification model where certified palm oil from several certified sources is delivered to the final manufacturer without being mixed with other uncertified palm oil. While it is not possible to identify a specific plantation, it guarantees that the raw material comes from a certified source.
Palm Oil Procurement
The NISSIN FOODS Group uses palm oil extracted from oil palms for purposes such as frying instant noodles. Oil palms are grown mainly in tropical areas such as Indonesia and Malaysia. Some plantation farms have been cited for destroying rainforests and peatlands, negatively impacting ecosystems, and violating the human rights of plantation workers, and other issues.
Direction for Sustainable Palm Oil Procurement
The NISSIN FOODS Group observes a commitment to the procurement of sustainable palm oil that includes a policy of NDPE* and continues to expand the procurement of sustainable palm oil. Toward observing this commitment, along with building up engagement with oil and fat manufacturers, we also recognize the necessity of comprehensive support for oil mills and oil palm plantations that are upstream in the supply chain, and are actively advancing these support activities.
- *Abbreviation of No Deforestation, No Peat, and No Exploitation
Commitment to the Procurement of Sustainable Palm Oil
The NISSIN FOODS Group is developing procurement activities based on the NISSIN FOODS Group Policy on Sustainable Procurement. We support the No Deforestation, No Peat, No Exploitation (NDPE) requirement. We have committed to cooperating with our suppliers and other stakeholders to procure sustainably sourced palm oil which has been produced in consideration of the environment of the palm's habitat and workers' rights.
NISSIN FOODS Group Policy on Sustainable Procurement
- ・Protect High Conservation Value (HCV*) areas and High Carbon Stock (HCS) forests, zero deforestation
- ・Prohibit the new development of peatland regardless of depth
- ・Prohibit burning for planting, land development, and other types of development
- ・Respect the rights of indigenous people and local residents, and prohibit infringement of land rights
- ・Comply with Principles and Criteria for the Production of Sustainable Palm Oil set forth by the RSPO
- ・Ensure traceability including to the plantation farms
- ・Comply with human rights policies to respect
for human and labor rights
NISSIN FOODS Group Policy on Human Rights
- *An international concept that supports the sustainable use of resources, the protection of biodiversity, and the safeguarding of areas necessary for Indigenous peoples and local communities by identifying and conserving regions or elements that have significant social, cultural, and environmental value.
Specific Initiatives
As specific initiatives based on our commitment, we have created and managed a list of palm oil mills*1 that consolidates the names and locations of mills, and are working to improve traceability. In addition, by using the satellite monitoring tool, Satelligence, we are verifying the risk of deforestation and peatland destruction in areas where mills and surrounding oil palm plantations are located. For mills assessed to have high risks, we confirm the facts with the oil and fat manufacturers that are our suppliers and study measures for improving the situation.
For oil palm plantations around mills with high risks, we collaborate with external experts to conduct field surveys through questionnaires and dialogue, monitoring in detail the environmental impact and the impact on workers' human rights at the production sites. For some small-scale farmers, we provide support for obtaining RSPO certification and promote their transition to sustainable production.
In addition, all palm oil used by our domestic group companies is procured from suppliers that ensure traceability up to the mills. Going forward, we will achieve traceability back to oil palm plantations, which are the upstream end of the supply chain, by 2030. We are also working on the establishment of a grievance response mechanism*2 for small-scale farmers to confirm and investigate together with third parties the issues of these farmers and complaints from them and seek solutions. We also plan to progressively introduce forest footprints*3, starting from areas that are particularly high in risks of deforestation and peatland destruction or infringements on the rights of local communities.
The NISSIN FOODS Group will cooperate with all stakeholders to build a sustainable palm oil supply chain.
- *1Refer to the link below for the list of mills
List of mills - *2A remedy mechanism for receiving reports about cases of human rights infringements and rectifying or improving the situation
- *3Total area of forests and peatlands affected by a company’s supply chain or financial institution’s investments and financing
Procure RSPO-certified palm oil
To procure palm oil that has received third-party
certification that production takes into consideration
factors including the prevention of deforestation and
protection of biodiversity, the NISSIN FOODS HOLDINGS became
a member of the Roundtable on Sustainable Palm Oil (RSPO)*1
in October 2017. In addition, since March 2019, all domestic
plants that manufacture CUP NOODLES began procuring
RSPO-certified palm oil. At present, the CUP NOODLES*2
packages bear the RSPO certification mark.
The NISSIN FOODS Group endorses the Principles and Criteria of
the RSPO, which are determined after discussions with many stakeholders.
And in April 2019, NISSIN FOODS HOLDINGS joined, as a board member,
the Japan Sustainable Palm Oil Network (JaSPON) - which promotes
the use of RSPO-certified palm oil.
- *1RSPO stands for Roundtable on Sustainable Palm Oil. The goal of the RSPO is to promote and operate a sustainable palm oil industry. It is an international non-profit organization established in 2004 by the World Wildlife Fund (WWF) and companies that are closely connected with palm oil. The organization is headquartered in Kuala Lumpur Malaysia. The RSPO certification mark is given to palm oil produced at RSPO-certified palm oil plantation farms and products distributed and processed by certified business operators. As of June 2024, the RSPO has more than 4,000 members worldwide, including palm oil producers, processors, manufacturers, retailers, and environmental NGOs from various walks of life. These members pledge to produce, supply and use RSPO-certified sustainable palm oil. Numerous stakeholders participate in the RSPO to repeatedly conduct talks while aiming to product and use sustainable palm oil. The members also review RSPO Principles and Criteria to address changes in conditions.
- *2Applies to three regular size items: CUP NOODLES, CUP NOODLES SEAFOOD, and CUP NOODLES CHILI TOMATO.
Implementation of Assessments
In collaboration with oil and fat manufacturers in Japan, we confirm that no activities in violation of local laws are being conducted at primary refineries, which are the procurement sources of the oil and fat manufacturers, and at the upstream mills.
For local suppliers where there are concerns regarding environmental or human rights impacts, we work together with oil and fat manufacturers to verify the facts and implement necessary measures. Specifically, through the grievance tracker managed by oil and fat manufacturers, we monitor the situation of local mills and plantations, and when problems are identified, corrective guidance or suspension of transactions is implemented.
- [Record of measures (as listed in the grievance tracker)]
-
Corrective guidance, including strengthening of traceability back to plantations: 3 cases
Suspension of business transactions with oil mills and plantations: 5 cases
Strengthening of the Supply Chain Management System in Regions in Asia
In February 2024, we conducted a survey and dialogue with small-scale palm oil farmers assessed to be on our Group’s supply chain. To conduct reliable and objective research and dialogue, this initiative was carried out with advice and support of Caux Round Table Japan*1 as an independent third-party organization, and Serikat Petani Kelapa Sawit (SPKS)*2 as our local partner.
- *1A global network of business leaders working to realize a fair, free, and transparent society through sustainable and socially responsible business. It is currently engaged in global activities to disseminate the Guiding Principles on Business and Human Rights, and is providing support as a third-party organization, particularly with regard to Japanese companies.
- *2A local union of small-scale oil palm farmers in Indonesia that was established in 2006. The union supports production of oil palm with consideration for the sustainability of farmers. It maintains a network with more than 8,000 small-scale farmers in seven regions across Indonesia. Some of its activities include data collection and mapping of small-scale farmers, organization of farmers, training to improve productivity, and supporting the acquisition of certification—such as Indonesian Sustainable Palm Oil (ISPO) and RSPO—by farmers.
