Sustainability Management

MARUI GROUP’s Four Core Themes

Process for Deciding Core Themes

In November 2016, MARUI GROUP defined four core themes related to inclusion to guide it in its quest to help build
a flourishing and inclusive society that offers happiness to all. Inclusion entails including and reaching out to all those
who have previously been excluded, and this concept is congruent with the direction set by the principles of the United
Nations Sustainable Development Goals (SDGs). Accordingly, MARUI GROUP aims to make proactive contributions to
the accomplishment of these goals through co-creation with all of its stakeholders.

Core Theme

STEP 1

Stakeholder Engagement

STEP 2

In identifying the expectations for MARUI GROUP as well as the themes it should prioritize, we
held meetings with long-term investors, ESG-minded investors, sustainability experts, nonprofit
organizations, and other stakeholders in the greater society as well as with customers, business
partners, and Group officers and employees.

Identification and Organization of Social Issues

1

STEP 3

STEP 4

Customer Diversity and Inclusion

Management-Level Discussions and Decisions

We will seek to develop products, services, and stores that bring joy to all
customers, regardless of their age, gender, or physical characteristics.

Core Theme

At meetings of a committee headed by the president, a series of discussions were held among
the relevant officers and divisions to decide four core themes pertaining to inclusion.
Responsibility for these themes was assigned to the Sustainability Department and the ESG
Promotion Department, and the themes themselves were disclosed in Co-Creation
Sustainability Report 2016 and in the sustainability section of MARUI GROUP’s website.

2

Verification of Activities and Quantification of Results
Activities are verified at least once a year as we continuously practice engagement with stakeholders. Taking into consideration issues pointed out by stakeholders, we have been preparing
a long-term vision based on the four core themes and are examining possible key performanceindicators that can be disclosed with regard to those themes for which targets can be set.

Workplace Inclusion
Based on MARUI GROUP’s corporate philosophy of striving to “continue
evolving to better aid our customers” and “equate the development of ourpeople with the development of our company,” we will provide all employees with venues through which they can excel.

Ecological Inclusion

Core Theme

4

Material

We will develop eco-friendly businesses that are considerate of natural
capital and propose ecologically sound lifestyles that are in harmony withnature and the environment.

Materiality for Stakeholders

3

Major Initiative MatrixInclusive productdevelopment

Financial inclusion

Reduction initiatives
related to private brandproducts

Inclusive store
development

 ultivation ofCfuture leaders ealthcare management
H
underpinning personal
growth evelopment of anDorganization that utilizes
diversity

Responsible procurement activities withbusiness partners

 o-creation withC
stakeholders

Revolutionary services
contributing to reduced
environmental impacts

 uman resourceH
investments for new
growthRisk management

Groupwide environmental impact reduction
initiatives

Highly materialCore Theme

With a focus on co-creation management; the impact of this co-creation management on theeconomy, society, and the environment; and its relationship with our medium-term management
plans and human resource strategies, we identified and organized the issues facing society
while referencing internal and external guidelines, such as those of ESG-rating institutions, theGlobal Reporting Initiative, ISO 26000, the Sustainability Accounting Standards Board, and theInternational Integrated Reporting Council, along with the SDGs.

Sustainability
management

Co-Creation Corporate Governance
We will develop management frameworks that include stakeholders inorder to achieve harmony between the interests and the happiness ofall stakeholders.

Material

Materiality for MARUI GROUP
C ustomer Diversity and Inclusion

38

Highly material

Workplace InclusionE cological Inclusion

Co-Creation Corporate Governance39

1

Sustainability Management

Core Theme

Core Theme

Customer Diversity and Inclusion

2

Workplace Inclusion

MARUI GROUP’s Vision

MARUI GROUP’s Vision

We will seek to develop products, services, and stores that bring joy to all customers, regardless of their age, gender,or physical characteristics.

Based on MARUI GROUP’s corporate philosophy of striving to “continue evolving to better aid our customers” and“equate the development of our people with the development of our company,” we will provide all employees withvenues through which they can excel.

Major Initiatives

Major Initiatives

Inclusive store development

With eyes to the year of the Tokyo 2020 Olympic and Paralympic Games, we are developing
stores that are comfortable in terms of both facilities and customer service to provide enjoyable
shopping experiences to all customers, including senior citizens, differently abled individuals,
non-Japanese people, and members of the LGBT community, regardless of age or gender.

