Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Human Resources Development
• Corporate Governance

Environmental Achievements

• Company-wide energy consumption rate decreased by nearly 30% compared to 2010.
• CO2 emissions rate decreased by nearly 20% compared to 2010.
• 81 stores converted to all-electric as of March 31, 2020.
• Solar power generation systems installed at 40 stores.
• Over 70% of customers bring their own shopping bags at stores charging for plastic bags.

Social Achievements

• Certified as a top Healthy Management Company (White 500) in 2020.
• Increased the total number of women in management positions from 44 to 62 as of March 31, 2020.
• Nearly 500 foreign employees as of March 31, 2020.

Governance Achievements

• Achieved 31 consecutive terms of increasing non-consolidated profitability as of March 2020.
• Established the "Yaoko Group Code of Conduct."
• Established the Risk Management Committee.

Climate Goals & Targets

Environmental Challenges

• Aging Population and Declining Birthrate
• Labor Shortage
• Population Urbanization
• Increasing Public Finance Deficit
• Polarization of Consumption
• Other Industries Overcoming Barriers to Entry
• Advancement of Technology
• Climate Change and Environmental Issues
• Intensifying competition and reliance on specific business fields
• Labor shortages and rising labor costs
• Development of technology
• Climate change and environmental problems

Mitigation Strategies

• Developing low-cost stores to save energy.
• Actively recycling biodegradable waste.
• Charging customers for plastic bags.
• Introducing all-electric stores and using renewable energy.
• Converting in-store lighting to LED and reducing power consumption.
• Introducing reach-in cases to frozen foods sections.
• Lowering prices daily to sell out products and reduce food waste.
• Changing delivery deadlines for dry food products.
• Introducing biodegradable waste composting machines.
• Reducing driving distance by combining deliveries.
• Introducing clean diesel vehicles and using reusable shipping cartons.
• Promoting work-life balance with reform of work styles.
• Enhancing educational system.
• Actively promoting the advancement of women and hiring more foreign applicants.
• Thorough risk management, applying the concepts of PDCA.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procuring ingredients directly from producers; developing products only available at Yaoko.

Climate-Related Risks & Opportunities

Physical Risks

• Occurrence of natural disasters and infectious diseases

Transition Risks

• Climate change and environmental problems

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7 (Affordable and Clean Energy)
• 12 (Responsible Consumption and Production)
• 13 (Climate Action)

Not disclosed

Sustainable Products & Innovation

• Environmentally-friendly plastic bags

Awards & Recognition

• White 500 (Healthy Management Company)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Switched 11 facilities to 100% renewable energy (15% of total power consumption)
• Reduced plastic use by approximately 30 tons
• Achieved a 51.0% recycling rate for food waste
• Opened Yaoko Eco Center to recycle materials collected from stores

Social Achievements

• Launched Yaoko Child Support Foundation to support children from economically challenged families
• Held Yaoko Food Pantry in collaboration with Kawagoe Child Support Pantry
• Introduced a unique system, “Customer Advisors and Attendants,” to enhance customer service and staff motivation

Governance Achievements

• Established the “Yaoko Group Code of Conduct”
• Conducted compliance training for employees
• Established an internal reporting office, “Yaoko Compliance Hotline”

Climate Goals & Targets

Environmental Challenges

• Rising raw material and utility costs
• Intensified competition across industries
• Japan's population decline and labor shortages
• Climate change impacts on supply chain and operations

Mitigation Strategies

• Strengthening price-conscious choices for customers
• Developing new store formats with smaller floor areas and improved efficiency
• Investing in AI-based automated ordering system to reduce food loss and improve efficiency
• Implementing energy-saving measures and expanding renewable energy use
• Promoting plastic recycling and reducing plastic use
• Reducing food waste through improved ordering and sales strategies

Supply Chain Management

Responsible Procurement

• Direct sourcing of fresh produce from local farmers
• Yaoko Farm for sustainable agricultural product supply

Climate-Related Risks & Opportunities

Physical Risks

• Damages from extreme weather, flooding, and destruction of stores
• Changes in rainfall and climate patterns
• Rise in average temperature, sea temperature and sea level

Transition Risks

• Increase in renewable energy cost
• Increase in non-fluorocarbon capital expenditure
• Increase in electricity expenses and procurement costs of raw materials
• Increase in carbon pricing and tax burden
• Stricter CFC substitutes regulations
• Stricter regulation on CO2 emissions reduction

Opportunities

• Increase in supply and demand of surplus electricity by the company and consumers
• Sharing renewable energy in local communities

Reporting Standards

Frameworks Used: TCFD

Certifications: Global GAP (GGAP), Japan GAP (JGAP)

Awards & Recognition

• First place in the “Store of the Year 2022” competition

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Circulation
• Food Loss Reduction

Environmental Achievements

• 11 locations switched to 100% renewable energy, accounting for approximately 15% of total company electricity usage.
• Implemented LED lighting in stores and demand monitoring to reduce energy consumption.
• Introduced reach-in cases in frozen food sections to save energy and reduce CO2 emissions.
• 43 locations equipped with rooftop solar power generation systems.

Social Achievements

• Not disclosed

Governance Achievements

• Established an Environmental Committee chaired by the President, holding meetings at least once a year to discuss, decide on, and monitor progress on environmental policies.
• Appointed a Chief Sustainability Officer (CSO) who regularly reports on activities to the Board of Directors.
• Established a Risk Management Committee chaired by the President, meeting at least twice a year to identify and manage company-wide risks, including climate change.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on supply chain, from raw material procurement to manufacturing, distribution, sales, and disposal.
• Potential risks of physical risks (increased frequency of natural disasters affecting store operations, high temperatures), transition risks (increased regulatory pressure, carbon taxes, technological innovation).

Mitigation Strategies

• Implementing effective indicators and targets to reduce business risks and future financial impacts.
• Conducting climate change scenario analysis based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
• Regular progress monitoring, verification, and review of targets.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Changing cutlery to wood or paper; extending the expiration date of certain dry goods to reduce food waste.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters affecting store operations, high temperatures

Transition Risks

• Increased regulatory pressure, carbon taxes, technological innovation

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed