Issues and Approaches in the Food Business

In the food sector, which provides support for people in their daily lives, the Marubeni Group is engaged in a wide range of businesses both in Japan and overseas, supplying a wide range of products to meet the diversifying needs of the times. Through our involvement in downstream operations, we gain a timely grasp of the latest market trends and provide feedback to midstream and upstream producers, food processors and distributors, in order to build supply chains based on product procurement and development that reflect the increasingly sophisticated and diversified needs of consumers. In addition, as a general trading company, we are able to leverage our global network to procure products while ensuring “food safety and security”.
Marubeni Group has built a broad value chain which ranges from the procurement of raw materials to the delivery of products and services to consumers. As well as contributing to “food safety and security”, we also address nutritional issues by offering food products with superior functionality. In promoting our food business, we are aware of the various issues involved (see table below), and we are working to reduce negative impacts on “food safety and security” and sustainability by implementing controls and awareness-raising activities to address these issues.

Policy on Initiatives for Food Safety and Reliability

In the Food Business, the Marubeni Group supplies a wide range of products to meet the increasingly diverse needs of the times. In a number of our businesses, through our ownership of manufacturing and processing facilities, we have built an extensive value chain stretching from raw material procurement to delivery of products and services to consumers. In this way, we are contributing to food safety and reliability, while addressing nutrition issues by providing food products with outstanding functionality.

Policy and Approach Regarding Access to Better Nutrition

These days societies in developed countries are facing issues such as undernourishment and malnutrition, where people are lacking vital nutrients even when there is no shortage of food; rising numbers of patients with lifestyle-related diseases due to diets that are high in carbohydrates and salt; and undernourishment among the elderly. In developing countries, hunger and undernourishment caused by poverty and other factors are also social issues. Furthermore, with the global population expected to reach about 10 billion by 2050, the associated food crisis is a serious problem. We recognize that meeting nutritional needs so that people can lead healthy lives and ensuring that food is of sufficient quality is one of the major challenges facing the international community, and is also an important issue for our Group in promoting our food business.
The Marubeni Group will contribute to solving these social issues by improving nutrition through the stable supply of food and providing food and services with high added value in nutritional terms, thereby creating a society where people can live healthy and prosperous lives.

Target

• Through its business the Marubeni Group will provide stable access to good quality sources of nutrition.
• The Marubeni Group aims to develop and supply specialty products that have high added value and meet diverse needs, including health- and nutrition-conscious products, and environmental and ethical consumption.

Policy on Environmental and Social Initiatives in the Real Estate Business

The Marubeni Group’s business activities contribute to solving environmental and social issues with the aim of providing people with comfortable places to live.
For the environment, in design, construction and property management, we not only apply existing environmental measures, but also take steps to improve energy efficiency and energy-saving performance in materials procurement as well as our various facilities and systems. In this way, we are helping to realize a low-carbon society and curb global warming.
For society, in every aspect of design, construction, and property management, we build relationships with tenants, the region, and communities, working together with them to tackle social issues. In urban redevelopment projects, we cooperate with stakeholders to create neighborhoods that contribute to the local community as a whole, thereby contributing to sustainable regional development.

Compliance System for Ensuring Safety and Reliability of Processed Food Products and Beverages

Marubeni has joined the Association for the Safety of Imported Food, Japan and the Japan Food Hygiene Association to keep pace with industry trends. Regarding technologies, we have been working in partnership with external specialists since 2004, thus accumulating expertise in food safety and hygiene management. In particular, we ensure the safety of imported agricultural, livestock, and marine produce and imported processed food products by gathering information and checking safety on our own. We also have our specialist investigators perform plant inspections of overseas suppliers.
If a food safety-related incident does occur, we have systems in place to implement immediate response measures in communication with relevant government agencies and suppliers. These initiatives help to build awareness of food safety among overseas suppliers, leading to the improvement of safety measures throughout our supply chain.

System to Control Supplier Risks

Marubeni considers “protection of consumer health” and “ensuring the safety and reliability of foods” as its highest priorities in the food business. To this end, we utilize our unique supplier management form, the “Supplier Checklist,” to mitigate risks, as part of our efforts to ensure food safety and control our food supply chain. Specifically, we identify risks of suppliers meeting certain conditions from the standpoint of related laws and food safety, failure to deliver, and other factors.