Development of an organization thatutilizes diversity

Each of MARUI GROUP’s approximately 6,000 employees is different. We believe that innovation
is assured when these employees are accepting of the differences in others and are able to unitewith an eye toward social change and demand. We are therefore promoting diversity with regard
to individual talents, gender, and age.

Inclusive product development

MARUI GROUP views product creation as the process of developing products that match thephysical characteristics of customers. We are thus establishing development and sales frameworks for supplying products that benefit all customers, excluding no one regardless of their
physical characteristics. We thereby seek to create new demand.

Healthcare management underpinningpersonal growth

MARUI GROUP focuses on preventive healthcare management aimed at avoiding illness andalso proactive healthcare management for energizing and motivating employees. We thus
encourage employees to change their attitudes and behaviors to further improve corporate value
and contribute to society through higher productivity.

Financial inclusion

MARUI GROUP sees its mission as being to promote financial inclusion by supplying financial
services to everyone. Accordingly, we strive to provide financial services that enrich the lifestylesof everyone, particularly the youths and young adults for whom existing financial services lie outof reach.

Investments in human resources tostimulate new growth

Recognizing that human resources devoted to aiding customers are the greatest driver behindthe creation of corporate value, MARUI GROUP respects diverse employee values and is pro­actively conducting investments in the recruitment and development of human resources tocultivate an environment in which all employees can feel energized and continue growing.

Please refer to the sustainability section of MARUI GROUP’s website for more information.

www.0101maruigroup.co.jp/en/sustainability/theme01/

Please refer to the sustainability section of MARUI GROUP’s website for more information.

Principal Data

www.0101maruigroup.co.jp/en/sustainability/theme02/

Principal Data
2013

2014

2015

2016

2017

—

—

—

341,478

326,327

Number of visiting customers (thousands)

184,620

186,030

186,650

195,560

207,100

Number of female employees

2,703

2,655

2,641

2,685

2,584

Number of purchases (thousands)

76,76080,15083,48091,72090,610

Number of male employees

3,398

3,311

3,277

3,214

3,148

Number of MARUI GROUP e-commerce site
visits (thousands)

88,12092,19093,22099,690112,480

Average age of employees

Sales of Rakuchin Kirei series shoes(millions of yen)

2,700

3,600

4,500

4,700

400

430

460

Aggregate number of employees (tenants)that have undergone LGBT manner training——

Number of employees (tenants) that have taken therank 3 Universal Manner Placement Examination—

FinTech business transactions (millions of yen)
EPOS cardholders (of whom new) (thousands)

Fiscal year ended March 31 or as of March 31

Retailing business transactions (millions of yen)

Number of employees with Service Care-Fitter
qualifications*1

Fiscal year ended March 31 or as of March 31

Total number of employees

2013

2014

2015

2016

2017

6,101

5,966

5,918

5,899

5,732

39.7

40.4

40.9

41.2

42.0

Average annual overtime hours per person

35

40

44

46

44

5,200

Ratio of employees changing positions between
Group companies (%)*1

—

8

18

25

34

540

568

Employees working shortened hours forchildbirth or childcare reasons (male and female)

266

312

345

416

473

—

75

500 (28)

Ratio of female employees returning to work fulltime after taking childcare leave (%)

45

36

55

66

81

—

—

309

1,249 (4)

14

54

66

94

—

—

1,473,539

1,723,254

Ratio of applicable male employees taking
childcare leave (%)

0—

Ratio of differently abled employees (%)*2

2.01

2.06

2.12

2.08

2.16

Employees injured by occupational accidents

117

74

87

100

76

2.8

2.3

2.0

1.6

2.6

—

—

—

—

474

4,980 (720)

5,420 (710)

5,910 (730)

6,130 (730)

6,360 (740)

Ratio of EPOS cardholders aged 18–39 (%)

61.8

58.8

56.5

54.0

52.0

Income per card of EPOS cards (yen)*2

4,100

4,400

5,400

5,900

6,500

Employee turnover rate
(excluding mandatory retirement) (%)

Ratio of active EPOS card users (%)

65.1

65.4

62.9

63.7

65.3

Human resource investments (millions of yen)*

Ratio of delinquent debt for EPOS cards (%)

