This is a translation of the original Japanese document and is provided for informational purposes only.
If there are any discrepancies between this and the original, the original Japanese document prevails.

March 28, 2018
AEON CO., LTD.

Aeon Sets Decarbonization Vision for 2050
For the realization of a decarbonized society, Aeon Co., Ltd. has established the ‘Aeon
Decarbonization Vision 2050’ as well as an interim greenhouse gas emissions reduction target to beachieved by 2030.
Based on the vision, Aeon will work to reduce the total emissions of CO2 and other greenhousegases from its stores to zero, while cooperating with all stakeholders, including customers of its
stores and business partners across the supply chain (such as manufacturers and logistics
companies), for the realization of a decarbonized society.

Aeon Decarbonization Vision 2050
Aeon will work to reduce CO2 and other greenhouse gas (hereinafter “GHG”)
emissions by taking the following three-pronged approach,thereby contributing to the realization of a decarbonized society.
[Stores]
We will reduce the total GHG emissions from our stores to zero by 2050.
[Products and logistics]We will continue our efforts to achieve zero GHG emissions from our businessoperations.
[Hand in hand with customers]
We will cooperate with our customers for the realization of a decarbonized society.
[Interim target]
We will reduce the total GHG emissions from our stores by 35% by 2030 (relative to the2010 level).

For the attainment of the interim target, Aeon will foster energy conservation measures regarding
the use of electricity, which accounts for about 90% of total CO2 emissions from its stores andbusiness operations, thereby meeting the challenge of reducing its emissions by at least 1% per year
while continuing to achieve business growth. Aeon will also advance the ‘Smart Aeon’ initiative,
which the company has continued to promote in order to demonstrate a model forenvironment-friendly stores, toward developing ‘the next-generation Smart Aeon’ store where CO2
emissions will be reduced by 50% relative to the amount emitted from a standard Aeon store.
In combination with the aforementioned measures, Aeon will promote the installation of solar
panels and foster a shift to renewable energy for electricity procured from external suppliers, thereby
reducing its total CO2 emissions.
Moreover, in relation to the formulation of the Vision, Aeon has become the first major Japaneseretailer to participate in the RE100 international initiative, which is made up of companies
committed to using 100% renewable energy in an effort to shift the entire international community
onto renewables.

Furthermore, the interim target was set in line with the target-setting criteria provided under theScience Based Targets (SBT) international initiative launched for the achievement of the 2 degree
target* upheld in the Paris Agreement. The interim target will be SBT-certified as a “science-based”target.
Aeon has long been committed to cutting CO2 emissions. In 2008, the Company became the first in
the Japanese retail industry to set a CO2 reduction target when it released the ‘Aeon Manifesto on thePrevention of Global Warming’. It achieved the target in 2011, one year earlier than planned.
Subsequently, in the same year, Aeon formulated the ‘Aeon Sustainability Principle’, which includes
the realization of a low-carbon society as one of the core principles. Aeon has thus been promoting
sustainable management to make corporate growth and social development compatible.
The global decarbonization movement is gaining momentum thanks to the Sustainable
Development Goals (SDGs) and the effectuation of the Paris Agreement. Against this backdrop, theAeon Group will work to attain the targets set in the Vision to make contributions to the realizationof a sustainable society.
*Target of keeping the global average temperature rise to below 2 degrees Celsius above
pre-industrial levels

AEON Sets Decarbonization
Vision for 2050
̶To Achieve a DecarbonizedSociety̶
March, 28, 2018

AEON CO., LTD.

Copyright (C) 2018 ÆON Co., Ltd. All Rights Reserved.

Aiming at a Decarbonized Society
2008
Globalgoal/direction

2011201520202030■Kyoto Protocol (2008–2012)■SDGs■Hokkaido Toyako Summit■Paris Agreement

2050■AEON Sustainability Principal

AEON（2011）

Post 2020 target
for decarbonizedsociety
Realizationof a lowcarbon
society

ConservationofBiodiversity

Better use ofResources■AEON Manifesto on thePrevention of Global Warming（2008〜2011）■AEON Eco Project（2012〜2020）

Developmentof nextgeneration
Smart Aeon
2005 1st eco-store
Aeon Town Chikusa Store

2013 1st Smart Aeon
Aeon Mall Yahata Higashi■AEONʼs Sustainable Procurement Policy（2017〜2020）■Food Waste Reduction Targets（2017〜2025）
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2

Aeonʼs Eco Project (2012–2020)

2020 Target

2016 Results
22% Reduction

Cumulative 62k Kw
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33 places3

