Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Reduction
• Food Loss Reduction
• Diversity & Inclusion
• Corporate Governance

Environmental Achievements

• Reduced food waste by an estimated 4,380 tons annually through biogas power generation at Tempozan Food Process Center.
• Reduced plastic waste by switching from plastic to paper and wooden straws and spoons.
• Achieved 50% energy savings at Toyosu Store with ZEB Ready certification.

Social Achievements

• Launched women's advancement project in 2012, aiming to create comfortable work environments for female employees.
• Established Office for Diversity Promotion in 2019 to foster a diverse and inclusive workplace.
• Expanded online supermarket business to address social challenges related to changing work styles and demographic aging.
• Conducted food education training for over 24,000 people in FY2021.

Governance Achievements

• Established Nomination & Remuneration Advisory Committee.
• Strengthened IR activities, including English disclosures and an integrated report.
• Implemented performance-linked share remuneration plan for Directors.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (e.g., extreme weather, supply chain disruptions).
• Plastic waste reduction.
• Food loss reduction.
• Intensifying competition for store locations and rising costs.
• Securing workforce for expanding online supermarket business.
• Addressing logistics challenges in 2024 (driver working hour limits and labor shortages).

Mitigation Strategies

• Energy conservation and creation initiatives (solar panels, biogas).
• Switching to renewable energy.
• Implementing a robust quality assurance system across the supply chain.
• Proactive development of original products and health-focused product lineups.
• Investing in store renovations and new store openings.
• Developing new systems to enhance customer convenience in online shopping.
• Establishing LIFE HOME DELIVERY for improved last-mile delivery.
• Strengthening human resource systems and training programs.

Supply Chain Management

Responsible Procurement

• Procurement that considers human rights, labor environment, compliance with laws and regulations, environmental impact, and safety verification.

Climate-Related Risks & Opportunities

Physical Risks

• Abnormal weather, flooding, power outages

Transition Risks

• Regulatory changes, market shifts, increased costs due to decarbonization measures, reputational risk from customer attrition if climate change is not addressed

Opportunities

• Increased demand for decarbonized and low-carbon products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, SDGs

Certifications: ISO 22000, FSSC 22000, ZEB Ready

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 17 (Partnerships for the Goals)

Initiatives such as biogas power generation, waste reduction, and promoting a diverse workforce contribute to these goals.

Sustainable Products & Innovation

• BIO-RAL products

Awards & Recognition

• Human Resource Development and Training Contribution Award (Osaka C-STEP)
• Job Matching Award (Osaka C-STEP)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental impact reduction
• Community contribution

Environmental Achievements

• Full-scale operation of a large bio-gas power generation facility at Tempozan, reducing food residues by more than 4,000 tons per year and creating renewable energy. This plant won the Award for Decarbonization at the Sustainability Video Awards 2022.
• Switched all electricity used at Tokyo and Osaka headquarters and Central Square Nishi-miyahara Store to renewable energy sources.

Social Achievements

• Offered food products and daily supplies to Ukrainian evacuees in Kyoto City.
• Opened 11 new stores.

Governance Achievements

• Established the Sustainability Promotion Committee in March 2022 to strengthen sustainability efforts.
• Established the Nomination & Remuneration Advisory Committee with an independent outside Director as chair.

Climate Goals & Targets

Environmental Challenges

• Intensifying competition in the food supermarket industry.
• Rising procurement costs for raw materials.
• Soaring utilities expenses.
• Increased personnel costs.
• Growing tendency for consumers to economize.
• Soaring electricity prices and tight power supply.

Mitigation Strategies

• Development of original products (BIO-RAL private brand).
• Expansion of online supermarket business.
• Aggressive opening of new stores.
• Electricity saving measures in stores and headquarters (adjusting air conditioner settings, turning off lights).

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• BIO-RAL private brand

Awards & Recognition

• Award for Decarbonization at the Sustainability Video Awards 2022

Environmental Metrics

ESG Focus Areas

• Food waste reduction
• Employee satisfaction
• CO2 emissions reduction
• Diversity and Inclusion
• Sustainable sourcing

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented pay rises for full-time (approx. 5%) and part-time (approx. 6%) employees, relaxed clothing and appearance rules.
• Increased employee satisfaction (aiming for 4.0 out of 5.0)

Governance Achievements

• Transitioned to a company with an Audit and Supervisory Committee, increasing the number of outside Directors to 6 (majority of the board).

Climate Goals & Targets

Environmental Challenges

• Rising costs for meat products impacting gross profit ratio.
• Rising personnel expenses due to improved compensation and direct hiring.

Mitigation Strategies

• Optimized non-personnel expenses, resulting in a 0.1P YoY decrease in the net sales/SG&A ratio.
• Actively engaging in ongoing investment aimed at improving productivity (e.g., self-checkout registers, electronic shelf labels).

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