Climate Change Data

Seven & i Holdings Co., Ltd.

Climate Impact & Sustainability Data (2023-03-01 to 2024-02-29)

Reporting Period: 2023-03-01 to 2024-02-29

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Human Rights
  • Food Waste Reduction
  • Sustainable Procurement
  • Diversity & Inclusion

Environmental Achievements

  • Reduced CO2 emissions by 32.5% compared to FY2013
  • Improved food waste recycling rate to 58.7%
  • Increased renewable energy share in North America to approximately 29%
  • Reduced food waste generated in Japan by 22.1% compared to FY2013
  • Achieved 34.5% reduction in plastic usage compared to FY2013

Social Achievements

  • Launched Eco-Price initiative reducing food waste by approximately 10% in experimental stores
  • Conducted Human Rights e-Learning for Group employees with approximately 40,000 participants
  • Launched Activate HER initiative at 7-Eleven, Inc. to support women's career advancement
  • Introduced a special leave system allowing employees with preschool-aged children up to five days of paid leave per year

Governance Achievements

  • Established a Strategy Committee composed solely of independent outside directors
  • Separated the roles of chairperson of the Board of Directors and CEO
  • Increased direct dialogue opportunities with investors through IR Day and overseas roadshows

Climate Goals & Targets

Long-term Goals:
  • Become a world-class retail group centered around food by 2030
  • Reach 100,000 stores in 30 countries and regions by 2030
Medium-term Goals:
  • Achieve net-zero emissions by 2050
  • Reduce CO2 emissions from store operations by 50% by 2030 compared to FY2013
  • Increase ratio of female executive officers and managers to 30% by the end of February 2026
  • Achieve an EBITDA of over ¥85 billion in SST operations by FY2025
Short-term Goals:
  • Nationwide expansion of 7NOW by the end of FY2024
  • Achieve $500 million in cost savings in North America in FY2024
  • Complete fundamental transformation of SST operations in the Tokyo metropolitan area in FY2024

Environmental Challenges

  • Profitability and capital efficiency challenges in North American CVS operations
  • Need to improve qualitative indicators such as ROE and ROIC
  • Maintaining and enhancing employee motivation amid significant Group structural changes
  • Addressing climate change risks, including carbon tax, natural disasters, and increased raw material costs
  • Managing nature-related dependencies and impacts throughout the supply chain
Mitigation Strategies
  • Implementing concrete action plans to accelerate growth, focusing on food and global CVS operations
  • Optimizing Group structure, including considering an IPO for SST operations
  • Strengthening investor engagement through increased dialogue and improved information disclosure
  • Implementing cost reduction measures in North America (target of $500 million in FY2024)
  • Advancing initiatives based on GREEN CHALLENGE 2050 and TCFD/TNFD recommendations
  • Conducting CSR audits and implementing human rights due diligence

Supply Chain Management

Supplier Audits: 254 overseas and 527 domestic production facilities audited in FY2023

Responsible Procurement
  • Seven & i Group Business Partner Sustainable Action Guidelines
  • Sustainable sourcing of raw materials, including JGAP-certified agricultural products, MSC- and ASC-certified marine products, and cage-free eggs

Climate-Related Risks & Opportunities

Physical Risks
  • Severe natural disasters
  • Changes in precipitation and weather patterns
  • Rising air conditioning operating costs
Transition Risks
  • Imposition of carbon tax
  • Lower demand for petroleum-based fuels
  • Increased costs related to Extended Producer Responsibility (EPR)
Opportunities
  • Increased consumer interest in sustainable products and services
  • Increased demand for EV charging
  • Reduction in overall energy use by investing in energy efficiency measures

Reporting Standards

Frameworks Used: Integrated Reporting Framework, TCFD, TNFD

Certifications: MSC, ASC, JGAP

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 contribute to these goals through energy saving, waste reduction, CO2 emissions reduction, sustainable procurement, and partnerships with stakeholders.

Sustainable Products & Innovation

  • Seven Premium products with reduced plastic packaging
  • JGAP-certified agricultural products
  • MSC- and ASC-certified marine products
  • Cage-free eggs

Awards & Recognition

  • Component of DJSI World Index
  • Constituent of FTSE4Good Index Series for 10 consecutive years
  • Constituent of FTSE Blossom Japan Index for eight consecutive years
  • Constituent of iSTOXX® MUTB Japan Platinum Career 150 Index