Number of Supplier Checklists Submitted

Food Plant Inspections by Specialists

Marubeni imports various foods and grains from around the world by requiring a certain level of quality and hygiene control from supplier food plants. When starting transactions with a new supplier, we dispatch our specialists to its overseas food plant and have them inspect the quality, hygiene control, and other factors by using the Own Factory Inspection Sheet based on a program of Global Food Safety Initiative (GFSI). The system has been designed so that if the plant does not meet the acceptability criteria, transactions cannot commence until improvements are made based on the inspection findings and the criteria are met through repeated inspections.
Even after the commencement of transactions, we carry out inspections when changes are made to manufacturing lines or manufacturing methods, or when complaints exceeding a certain level are received.

Number of Inspections of Food Plants

Managing the Risk of Residual Pesticide in Agricultural Produce and the Traceability Management System

Measures to reduce the risk of residual pesticide used in agricultural produce is one of Marubeni’s priority issues. To ensure that residual pesticide in imported agricultural produce does not exceed the residual pesticide standards set in the Food Sanitation Act, an inquiry is conducted and internal approval is obtained prior to the commencement of transactions.
In the inquiry, we use the “Agricultural Produce Traceability Sheet” to identify the farmer and the pesticides and conduct onsite surveys of the surrounding farmland (to monitor the crops being cultivated and the pesticides being used), as well as carry out general inspections through a sampling of residual pesticide, etc. And transactions will commence only after the results of this inquiry are verified by a pesticide expert commissioned by Marubeni and confirmation is given that the risk of residual pesticide is low.

Number of Agricultural Produce Traceability Sheets Submitted

Training to Ensure Food Safety and Reliability

To ensure that employees receive appropriate training and that relevant information is shared, the food related Divisions hold internal Group training for all newly assigned employees once or twice annually, and quarterly Group compliance liaison meetings with Group companies. We also hold seminars once or twice annually on selected topics and issues related to food safety, such as ensuring the safety of food product imports. Group companies are invited to participate in the seminar as part of our efforts to raise awareness of food safety.

Efforts for Appropriate Food Labeling

Food labels are an important source of information for consumers when choosing food products, so that they can understand the contents and use the products properly.
In order to ensure that the food products we handle are labeled appropriately, Marubeni has implemented specifications and food labeling verification rules drawn up by internal experts. We also conduct regular training by internal experts in order to maintain and improve the level of knowledge of food labeling in each sales department and to share information on revisions to laws and regulations.

Initiatives for Functional Ingredients

As an example of our initiatives on food safety and reliability, at Group company Toyo Sugar Refining Co., Ltd. we produce and sell various types of sugar, as well as functional ingredients such as Rutin and Hesperidin that can be used in food products, beverages, supplements, and cosmetics.
We will proceed to develop new products, making full use of our proprietary enzyme processing technologies and accumulated expertise, while addressing nutrition issues through the sale of these functional ingredients.

Overview of Rutin
Overview of Hesperidin

Addressing Negative Impacts of Processed Foods and Beverages

＜Initiatives at Marubeni Service Corporation＞

Activities against the Negative Effects of Alcoholic Beverages

Marubeni Service Corporation, a consolidated subsidiary of Marubeni Corporation, is committed to reducing the negative effects of alcoholic beverages, including acute alcohol poisoning caused by excessive alcohol consumption. In addition to limiting the quantity of alcoholic beverages sold at any one time to customers 20 years of age and older, we are also actively working to sell products with fewer negative effects, such as non-alcoholic products and alcoholic beverages with lower alcohol content.

Efforts to Reduce Negative Impacts on Socially Vulnerable Groups

Marubeni Service Corporation is implementing the following initiatives to reduce negative impacts on socially vulnerable groups.

Preventing the Sale of Alcoholic Beverages to Persons under 20 Years of Age

Alcohol consumption by people under 20 years of age has a number of negative effects, including those on health, such as impeding physical growth, causing dependence to form earlier than in adults, and making people who start drinking at a younger age more likely to engage in risky behaviors related to alcohol consumption later in life.
As a responsible business operator, Marubeni Service Corporation, which sells alcoholic beverages, recognizes that drinking alcohol can have these negative effects on people under the age of 20. We take the following precautionary measures and work diligently to prevent the negative effects of alcohol consumption on people under the age of 20 and other vulnerable groups in society.

