Climate Change Data

TSURUHA HOLDINGS INC.

Climate Impact & Sustainability Data (2021-05 to 2030-05)

Reporting Period: 2021-05 to 2030-05

Environmental Metrics

ESG Focus Areas

  • Customer Lifestyle Enrichment
  • Employee Well-being
  • Environmental Sustainability
  • Ethical Supply Chain
  • Governance

Environmental Achievements

  • Reduced CO2 emissions per store by 30% compared to 2013 (by 2020), aiming for 46% reduction by 2030
  • Reduced CO2 emissions from dispensing deliveries by 45% compared to 2020 (by 2021), aiming for 50% reduction by 2030
  • Increased environmentally friendly PB products ratio to 4.2% of SKUs by 2021, aiming for 13% by 2030
  • Introduced solar power generation

Social Achievements

  • Increased number of point card members to 12.2 million in 2021, aiming for 22 million by 2030
  • Improved employee well-being through online work options and health initiatives
  • Increased the ratio of women in core personnel to 17.5% in 2021, aiming for 37% by 2030

Governance Achievements

  • Transitioned to a company with an Audit and Supervisory Committee
  • Established a voluntary Nominating Committee and Compensation Committee
  • Implemented a third-party evaluation of the effectiveness of the Board of Directors

Climate Goals & Targets

Medium-term Goals:
  • Achieve net sales of 1.5 trillion yen and operating income margin of 6% by FY May 2029
  • Achieve ROE of 12% by FY May 2029
Short-term Goals:
  • Achieve net sales of 1.06 trillion yen and operating income margin of 5% by FY May 2025
  • Increase the number of stores to 2,750 by FY May 2025
  • Increase dispensing net sales to 140 billion yen by FY May 2025
  • Increase PB share of sales to 12% by FY May 2025
  • Achieve ROE of 10% by FY May 2025

Environmental Challenges

  • Spread of COVID-19 impacting consumer behavior and business performance
  • Impact of the Ukrainian situation causing increased commodity prices
  • Intense price competition in the marketplace
  • Changes in economic trends
  • Significant volatility in capital markets
Mitigation Strategies
  • Formulated a new medium-term management plan prioritizing profitability improvement
  • Transforming into a leaner corporate structure
  • Improving accuracy of store openings
  • Enhancing existing stores
  • Strengthening PB product development
  • Focusing on opening stores with earnings potential
  • Prompt closure of unprofitable stores
  • Cost reductions through improved buying power and efficient operations

Supply Chain Management

Responsible Procurement
  • Formulation of CSR Procurement Policy
  • Promotion of product traceability
  • Regular meetings with business partners regarding products and development

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

  • SDG 3: Good Health and Well-being
  • SDG 8: Decent Work and Economic Growth
  • SDG 12: Responsible Consumption and Production
  • SDG 13: Climate Action

Initiatives contribute to these goals through improved healthcare access, employee well-being, sustainable product development, and CO2 emission reduction.

Sustainable Products & Innovation

  • Environmentally conscious plastic bags
  • Environmentally conscious PB products