2.32

1.84

1.68

1.57

1.45

www.0101maruigroup.co.jp/en/sustainability/lib/databook.html
Please refer to MARUI GROUP’s ESG DATA BOOKs for more information.
*1 Aggregate total of position changes in April and October of each year (only April for 2017), excluding officers and managers*2 As of June 1 of each year
*3 Human resource investments of ¥670 million projected for the fiscal year ending March 31, 2018

Please refer to MARUI GROUP’s ESG DATA BOOKs for more information.
*1 Based on employees as of April 1 of each year
*2 FinTech business operating income ÷ Active cardholders

40

www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

3

41

3

Sustainability Management

Core Theme

Core Theme 3

Tracking of Environmental Footprint across the Value Chain

Ecological Inclusion

MARUI GROUP views all of its business assets as being borrowed from society, and is therefore promoting
eco-friendly business activities through means such as combating climate change and preventing pollution ina concerted Groupwide effort. In addition, we recognize our responsibility as a producer to track our environmental footprint across the entire value chain, from the procurement of raw materials and product creation to
the sale and disposal of products.
Scope 3 Emissions Data (Fiscal Year Ended March 31, 2017)MARUI GROUP’s Vision

Raw material
procurement

Integrated Group efforts to reduce environmental footprint

MARUI GROUP views all of its business assets as being borrowed from society. Based on thisbelief, all Group employees practice autonomy in expanding the scope of our socially beneficial
activities and proposing fulfilling lifestyles steeped in the unique characteristics of MARUIGROUP. This objective is to be accomplished while advancing eco-friendly business activities.

Reduction initiatives related to private brandproducts

MARUI GROUP is addressing social issues by expanding its reuse initiatives, which include
allowing customers to trade in products they no longer use for resale, and its reduction
initiatives, which include reducing waste by preventing the creation of products that go unused
due to not meeting customer needs.

Responsible procurement activities withbusiness partners

MARUI GROUP recognizes that it has responsibilities as producer that span the entire value
chain, which encompasses everything from raw material procurement through to productcreation, sales, and disposal. Through co-creation with stakeholders, we strive to contribute to
local communities while also going further to address human rights issues and improve work
environments across the value chain.

Innovative services for reducing
environmental impacts

MARUI GROUP shall utilize its unique platform, which combines its strengths in IT and logistics,
in its Retailing and FinTech businesses to develop innovative services that deliver new forms of
convenience, addressing social change and customer needs while also reducing environmental
impacts.
www.0101maruigroup.co.jp/en/sustainability/theme03/

Principal Data
2013

2014

2015

2016

2017

Greenhouse gas emissions (Scope 1) (t-CO2)

10,727

13,044

12,58014,434

14,920

Greenhouse gas emissions (Scope 2) (t-CO2)

76,039106,085

98,637

89,179103,264

Greenhouse gas emissions (Scope 3) (t-CO2)—

550,612530,595

509,070

489,439

Greenhouse gas emissions per unit
(per unit of operating income)

—

24.7

22.9

20.7

19.4

1,998,182

2,525,815

2,350,595

2,305,099

2,341,454

0

0

78

387

386

Total waste (tons)

13,24013,62013,39012,90015,039Waste recycled (tons)

7,950

7,860

7,840

7,700

8,839

Fiscal year ended March 31 or as of March 31

Energy consumption (GJ)
Total amount of renewable energy purchased or
generated (thousands of kWh)Post-Purchase Emissions
Scope 3: 150,000 t-CO2

Total Greenhouse
Gas Emissions acrossthe Supply Chain
600,000 t-CO2

Major Initiatives

Please refer to the sustainability section of MARUI GROUP’s website for more information.

Emissions by MARUIGROUP Scope 1 & 2:
110,000 t-CO2

Emissions from Procurement to Delivery
Scope 3: 340,000 t-CO2

We will develop eco-friendly businesses that are considerate of natural capital and propose ecologically soundlifestyles that are in harmony with nature and the environment.

