PARCO CO., LTD.

CORPORATE PROFILE 2024

Sustainability

https://www.parco.co.jp/en/sustainability/

With a strong commitment to providing sustainable lifestyles that excite people, PARCO creates new value with the next generation that can be shared broadly in society. We strive toincorporate sustainability into all corporate activities, promote projects integrated with corporate strategy, and co-create in collaboration with all stakeholders to further develop ourbusinesses. PARCO promotes activities in line with the five materiality issues established by the J. Front Retailing Group, and by working to create shared value by fusing sustainability andbusiness we will create well-being in the lives of stakeholders.

Five Materiality Issues of the J. Front Retailing GroupPARCO Initiatives

Adding excitement to life

With values diversifying, we will generate cultural value that excites people and broadcast to theworld enriched lifestyles

Enhancing community vitality

We strengthen bonds with communities and identify and communicate local appeal to provide
new experiences to people gathered in communities and enhance community value

Creating a society that co-exists
with the environment

To achieve the goal of net zero emissions in 2050, we will work to decarbonize the entire supply
chain and promote a circular economy

Increasing the number of value
co-creation partners

We will generate new value by co-creating with tenants, customers, other stakeholders, and with
the next generation, which is brimming with creativity

Empowering diverse humanresources to shine

We will flexibly adapt to changing conditions, establish environments and mechanisms forpeople with different personal characteristics to flourish, and realize sustained growth forhuman capital and the company- 17 -PARCO CO., LTD.

CORPORATE PROFILE 2024

Cultural value creation

Sustainability

Increasing local appeal

For a carbon-free society

PARCO ART & CULTURE DAYS where art and culture join
together all PARCO stores

COFFEE CITY FESTIVAL
at Sapporo PARCO and Shinsaibashi PARCO

Upcycling using waste materials from Tsudanuma PARCO
after its closure

PARCO held PARCO ART & CULTURE DAYS at all PARCO stores in October
2023. Locally rooted culture in each of the cities with a PARCO store cut
across the entire nation. Over 400 groups of artists exhibited their energetic
works and held events at PARCO.

Based on the concept that a city’s culture is created by its coffee shops, thefourth COFFEE CITY FESTIVAL, which enlivens the city’s coffee shops, washeld at Sapporo PARCO in May 2023 and included the experience of making
drip coffee. In November, the event was held at Shinsaibashi PARCO and thearoma of coffee wafted out onto the Midosuji street in front of the store.

PARCO engaged in an upcycling project that creates new added value withthe power of technology and design for items that no longer had a use after
the closure of Tsudanuma PARCO in February 2023. The project included
products that used flags that were part of the store’s decorations and shoes
made from the exterior hanging banner while the well-designed entrance
door handles were given new life and turned into a product.

PARCO Advertising Exhibition: Advertising PARCO 1969-2023

Fall Sustainability Festival 2023 at Kinshicho PARCO

Recycle/reuse event at PARCO stores

PARCO advertisements have been madewith the help of the top creators of thetimes and have been continually issued as
expressions that overcome the commercialand advertising category genre. Commemorating Shibuya PARCO’s 50th anniversary,an exhibition of PARCO advertisements,
Advertising PARCO 1969-2023, was held in
November 2023. Starting in 1969, when
PARCO was established, the exhibition
took an overall view while reinterpretingthe over half-century of advertisementsfrom a contemporary perspective.

Kinshicho PARCO is engaged in “sustainable cities and communities” and“responsible consumption and production”, two of the SDGs. In September
2023, the Fall Sustainability Festival
2023 on the theme of the SDGs washeld with the backing of the Tokyo
Metropolitan Government and Sumida
City. Centering on food drives andworkshops, there were 20 events forenjoyable learning about the SDGs
over two days.

- 18 -PARCO stores participate in recyclingand upcycling for fashion apparel andgeneral merchandise. In November
2023, Urawa PARCO held an event inpartnership with Saitama Prefecture
and Fukuoka PARCO held SUSTAINABLE
WEEK. Clothes and writing implements(Urawa) and cosmetics (Fukuoka) wererecycled, and upcycling workshops andmarkets were held for used clothing.

PARCO CO., LTD.

CORPORATE PROFILE 2024

Sustainability

Co-creation with stakeholders and the next generationD&I and fulfilling work

Joint NFT project with PARCO and ¥u-Gi-¥n Virtual World
Integrated Resort

NEWVIEW FEST 2023
A gathering of creators on the frontlines of XR culture

Alumni hiring to create the future together with PARCO

Since fiscal 2022 PARCO has conducted business verification specifically forthe creation and sale of NFT art in the Web 3.0 domain. In November 2023,
we produced a joint project with ¥u-Gi-¥n Virtual World Integrated Resort,and collaboration events with popular NFTs in Japanese and overseas were
held at Shibuya PARCO.

Joining with STYLY and Loftwork, PARCO is promoting NEWVIEW, a project
aimed at exploring new 3D expression with XR and fostering artists involved
in it. In December 2023, a multifaceted event NEWVIEW FEST 2023 was heldat Shibuya PARCO, and over 50 groups of artists and creators performed live
music and gave other types of performances.

To create the future of PARCO, PARCO makes use of referral hiring in whichreferrals are made by employees, and also is strengthening career hiring inspecialized divisions. Moreover, in order to hire people with a strong understanding of PARCO culture and the ability to generate PARCO value, we
introduced an alumni hiring program in July 2023 to hire back people who
had previously left the company.

SELF-CARE ACTION DAYS, an event to think about women’s
physical and mental health

P.O.N.D. 2023 Dialogue: Encountering new conversation

In all the colors of the rainbow, Shibuya PARCO’s PRIDE 2024

Aligned with International Women’sDay, SELF-CARE ACTION DAYS were held
jointly with H.U.POCkeT Inc. and Bizell
Corporation in March 2024 at the medical wellness mall Welpa Shinsaibashi.
Various choices for healthcare action
were proposed, opportunities werecreated for solving health issues, andcontributions were made to raising
health literacy.

Since its opening, PARCO has supported
new talent. Symbolic of this is the P.O.N.D.
(PARCO Open New Dimension) Festivalof art and culture, which was held forthe fourth time at Shibuya PARCO in
October 2023. Alternative dialogue
between artists and critics, betweenartists, and between critics took place,formed by the relationship between theartist and the exhibition space.

- 19 -

Continuing on from 2023 Shibuya
PARCO held PRIDE 2024, a diversitythemed event in April 2024. The store
was adorned in rainbow colors insideand out, and special events, performances, and exhibitions were held toinspire thinking on the importance ofdiversity, various viewpoints, and living
in one’s own way.