Aeonʼs Business Growth and CO2 Emissions
Consolidated sales(total floor space)

8.2 trillion yen

5.1 trillion yen(40 million m2)(34 million m2)

2010 → 2016

CO2 emissions▲8.2%CO2 emissions(Gross)

3.96

3.47

3.18

20082010Benchmarkyear

2016

milliont-CO2** Estimate for same levelcomparison

milliont-CO2

milliont-CO2

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2020(Estimate)
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Global Trends
Paris Agreement Content Below 2 degrees Celsius
 Net zero emissions

From low-carbon todecarbonization

 Ratchet-up mechanism

 Three paradigm shifts

1) Backcasting from zero CO2 emissions
by the 2nd half of this century2) Promote participation and cooperationof all stakeholders, including
governments, municipalities,businesses, and citizens
3) Expanding growth opportunities, notlimiting corporate activities(investment decision)
Copyright (C) 2018 ÆON Co., Ltd. All Rights Reserved.

Big shifts5

Aiming to Achieve a Decarbonized Society

AEON Decarbonization Vision
2050
Aeon will work to reduce CO2 and other greenhouse gas (hereinafter “GHG”)
emissions by taking the following three-pronged approach,thereby contributing to the realization of a decarbonized society.

Stores
ProductsandLogistics
Hand inhand withcustomers

We will reduce the total GHG
emissions from our stores to zero by2050.
We will continue our efforts toachieve zero GHG emissions fromour business operations.
Wewillcooperatewith
ourcustomers for the realization of adecarbonized society.
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6

Interim Target (CO2 Emissions by 2030)

Set the target for 2030 by backcasting fromemissions by 2050

CO2 emissions reduction pathway by 2050 (scopes 1 & 2)

100%
80%

▲15%

▲35%60%Gross emissions in 2030

40%

▲70%20%0%
2010年(Benchmark year)

2020年

2030年

2040年

2050年

* Applying for approval as science-based target (SBT)
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7

To Achieve the Target for 2030

Reduce CO2 emissions by 35% by2030 (from the 2010 level)<Means for achieving the target>

About 90% of AEONʼs CO2 emissions
are attributable to electricity
Reduce energy consumption at storesand switch to renewable energy
Energy conservation

Renewable energy

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8

To Switch to Renewable Energy for Electricity

Aeonʼs electricity consumption accounts forabout 1% of Japanʼs total electricity
consumption.
Japanʼs total*
Electricity 850.5 billion
consumption
kWh/yearAeon

Aeonʼs % ofJapanʼs total

7.4 billion

0.9%

kWh/year* Agency for Natural Resources and Energy, METI. Fiscal 2016 Electricity Survey
Statistics.

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9Expectations for Further Increase ofRenewable Energy
FY2010

FY2030

Renewable 10％

Renewable
24–22％

Nuclear 25％

Nuclear20–22％
Thermal 65％
Thermal 56％

CO2 emission factor

0.35 kg-CO /kWh
2Emission factor adjusted with average(The Federation of Electric Power Companies of Japan)

CO2 emission factor

0.37 kg-CO /kWh2Basic policy and judgment criteria of the Act on thePromotion of Use of Nonfossil Energy Sources andEffective Use of Fossil Energy Materials by Energy
Suppliers (Ministry of Trade, Economy and Industry)

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10

Means for Achieving the Target for 2030
Promote  Introduction of energysaving facilities, operationalenergyimprovement with IoT, etc.
conserva(lighting, air-conditioning,refrigeration case, etc.)tion

Reduce by atleast 1％ ayear In-house procurement ofrenewable energy,
introduction of solar power
Switch togeneration systems

Introduce atlarge stores+small stores

renewableenergy Contract on renewableelectricity
 Use of renewable electricity
credit

FY2018–ー Development of next-generation Smart Aeon Electricity business by Aeon Delight Co., Ltd.
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11

Specific Initiatives

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12

Develop Next-Generation Smart Aeon
Start to develop next-generation Smart Aeon
aiming at 50% CO2 emissions reduction toachieve the target for 2030
2005–

Eco-store

2013–

2020–

Smart Aeon

Next-generation
Smart Aeon
CO2 emissions％ reduction(target)

CO2 emissions
Average 24％reduction

50* Compared with standard store (from the 2010 level) Provide eco-friendly
stores andproducts/services.
 Carry out
environmental
activities together
with customers.

 Contribute to sustainable
town & community
development.

