Climate Change Data

ARCS COMPANY,LIMITED

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:337,317 tCO2e/year (FY2021)
Scope 1 Emissions:93,776 tCO2e/year (FY2021)
Scope 2 Emissions:243,541 tCO2e/year (FY2021)
Waste Generated:16,112 tons/year (FY2021) food waste
Carbon Intensity:59 tCO2e per 100 million yen in sales (FY2021)

ESG Focus Areas

  • Coexistence with local communities
  • Consideration for Environment
  • Contributing to affluent lifestyles of customers
  • Promoting Diversity and Inclusion
  • Governance

Environmental Achievements

  • Reduced Scope 1 and 2 CO₂ emissions by 50% compared to FY2013
  • 85.3% plastic shopping bag rejection rate (compared to industry average of 77.1%)
  • Reduced food waste through initiatives like 'Temae-dori'
  • Recycling of food residues (approx. 10,000 tons annually)

Social Achievements

  • Launched Diversity Promotion Project
  • Achieved 3-stars "Eruboshi" certification for women's advancement
  • Over 3.21 million ARCS RARA card members
  • Community investment through donations and partnerships

Governance Achievements

  • Established Sustainability Promotion Office and Committees
  • Established Nomination and Compensation Committee
  • Improved corporate governance through Yatsugatake Mountain Range Management
  • Increased number of female outside directors

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by FY2050
Medium-term Goals:
  • Reduce Scope 1 and 2 CO2 emissions per 100 million yen of sales by 50% compared to FY2013 by FY2030
Short-term Goals:
  • Develop profitable model stores in small commercial areas
  • Expand collaboration with food banks and children's cafeterias
  • Strengthen collaboration with suppliers in sustainability
  • Set targets for food loss and plastic reduction at each Group company

Environmental Challenges

  • Declining population and aging population
  • Intensifying competition in the retail industry
  • Changing customer consumption trends
  • Climate change and environmental issues
  • Supply chain disruptions
  • Labor shortages
Mitigation Strategies
  • Strengthening corporate financial position and sound management
  • Improving logistics efficiency and reducing environmental impact
  • Expanding joint procurement and considerations of sustainability
  • Developing a sustainable logistics system
  • Investing in energy-efficient equipment and renewable energy
  • Promoting diversity and inclusion
  • Enhancement of education and training systems
  • Establishment of business continuity plan (BCP)

Supply Chain Management

Responsible Procurement
  • Local procurement
  • Joint procurement
  • Collaboration with CGC Japan and the New Japan Supermarket Alliance
  • Environmentally friendly and health-conscious procurement action plan

Climate-Related Risks & Opportunities

Physical Risks
  • Earthquakes, tsunamis, typhoons, torrential rains, floods
Transition Risks
  • Carbon tax burden
  • Increase in renewable energy investment costs
Opportunities
  • Reduction of food disposal costs

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), TCFD Recommendations

Certifications: ISO 14001 (Universe)

Awards & Recognition

  • Green Logistics Excellent Business Award (RALSE)
  • 3-stars "Eruboshi" certification (ARCS)
  • Tochigi Prefecture Governor's Commendation for Excellent Employment of Persons with Disabilities (OTANI)
  • President's Award from the Employment Support Organization Commendation (OTANI)
  • Hometown Company of the Year Award (Ito Chain)