Core Theme 3

Core Theme 3

Ecological Inclusion

Ecological Inclusion

CORE THEME

3 Ecological Inclusion
MARUI GROUP Core ThemeACTIONGroup Effort to Reduce Environmental Footprint
Creation of Biodiversity-Rich Spaces in Urban Areas

Renewable Energy Initiatives
Nakano Marui participates in green
power certification systems and isutilizing renewable energy sources for aportion of the electricity it consumes.
Also, solar power generation facilities
were installed at AIM Logisport (TodaCity, Saitama Prefecture) in 2014, and we are advancing
other initiatives for utilizing renewable energy.

MARUI GROUP’s Goal

We will develop eco-friendly businesses that areconsiderate of natural capital and propose ecologicallysound lifestyles that are in harmony with nature andthe environment.
Nakano Marui’s Four Seasons andWaterside Gardens (top photograph) werecertified as “Urban Oases” in 2013 and2016. They also received the Nakano
Greenery Contribution Award in 2015 andan award in the 5th Contest for Corporate
Activities on Biodiversity in 2016.

“Urban Oases”

Groupwide
energy saving

Environmental
impact traceability

Tracking of Environmental Footprint across the Value ChainMARUI GROUP endeavors to track its environmental
footprint across the entire value chain with regard toemissions of CO2 and other greenhouse gases, based on
which it advances measures for reducing its footprint
together with customers, business partners, communities,
and society as a whole.

The Q-COURT British-style garden(bottom photograph) of the Shinjuku
Marui Main Building was certified as an“Urban Oasis” in 2014.

Emissions by
MARUI GROUP
Scope 1 & 2:
100,000 t-CO2

Emissions from Procurement to Delivery
Scope 3: 350,000 t-CO2

Post-Purchase Emissions
Scope 3: 160,000 t-CO2

Ecologically soundlifestyles

Total Greenhouse
Gas Emissions
across the SupplyChain
610,000 t-CO2
Raw material
procurement

Productproduction

Productdelivery

Salesin 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 theMinistry of Economy, Trade and Industry. The results of these calculations have been checked by Mizuho Information & Research Institute, Inc.

Co-creation withstakeholders

Elimination of unused
products

As a company that provides customers with fulfilling lifestyles, our environmental responsibilities are notlimited to reducing our own environmental impact. We believe that MARUI GROUP can propose ecologicallysound lifestyles as it promotes ecological inclusion through co-creation activities with its stakeholders
prefaced on consideration for the environment throughout society.

34

Employee Comment

Mamoru Koide
Sales Representative Manager,
Nakano MaruiMARUI CO., LTD.

Expansion of Ecological Network through Co-Creation with Community Members
Nakano Marui’s Four Seasons and Waterside Gardens provide refreshing spaces for people living inNakano, places in which they can relax when they get a break from work. Several community members
requested that these spaces be used for events, inspiring us to work together with local councils
and shopping districts to plan events rooted to the Nakano community in the gardens, such as
educational events for teaching children about nature and animals. When these gardens were firstopened, they originally felt a bit artificial. Seeking to make the gardens a hospitable environment foranimals, rather than just a tool for reducing our environmental impact, we worked together withspecialists, receiving advice on how trees should be planted and other matters. Now, the gardens seem
more natural, even to the degree that birds lay eggs in them. Going forward, we hope to continue toexpand our ecological network through co-creation activities with community members in order tocreate a space for enjoying connections with nature and learning the importance of animals.

35

Core Theme 3

Core Theme 3

Ecological Inclusion

Ecological Inclusion

Proposal of Ecologically Sound Lifestyles
MARUI GROUP seeks to reduce waste throughout all processes related to its private brands, from product development
to the trade-in of no-longer-necessary products. In addition, on private brand products, we display information about theenvironmental impacts that will occur throughout their entire lifecycle. We thereby propose ecologically sound lifestyles
by helping customers choose eco-friendly products.

Evolution from Reuse to Reduction
Introduced in 2010, the apparel recycling program entails
collecting trade-ins of clothing and shoes so that these
items may be reused (resold). In addition, we ask customers
submitting trade-in items about their shoe-related concerns
and use this information in the development of our Rakuchin
Kirei series of private brand shoes, which feature not only
appealing designs but also superior comfort delivered
through sizes matched to customer feet. In developing
these shoes, we have employed a process fine-tuned toaddressing customer concerns. This process includes
having customers participate in planning meetings andcreating original shoe trees to expand the range of sizes
we can provide. These efforts help to prevent products
from going unused due to not matching customer needs,
for example, being too painful to wear and thus getting
thrown away, effectively expanding the function of theapparel recycling program to include the reduction ofwaste. We hope to contribute to the resolution of social
issues through these efforts.

Omni-Channel Try-On Stores Mitigating
Environmental Impacts
It is common for shoes sold via the Internet to be returned
due to not matching the customer’s foot shape or size.
Handling these returns results in wasted energy andpacking. Our omni-channel try-on stores are an initiativeadvanced in an integrated manner by the Group thatunites product creation, Internet sales, and physicalstores to address this issue. These stores eliminate theneed for store inventories, subsequently lowering the riskof inventory disposal losses, while also reducing customer
returns and with it, warehouse inventories. Try-on stores
thus help mitigate environmental impacts.

Initiatives Targeting Customers Hoping toHelp Address Environmental Issues
In August 2014, MARUI GROUP took steps to display thecarbon footprint, or the amount of CO2 emissions, of eachpair of Rakuchin Kirei series shoes to make clear theenvironmental impact associated with these shoes acrossthe value chain. These displays help customers make aconscious decision to choose eco-friendly shoes. This is
one way in which we are proposing ecologically soundlifestyles to customers hoping to help address environmental issues by purchasing eco-friendly products.
Example Breakdown of CO2 Emissions throughout
Shoes Value Chain

Raw material procurement

Product production

22%

Product delivery

16%



Social Benefits of Try-On Stores
Attend short-term
event stores

Product use and recyclingFreely select size
from samples

Lowering of inventory disposal losses
and logistics burden by eliminating
the need for store inventories

Try on in self-service
fashionAlleviation of concern due to not
being able to try on items bought
via the Internet

47%

15%

Shoes Thrown Away
Ratio of people throwing away shoesthat are no longer worn92%

The results of these calculations havebeen checked by Mizuho Information

Based on 2013 survey of EPOS cardholders

Number of clothing items and shoes traded in
by customers

Approx.

4.5million

May 2010–March 2015

Carbon footprint& Research Institute, Inc.

Order withdedicated tablet

Reduction of packing use due to lackof need for bags to carry home
In-store display informing customers
about carbon footprint initiatives

Receive productvia home delivery

80% reduction in returned products,
lowering logistics burden

Ecological Actions to Eliminate Environmental Impacts
MARUI GROUP is proposing ecologically sound lifestyles
to the greater society and promoting ecological inclusion
together with its customers, business partners, and otherstakeholders.
Revision of MARUI GROUP Environmental Policy froma Natural Capital Perspective
MARUI GROUP views all the resources it uses in its
business as being borrowed from society. Based on thisbelief, we examined the impacts of our business on natural
capital and then revised the MARUI GROUP Environmental
Policy in order to better guide us in preventing climatechange and pollution and otherwise advancing eco-friendly
business activities on a Groupwide basis.
→S ee page 45 for more information on the MARUI GROUP
Environmental Policy.

Responsible Procurement Practiced Together with
Business Partners
The MARUI GROUP Procurement Policy was formulatedin April 2016 to serve as a roadmap for practicing
responsible procurement together with business partners
across the entire supply chain in relation to the development of private brands. To disseminate this policy, weheld explanatory forums with approximately 100 partners.
Surveys were then distributed and on-site investigations
were conducted by dedicated staff from the CSR
Promotion Department. The findings of these activities
have been shared with partners. Moreover, based on theopinion of a third-party institution, we adopted an approachemphasizing mutual cooperation in encouraging
business partners to adhere to this policy.
Offset of 50 Tons of CO2 Emissions in 2016MARUI GROUP has employed carbon
offset schemes since 2009 as an
ecological action for offsetting emissionsof CO2 and other greenhouse gasesthat it is unable to reduce in its own
operations through reductions or theabsorption of emissions elsewhere.
These efforts have been highlyevaluated, as indicated by the Company
receiving an award of excellence in the
6th Carbon Offset Awards.
→S ee page 43 for more information onawards received.

3637