Climate Change Data

Environmental Metrics

ESG Focus Areas

• Developing community and social infrastructure
• Building bridges to local communities
• Environment
• Diversity and work-style reform
• Accountability in business

Environmental Achievements

• Achieved a 55.1% reduction in energy consumption (per unit of floor space) compared to fiscal 2010.
• Recycled 88.7% of waste plastics (including thermal recycling) in FY2020.
• Operates AEON MALL Kawaguchi with virtually zero electricity and gas CO2 emissions.

Social Achievements

• Donated a total of ¥22.3 million through the AEON happy yellow receipt campaign in FY2020.
• Obtained the Certified Health and Productivity Management Organization 2021 certification.
• Increased the number of on-site AEON Yume-Mirai Nursery Schools to 31.

Governance Achievements

• Received a 5-Star rating in the 2021 GRESB Real Estate Evaluation for the second consecutive year.
• Established the Nomination and Compensation Committee.
• Implemented a system to ensure transactions with officers or major shareholders do not infringe on the interests of the company or shareholders.

Climate Goals & Targets

Environmental Challenges

• Climate change risks including rising sea levels, extreme weather events, and changes in rainfall patterns.
• Transition risks from policy and market changes related to decarbonization.
• Reputational risks from inadequate disclosure of climate change initiatives and non-financial information.

Mitigation Strategies

• Investment of approximately ¥1 billion in energy and resource conservation measures.
• Installation of 70 EV charging stations in FY2020.
• Development of disaster preparedness measures.
• Implementation of the AEON Decarbonization Vision 2050.
• Support for the Task Force on Climate-related Financial Disclosures (TCFD).

Supply Chain Management

Supplier Audits: Annual on-site inspections of waste-related contractors and monthly inspections of mall building cleaning contractors.

Responsible Procurement

• AEON Supplier Code of Conduct requiring compliance with environmental laws and regulations, consideration for environmental protection, and adherence to AEON Environmental Policy.

Climate-Related Risks & Opportunities

Physical Risks

• Rise in average temperatures
• Rise in sea levels
• Change in rainfall and weather patterns
• Increasingly extreme weather phenomena

Transition Risks

• Carbon tax
• Changes in customer behavior
• Changes in energy mix and demand
• Spread of electric vehicles
• Spread of renewable energy and energy-saving technologies

Opportunities

• Transition to energy-saving and renewable energy construction
• Access to new subsidies and markets
• Differentiation from competitors through high-efficiency buildings
• Attracting customers with charging facilities
• Reduced operating costs and increased property values through energy-saving/renewable energy technologies

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2016, SASB, TCFD, UNGC, ISO 26000

Certifications: ISO 14001

Third-party Assurance: Third-party verification for greenhouse gas, water, and waste emissions (FY2019 and FY2020)

UN Sustainable Development Goals

• 17 Sustainable Development Goals

AEON MALL engages in ESG activities in accordance with ISO 26000 and conducts corporate activities as a united organization to contribute to the achievement of the 17 Sustainable Development Goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CDP A- rating (2020)
• GRESB 5-Star rating (2021)
• Certified Health and Productivity Management Organization 2021 certification
• Reiwa 2 (2020) “Marine Day” Minister’s Commendation

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Pollution and Resources
• Water Security
• Human Rights
• Local Communities
• Health and Safety
• Labor Standards
• Corporate Governance
• Responsible Business
• Diversity and work-style reform

Environmental Achievements

• Achieved a 92.7% recycling rate (including thermal recycling) among directly managed malls in Japan in FY2021.
• Reduced CO2 emissions in Japan by 4.6% compared to FY2018 by utilizing CO2-free electricity and adding EV chargers.
• 15 malls received ABINC® certification as of February 2022.
• Six malls received four stars and one mall received five stars under the DBJ Green Building certification in FY2021.
• Three malls acquired the WELL Health-Safety Rating in FY2021.

Social Achievements

• Certified as a 2022 Certified Health & Productivity Management Outstanding Organization (Large Enterprise).
• AEON MALL Wuhan Jinyintan (China) received the 2021 CCFA Golden Lily Best Practice award.
• AEON MALL China received the 2021 99 Giving Day Patronage Award.
• AEON MALL Ha Dong (Vietnam) received the Top 5 Office & Shopping Center 2020 award.
• Implemented the Happy Clothes Relay! World clothing drive, distributing collected clothing to children in Cambodia.

Governance Achievements

• Received an A- rating from CDP in recognition of its strategy and response to climate change.
• Recognized as a Leaderboard Company; Highest CDP Supplier Engagement Rating.
• Received a Four Star rating in the 2022 GRESB Real Estate Assessment.
• Selected as Constituent of ESG Investing Stock Indexes.
• First Japanese Company to Participate in EV100.

Climate Goals & Targets

Environmental Challenges

• Transition risks such as carbon tax, changes in electricity prices, changes in customer behavior, and additional costs of EV chargers.
• Physical risks such as rise in average temperatures, change in rainfall and weather patterns, rise in sea levels, and increase in flood and typhoon damage.
• Water shortages due to population growth and climate change.

Mitigation Strategies

• Established the AEON MALL Decarbonization Vision, aiming to operate directly managed malls with 100% locally produced renewable energy by 2040.
• Set an interim target of converting electricity used in all malls in Japan to renewable energy by FY2025.
• Launched a project to supply electricity generated by solar power generation facilities to approximately 30 domestic malls.
• AEON MALL Kawaguchi (Saitama Prefecture) operates with virtually zero electricity and gas CO2 emissions.
• Established natural disaster response guidelines and other policies to construct a resilient infrastructure system.
• Engages in water risk management by assessing water risk in operating countries and regions based on Aqueduct, developed by the World Resources Institute.
• Formulates water risk management policies and long-term targets aimed at reducing burden on water resources.

Supply Chain Management

Supplier Audits: Annual on-site inspections of waste-related contractors; monthly inspections of mall building cleaning contractors.

Responsible Procurement

• AEON Supplier Code of Conduct requiring compliance with environmental laws and regulations, consideration for environmental protection, and adherence to AEON Environmental Policy.
• Guidelines for Sustainable Transactions addressing child labor, forced labor, working hours, wages, benefits, discrimination, freedom of association, and health and safety.

Climate-Related Risks & Opportunities

Physical Risks

• Increase in flood and typhoon damage

Transition Risks

• Carbon tax
• Changes in electricity prices
• Changes in customer behavior
• Additional costs of EV chargers

Opportunities

• Investment in renewable energy and energy-saving technologies; differentiation from competing facilities by installing EV chargers.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2016, SASB, TCFD, UN SDGs, ISO 26000

Certifications: ISO 14001, ABINC®

Third-party Assurance: Third-party verification for greenhouse gas emissions (Scope 1, 2, and 3), waste emissions, and water drainage.

UN Sustainable Development Goals

• All 17 SDGs

AEON MALL engages in ESG activities in accordance with ISO 26000 and conducts corporate activities as a united organization to contribute to the achievement of the 17 Sustainable Development Goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CDP A- rating
• CDP Supplier Engagement Leader Board company
• GRESB Four Star rating
• Osaka Stop Global Warming Awards
• Koriyama SDGs Award
• Certified Health & Productivity Management Outstanding Organization