| Background | The NISSIN FOODS Group has recognized that "strengthening supply chain management systems in the Asian region" as a priority theme to be addressed. In particular, international initiatives are calling for stronger monitoring of human rights risks for small-scale palm oil farmers and environmental risks such as deforestation in the production process. |
|---|---|
| Purpose | Through dialogues with farmers, gain a detailed understanding of human rights and environmental risks in small-scale palm oil farmers and their surrounding areas. |
During the dialogue in 2024
Process
- *Nine external standards used as references for
this survey
•Roundtable on Sustainable Palm Oil (RSPO) Independent Smallholder Standard, 2019
•Roundtable on Sustainable Biomaterials (RSB) Principles and Criteria for Smallholder Groups, 2016
•International Sustainability and Carbon Certification (ISCC) Independent Smallholder Group Certification Criteria, 2016 (ISCC 201-5, 202, 206)
•Malaysian Sustainable Palm Oil (MSPO) Certification Part 2: General Principles for Independent Smallholders, 2013
•Indonesian Sustainable Palm Oil (ISPO) Standard, Independent Smallholders (4 out of 7 principles), 2011
•Rainforest Alliance & UTZ/RA Sustainable Agricultural Standard for Smallholders, 2019 (Draft to be published June 2020)
•Fairtrade/Fairtrade Standard for Small-Scale Producer Organizations, 2019
•Tokyo 2020 Olympic and Paralympic Games Sustainable Sourcing Code (3rd edition) issued by the Tokyo Organising Committee of the Olympic and Paralympic Games
•Sourcing Code for the Promotion of Sustainable Palm Oil issued by the Tokyo Organising Committee of the Olympic and Paralympic Games
Survey scope and results
During the dialogue conducted in February 2024, we did not identify any issue which needed to be handled immediately among the 20 small-scale farmers surveyed, such as human rights violations or environmental destruction. However, similar to the dialogue conducted in March 2023, we confirmed cases of lower productivity and income resulting from being unable to use fertilizers due to high prices, and cases where protective equipment was not used due to priority being given to efficiency of daily agricultural work.
In addition, we identified issues with small-scale farmers not
having knowledge about RSPO and ISPO certifications; failure to
obtain land ownership certificates issued by the national government
even though the farmers have obtained confirmation of land rights
issued by the local governments; and difficulties in improving
productivity and income due to a lack of opportunities for training
related to proper farm management.
In particular, economic issues—such as lower income and not possessing land rights—may lead to other risks such as infringement of human rights and environmental destruction in the future. To support the resolution of such issues, we are implementing pilot programs for small-scale farmers.
Implementation of Small-Scale Farmer Support
With the aim of addressing the challenges identified through assessments and dialogue with stakeholders, as well as improving the productivity and income of small-scale farmers, starting in December 2024, the NISSIN FOODS Group launched a pilot program for small-scale palm oil farmers.
Through this program, we aim to enhance small-scale farmers’ understanding of sustainable palm oil production methods, the necessity of obtaining RSPO certification, etc., while providing support with training and application procedures for certification.
Outline of the Pilot Program
| Scope | Small-scale palm oil farmers in South Sumatra, Indonesia, with whom a dialogue was conducted in the past: 150 |
|---|---|
| Duration of the Pilot Program | December 2024 to March 2026 |
| Implementation Partners |
Coordinator: Caux Round Table Japan Local partner (implementation of farmer support): SPKS |
| Objective | All 150 small-scale palm oil farmers participating in the program to obtain RSPO certification |
| Main components of the program |
|
- *FPIC (Free, Prior, Informed Consent): Refers to the international principle of "agreement given freely, prior to commencement, and based on full information," mainly aimed at protecting the rights of indigenous peoples.
Furthermore, to address economic challenges identified through dialogue (for example, “because there is no cooperative of small-scale farmers, they cannot sell fresh fruit bunches, the raw material for palm oil, directly to mills, and must sell through intermediaries, resulting in lower income” and “the necessity of long-term financial management at the small-scale farmer, cooperative, and village levels to improve income”), support was also provided for the establishment of cooperatives in the regions where the program was implemented. In addition, seminars related to cooperative management were held on topics such as methods of cooperative management including organizing cooperative members and their roles, preparing required documentation, as well as organizing cooperative business activities and financial management for business continuity.
