Correspondence
Email sent to the contact address for Nicherei Seafoods.
The email said: "I’m contacting you in light of our latest investigation which concerns the use of forced labor in China’s food processing industry. We have uncovered evidence that the Chinese company Dandong Yuanyi Seafoods used North Korean labor after the December 2019 deadline for the repatriation of overseas North Korean workers required under United Nations sanctions. The import to the U.S. of goods produced by North Koreans is prohibited under United States sanctions. Trade data shows that Nichirei Seafoods Inc. has imported over a dozen shipments of seafood products from Dandong Yuanyi Seafoods since 2020. Does Nichirei Seafoods have any comment to make in light of the above information? Please respond to this email by close of business June 19, 2023."
Karen Swanson, Controller at Nichirei Seafoods replied: "Before we heard from you, we had received written representations from the vendor that should have excluded the possibility you’ve indicated. But whatever the truth is, we want to know it. Can you please share your evidence with us? Based on your organization’s prior reporting and what you’ve now told us, we’ve paused some of our operations pending further investigation. If you are not inclined to share your evidence with us, could you please tell us when you expect to publish your findings, so that we can factor them into some decisions that we would like to make this week?"
The Outlaw Ocean Project emailed: "We have found video evidence of North Korean workers at Dandong Yuanyi Seafoods in August 2022. We are unable to share the footage with you in order to protect our sources, but visual details captured on the footage confirms it was shot at Dandong Yuanyi’s facilities. As regards the publication of our investigation: we are uncertain of the exact timing for publication, but we will need final replies from Nichirei by the end of next week. You mentioned that Nichirei has received ‘written representations from the vendor’ - what kind of written representations have they provided to you?"
Nichirei emailed: “Nichirei company statement: 'We have robust controls to ensure compliance with our responsible sourcing policies, which prioritize respect for the human rights of individuals throughout our supply chain and require compliance with all applicable local laws and global treaties, and we do not tolerate any behavior that conflicts with our policies or applicable laws.
When we were informed of the allegations, we took immediate action, including proactively launching an on-site supplier audit and notifying our distributors and the relevant U.S. agencies. Although we have not found any evidence in our ongoing investigation to corroborate the allegations, we have halted deliveries and canceled future orders from the supplier in the U.S., and we will continue to review information and take action as appropriate.'”
If you have additional questions, we will do our best to provide answers on a background basis, not for attribution to the company, if you agree to that. We would also appreciate if you could give us some insight into whether there are other companies mentioned, as well as the timing of publication. We are eager to see any information that you have. Thank you."
The Outlaw Ocean Project replied: "Thank you for your continued engagement and for sending the Nichirei company statement. We can’t disclose names, but we can say that we have contacted dozens of other companies regarding the findings of our investigation. The issues raised with those companies range from forced labor or other human rights abuses, to illegal fishing. Nichirei Group’s Corporate Social Responsibility Policy suggests suppliers need to complete self-assessment or submit to audit. Did Dandong Yuanyi do either of these, and could you share either the self-assessment or audit report with us?"
Nichirei replied: "On background: The supplier completed both self-assessments and audits that showed full compliance with our policies."
The Outlaw Ocean Project replied: "We cant go on background. So going forward pls know that we are staying on record at all times."
Nichirei replied: "Thank you and we understand.
One more question, any insight into when you will publish?"
A coalition of eighteen NGOs wrote to thirteen major seafood distributors and retailers, including Nichirei Seafoods, asking a series of questions connected to the Outlaw Ocean's reporting. Their email to Nichirei Seafoods said: "Dear Nichirei Seafoods,
We are writing to you on behalf of a consortium of human rights NGOs requesting an update on the steps Nichirei Seafoods has taken following the investigation published by The Outlaw Ocean Project. The investigation highlighted concerns about state-imposed Uyghur and North Korean forced labor across the Chinese seafood processing facilities, including within your company’s supply chain.
Given the seriousness of these findings, we are keen to learn about the progress of your internal investigations that your company stated it would conduct. Please refer to the attached letter for detailed inquiries. We look forward to your prompt response by August 2, 2024.
Sincerely, Ethan Hee-Seok Shin, Transitional Justice Working Group Krysta Bisnauth, Freedom United"
The attached letter said:
"Dear Nichirei Seafoods,
The undersigned organizations, experts on human rights, labor rights, Uyghur rights, North Korean rights, and trade law, are requesting an update on the steps Nichirei Seafoods committed to take following the publication of a series of investigations published by The Outlaw Ocean Project. The findings on the investigations, which shed light on the use of state-imposed forced labor in your company’s seafood supply chain, are deeply concerning and demand immediate attention from all stakeholders in the industry.
In 2023, Nichirei Seafoods stated it would investigate exposure to state-imposed forced labor in its downstream supply chains. Given the severity of the harms reported and the gravity of the situation and the potential impact on human rights and environmental sustainability, we are keen to learn about the progress of these investigations into your company's seafood supply chain.
We ask that you provide us with an update on the following points:
- The due diligence conducted to identify whether direct Chinese suppliers or sub-suppliers are using, or at risk of using, Uyghur or North Korean forced labor;
- Any preliminary findings or outcomes from these investigations, e.g., has your company identified Chinese suppliers or sub-suppliers using or at risk of using Uyghur or North Korean forced labor;
- Steps your company has taken or leverage used to cease supplier’s or sub-supplier’s participation in state-imposed forced labor programs, including poverty alleviation programs;
- Where suppliers or sub-suppliers did not cease their participation, or agree to a time bound plan to do so, whether your company disengaged, or has plans to disengage, from that business relationship;
- Steps your company has taken or plans to take to report this information to shareholders (if applicable), companies within your supply chain, consumers, or other stakeholders or otherwise make these findings publicly available.
We believe that maintaining a supply chain free from forced labor is not only a legal and ethical imperative, but also crucial for the sustainability of the seafood industry. Your prompt response and continued diligence in this matter are essential for upholding these standards. Please respond to these questions within three weeks of receipt. Information provided will inform ongoing investigations into forced labor in seafood supply chains.
Sincerely, Transitional Justice Working Group (TJWG) Hubert Younghwan Lee, Executive Director
Human Trafficking Legal Center Martina Vandenberg, Founder and President
The Committee for Human Rights in North Korea (HRNK) Greg Scarlatoiu, Executive Director
Advocates for Public Interest Law (APIL) Shin Young Chung, Attorney
HanVoice Sean Chung, Chief Executive Officer
The Citizens' Alliance for North Korean Human Rights (NKHR) Joanna Hosaniak, Deputy Director General
Corporate Accountability Lab Charity Ryerson, Executive Director and Founder
International Corporate Accountability Roundtable David McKean Deputy Director
Humanity United Action Emily Risko, Associate Program Manager - Forced Labor & Human Trafficking
International Federation for Human Rights (FIDH) Gaelle Dusepulchre, Deputy Director - Business, Human Rights and Environment
Uyghur American Association Elfidar Iltebir, President
Anti-Slavery International Chloe Cranston, Head of Thematic Advocacy Programmes
Uyghur Human Rights Project Omer Kanat, Executive Director
Freedom United Krysta Bisnauth, Advocacy Manager
Global Labor Justice Allison Gill, Legal Director
Investor Alliance for Human Rights Anita Dorett, Director
Campaign For Uyghurs Rushan Abbas, Founder And Executive Director
Worker Rights Consortium Jewher Ilham, Forced Labor Project Coordinator"
Karen Swanson, the Controller, Board Secretary and Treasurer at Nichirei Seafoods, responded, saying: "In care of: Ethan Hee-Seok Shin, Transitional Justice Working Group Krista Bisnauth, Freedom United
Thank you for your letter. I am pleased to respond on behalf of the Board of Nichirei Seafoods, Inc.
Nichirei Seafoods, Inc. is committed to fair, transparent, and sustainable sourcing and procurement practices, and we maintain strong controls and oversight of our procurement and sourcing operations. We do not tolerate any behavior that conflicts with our Sustainable Procurement Policy, which prioritizes respect for the human rights of individuals throughout our supply chain and requires compliance with all applicable laws and global treaties.
When informed by the Outlaw Ocean Project of the allegations, which were wholly inconsistent with the information that we gathered during our diligence process and regular audits, we took immediate action, including notifying our distributors, the U.S. Department of Homeland Security and U.S. Customs and Border Protection; proactively conducting an on-site supplier audit; engaging a third party to perform a supplier audit; and halting deliveries and orders from Dandong Yuanyi in the U.S. during our investigation.
After conducting a diligent investigation, we could not corroborate the allegations; nonetheless, out of an abundance of caution, we stopped sourcing product from Dandong Yuanyi in 2023, and we will take additional action as appropriate based on any additional available information.
We are committed to combatting illegal, unreported, and unregulated fishing and human rights violations globally, and will continue to follow the law and be attentive to the guidance of the relevant government agencies on this matter.
Sincerely, Karen Swanson Controller, Board Secretary and Treasurer Nichirei Seafoods, Inc."