Promotion of Sustainable Procurement
- Our Approach to Sustainable Procurement
- The Fundamental Policy for Sustainable Procurement
- Kewpie Group Supplier Guidelines
- Sustainable Procurement of Eggs
- Sustainable Procurement of Vegetables
- Initiatives to Procure Sustainable Palm Oil
- Sustainable Procurement of Paper
- Aohata Initiatives with Fruit Growers
- Approach and Activities Regarding Animal Welfare
Our Approach to Sustainable Procurement
We have a strong conviction regarding ingredients that “good products begin with good ingredients.”, These days, however, it is crucial to pay attention not only to product quality, but also to impacts on the environment and human rights. We believe that working together with our suppliers will lead to higher sustainability and the procurement of good ingredients.
The Fundamental Policy for Sustainable Procurement
We strongly believe that “Good products begin with good ingredients”. However, in addition to the focus on quality, we must also examine the impact on the environment and human rights caused by our products. Together with our suppliers, we analyse the impact of our products and work to increase sustainability while sourcing quality raw materials.
- 1. We will conduct all trade in compliance with the law and in conformity with international rules and norms while taking strong measures against corrupt practices.
- 2. We will engage in fair and ethical trade and use appropriate procedures in managing confidential information and intellectual property.
- 3. We will protect human rights and refrain from discriminatory language or conduct, inhumane treatment, or any involvement in human-rights abuses.
- 4. We will respect the labor rights of employees, adopting sound labor practices and providing a safe and clean work environment.
- 5. We will work to prevent pollution and environmental degradation at the local and global levels through the sustainable use of resources.
- 6. We will ensure sustainable access to safe, high quality raw materials, management will also take into account ecological impacts and animal welfare.
- 7. We will contribute actively to support the sustainability of the local communities where our ingredients are produced.
- 8. We will encourage our suppliers to adopt the foregoing policies.
- 9. We will report publicly on the progress of the foregoing policies as appropriate.
Adopted 2018, revised 2023
Kewpie Group Supplier Guidelines
To realize the Kewpie Group's Fundamental Policy for Sustainable Procurement, we have established the Kewpie Group's Supplier Guidelines for our valued suppliers (i.e., all suppliers including our business partners). With these guidelines, we aim to achieve sustainable procurement and shared prosperity with our suppliers by resolving issues in the supply chain based on mutual understanding.
Sustainable Procurement of Eggs
Basic Policy
Eggs are one of the key ingredients for our various products including mayonnaise and processed egg products in Kewpie Group. We recognize that quality and influence on environment of eggs, concern on human rights and animal welfare for laying hens are critical challenges.
We, Kewpie Group are making efforts to build cooperation with domestic egg producers by hearing their opinions and conveying our customers' feedbacks to lead mutual growth and development.
Besides, we keep trying to enhance the value of eggs in our value chain including our customers through our products and service, continuously making progress the initiatives for lowering environmental loads on eggs.
Furthermore, we actively join the communications and initiatives with government committees, academic experts and advisers as well as supply chain partners including egg producers to increase the sustainability of egg-related industries.
Activities
Exchanging the quality specification agreement with our shell egg suppliers as well as visiting their facility in organized way to share our fundamental policy, we are working on the improvements together.
Additionally, by maximizing the excellent nutritional balance of eggs and enhancing the functions to construct various foods as well as "Contribution for Food and Health" and "Studies Against the Egg Allergy", we are working on the initiatives to solve social agendas regarding foods.
We also working on sustainability lowering global environment load by effectively utilizing eggs without waste. For children, we provide dietary educations to deliver the excellence of eggs.
Sustainable Procurement of Vegetables
The Kewpie Group offers salads and delicatessen foods made mostly from vegetable ingredients grown in Japan. We therefore consider the procurement of vegetable ingredients crucial to business continuity. Going forward, we will continue to communicate closely with producers to achieve the sustainable procurement of vegetables for the Kewpie Group and the continued growth and development of the producers.
Activities
Establishment of Recycling-Oriented Agriculture
Salad Club, Inc. is working to get our contracted farmers to utilize unused vegetable leaves, cores, and other unused parts generated at its seven directly managed plants during the production of packaged salads as compost and animal feed.
Contract farmers also benefit from the availability of inexpensive domestically produced compost, and the use of organic compost minimizes the environmental impact of their farming activities. By growing vegetables using compost made from unused portions of vegetables and producing products from them, we can build circular processes that do not waste resources, resulting in zero vegetable waste.
Spreading compost at contracted production sites
Production Awards by the Salad Club
Based on face-to-face interactions with growers, vegetables used in the Salad Club are sourced through “contract purchases” with approximately 400 farms around the country. “Contract purchases” are not just ways to securely source at set prices, but also allows growers to make strategic investments based on a steady income source.