Product
production

ProductdeliverySales
in stores

Customertransportation

Product use andrecycling

The Company calculates emissions volumes based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain,released by the Ministry of the Environment and the Ministry of Economy, Trade and Industry. The results of Scope 3 emissions calculations have been
confirmed by Mizuho Information & Research Institute, Inc.
Scope 3 Emissions Data
www.0101maruigroup.co.jp/en/sustainability/theme03/environment_01.html

Four Consecutive Years of Reductions in CO2
and Other Greenhouse Gas Emissions
The Company has traditionally calculated emissions of CO2
and other greenhouse gases based on Scope 1 and Scope
2 of the Greenhouse Gas Protocol, and it began calculating
emissions under Scope 3 during the fiscal year ended
March 31, 2014. We are thereby able to track environmental impacts across the entire value chain, including direct
and indirect emissions from MARUI GROUP (Scope 1 andScope 2) as well as emissions from raw material procurement, transportation, and products purchased by customers. Through this type of traceability that spans the entire
value chain, we are advancing initiatives for reducing
environmental impacts together with customers, business
partners, communities, and society as a whole. These
initiatives have helped us achieve four consecutive years of
reductions in CO2 and other greenhouse gas emissions.
FY2014660,000 t-CO2

FY2015640,000 t-CO2

FY2016610,000 t-CO2

FY2017600,000 t-CO2

Third-Party Verification for CO2 and Other Greenhouse
Gas Emissions
In order to improve the reliability of the environmental
information it discloses, MARUI GROUP began receiving
third-party verification for its CO2 and other greenhousegas emissions from the Japan Quality Assurance
Organization in the fiscal year ended March 31, 2017.
This verification is received for all 15 categories of emissions applicable under Scope 1, Scope 2, and Scope 3.

Ratio of waste recycled (%)

60

58

59

60

59

Waste sent to landfills (tons)

5,290

5,760

5,550

5,200

6,200

Report Name
Greenhouse Gas Emissions Verification Report

Business partners engaged in
CSR procurement initiatives

Scope 3 490,000 t-CO2 80.5%
Emissions from raw material procurement, transportation, andproducts purchased by customers

—

—

—

—

20

Scope 2 100,000 t-CO2 17.0%
Emissions from operation of MARUI GROUP’s stores and offices

Product carbon footprint

1

1

1

1

8

Third-Party Verification Institution
Japan Quality Assurance Organization (JQA)

Please refer to MARUI GROUP’s ESG DATA BOOKs for more information.

42

Scope 1 10,000 t-CO2 2.5%
Emissions from transportation by MARUI GROUP vehicles

www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

43

Core Theme 3

Incorporating Reduction into Business Activities

Responsible Procurement Activities with Business Partners

MARUI GROUP is addressing social issues through reuse and reduction initiatives. Our reuse initiatives include
allowing customers to trade in products they no longer use, which are then resold. At the same time, we look to
reduce waste through the development of private brand products that accurately match customer needs.

MARUI GROUP recognizes that it has responsibilities as producer that span the entire value chain, which
encompasses everything from raw material procurement through to product creation, sales, and disposal.
Through co-creation with stakeholders, we strive to contribute to local communities while also going further toaddress human rights issues and improve work environments across the value chain.

Lineup Offering the Perfect Fit for 100% of Foot Sizes
MARUI GROUP views product creation as the act ofmaking products that match
the physical characteristics ofindividual customers. We
facilitate these efforts bycreating products together with customers and asking
them directly about their concerns and needs. Through thisengagement, it was brought to our attention how many
shoes are thrown away because of comfort or size issues
that become apparent after their purchase. MARUI GROUP
sought to rectify this issue by improving the comfort ofshoes and expanding the range of available sizes to cover
100% of customer foot sizes. We were thus led to create
the Rakuchin Kirei series of shoes, which have sold morethan 3.5 million pairs by bringing joy to all customers. In
this manner, we endeavor to reduce waste by proposing
products that perfectly match every customer.
To quantify the results of our activities in this area, wehave identified the portion of sales accounted for by products that perfectly match customers as a key performanceindicator, and we are currently in the process of formulatinga target for this indicator to be accomplished by 2030. The
Company plans to disclose more detailed information on thismatter in the fiscal year ending March 31, 2019.