1. Regular Employee Training

In order to eliminate the negative effects of alcohol consumption on those under 20 years of age, Marubeni Service Corporation regularly educates its employees and reminds its customers not to sell alcoholic beverages to those under 20 years of age. In addition, the person in charge of sales also regularly attends a liquor sales management course and displays a liquor sales management sign on the sales floor to show that he/she is responsible for the sale of alcoholic beverages.

2. Reminder to Customers

We remind customers by displaying posters and distributing tissues with leaflets stating that we do not sell alcoholic beverages to persons under 20 years of age.

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3. Age Verification at the Cash Register

To prevent the sale of alcoholic beverages to persons under 20 years of age, we always check the age of customers when selling alcoholic beverages.

Participation in Industry Initiatives on Alcohol Safety

Marubeni Service Corporation is a member of the Tokyo Liquor Retailers Association, which is concerned about the negative effects of alcohol on vulnerable groups in society, such as alcohol dependence, acute alcohol poisoning, lifestyle-related diseases and other health problems caused by excessive alcohol consumption, and drinking by people under 20 years old. Through membership of this association, we obtain the latest information on industry developments, including laws and regulations related to the sale of alcoholic beverages which we should be aware of as an alcoholic beverage vendor, thereby contributing to the maintenance and improvement of a proper drinking environment and ultimately to the welfare of the public.

For an overview of the Tokyo Liquor Retailers Association, click here (Japanese only)

＜Initiatives at Montoile Co., Ltd.＞

Developing and Providing Products and Services that Appeal to Health and Eliminate Negative Influences

Our consolidated subsidiary Montoile Co., Ltd. develops and sells low-carbohydrate products and products that supplement nutrients that are often deficient, in order to address social issues such as unbalanced nutrition related to lifestyle changes, and the increasing number of patients with lifestyle-related diseases such as obesity. Montoile also conducts product planning aimed at supporting women.

“Low Carb Store” Series

We sell the “Low Carb Store” series, which specializes in low carbohydrate confectionery products that have been developed in pursuit of deliciousness. The series has been well received under the slogan, “Delicious as it is, but low in carbs”.

Click here to view the details of “Low Carb Store” Series at Montoile Co., Ltd. (Japanese only)

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“ASHITAMO” Series

We design and sell tasty and healthy products to support women, mainly using low-carbohydrate ingredients and focusing on ingredients and taste. In addition to displaying nutritional content and developing a wide lineup of ingredient snacks as “good-to-eat snacks”. We also support women as a backer of the Pink Ribbon, an initiative aimed at eliminating breast cancer. We sell our products at affordable prices and have received favorable reviews.

Click here to view the details of ASHITAMO at Montoile Co., Ltd. (Japanese Only)

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High Nutrition Food Initiatives

＜Initiatives at Marubeni Foods Corporation＞

A Comprehensive Approach to the Health Food Market

Accompanied by significant social changes, the concept of “self-medication”, where people take care of their own health, has become widely accepted, and consumers' interest in health is increasing day by day. In response to these market needs, Marubeni Foods Corporation has been actively marketing health maintenance products and health-related products to pharmacies and drug stores through its nationwide sales network. With a comprehensive approach to the health food market, they also supply ingredients to manufacturers.

Focus on Therapeutic Meals and Smile Care Foods in an Aging Society

With the progression of the aging society, Marubeni Foods Corporation is focusing on areas such as therapeutic meals and Smile Care Foods (nursing care meals), that support healthy and comfortable aging. By collecting feedback from dietitians and patients in the field and promoting product development tailored to their conditions, sales of hospital foods, nutritionally adjusted foods, and soft foods to hospitals, welfare facilities for the elderly and home patients reached 43.6 million units in FYE 3/2024.

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Main Products

• Various health foods
• Hospital and therapeutic foods
• Smile Care Meals (nursing care meals)

Click here to view the details of health food of Marubeni Foods Corporation (Japanese only)

Participation in Initiatives to Reduce Negative Impacts of Processed Foods

Marubeni Foods Corporation is a member of the Eat & Fun Health Association, which aims to reduce the negative effects of excessive carbohydrate intake, and is involved in various activities as a “low-carb” partner to spread awareness of carbohydrate-restricted diets and practices.

Principles for Responsible Investment (PRI) Signed by Asset Management Company

Japan REIT Advisors Co., Ltd. (Currently Marubeni REIT Advisors Co., Ltd.) (MRA), a Marubeni Group company in the real estate asset management business, has been conducting the investment management for United Urban Investment Corporation (UUR). In November 2018, MRA signed the Principles for Responsible Investment (PRI) and became a PRI signatory.