As part of sourcing raw materials safety and reliability, employees from factories and ingredients teams visit farm regularly. Growers are also invited to join factory tours and we proactively work to connect with growers by supporting harvests, providing factory training, and holding barbeques.
Every April, we hold the Grower of Salad Club, an award ceremony to show our appreciation for contracted growers. We evaluate the quality of our primary raw materials and give awards like the Grand Prize, the Award for Excellence, and the Special Award (winners are posted in the Press Release section on the Salad Club website).
We are also building a circular agriculture system by partnering with the producers. We create feeds and fertilizers at our production plants with unused parts of vegetables that are left over from making packaged salad products. We then provide the fertilizers to farms to expand our connections.
Initiatives to Procure Sustainable Palm Oil
Palm oil is a vegetable oil harvested from oil palms grown in tropical regions, but recent developments have raised issues surrounding human rights abuses for farm workers and large-scale deforestation to develop farmland.
To ensure that we do not use raw materials that contribute to these issues and to help solve those issues, the Kewpie Group established the Kewpie Group Fundamental Policy for Sustainable Procurement in January 2018. Based on that policy, in July 2018, we joined the RSPO (Roundtable on Sustainable Palm Oil) to procure sustainable palm oil for our group in the future.
About this Initiative
In 2019, we began purchasing RSPO book-and-claim*1 certified credits for palm oil procured by the Kewpie Group. By 2022, we have completed the switch to the book-and-claim method for all raw materials procured by the Kewpie Group that are 100% palm oil. We have also acquired certification for palm oil acceptance under the mass balance methods*2.
*1 book-and-claim
Certified credits are issued for oil produced by a RSPO-certified manufacturer.
By purchasing those certified credits, this system supports producers of certified palm oil.
*2 mass balance methods
A certification model in which certified palm oil is mixed with other non-certified palm oil during the production and distribution process.
While it physically contains non-certified oil, the proportion of palm oil sourced from certified plantations is guaranteed.
Sustainable Procurement of Paper
In December 2023, we established the Kewpie Group Paper Procurement Guidelines. We also established standards and targets for procurement.
The Kewpie Group procures paper and paper products from businesses that do not contribute to new deforestations, comply by the laws of the timber producing region and international human rights standards, and produce products through proper procedures.
We therefore aim to procure paper and paper products that are recognized by forest management certifications (such as the FSC® certification*). This allows us to confirm that the products were made from recycled paper or, depending on the business partner, through activities that do not contribute to new deforestations or human rights violations.
*An international forest management certification that ensures products were appropriately procured from responsibly managed forests and that limited forest resources can continue to be used in the future.
Kewpie Group Paper Procurement Guidelines (Only in Japan) (217KB)
Activities
Procurement and use of sustainable paper, such as FSC-certified paper
The Kewpie Group is procuring and using sustainable paper, including paper that has obtained FSC® or other forest certification, for containers and packaging, booklets, promotional materials, and office supplies.
We aim to achieve a sustainable paper procurement rate of 100% for containers and packaging, booklets, promotional materials, and office supplies for the entire Group by FY2025.
Kewpie Baby Food
Smile Box Series
(FSC® N002978)
Ingenuity of Corrugated Cardboard structure
We push forward reduction of the paper consumption by devising corrugated cardboard structure and making it thinner while maintaining its strength.
Initiatives to Reduce Packaging (FY2015)
We changed the way we stack palettes for our main product, mayonnaise, when transporting them. By adopting a stacking method that capitalizes on the characteristics of cardboard boxes, we were able to reduce the amount of materials used. Producing less paper waste leads to reducing the burden on the environment.
Modified Carton Shape
Aohata adopted the use of shelf-ready packaging for the Aohata 55 Jams UD150 series and the Calorie Half series to reduce the use of cartons by approximately 49 tons per year. In 2022, the company changed the carton liner* used for the Verde Toast Spread series to reduce carton weight and to reduce CO2 emissions during carton production, while maintaining carton strength.
| Used in FY2023 | 182,000 sheets per year |
|---|---|
| Weight reduction | 3,300 kg per year |
| CO2 emissions reduced during carton manufacturing | 2,400 kg per year |
* Liner is containerboard used for the front and back of corrugated cardboard
Resource Conservation Efforts in Packaging
The Aohata 55 Jam (small size) carton*
Carton flap dimensions were changed to conserve resources.
* Started in 2015
At the same time, we implemented a "Pop Carton" for easy opening and displaying, improving work efficiency at stores.