On-site Meetings with Business Partners
In 2016, we established the MARUI GROUP Procurement
Policy. A step ahead of the release of this policy, theCompany held an explanatory forum for roughly 100 business partners related to its private brands. At this explanatory forum, we discussed the importance of addressing
human rights, labor, and other issues across the supply
chain, explaining MARUI GROUP’s policies in this regard
while using actual case studies. Business partners participating in the forum expressed their support for our stance.
In 2017, we began conducting surveys and on-site
audits of business partners to inspect their initiatives inrelation to the supply and procurement of safe andvoi.0101.co.jp/voi/webshop/customer_portal/index.jsp (Japanese only)

Try-on Store Scheme Supporting Reduction Initiatives
Try-on stores represent a new sales floor scheme thatmerges Internet sales with physical stores. In these stores,
customers can try on samples of all sizes of products andthen make purchases via Internet sales. Benefits of try-on
stores include lower investments in store fixtures and fixed
rent fees than would be required for opening a standard
store. In addition, as only samples are displayed, there isno need for inventories, decreasing the risk of losses oninventory disposal. Furthermore, the reduction in customer
returns and inventories contributes to substantially lower

Number of Clothing Items and Shoes Traded in by Customers

Approx.

5.7million

May 2010­–March 2017

44

Core Theme 3

environmental impacts. This
scheme is complemented by
the distribution centers
supporting our e-commerce
operations, where we haveintroduced the AutoStore
robotic warehouse system in order to heighten efficiency.
This system allows for around 27,000 specialized storage
containers to be arranged in stacks of 12, eliminating
wasted space and tripling warehouse storage efficiency.
Moreover, the task of retrieving products, which was previously carried out by people, is now conducted by robots,
greatly reducing the amount of work needed to be performed by human hands.

trustworthy products
and to human rights
and labor environments. During on-site
audits, dedicated staff
members from theSustainability
Department holdmeetings with business partners to confirm the environmental initiatives conducted at their domestic and overseas
factories as well as their employee labor agreements andother conditions related to occupational health and safety.
www.0101maruigroup.co.jp/en/sustainability/theme03/valuechain.html

www.0101maruigroup.co.jp/en/sustainability/theme03/reduce.html

Proposal of Ecologically Sound Lifestyles
MARUI GROUP’s co-creation activities
with business partners commenced in
2009, and we have been conducting
carbon footprint initiatives, which entail
tracking CO2 emissions across the value
chain, since then to reduce environmental impacts. In the fiscal year ended
March 31, 2017, these initiatives wereapplied to eight product styles­­—seven styles of Rakuchin
Kirei series shoes and one style of Rakuchin Keikai shoes.
Furthermore, MARUI GROUP employs carbon offset
schemes as an ecological action for offsetting emissions of
CO2 and other greenhouse gases that it is unable to reducein its own operations through reductions or the absorptionof emissions elsewhere. Since 2017, we have been deciding the specific venues for carbon offset utilized based on
votes by customers and employees. These activities will be
continued going forward in order to broaden the range ofenvironmental preservation activities carried out throughco-creation with customers.
www.0101maruigroup.co.jp/en/sustainability/theme03/
environment_02.html

Ratio of People Throwing Away Shoes that are No Longer Worn

92%

Based on 2013 survey of EPOS cardholders

Message from a Business Partner

Shogo Fujinaga
Officer
Section 2, Department 2, Business Division 1
TAMURAKOMA & Co., Ltd.
Osaka, Japan

Responsible Procurement Activities Helping to Builda Better Society
We recently visited a factory producing MARUI GROUP
private brand apparel products together with staff from theCompany. On this visit, the first of its kind for us, a meeting
was held during which we discussed such matters as work
environments and procurement conditions. In the past, ourfocus has been ensuring that products can be delivered onschedule. I had not stepped inside a factory, whether inJapan or overseas, or thought about the cultural or historical background that shaped a specific factory. Becoming
more involved in factories has given production activities
a greater degree of transparency and enabled us to better
ensure the safety of products. Our initiatives with MARUIGROUP will no doubt help to build a better society andachieve long-term corporate growth. At TAMURAKOMA, wehope to work together with MARUI GROUP to foster relationships with the factories we use that place us on equal
footing and to spread MARUI GROUP’s concept of cocreation with customers.