Click here for details on PRI
News Release: Japan REIT Advisors Co., Ltd. Recognized as a Principles for Responsible Investment (PRI) Signatory

As a diversified J-REIT, UUR aims to reduce various risks and secure medium- to long-term stable earnings by making real estate investments in diverse assets and locations in each regional economic zone with the focus on the Tokyo Metropolitan Area. Aiming for the realization of a society that is sustainable, diverse and inclusive, UUR and MRA have been engaged in real estate investment and management with consideration for ESG. Upon acquisition of real estate properties, MRA will conduct adequate due diligence and carefully examines not only profitability but also impact on the environment (e.g. asbestos, soil contamination), tenants (e.g. antisocial forces, labor environment), and surrounding area (e.g. relationship with the relevant community, influence of traffic congestion on surrounding environment, etc.) before making investment decisions.
One of the metrics to manage climate-related risks and opportunities is the environment certification coverage rate for the portfolio of UUR. UUR and MRA set a medium-term target of an 80% rate (based on gross floor area) by 2024. As a result of acquiring new environmental certifications and continued efforts to re-acquire them for properties for which they would expire, they had reached 83.9% as of May 31, 2024.
As a result of these initiatives, In the 2023 GRESB Real Estate Assessment, the annual benchmark that assesses sustainability practices in the real estate sector, UUR received “4 Stars” in GRESB Rating, which is based on GRESB Overall Score and its quintile position relative to global participants for the third consecutive year. It also won the “Green Star” designation for the ninth consecutive year by achieving high performance both in “Management Component” that evaluates policies and organizational structure for ESG promotion, and “Performance Component” that assesses environmental performance and tenant engagement of properties owned.
In the MSCI ESG ratings, UUR received an “AA” rating, the second highest of seven ratings, and has been added to the constituents of MSCI Japan ESG Select Leaders Index (as of as of June 2024).

Click here to view the United Urban Investment Corporation web site
Click here to view the policies for ESG promotion and initiatives certification/evaluation

Click here to view the Marubeni REIT Advisors Co., Ltd. web site

Japan Food Additives Association

Japan Food Additives Association (JAFA) is comprised of companies and organizations that are involved in the production, import, sale and use of food additives in Japan. The association was established in October 1982 as a nation-wide consolidated body with the addition of new members.
JAFA works under the guidance of the Ministry of Health, Labour and Welfare and other related government agencies with the objectives of providing members with accurate knowledge pertaining to the production, sale, and use of food additives, and promoting consumer understanding of safety and utility. In addition, JAFA seeks to contribute to the sound development of food-related industries, and to better consumer dietary habits and public hygiene.
The Marubeni Group gathers information about the safety and functionality of food additives from JAFA, and conducts its businesses appropriately, receiving advice on matters such as labeling for food additives and interpretations of the relevant laws.

Japan Food Additives Association

All Japan Coffee Fair Trade Conference

All Japan Coffee Fair Trade Conference formulated the Fair Competition Code for Labeling of Regular Coffee and Instant Coffee Products, designed to aid consumers in the purchase of regular coffee and instant coffee products. The code was recognized by the Japan Fair Trade Commission on November 13, 1991, and a notification was published in the Kanpo (the official gazette of the Japanese Government) on November 27 of the same year, with full enforcement starting from May 28, 1993.
On November 29, 1991, the conference was inaugurated as a discretionary body with membership consisting of coffee-related business operators who agree with the objectives of the conference. It is dedicated to ensuring the fair labeling of coffee products.
The Marubeni Group receives advice regarding coffee labeling and related matters from the All Japan Coffee Fair Trade Conference.

All Japan Coffee Fair Trade Conference (Japanese only)

Japan Soft Drink Association

Japan Soft Drink Association is an industry organization that prioritizes shared benefit and public good. The association aims to ensure rigorous compliance with laws and regulations among soft drink manufacturers, sellers, and related businesses, and facilitates smooth coordination of activities between association members and the government. It also promotes, supports, and provides guidance on corporate social responsibility, encourages healthy consumption of soft drinks, and spreads awareness and knowledge relating to soft drinks.
Through the Japan Soft Drink Association, the Marubeni Group receives advice on matters such as beverage labeling and quality management.

