Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Installed solar power generation equipment on the roofs of some stores and distribution centers to supply clean energy.

Social Achievements

• Donation to the Osaka Education Yume Fund as part of social contribution activities.
• Launched a "Thank You Campaign" for the 39th anniversary.

Governance Achievements

• Increased dividend payout to shareholders.

Climate Goals & Targets

Environmental Challenges

• Weak personal consumption despite improvements in the overall Japanese economy.

Mitigation Strategies

• Focus on existing store revitalization and inventory reduction to achieve sales growth and improve financial health.
• Acquisition of Beaver Thans Co., Ltd. to strengthen the store network in the Kanto region, particularly Kanagawa Prefecture.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Installed solar power generation equipment on the roofs of some stores and distribution centers to supply clean energy.

Social Achievements

• Donation to the Sakai City Children's Education Yume Fund as part of social contribution activities.
• Launched "Konan DIY Forest" in Tanabe City, Wakayama Prefecture for afforestation.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Community Investment
• Environmental Contribution (Renewable Energy)
• Disaster Relief

Environmental Achievements

• Installation of solar power generation equipment on the roofs of some stores and distribution centers

Social Achievements

• Donation to the Sakai City Children's Education Yume Fund
• Emergency relief supplies provided to disaster-stricken areas
• Fundraising activities for disaster victims
• Opened Kohnan Animal Hospital in Sakai Takasu store

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Severe heat and numerous natural disasters in the Kansai region

Mitigation Strategies

• Made every effort to supply necessary goods to customers affected by disasters
• Donation to the Sakai City Children's Education Yume Fund
• Emergency relief supplies provided to disaster-stricken areas
• Fundraising activities for disaster victims

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• CSR
• Governance
• Employee Development
• Community Engagement
• Supply Chain
• Growth in Vietnam

Environmental Achievements

• Implementation of solar power generation for clean energy supply
• Contribution to greening activities through Osaka Prefecture's green wind formation project and participation in the Osaka Urban Greening Fair

Social Achievements

• Continuous contributions to Osaka Education Yume Foundation and Sakai City Children's Education Yume Foundation since 2010
• Supply of necessary materials in case of large-scale disasters (agreement with Osaka Prefecture)
• Promotion of diversity and inclusion, including increased female store managers and buyers
• Improved employee benefits (e.g., increased annual holidays, introduction of half-day holidays, enhanced retirement pension system)
• Expansion into Vietnam with multiple store openings

Governance Achievements

• Strengthening of management system emphasizing compliance and corporate governance
• Establishment of a corporate card for corporate purchases
• Development of new private brands (PortTech)
• Acquisition of Kendepo, leading to a significant increase in market share

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Letter of appreciation from Osaka Governor Matsui

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Launched "Kohnan Pay" and introduced "Rakuten Point Card" in all stores.
• Opened Kohnan animal hospital in two locations.

Governance Achievements

• Increased dividend per share from 26 yen to 27 yen.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Forest conservation activities through "Kohnan DIY Forest"
• Cardboard recycling program
• Agreement with Sakai City to reduce disposable plastics
• Tablet use to visualize power usage and energy-saving measures

Social Achievements

• Donation to "Osaka Education Yume Fund" and "Sakai City Children's Education Yume Fund"
• Agreement with local governments for material supply during large-scale disasters
• Kurumin certification (childcare support company)

Governance Achievements

• More than 1/3 of directors are outside directors (8 internal, 5 external)

Climate Goals & Targets

Environmental Challenges

• Rebound effect from the surge in demand for infection prevention goods and DIY supplies during the previous year due to the COVID-19 pandemic.

Mitigation Strategies

• Focus on new customer categories like pet supplies and gardening supplies, increased sales in PRO sector (lumber, tools etc.), new store openings.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Installed solar power generation equipment at 2 stores, cumulatively reducing CO2 emissions by 781 tons/year at 5 stores.
• Started operations with double articulated trucks in October 2022, reducing long-distance delivery emissions by approximately 22%.
• Installed quick chargers for EVs at 20 stores by FYE Feb. 2024.