Message from a Business Partner

Sungwan Chaisongcam
President
S.K.N TRADING COMPANY LIMITED
Bangkok, Thailand

Employee Unity Realized by Revising Factory
Operating ProceduresSome companies focus only on the samples provided to confirm final products or on the ability to receive products withconsistent quality. MARUI GROUP differs from such companies. I was impressed with how involved MARUI GROUP is in
the manufacturing process pertaining to its Rakuchin Keikai
shoes, offering us guidance on how to perform tests on various
materials and how and where these materials should be procured and other specific matters. This involvement spans allprocesses from initial planning to ordering. We recently had ameeting with MARUI GROUP centered on the importance ofensuring safety and security for employees, which opened myeyes on the topic of making factories more comfortable workplaces for employees. At factories, we have put an end to thepractice of employees relaying orders verbally, requesting thatshared instructions be presented in written form, and we havealso begun thoroughly investigating the cause of mistakes. Our
employees are currently united in working toward a common
goal, minimizing production process mistakes.

45

4

Sustainability Management

Core Theme

Core Theme 4

MARUI GROUP Code of Conduct

Co-Creation Corporate Governance

MARUI GROUP engages in co-creation management with its stakeholders with the aim of contributing to the development of a flourishing and inclusive society that offers happiness to all. The various stakeholders of MARUI GROUP
include customers, shareholders, other investors, communities, the greater society, business partners, and employees.
The happiness to which we seek to contribute can only be realized through co-creation with all of these stakeholders.
It is based on this belief that we promote compliance with laws and regulations as well as international rules and theprinciples embodied in these norms and that we have established and adhere to the MARUI GROUP Code of Conduct.

MARUI GROUP’s Vision

We will develop management frameworks that include stakeholders in order to achieve harmony between theinterests and the happiness of all stakeholders.

Major Initiatives

Co-creation with stakeholders

MARUI GROUP is reinforcing its co-creation management activities through constructive
engagement with stakeholders with the ultimate goal of developing a business that brings joy to
all customers. These initiatives are also aimed at winning the support of employees, customers,
shareholders, other investors, members of communities and society as a whole, and business
partners with regard to our inclusion-oriented activities.

Sustainability management

Through activities centered on the Sustainability Department and the ESG Promotion
Department, we have been verifying initiatives in accordance with the four core themes forsustainability, preparing a long-term vision based on the four core themes, and examining
possible key performance indicators for evaluating sustainability in our businesses.

Cultivation of future leaders

In April 2017, MARUI GROUP launched the Co-Creation Management Academy, a program fordiscovering and cultivating future leaders under the guidance of external directors and the
Graduate School of International Corporate Strategy at Hitotsubashi University. For the first
iteration, 21 participants were chosen from among 134 applicants.

Risk management

Based on sustainability-related trends in the areas of business activities, human rights, and occu­
pational health and safety, we revised the MARUI GROUP Code of Conduct and established the
MARUI GROUP Human Rights Policy and the MARUI GROUP Occupational Health and Safety
Policy in November 2017. The effectiveness of these policies will be evaluated once a year andawareness will be entrenched among all Group employees through training and other activities.

Please refer to the sustainability section of MARUI GROUP’s website for more information.

www.0101maruigroup.co.jp/en/sustainability/theme04/

Principal Data
2013

2014

2015

2016

Directors

7

8

10

6

6

Ratio of independent directors (%)

14

13

20

33

33

Fiscal year ended March 31 or as of March 31

2017

1. Customers 
Customers are the point of departure for all of our businessactivities. Acting in accordance with the corporate philosophyof “continue evolving to better aid our customers,” we will
strive to create products, services, and stores that bring joy to
all customers and can be used safely and with peace of mind.

6. Environmental Preservation 
MARUI GROUP sees all of its business assets as being
borrowed from society. Accordingly, we seek to understandthe impact of our business on the environment in order toreduce the environmental footprint of the entire Group and topromote eco-friendly business activities.

2. Investors We will pursue ongoing growth and medium-to-long-term
improvements in corporate value in order to live up to the
expectations of shareholders and other investors. In addition,
we will disclose information in a timely and appropriatemanner, conduct highly transparent business activities, andprevent insider trading.

7. Respect for Human Rights 
MARUI GROUP endorses international standards regarding
human rights and respects the personalities and individualityof all people. We stand in opposition of all discrimination,
whether on the basis of race, nationality, religion, ideology,
biological sex, age, physical characteristic, gender identity, or
sexual orientation.