Japan Soft Drink Association

Society of Soft Drink Technologists, Japan

Society of Soft Drink Technologists, Japan was launched in 1992 with the objective of providing a forum for soft drink technologists and researchers to meet and exchange information, while furthering technological innovation and skill development. The society works to provide technical support so that the soft drink industry can continue to develop in harmony with the public interest.
Through the Society of Soft Drink Technologists, Japan the Marubeni Group receives advice on matters such as beverage labeling and quality management.

Society of Soft Drink Technologists, Japan (Japanese only)

Association for the Safety of Imported Food, Japan

Companies engaging in the import, production, distribution, or sales of food volunteered to form an association and began activities in November 1988. They established this association with the aim of doing all they could to improve problems related to securing imported food safety.
In recognition of its achievements, the association became an incorporated association in September 1992 with the approval of the Ministry of Health and Welfare (now known as the Ministry of Health, Labour and Welfare). Further, on April 1, 2011, it was authorized as a public interest corporation and became the Association for the Safety of Imported Food, Japan. It engages in a wide range of activities to help food business operators to fulfill their social responsibility to deliver safe, secure imported food.
The Marubeni Group collects information about the safety of imported processed food and fresh food (including information about residual agricultural chemicals, food additives, and genetic modification) through the Association for the Safety of Imported Food, Japan. We reflect the contents of the information in checking new business partners and suppliers and in conducting factory audits of suppliers, thus promoting the safety of imported food.

Association for the Safety of Imported Food, Japan (Japanese only)

Japan Food Hygiene Association

The Food Sanitation Act was established in 1947 to address hazards resulting from eating and drinking and contribute to improving and promoting public health. On November 1, 1948, companies engaged in food-related businesses established the Japan Food Hygiene Association, an incorporated association (currently public interest incorporated association), for the purpose of cooperating with the government in line with the purpose of the Food Sanitation Act and implementing voluntary sanitation management.
Since its establishment, this association has been engaged in a number of activities for the benefit of the public through its organizations all over Japan. They include the activities of food hygiene instructors for food business operators, which are aimed at improving food hygiene and establishing a voluntary management system, food testing and inspection, the promotion of food business operators' mutual aid system to be used when paying indemnities, the holding of various training sessions, the distribution and dissemination of books on food hygiene, the provision of information to consumers, and the promotion of international cooperation and research related to food hygiene.
The Marubeni Group is striving to improve food hygiene and its management systems related to securing the safety of processed food, by referring to guidelines and the latest information provided by the Japan Food Hygiene Association.

Japan Food Hygiene Association (Japanese only)

Collaboration with Business Partners to Recycle Food Waste and Reduce Resource Usage

With the aim of realizing a recycling-based society, the Marubeni Group is promoting recycling of food waste and reduction of resource usage through collaboration with its business partners (waste generators, processors, consumers, etc.).

Example of Initiatives: Recycling of food waste

We continuously supply recycled feedstuff made from the inedible parts of marine/livestock products and food production by-products to formula feed manufacturers. Additionally, products made from livestock and fish fed with formula feed are sold to general consumers through Marubeni Group sales channels. Through these efforts, Marubeni realizes a recycling loop. We also collect waste edible oil from business activities such as supermarkets and convenience stores. Purified oil and fat made with this oil are supplied to chemical manufacturers as raw material for resin, paint, soap, etc.

Example of Initiatives: Collaboration with FANCL CORPORATION - Closed Loop Recycling^*1 of Used Cardboard

Marubeni Corporation, and its subsidiary companies Marubeni Forest LinX Co., Ltd., and Koa Kogyo Co., Ltd. are providing FANCL CORPORATION (FANCL) with a circular economy^*2 model that collects and recycles used cardboard boxes generated at FANCL’s distribution centers.
This initiative involves collecting used cardboard from FANCL’s distribution centers and using it as raw material for 100% recycled paper which is then made into paper bags. The three Marubeni Group companies manage the entire process within the Group, from the collection of used cardboard to the supply of raw materials, production of recycled paper, and arranging the manufacture of paper bags. The paper bags produced through this initiative are used at all FANCL directly-managed stores and for online sales from April 1, 2023. The three Marubeni Group companies will continue to encourage consumer interest in a circular economy society and contribute to its realization by promoting initiatives to recycle various types of used paper into familiar paper products, utilizing the Group’s comprehensive strengths.

• Recycling used materials collected by the company for reuse in the company’s own operations.
• Circular economy is an economic system in which products, raw materials, and other resources that would otherwise be discarded in conventional economic activities are considered “resources” and are recycled or reused in other ways to circulate resources.