Social Achievements

• Recognized for three consecutive years as a KENKO Investment for Health Outstanding Organization (2024).
• Increased employee engagement through J-ESOP, increased incentives for employee stock holding association, a new personnel system, and employee surveys.
• Promoting diverse workforce success through career planning training for female employees, education on childcare and nursing care support, and internal job openings tailored to individual career aspirations.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Unexpected depreciation of the yen.
• Soaring personnel, utilities, and logistics expenses.
• Application of the “Accounting Standard for Revenue Recognition” from FY2023, resulting in a reduction of sales.
• Personnel shortage in logistics.

Mitigation Strategies

• Improve profitability and efficiency (FYE Feb. 2026: ROE of 10% or more).
• Promote investment in growth strategies.
• Joint logistics operations between KOHNAN and KEN DEPOT (Kyushu and Kanto regions).
• Reduction of delivery services from Osaka to Kanto by increasing storage volume at Kawasaki warehouse.
• Conversion of a portion of the storage warehouse in Osaka into a distribution center.
• Reduction of driver’s business hours and working hours by changing the delivery method between long distances.
• Operation of double articulated trucks for some long-distance deliveries.
• Installation of automated work equipment in distribution centers (Devanning robot, unmanned transport vehicles).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Three consecutive years as a KENKO Investment for Health Outstanding Organization (2024).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital

Environmental Achievements

• Reduced packaging and containers
• Promoting energy saving and renewable energy use
• Developing environmentally friendly products
• Promoting circular economy products (cardboard, plastic, etc.)

Social Achievements

• Strengthened personnel planning function
• Promotion of young and female employees
• Promotion of work style reform
• Personnel training and appropriate reallocation
• Health management aimed at maintaining and improving physical and mental health
• Diversity and inclusion
• Childcare and nursing care systems

Governance Achievements

• Established SDGs promotion department
• Held Sustainability Promotion Conference
• Strengthened internal control system
• Established compliance committee
• Established nomination and compensation committee

Climate Goals & Targets

Environmental Challenges

• Shrinking market size due to declining population
• Intensifying competition from other industries
• Increased costs (raw materials, logistics, labor)
• Risk of overstock due to PB product sales expansion
• High dependence on interest-bearing debt
• Changes in regulations related to store openings
• Weather factors affecting seasonal product sales
• Fluctuations in exchange rates
• Market competition and risks associated with store openings and closures
• Risk of impairment losses

Mitigation Strategies

• Strengthening PB product development system
• Promoting DX (Digital Transformation), integrating EC and apps with stores
• Aiming for 5.5% to 10% increase in EC sales ratio
• Introducing new POS system, promoting cashless payments, introducing new business terminals, expanding logistics and system infrastructure
• Aiming to reduce business hours and workload by 20%
• Developing urban store models and hybrid stores
• Strengthening inventory control and sales planning
• Balancing capital expenditure with operating cash flow
• Continuous efforts to suppress interest-bearing debt
• Active new store investment while considering legal regulations
• Utilizing foreign exchange hedging to mitigate exchange rate risks
• New store openings, revitalization of existing stores, and closure of unprofitable stores
• Applying the accounting standard for impairment of fixed assets

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Damage to stores due to typhoons and other severe weather
• Business interruption due to store closures
• Disruption of supply chains
• Increased air conditioning costs

Transition Risks

• Increased energy costs
• Increased investment in renewable energy facilities
• Increased costs due to carbon tax
• Increased costs due to plastic regulations

Opportunities

• Responding to new customer needs (energy-saving products)
• Improved corporate image
• Reduced waste disposal costs
• Promoting the development of environmentally friendly products
• Promoting the development of circular economy products

Reporting Standards

Frameworks Used: SDGs