Comparability of Food Loss Reduction Information - What is the Purpose of Information Disclosure?: Research Institute Letter

Overview

Analysis report on "Comparability of Food Loss Reduction Information - What is the Purpose of Information Disclosure?: Research Institute Letter" published by Nissay Institute of Basic Research. This examines the challenges of comparability in corporate disclosure of food loss reduction information and the significance of information disclosure toward achieving SDGs. ## Key Points ### 1. Report Overview - **Publishing Institution**: Nissay Institute of Basic Research - **Publication Date**: July 1, 2025 - **Series**: Research Institute Letter - **Analysis Theme**: Disclosure and comparability of food loss reduction information ### 2. Background of Food Loss Reduction - **SDGs Target 12.3**: Halve food waste at retail and consumer levels by 2030 - **Japan's Initiatives**: Food Loss Reduction Promotion Act (enacted October 2019) - **Environmental Impact**: Food waste is a major contributor to greenhouse gas emissions - **Economic Loss**: Japan's estimated food loss approximately 4.64 million tons (FY2023) ### 3. Current State of Corporate Information Disclosure - **Diversity of Disclosure Media**: - Securities reports - Integrated reports - Sustainability reports - Corporate websites - **Variation in Disclosure Content**: Calculation methods and scope of quantitative data vary by company - **Lack of Comparability**: Absence of unified format ### 4. Importance of Comparability - **Progress Management**: Evaluation of efforts toward SDG achievement - **Benchmarking**: Comparison of efforts between companies - **Investment Decisions**: Important indicator for ESG investment - **Policy Evaluation**: Measuring effectiveness of food loss reduction policies ### 5. Challenges in Current Disclosure - **Non-uniform Measurement Methods**: - Differences in food loss definitions - Variations in measurement scope (internal only vs. entire supply chain) - Mismatched measurement periods - **Data Reliability**: Presence or absence of third-party verification - **Update Frequency**: Mix of annual and ad-hoc reporting ### 6. International Trends - **Global Standards**: - Food Loss & Waste Protocol (FLW Protocol) - GRI Standard 306 (Waste) - **EU Corporate Sustainability Reporting Directive (CSRD)**: Standardized disclosure requirements - **TCFD Framework**: Linkage with climate-related financial information disclosure ### 7. Recommendations for Unified Format - **Mandatory Disclosure Items**: - Definition and measurement method of food loss - Scope (organizational boundaries, value chain range) - Quantitative data (absolute amount, intensity) - Reduction targets and progress - **Recommended Disclosure Items**: - Specific examples of reduction measures - Economic impact (cost reduction effects, etc.) - Stakeholder collaboration ### 8. Expected Effects - **Benefits for Companies**: - Strengthened management systems - Improved stakeholder evaluation - Discovery of cost reduction opportunities - **Impact on Society**: - Acceleration of food loss reduction - Optimization across supply chains - Increased consumer awareness ### 9. Future Outlook - **Possibility of Regulation**: Transition to mandatory disclosure - **Utilization of Digital Technology**: Real-time monitoring - **International Coordination**: Establishment of global disclosure standards - **Sector-specific Guidelines**: Development of indicators reflecting industry characteristics This report demonstrates how crucial standardization of information disclosure is for addressing the social issue of food loss reduction. Comparable information disclosure is positioned as an important tool that makes corporate efforts visible and enables measurable progress toward SDG achievement.