Supply Chain Management: Initiatives

Many employees at MC have opportunities throughout their careers to engage in trading activities such as purchasing and sales, or to support such activities. For this reason, MC works to deepen employees’ understanding of their responsibilities as buyers by explaining MC’s corporate philosophy, including respect for human rights in the supply chain. We also integrate relevant supply chain policies into buyer training programs, including those designed for specific management levels, training for new employees, and training related to trading practices.

MC holds a business and human rights seminar each year for operating companies and suppliers, with one session in English and one in Japanese. In FY2025, we invited a wide range of participants from suppliers and operating companies in Japan and overseas, with a total of 185 attendees. The seminar focused on the formulation of human rights policies and the practice of remediation. Participants shared the importance of various initiatives, specific approaches, and points to keep in mind through discussions with external speakers.
We also held individual workshops for operating companies and suppliers that expressed particular interest in human rights policy development and remediation practices. In these workshops, participants exchanged views based on the unique circumstances of their business.
We continue to advance human rights and environmental due diligence by combining supply chain surveys with ongoing engagement.

MC works to ensure sustainable supply chains by participating in various supply chain initiatives.

Sedex is a global platform that provides data-driven analysis, tools, and services aimed at helping companies continually improve their ESG performance. Several MC subsidiaries use Sedex, including MC Agri Alliance Ltd., Asia Modified Starch Co., Ltd., and Nihon Shokuhin Kako Co., Ltd. These companies manage their supply chains through the Sedex platform in areas such as the purchasing and sales of raw materials for food, confectionery, beverages, and other products. Through Sedex, they collaborate with business partners on issues such as respect for human rights and quality assurance throughout the supply chain.

EcoVadis is a global cloud-based software as a service (SaaS) platform that provides comprehensive corporate social responsibility (CSR) evaluation tools. MC subsidiary Mitsubishi Shoji Chemical Corporation adopted EcoVadis in 2022. The company uses the platform to collaborate with business partners on a wide range of supply chain issues, including respect for human rights and quality assurance.

The RTRS is a global initiative that provides certification services for responsible soybean production and distribution. MC subsidiary Agrex do Brasil was the first company to obtain RTRS certification for farmland in the State of Maranhão, Brazil. In addition to obtaining RTRS certification, Agrex do Brasil continues to pursue improvements in areas such as soil protection, water management, employee engagement, and strengthening relationships with local communities.

The ASC is an international nonprofit organization that operates a certification and labeling system for responsibly produced aquaculture products. In 2015, MC subsidiary Cermaq Group AS became the first salmon farming business in Canada to receive ASC certification for multiple sites.

JRSR is a collaborative platform where seafood-related companies in Japan work together to address procurement challenges that cannot be solved through individual efforts alone. Through participation in JRSR, MC aims to expand its handling of sustainable seafood and ensure transparent traceability, promoting cross-company cooperation to achieve these goals.

The FSC promotes forest management that balances environmental protection, societal benefits, and economic sustainability. MC has obtained FSC chain-of-custody (CoC) certification for its timber processing and distribution operations. Through this certification, MC ensures that timber products it handles are produced with respect for human rights, preservation of biodiversity, and conservation of natural capital.

Cermaq, an MC consolidated subsidiary, is committed to maintaining high standards related to the social and environmental impacts of its business. Cermaq has established a Supplier Code of Conduct, which reflects the principles of MC’s Policy for Sustainable Supply Chain Management, to promote responsible practices throughout the supply chain. This Code outlines the minimum standards that all Cermaq suppliers are expected to follow, and Cermaq also expects suppliers to request similar standards from their own suppliers and subcontractors. Cermaq requires all suppliers to comply with national legislation and standards related to human rights, labor rights, health and safety, anti-corruption, the environment, food quality and safety, management systems, and implementation. Regarding environmental performance, suppliers are expected to minimize adverse impacts on local communities, the environment, and natural resources while safeguarding public health and safety. These adverse impacts may include pollution, over-use of limited resources, deforestation, or the release of chemicals or other harmful materials into the ground, sea, or air. To reduce such risks, including the reduction of chemical use in fish farming, suppliers are expected to identify, monitor, and manage the environmental impacts of their operations. Cermaq also reports on the compliance of its supply chain with fundamental human rights and standards for decent working conditions.

Mitsubishi Corporation Packaging Ltd. (MP), an MC consolidated subsidiary, has established its own Policy for Sustainable Supply Chain Management, which outlines MP’s actions to address human rights, labor rights, and environmental issues across its supply chain. This policy communicates MP’s expectations to all suppliers and subcontractors, and MP requests that they understand, accept, and implement it.

MP handles Forest Stewardship Council® (FSC®)-certified products such as cardboard and packaging paper. To assess social and environmental risks, MP confirms whether its paper manufacturing and processing suppliers hold FSC certification, which requires third-party auditing.
MP has also obtained FSC Chain of Custody (CoC) certification and follows its requirements to ensure the proper procurement, storage, and sale of FSC-certified products.

FSC Trademark License Code: FSC®‐C007960

Lawson, Inc., an MC affiliate company, provides freshly brewed coffee in its convenience stores under the MACHI café brand. MACHI café coffee is made exclusively^*1 from beans sourced from Rainforest Alliance^*2 Certified™ farms. Lawson also undertakes efforts to promote awareness of the certification, including participating in the Rainforest Alliance Consortium, a collaboration between the Rainforest Alliance and companies that offer Rainforest Alliance Certified™ products. As a member of this Consortium, Lawson conducts promotional retweet campaigns and other awareness-raising activitites.

Olam Group Limited (Olam), an MC affiliate company, upholds its corporate philosophy of “Re-imagining Global Agriculture & Food Systems,” which states that business growth can only be achieved by delivering value to both the environment and society. Olam pursues three key outcomes: improving farmer livelihoods, increasing community well-being, and regeneration the living world. The company has identified ten material areas for achieving these goals and has developed a framework aligned with twelve of the seventeen Sustainable Development Goals (SDGs). In 2018, Olam launched AtSource, a digital platform that directly connects customers with suppliers to provide comprehensive sustainability solutions. The platform is、now being rolled out across smallholder farmers worldwide. Through AtSource, more than 150 customers can access supplier profiles and approximately 350 indicators, including environmental data such as CO2 emissions associated with procured raw materials, as well as social indicators such as yield data. The platform also supports the development of customer-specific sustainability projects. Olam’s sustainability initiatives through AtSource have earned significant recognition. The company received the Reuters Responsible Business Award each year from 2020 to 2023. In 2023, the Carbon Scenario Planner, a tool designed to visualize and reduce CO2 emissions, received an Innovation Award from Food Ingredients Europe.

In addition, Olam’s global sustainability efforts have received international acclaim. Since 2021, Olam’s Co-Founder and Group CEO, Sunny Verghese, has served as Co-Chair of Champions 12.3, a coalition of leaders from the UN, governments, businesses, and NGOs, working to achieve SGD Target 12.3, which aims to halve global food waste per capita by 2030.

At Source has also been recognized as an official standard by the Global Coffee Platform, one of the industry’s largest organizations involved in strengthening sustainability in the coffee supply chain. For details of each initiative, please refer to the following company website.