<Five standards>
Smart energy, disasterprevention/local infrastructure,
biodiversity/landscape, integration
with WAON, traffic environment

 Contribute to achieving adecarbonized society.
Combination of various methods forenergy-saving & renewable energy to:

Introduce next-generation smart technology
Use AI and big data
Achieve remote collective energy
management
Use local electricity from renewable sources

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The next-generation Smart Aeonʼ store
SmartEnergy

Integration
with WAON

Solar powergeneration
systemdisasterprevention

All LED
Traffic
environment

Biodiversity

Aeon Mall Zama

EVIntroducing 1,000 kW charger(Opened March 2018)

solar power generation
system, latest energysaving equipment, etc.

Water-saving Expected to reduce
Distributed
sanitary appliance
airCO2 emissions by 30％
conditioners* Compared with standard store(from the 2010 level)

Ventilati
on fancontrol
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Modularheatsource
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[Switch to Renewable Energy]

 Proactively introduce solar power generation
systems to Group stores.
Aeon Mall Zama

(opened March 2018)

1000 kW solar power generation system

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15

[Promote Energy Conservation]
 Use IoT for remote collective management of energy
allocation among Group stores to switch from partial
optimization to total optimization of energy[Conceptual image of remote collective energy management]
Solar power generation
LED light

Centralized remote
data monitoring

Entry/exit

Multi sensor
CO2 sensor

Heat source/
Air-conditioning

Cloud

Disaster prevention center

PM2.5
smoke sensor

Store A

Temperature/humidity sensor
Illumination sensor

Intelligent
controller

Human sensor

Elevator
Escalator

SignageNaturalrefrigerant
refrigeration
caseElectricity/gas meter
ITV camera
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Store BStore C16

Aeon Delightʼs Electricity Business (Image)■In fiscal 2019, Aeon Delight Co., Ltd. will
launch management and retailing of localrenewable energy using new technology.
Renewable electricity
producer

Neighborhood users(Office buildings, hospitals, factories)

Management and retailing of
renewable energy
General households

Aeon Group stores

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17

Joining RE100 in March 2018
Aeon will move to 100% renewableenergy by 2050 in terms of energy
required for its business operations
Message from Sam Kimmins (Head of RE100, The Climate Group)“Congratulations to AEON on this bold commitment. As a large
international retailer, AEON has a substantial electricity demand, and going
100% renewable will send an important signal to the market in Japan andbeyond that business wants to power itself using renewable energy.”“AEON is demonstrating that businesses can lead on the decarbonizationof energy systems whilst also reaping the business benefits of theemerging clean energy transition.”

Aeon Mall Co., Ltd. joined EV100
in November 2017.
Completed installation of EV chargers
at all malls in Japan.
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18

[Switch to Renewable Energy]
Contract on Renewable Electricity
As of March 2018, the Head Office (AeonTower/Aeon Tower Annex, Chiba City) uses
100% renewable electricity.

Using TEPCOʼs “Aqua Premium,”hydroelectric power with no CO2emissions

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[Switch to Renewable Energy]
Contract on Renewable Electricity
Take on a challenge to go 100% renewable atall Group stores, contributing to local
production and local consumption of energy.

Locally purchasing electricity
from renewable sources to use awide variety of local renewableenergies with a view tocooperating with municipalities.

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20

Initiatives across the Value
Chain

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21

[Products/Logistics]
Aim to achieve a decarbonized society with efforts
across the value chain, encouraging partners &customers to cooperate for CO2 reduction.
 Encourage product suppliersto:• Request PB productmanufacturingsubcontractors to set CO2
reduction target.
• Develop products that cancontribute to CO2 reduction.

Topvaluʼs “Peace Fit” functional underwear

 Promote modal shift• Jointly operate
dedicated trains withseven manufacturers;
increase the train
service.
• Use domestic vessels.

Modal Shift Study Groupʼs dedicated train

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[Together with Customers]
Aim to achieve a decarbonized society with efforts
across the value chain, encouraging partners &customers to cooperate for CO2 reduction.
 Aeon Cool Choice Declaration• Encourage customers tomake energy-saving & 3R
efforts at home throughevents/products.

 “Bring your own shoppingbag” campaign
 Environmental education byAeon Cheers Club• Theme in fiscal 2018:“Energy”

Aeon Lake Town on July 11, 2017

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Aiming to Achieve a Decarbonized Society

Manufacturing

Logistics

MaterialAchieve a decarbonized society
Procurement with efforts across the value chain

Sales

Customers

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Copyright (C) 2018 ÆON Co., Ltd. All Rights Reserved.