Aohata Initiatives with Fruit Growers
The fruit production areas used by the Kewpie Group have expanded worldwide.
Based on the understanding that "70% of the taste of a processed agricultural product is determined by its ingredients," we are striving to secure stable supplies of high-quality ingredients by researching cultivation techniques while building trusting relationships with producers.
Approach and Activities Regarding Animal Welfare
Fundamental Approach
As a company, the Kewpie Group recognizes the welfare of laying hens as a critical factor in the sustainable production and procurement of eggs, alongside considerations for quality, environmental impact, and human rights.
We support the Five Freedoms* of animal welfare outlined by the World Organisation for Animal Health (WOAH) and believes that raising laying hens in alignment with these principles is crucial. As eggs are a cornerstone of our business, we believe it is our responsibility to respect the dignity and well-being of laying hens throughout their lives.
*The five freedoms in principles for animal welfare
- Freedom from hunger, malnutrition and thirst
- Freedom from fear and distress
- Freedom from heat stress or physical discomfort
- Freedom from pain, injury and disease
- Freedom to express normal patterns of behaviors
Activities
We ensure that egg suppliers for our group in Japan comply with the Animal Welfare Guidelines for Laying Hens*1, as published and promoted by the Japanese Ministry of Agriculture, Forestry, and Fisheries (MAFF). Furthermore, we are verifying their adherence to the Technical Guidelines for Management of Laying Hens*2 established by MAFF.
Our company actively engages with government authorities, academic experts, NGOs, NPOs, and supply chain partners involved in poultry farming to discuss and define sustainable breeding practices for laying hens. We are committed to advancing animal welfare within our company through collaborative efforts with these stakeholders.
Outside of Japan, we aim to procure eggs that meet the standards and social conditions of each respective country or region. For other farm animals, we follow species-specific guidelines, as defined by the Technical Guidelines for Management, to verify farming practices and uphold the animal welfare considerations outlined.
Activities for Cage-Free Eggs
As a company that values eggs as an essential ingredient, we recognize the need to expand the production of cage-free*3 eggs. We are committed to supporting domestic suppliers in implementing and expanding cage-free egg production by promoting cage-free practices and working to develop and grow the market.
Globally, we recognize the importance of animal welfare for laying hens and strive to source eggs produced in alignment with the standards and social conditions of each country or region. Our goal is to deliver products that meet the needs and expectations of customers in each of our markets.
Commitments Regarding Our Activities
- We will support domestic suppliers in implementing and expanding cage-free egg production by promoting cage-free practices through sourcing the equivalent of 20% of the eggs used in Kewpie Mayonnaise from domestic cage-free sources by 2030.
- In the US, we announced a transition to 100% cage-free eggs in the ingredients we procure for manufacturing Kewpie Brand products by 2025, a goal we successfully achieved in 2022.
- In Europe, we are committed to transition to 100% cage-free eggs in the ingredients we procure for manufacturing Kewpie Brand products by 2025.
- Outside of Japan, we aim to increase the procurement of cage-free eggs. In areas where we are experiencing availability challenges, we will consider taking alternative measures to improve the procurement of cage-free eggs, such as the use of credit schemes.
- Through these efforts, we aim to “increase the usage rate of cage-free eggs in Kewpie Mayonnaise, which is manufactured and sold globally, from 3% as of the end of fiscal year 2023 to 10% by 2027.” (Published on May 31, 2024). We will be providing an updated increased goal for 2030 within the next few years as we continue to make progress.
Throughout this journey, we commit to continuous improvement, transparency, and collaboration as we work toward the ambitious goal of transitioning our supply chain.
*1The 5th Edition (March 2020) of the Animal Welfare Guidelines for Laying Hens, published by the Japan Livestock Technology Association (Public Interest Incorporated Association).
*2The Technical Guidelines for Management of Laying Hens (No. 1066, Livestock Division, July 26, 2023), established by the Ministry of Agriculture, Forestry and Fisheries (MAFF).
*3Breeding style of cage-free farm
In“1.(2) General principles of farm animal management corresponding to the concept of animal welfare” of “Promotion of farm animal management based on the international standards for animal welfare in the Terrestrial Animal Health Code of the World Organization for Animal Health” (Notification from MAFF Director-General of Livestock 5 Livestock No. 1062, July 26, 2023,) livestock keepers should understand the “Five Freedoms” which are the principles of animal welfare, and continuous efforts through proper husbandry management such as daily observation and recording, careful handling, and provision of high-quality feed and water. It is said that it is necessary for all concerned parties to fully recognize that this is a matter of making improvements and that it cannot be achieved by simply installing specific facilities and equipment, and to promote this.