Climate Change Data

Aeon Delight Co., Ltd.

Climate Impact & Sustainability Data (2021-03-01 to 2022-02-28, 2023-02)

Reporting Period: 2021-03-01 to 2022-02-28

Environmental Metrics

Scope 1 Emissions:237 tCO2e
Scope 2 Emissions:10025 tCO2e

ESG Focus Areas

  • Safety and Security
  • Labor Shortage
  • Environment
  • Use of Technology
  • Corporate Governance

Environmental Achievements

  • Launched New Standard Cleaning service in September 2020, incorporating infection prevention measures.
  • Developed a Network CO2 Density Monitoring System to promote ventilation.
  • Provided a stable supply of infection prevention materials.
  • Reduced power consumption by installed energy-saving equipment (quantified in MWh, see Metrics).

Social Achievements

  • Established a Sustainability Committee in April 2022 to promote ESG management.
  • Established a Special Committee in May 2022 consisting of independent outside directors.
  • Increased the number of full-time female employees by 1.7x from FY2017 to FY2021.
  • Increased the number of female managers by 1.9x from FY2017 to FY2021.
  • Conducted human rights training and awareness programs for directors and all employees.

Governance Achievements

  • Established a Sustainability Committee and a Special Committee.
  • Expressed support for the TCFD recommendations.
  • Reorganized office area structure to enhance customer contact points.
  • Strengthened sales structure to expand market share.
  • Updated the AEON delight Platform, a data collaboration platform.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • 20% of sales from BCP and infection control-related services by 2030.
  • 10% of sales from GHG emission reduction related services by 2030.
  • 50% of sales in the materials business from environmentally friendly products by 2030.
  • Zero gasoline and diesel vehicles for business (consolidated) by 2030.
  • 50% reduction in consolidated annual employee turnover rate by 2030.
  • 50% reduction in consolidated annual overtime per person by 2030.
  • 30% reduction in number of consolidated annual work-related accidents by 2030.
  • 50% recycling rate (bottle-to-bottle) in vending machine business by 2030.
Short-term Goals:
  • Increase the number of full-time female employees to 2.0x the FY2017 level by FY2023.
  • Increase the number of female managers to 2.4x the FY2017 level by FY2023.

Environmental Challenges

  • Labor shortages in the facility management industry.
  • Environmental issues such as climate change.
  • Need to improve productivity and operational efficiency.
  • Need to strengthen facility information security.
  • Need to enhance Group governance.
Mitigation Strategies
  • Promoting digital transformation initiatives to expand the area management model.
  • Developing environmentally friendly business, including energy-saving measures.
  • Building a sustainable facility management business model.
  • Investing in digital transformation, recruiting specialized personnel, and enhancing IT training.
  • Establishing a Sustainability Committee and Special Committee to strengthen ESG management.

Supply Chain Management

Supplier Audits: 158 companies in FY2021

Responsible Procurement
  • Checking and monitoring partner companies' quality management and business implementation systems.
  • Ensuring partner companies' understanding of and compliance with the Delight Way.

Climate-Related Risks & Opportunities

Physical Risks
  • More severe natural disasters (e.g., flooding, power outages)
  • Increased risk of infectious diseases due to global warming
Transition Risks
  • Increase in raw material prices due to carbon tax.
  • Increase in electricity and fuel costs.
Opportunities
  • Capture demand for environmentally friendly products and services.
  • Reduction of cost burden for customers by providing services related to energy conservation.

Reporting Standards

Frameworks Used: IIRC International Integrated Framework, GRI Sustainability Reporting Standards, TCFD

Certifications: ISO 14001:2015, JIS Q 14001:2015

Sustainable Products & Innovation

  • Paper straws
  • Cutlery made of paper and wood
  • Plastic bags and packaging materials made of biomass plastic

Awards & Recognition

  • Eruboshi (level 3) certification
  • Leading Companies with Actively Participating Women in Osaka City certification

Reporting Period: 2023-02

Environmental Metrics

ESG Focus Areas

  • safety and security
  • manpower shortage
  • environment

Environmental Achievements

  • Proposals concerning energy conservation at facilities (LED lighting, energy-saving equipment)
  • Eco Mark certification for Cleaning Services in 2022
  • Promoting the use of biomass plastic, recycled plastic, and traceable paper.
  • Participation in Aeon 1% Club
  • Tree planting through Aeon Environmental Foundation

Social Achievements

  • Established customer service centers at all eight branches in Japan to create a system for remote support for customer facilities
  • Promoting automation and labor-saving in on-site management operations by installing cameras and sensors at site facilities
  • Promoting the introduction of “area management” in which facility managers are shared in a certain area
  • Launch of AI Manager, an interactive AI system for employees to reduce monthly work hours

Governance Achievements

  • Aeon Delight Vision 2025 plan aims to make Aeon Delight a company that creates environmental value and contributes to solving social issues
  • Established an Affiliated Companies Department to take control of its domestic and overseas subsidiaries
  • Established an organizational culture committee to prevent improper conduct by group companies
  • Cancellation of treasury shares (1.5mn shares)

Climate Goals & Targets

Long-term Goals:
  • Become one of the top ten companies in the world in the facilities management industry
Medium-term Goals:
  • Aeon Delight Vision 2025 targets: sales of JPY471.0bn, operating profit of JPY37.0bn, and ROE of 15% in FY02/26
  • Introduce area management at 360 facilities, reduce the number of people assigned to specific facilities by 180, and reassign 20% of headquarters staff to front positions by FY02/24
Short-term Goals:
  • Increase the ratio of sales outside the Aeon group to 40.0% in FY02/24

Environmental Challenges

  • Labor shortage in the facilities management industry
  • Rising energy costs prompting customers to cut property management costs
  • Rising personnel, raw materials, and logistics expenses
  • Higher costs of sales
  • Mature property management market in Japan
  • Limited organic growth
  • Heavy dependence on the Aeon group
Mitigation Strategies
  • Established customer service centers and remote support systems
  • Installed cameras and sensors to automate on-site management
  • Introduced area management to reduce the number of facility managers
  • Strengthened account management to increase share of existing customer wallets
  • Strengthened building construction work, including energy-saving projects
  • Introduced AI Manager to improve operational efficiency
  • Actively seeking out M&A and partnership opportunities to expand business domains and strengthen customer base

Supply Chain Management

Responsible Procurement
  • Promoting the use of environmentally friendly packaging materials

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: TCFD

Certifications: Eco Mark

Awards & Recognition

  • Excellent Facility Management Award at the 17th Japan Facility Management Awards