Future actions
The NISSIN FOODS Group will continue to conduct such surveys, dialogues, and support activities, and while investigating the challenges faced by each stakeholder in the supply chain, we will strengthen engagement with palm oil farmers. In addition, by sharing the insights and know-how gained through these initiatives across the entire supply chain, we will accelerate the promotion of sustainable procurement and also contribute to building relationships of trust with suppliers. In particular, for small-scale farmers, through support programs we will promote the transition to sustainable agriculture by reducing environmental and human rights risks and improving productivity and income. At the same time, we will work toward the establishment of an effective grievance mechanism that enables potential risks and concerns to be raised by small-scale farmers. Furthermore, we will require compliance with the "NISSIN FOODS Group Policy on Sustainable Procurement" and the "NISSIN FOODS Group Supplier Code of Conduct" across the entire supply chain and will verify the status of their implementation.
Direction of Procurement Activities
The NISSIN FOODS Group is developing procurement activities
based on our sustainable procurement policy. In order to
establish a sustainable quality assurance system, we are working
on “acquisition of traceability” and “utilization of
certification Systems” and “development of production areas”.
We aim to protect the environment through traceability of raw materials,
guarantee food quality, and ensure stable procurement in cooperation
with production areas.
Marine Products
The NISSIN FOODS Group aims to procure marine products that are caught in accordance with fishery methods that protect the ecosystem based on systematic marine resources management and give consideration to the human rights of employees. In light of this, the Group is promoting the procurement of MSC*1 and ASC*2 certified marine products. If these certified products cannot be available, products are procured from suppliers that can confirm conditions up to the fishing ground. For example, the Alaskan Pollack, which is used by NISSIN FOOD PRODUCTS in making fish paste, is all MSC-certified. Meanwhile, squid and shrimp are procured from suppliers that can trace conditions up to the fishing ground.
- *1Marine Stewardship Council
- *2Aquaculture Stewardship Council
Traceability in Shrimp
- ・The shrimp used by NISSIN FOOD PRODUCTS as raw materials are freeze-dried locally at a joint venture company in India and exported to Japan.
- ・Information on the fishing grounds and the markets where raw materials are bought and sold are recorded daily and can be tracked.
Traceability in fish paste
- ・More than half of the fish paste used by NISSIN FOOD PRODUCTS for freeze-dried kanikama, kamaboko, and ikakama is Alaskan pollock (MSC-certified), making 50% of the catch traceable.
Agricultural products
The green onions and cabbage used as raw materials by NISSIN FOOD PRODUCTS are grown under contract, and a representative of the Resourcing Division of NISSIN FOODS HOLDINGS visits the fields to check cultivation and agricultural chemicals use records. The soybeans that NISSIN FOOD PRODUCTS procures as ingredients for Abura-age are USSEC (U.S. Soybean Export Council) certified, which indicates that they are produced in a sustainable manner.
Traceability in soybeans
- ・The soybeans used by NISSIN FOOD PRODUCTS as ingredients for Abura-age are grown in the United States. Optimal soybean varieties are carefully selected (to prevent contamination with GMOs and other varieties), and the growing regions can be traced at the state level.
Traceability in green onions
- ・The green onions used by NISSIN FOOD PRODUCTS as raw materials are procured from contract farms and its own farms through transactions with processing manufacturers, so the farmland can be traced.
Traceability in cabbages
- ・The cabbages used by as raw materials are procured from contract farms and its own farms through transactions with processing manufacturers, so the farmland can be traced.
Traceability in potatoes
- ・The potatoes used by NISSIN FOOD PRODUCTS as raw materials are only designated varieties and are harvested in specific areas both in Japan and overseas.
- ・70% of the potatoes are procured from contract farms, so the farmland is traceable.
Livestock
We also comply with proper usage methods of veterinary
pharmaceutical drugs, including antibiotics and growth
hormones, in line with national standards. No genetically
modified or cloned animals are used as raw materials.
In addition, we receive regular reports from meat suppliers on
the status of their animal welfare efforts. Suppliers that deliver
chicken extract confirm that the chickens are not neglected in
an unsuitable environment (in other words, neglected at night).
