Together with the Global Environment
As a group that relies on marine products and other natural resources, we believe that consideration for the global environment is important.We will formulate an environmental policy in October 2024 and will further focus on addressing issues such as securing sustainable marine and agricultural resources, reducing food waste, and responding to climate change.
Pursuing Sustainability in Seafood and Agricultural Products throughout Supply Chain
Our group defines the procurement of ingredients as “upstream,” the processing and transportation of ingredients as “midstream,” and sales, which are the point of contact with customers, as “downstream.”As our business requires a large amount of ingredients, one of our most important challenges is ensuring a stable procurement of limited marine resources.
Accordingly, we are strengthening our efforts from upstream to midstream, not only in downstream businesses but also in procurement, including aquaculture, by establishing a competitive advantage and thoroughly reducing food waste from procured resources. By leveraging our downstream strengths, which include an overwhelming customer base, and in cooperation with external partners, we will work to ensure the stable use of marine resources throughout the entire supply chain.
Environmental policy
We recognize that climate change, environmental pollution, resource and water depletion, and biodiversity loss are important issues both for the world and for the management of our group, and to prevent these issues, we formulated our Environmental Policy in October 2024. Based on our VISION, we aim to create a sustainable society and grow as a company, protect the blue seas and green earth, and cherish the blessings of food that will continue into the future.
The policy’s items include compliance with laws and regulations, response to climate change, reduction of environmental impact and pollution, waste reduction and efficient resource use, conservation of water resources, and biodiversity. We ask all employees of the Group, as well as all business partners, to understand and support this policy.
Towards sustainable procurement
To achieve both a sustainable society and corporate growth, cooperation from our suppliers is essential. Therefore, we share our procurement policy not only with our employees but also with our suppliers, and ask for their cooperation in completing a sustainability and CSR survey. We also ask new suppliers to understand this policy, and we open our doors equally to them, working together to achieve coexistence and prosperity between our business activities and the environment and society.
Basic Procurement Policy
We have established a basic procurement policy to ensure that we comply with laws, regulations, and social norms when procuring raw materials and other ingredients, and to continually provide safe and reliable products.
The policy covers procurement ethics, compliance, quality and safety, respect for human rights and labor, sustainability, anti-corruption, and collaboration with business partners, and we are working together with our business partners to achieve sustainable procurement.
Aiming for long-term stable procurement, F&LC has begun formulating product procurement standards
In addition to formulating a basic procurement policy, we have also begun formulating our own product procurement standards and are working to ensure long-term stable procurement. Based on our previous commitment to deliciousness, safety, and peace of mind, we will strive to procure raw materials with consideration for human rights, the environment, biodiversity, and the preservation of ecosystems.
Sustainability/CSR Survey
We have been conducting a sustainability and CSR survey of our primary suppliers since the end of FY2011, and received responses from 359 companies. The survey covers not only marine resources but also business partners in packaging materials, store development, advertising and promotion, etc. By understanding negative risks in the supply chain, we are identifying risks for our Group and considering necessary measures.
TOPICS
First Sustainable Meeting held
In May 2024, we held our first Sustainability Meeting with 75 of our major business partners. This marked the kickoff for realizing sustainable procurement through co-creation.
Sustainable Procurement and Development of Fisheries Resources
Building a procurement base for upstream businesses
Amid concerns about future major environmental changes such as climate change, there are also fears of a decline in wild fish catches, making it increasingly important to procure marine resources that do not rely on wild catches. As a response, we are investing in external businesses and cutting-edge technology, and working to develop new technologies such as seed development through business partnerships, and improved and alternative feed. By strengthening our procurement base in our upstream business, we aim to ensure stable quality and production volume.
Supporting aquaculture businesses to ensure stable supply
Owase Bussan Co., Ltd., a company with which we have had a business relationship for 20 years and which is focusing on the farming of yellowtail and yellowtail, is one of the companies in which we have a capital investment. By collaborating with our group, we aim to expand farmed fish and ensure stable procurement.
Establishing a joint venture with a specialist
With the aim of procuring sustainable marine resources, we established Marineverse Co., Ltd. in 2022 as a joint venture with Takuyo Co., Ltd., a major red sea bream farming company. With the aim of enabling aquaculture operators to achieve efficient fishing, we are promoting support for aquaculture businesses through the supply of seeds and feed, as well as the development of artificial seeds.
Taking on the challenge of next-generation aquaculture through technological innovation and research and development
As the aquaculture industry undergoes major changes, we are investing in and conducting joint research with university-originated start-ups that possess genome editing and cutting-edge genome analysis technologies, which are attracting attention as next-generation technologies. Through this business, we are working to realize a sustainable aquaculture business by improving productivity through improved breeding and seed development that responds to the changing environment.
Protecting the ocean from coastal erosion and building a sustainable sea urchin supply base
In 2024, we entered into a capital and business alliance with Uninomics Inc., a venture that uses its unique land-based farming technology to produce high-quality sea urchins from skinny, meatless sea urchins that live in areas affected by coastal erosion.
This will enable us to develop high-quality farmed sea urchins that meet our group’s standards and build a system for retail sales. By providing these products to customers, we will be able to address the recent social issues of declining wild sea urchin catches and the problem of seaweed denudation caused by sea urchins, which has led to the destruction of seaweed beds, thereby contributing to the conservation of blue carbon ecosystems.
Development of next-generation feed and aquaculture facilities
We plan to strengthen research and development into next-generation feed ingredients and the recycling of feed ingredients, aiming to move away from dependence on wild fish meal ingredients and promote feed standardization. In addition to maintaining and managing costs and quality, we will fulfill our social responsibility toward raw materials, including traceability, and strive to ensure the sustainability of feed ingredients. Furthermore, aquaculture sites are seeking to improve productivity and reduce production costs through labor-saving and manpower-saving measures due to population decline and rising production costs. We aim to procure sustainable marine resources by collaborating with aquaculture equipment manufacturers and supporting the development of next-generation aquaculture equipment.
Promoting Food Waste Reduction
We recognize that reducing food waste is an important social issue for the restaurant industry, and are further strengthening our existing efforts. Furthermore, to continue delivering high-quality, delicious products at affordable prices, it is important to minimize food waste. To that end, we are promoting a variety of measures, including digital transformation and utilizing fish throughout the Group. We are also considering effectively utilizing resources and reducing waste-related costs by reusing food waste, such as leftovers, as feed or biomass fuel.
Reducing food waste using digital transformation and AI
Sushiro in Japan is working to reduce food waste by using AI. For example, it calculates the amount of ingredients used based on sales records and determines the appropriate order and usage amounts that reflect demand forecasts. In addition, to provide customers with freshly cooked, delicious rice, it determines the amount needed based on real-time demand forecasts and cooks the rice accordingly. Thanks to the AI’s learning function, the accuracy of predictions is improving every day.
AI also contributes to the efficiency and labor savings of store operations. By proposing optimal staff shifts based on staff schedules, sales forecasts, and past performance, AI reduces the time required for store managers to create shifts.
Making full use of precious marine resources
While it’s generally believed that only about 40% of a fish’s belly can be used for sushi, our Group purchases whole fish and utilizes the remaining parts in our products. We value even the bones and bones of fish, building a system that transcends the boundaries of our Group brands to fully utilize ingredients. For example, parts suitable for tuna nigiri are used at Sushiro, while the head is simmered by chefs at Kaiten Sushi Misaki, and the tuna sashimi, which must be removed by hand, is served as a snack with sake at Sugitama. Furthermore, parts that cannot be used for nigiri are utilized, such as the bones used in the ramen on Sushiro’s menu. Our core belief is that the “back and belly” parts used for sushi have equal value in terms of deliciousness as the bones and bones. Since our founding, we have inherited the Japanese culinary philosophy of “no part of a fish should be wasted,” and our ingenuity in our menu ultimately leads to reducing food waste.
Additionally, when developing new products, Sushiro develops derivative products using the same ingredients to reduce food waste, and in FY2024 developed approximately 150 derivative products.
Starting in 2023, Sushiro stores stopped conveyor belts for sushi and other products, eliminating food waste after conveyance.
Reduce, Reuse and Recycle Plastics and Waste
As part of our sustainable business activities, we are working to reduce and prevent environmental pollution. As a global business, we comply with the environmental laws and regulations of each country, as well as laws and regulations related to the environment and chemical substances, and our internal rules, and we are promoting the 3Rs of plastics and waste.
Plastic reduction and recycling initiatives
Since FY2022, our group has been gradually switching over to eco-friendly containers for takeout orders, which use less plastic and are made from factory off-cuts. Compared to before the change, this has led to an annual reduction of approximately 976 tons of CO2 (FY2014 results). In order to move away from plastic, we are also considering switching to paper containers and introducing recycled and recyclable resources.
Additionally, acrylic partitions installed at Sushiro stores throughout Japan during the COVID-19 pandemic to prevent droplets from spreading have been recycled, and some of them have been upcycled into 3D puzzles for educational purposes. These puzzles have been donated to children living in facilities in Osaka Prefecture.
Eco-friendly takeout containers
A 3D puzzle made from upcycled acrylic partitions
Effective use of waste cooking oil
To turn waste cooking oil used at approximately 700 Sushiro and Sushi Sake Sakana Sugitama restaurants into a raw material for domestically produced sustainable aviation fuel (SAF), the Group will collaborate with companies that will handle everything from collecting waste cooking oil to manufacturing, transporting, and supplying SAF in FY23, with the aim of establishing a system that will enable the supply of domestically produced SAF by early 2025. The Group will contribute to climate change countermeasures through the effective use of resources and aim to realize a circular economy.
Effective Use of Water Resources and Drainage
Globally, water shortages are expected to expand due to climate change, while demand for water is expected to increase due to population growth. Recognizing water as an important resource in our group’s business, we are committed to preventing water quality and soil contamination through efficient use of water resources and appropriate wastewater treatment, based on our environmental policy. Furthermore, Sushiro began water-saving initiatives at each store in 2014, installing Bubble90 water-saving devices at faucets with particularly high water usage, striving to reduce and streamline water usage. Reinstallation began in FY24, and we will continue to strive for water conservation through regular maintenance, establishing a support system, and regular monitoring. We plan to expand Sushiro’s water-saving initiatives to other brands within the group.
Responding to TCFD Recommendations
As the Group uses a wide variety of marine, fishery, agricultural and forestry resources as raw materials, we view climate change as a significant management risk and disclose information related to climate change in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).