3. Communities and Society 
MARUI GROUP’s business activities connect us to various
areas of communities and the greater society. As responsible
members of communities and of society as a whole, we willseek to resolve social and community issues and invigorate
communities and the greater society to transform our main
business into a socially contributing undertaking.

8. Fair and Transparent Transactions 
MARUI GROUP adheres to domestic and overseas ethicalstandards and legal regulations as well as to its own internal
rules as it promotes fair and transparent transactions andcompetition while preventing corrupt and otherwise inappropriate activities (bribery, money laundering, inappropriate
lobbying activities and political contributions, etc.).

4. Business Partners 
MARUI GROUP’s business activities are supported by cocreation activities with business partners in Japan andoverseas. By fostering trusting relationships with partners
through fair and impartial transactions, we will promotemutual prosperity.

9. Elimination of Antisocial Forces 
We will staunchly refuse to have any connection with antisocial forces that threaten the order and safety of society.

5. Employees 
The growth of employees that are committed to helping
others is the source of all the value we create. In addition toproviding employees with a safe and hygienic workplaceenvironment, we will foster a corporate culture that isrespectful of diverse values and in which all employees canfeel energized and continue growing.

10. Protection and Management of Information Assets 
MARUI GROUP’s business activities entail the utilization of
personal information, confidential information, and intellectual properties. These information assets are protected andmanaged based on internal regulations, and we seek to avoid
infringing on the intellectual property rights of others.

Ratio of female directors (%)

0

0

10

17

17

Average age of directors

54

55

54

55

55

Scope of Application and Implementation

Audit & Supervisory Board members

4

4

4

4

4
50

The MARUI GROUP Code of Conduct is applicable to all Group officers and employees.
An internal notification system is in place to quickly uncover and address activities that violate
this code of conduct or activities that are illegal, unfair, or otherwise inappropriate.

Ratio of independent auditors (%)

50

50

50

50

Executive officers

4

5

5

16

16

Ratio of female executive officers (%)

0

0

20.0

12.5

18.8

4.5

5.0

5.2

6.0

6.7

Return on equity (%)

3.0

3.0

3.3

3.3

3.1

48.43

56.29

58.87

70.68

80.24

—

1,297,250

1,469,111

1,703,353

1,933,685

32.0

32.3

31.1

41.1

Return on invested capital (%)
Earnings per share (yen)Total Group transactions (millions of yen)
Payout ratio (%)

31.0

Please refer to MARUI GROUP’s ESG DATA BOOKs for more information.

46

Moreover, this code of conduct is reviewed as necessary by the Board of Directors and revised when
deemed prudent through sufficient discussion. Should a serious violation of the MARUI GROUP Code of
Conduct occur, we will take steps to identify the cause of the violation and prevent recurrence.
Established in April 2006
Revised in May 2014
Revised in November 2017www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

47

Core Theme 4

MARUI GROUP Human Rights PolicyCore Theme 4

MARUI GROUP aims for the development of a flourishing and inclusive society that offers happiness to all.
MARUI GROUP therefore declares its commitment to endorsing international standards regarding human rights andensuring respect for the personalities and individuality of all people throughout the Company.

3. C ompliance with Occupational Healthand Safety Laws 
We comply with Japan’s Industrial Safety and Health Act andother labor-related legislation as well as with the internal
rules regarding occupational health and safety in place at all
Group companies and workplaces.

5. Facilitation of Employee Health Improvement 
MARUI GROUP understands that the health of employees is
crucial to their growth. We therefore practice healthcare
management aimed at preventing mental health issues andlifestyle diseases as well as enabling all employees to feel
more energized in their work.

3. Responsibility toward Promoting Respectfor Human Rights Based on the United Nations Guiding Principles on Businessand Human Rights, we practice human rights due diligenceand utilize other methods to evaluate the direct and indirect
impact of all of our business activities on human rights andthen address any negative impacts that come to light.

4. Realization of Safe and Low-Risk Workplace
Environments 
MARUI GROUP seeks to realize safe and low-risk workplaceenvironments by determining the sources and extent of theoccupational accident risks faced in each business andformulating and implementing measures to reduce or eliminate these risks.

6. Cultivation of a Corporate Culture Emphasizing
Occupational Health and Safety We will cultivate a corporate culture emphasizing occupational health and safety by conducting proactive employee
education and awareness-raising programs related to these
topics. All Group officers and employees are expected toobserve the MARUI GROUP Occupational Health and Safety
Policy, and we ask that business partners and other external
stakeholders endorse this policy while also making this policy
publicly available.