Cage-free eggs have already been introduced in NISSIN FOODS DO
BRASIL and NISSIN FOODS (U.S.A.), and NISSIN FOOD PRODUCTS has
also begun introducing some of these eggs from 2023.
- Approach to Animal Welfare
-
The NISSIN FOODS Group takes into consideration the Five Freedoms, the basic principles of animal welfare* which are internationally recognized.
- ・Freedom from hunger and thirst
- ・Freedom from fear and distress
- ・Freedom from discomfort
- ・Freedom from pain, injury or disease
- ・Freedom to express normal behavior
- *The physical and mental state of an animal as it relates to its environment and its mortality.
Paper
NISSIN FOODS Group places priority on using FSC®*1 certified paper, produced from appropriate forestry management, mainly for product containers and packaging, various types of printed matter, cardboard, and copy paper.
Since September 2020, NISSIN FOOD PRODUCTS has started using FSC®-certified paper for the cardboard cases of some products such as those under the CUP NOODLES brand.
MYOJO FOODS CO., LTD. is promoting the use of FSC®-certified paper and biomass ink made from biological
resources. The outer packaging of MYOJO CHUKAZANMAI
(bag-type noodles) indicates that FSC®-certified paper is used, and the hot water drainage lid
of MYOJO IPPEI-CHAN YOMISE NO YAKISOBA indicates that FSC®-certified paper and biomass ink are being used.
We have also started using FSC®-certified
paper for the cardboard cases of instant noodle and soup
products being manufactured and sold by MYOJO FOODS for
distribution in Japan, and aim to achieve 100% switch
within FY 3/2022.
- *Abbreviation of the Forest Stewardship Council®, a program that strives for proper management of forest as well as the use and conservation of sustainable forest resources
Traceability in paper containers (including Biomass Eco Cups)
- ・The origin of the wood used as raw material for the paper used in the "Biomass ECO Cup" can be traced to the prefectural and state level via the paper company.
Procurement Status of Certified Materials
Scope：Instant noodle business in Japan
| Raw materials | Certification | Procurement Status |
|---|---|---|
| Palm oil | RSPO |
71% in place by 2023 84% in place by 2024 100% introduction planned for 2025 |
| Shrimps | MSC | Supporting the introduction of the MSC certification system on the west coast of India, a major production area |
| Fish paste | MSC | 51% introduction of surimi used for crab cakes in 2024 |
| Soybeans | USSEC | Soybeans used for Abura-age are 100% certified |
| Paper | FSC | Corrugated cases are 100% certified |
Development of Low Environmental Impact Plant-Derived Meat Alternatives and Cultured Meat Products
While demand for meat is growing rapidly along with global
population growth and economic growth in emerging countries,
livestock production requires feed as well as large amounts of
water and land, and the development of forested regions—which
serve as habitats for diverse species—is becoming an issue. As
livestock production also emits large amounts of methane and
other greenhouse gases, it becomes a cause of global warming,
and there are concerns that it may lead to an increase in
species facing the threat of extinction.
As a solution to these issues, in 2016, the NISSIN FOODS Group
developed “soy beef,” made using an original production process
with soy protein as the main raw material, and began using it as
a product ingredient. Subsequently, we are promoting the use of
“soy meat,” including the development of soy pork and a soy char
siu chip.
In March 2019, we were the first in the world to successfully produce
bovine muscle tissue in the form of a diced steak (1.0 cm × 0.8
cm × 0.7 cm) using beef-derived muscle cells, created in collaboration
with the research group of Professor Shoji Takeuchi of the Institute
of Industrial Science, the University of Tokyo.
Furthermore, in March 2022, we succeeded for the first time in
Japan in producing edible cultured meat.
In recent years, cultured meat has been researched around the world,
and the NISSIN FOODS Group is working on cultured steak meat, which
requires advanced technology. Currently, our goal is to establish
the basic technology to produce cultured steak meat measuring 7
cm (width) x 7 cm (depth) x 2 cm (thickness) and weighing approximately
100 g within FY 3/2025.