Occupational Health and Safety Management System

Healthcare Management Promotion System
MARUI GROUP practices healthcare management to prevent
mental health issues and lifestyle diseases in employees, limit
exposure to secondhand smoke, reduce overtime, and raise
employee health awareness. Healthcare management initiatives are spearheaded by MARUI GROUP’s Personnel
Division and Health Management Division and are coordinated with the Company’s health insurance union.

1. Commitment to Respecting Human Rights We stand in opposition of all discrimination, whether on thebasis of race, nationality, religion, ideology, biological sex,age, physical characteristic, gender identity, or sexual orientation, and exercise respect for the personalities and individuality of all people throughout our business activities andour relationships with customers, business partners, employees, and other stakeholders.
2. Compliance with International Standards 
MARUI GROUP complies with international standards regarding human rights. Accordingly, we adhere to the standards
described in the International Bill of Human Rights and theILO Declaration on Fundamental Principles and Rights at
Work regarding freedom of association, the right to collective
bargaining, the prohibition of forced labor and child labor,
and the elimination of workplace discrimination.

4. Fostering of a Corporate Cultureof Respecting Human Rights Through proactive education and awareness-raising programs targeting all Group officers and employees, we work toentrench the MARUI GROUP Human Rights Policy in our
corporate culture and in all of our business activities. In
addition, we ask that business partners and other external
stakeholders endorse this policy while also making this policy
publicly available.
Hiroshi Aoi
President and Representative Director
Representative Executive Officer
MARUI GROUP CO., LTD.
November 9, 2017MARUI GROUP Occupational Health and Safety Policy
MARUI GROUP seeks to co-create customer happiness through its business activities, which merge retailing andfinance. We understand that providing employees with a safe and hygienic workplace environment is essential tosupporting the growth of all employees and is instrumental to invigorating the entire organization and driving theimprovement of corporate value. MARUI GROUP therefore declares its intent to act in accordance with thisunderstanding in all business activities, pursue higher levels of safety and hygiene, and to promote voluntary
occupational health and safety initiatives on a Groupwide basis.
1. Development of a Workplace Environmentthat Prioritizes Health and Safety Realizing that the health and safety of employees is crucial totheir growth, all workplaces will foster awareness andheighten understanding regarding occupational health andsafety, prioritizing the development of an environment inwhich employees can feel safe and secure and maintain goodmental and physical health as they work.

2. Promotion of Voluntary Occupational Health and
Safety Initiatives 
Occupational health and safety targets are set at all Group
companies and workplaces based on MARUI GROUP’s
occupational health and safety plans in order to promote
voluntary occupational health and safety initiatives. Thesetargets are periodically revised to pursue higher levels of
health and safety on a Groupwide basis.

Central Occupational Health and Safety Committee• Drafts Groupwide occupational health and safety
plans, supports occupational health and safety initiatives at Group companies and workplaces, andreceives reports on frontline operations• Holds regular meetings four times a year and special
meetings as necessary
Chairperson

Executive officer of MARUI GROUP CO., LTD.

Members

Three representatives from Group companies,
four representatives from labor unions, one
full-time director of MARUI GROUP’s healthinsurance union, and one Company physician

Secretariat

Labor Section, Personnel Division,
MARUI GROUP CO., LTD.

Secretariat

Workplace Occupational Health and Safety Committees•S et Group company and workplace occupational
health and safety targets, institute related initiatives,and implement improvements• Holdregular meetings 12 times a year and special
meetings as necessary

Members48

Consultation Venues
Company physicians and occupational health staff arepositioned in MARUI GROUP’s Health Management Division
on a full-time basis to provide employees with a venue for
consulting on mental health and other health issues and forreceiving support in improving lifestyle diseases. In addition,
we have established a hotline for receiving third-party physical and mental health consultation through collaboration witha specialized external organization.

One general occupational health and safety
manager, one occupational safety manager, one
to three occupational health managers, one
Company physician, and four to six representatives from labor unions

Hiroshi Aoi
President and Representative Director
Representative Executive Officer
MARUI GROUP CO., LTD.
November 9, 201749