Sustainability▶Realization of Decarbonated Society“Realization of Decarbonated Society”
by Use of Renewable Energy

Realization ofdecarbonizedsociety

Background

Targets/KPIs for FY2023

Given the global trend of decarbonization aimed at a breakaway
from reliance on fossil fuel, the Group positions “realization ofdecarbonized society” through the use of renewable energy as themost important issue.

●40% cut in Scope 1 & 2 GHG emissions (from FY2017, consolidated)●Rate of renewable energy to electricity used in business activities: 40%●Introduction of in-house power generation from renewable energy inGoals (commitments)
To hand down our precious global environment to future
generations, we will strive in the Group-wide efforts to expand
renewable energy procurement and maximize energy conservation,
among other things, thus contributing to the realization ofdecarbonized society.

partnership with new electricity producers/suppliers

Major actions in FY2020●18.7% cut in Scope 1 & 2 GHG emissions (from FY2019, consolidated)●Admitted to climate change “A List” of CDP 2020
●Joined “RE100”●Rate of renewable energy up 10.3% through expanded switch to suchenergy (up 6.3 percentage points from FY2019)●Shinsaibashi PARCO store, 100% operated by renewable energy,opened with a grand ceremony.
●Introduction of energy-saving & highly energy-efficient equipment,expansion of EVs in fleet of company cars

Toward 100% renewable energy by 2050
The Group joined “RE100” (100% Renewable Energy)* in
October 2020. We will seek to use renewable energy for 100%of our electricity consumed in business operations by 2050.
Shinsaibashi PARCO, which opened with a grand ceremonyin November 2020, has switched 100% of electric power usedat the entire store to renewable energy. The store depending on
renewable energy for 100% of its power consumed is the first
PARCO outlet to do so. Together with the adjacent Daimaru
Shinsaibashi store, the PARCO outlet plays the role of a model
ESG store of the Group.
Through these initiatives, the Groupʼs ratio of renewableenergy in FY2020 stood at 10.3%, improving 6.3 percentage
points from FY2019. In the future as well, we will go ahead
with a gradual transition to renewable energy in a planned
manner, focusing on Daimaru Matsuzakaya Department Storesand Parco outlets.

Shinsaibashi PARCO* An international initiative seeking to source 100% of electricity
consumption in business activities from renewable energy by 2050.

Initiatives for Scope 1 & 2 GHG emission cuts
The Group is a corporate group focused on retail, andmuch of its GHG emission volume stems from the use ofelectric power. Therefore, we place emphasis on the use ofelectricity, promoting initiatives to switch power, particularlyelectricity consumed at stores, to renewable energy.
At the same time, we are striving to reduce GHG emissions
by thorough energy conservation through the replacementof illumination with LED lighting and by direct reduction inemissions through the replacement of company cars withEVs.
As a result, the Groupʼs Scope 1 and 2 GHG emissions inFY2020 decreased 18.7% to 132,106 t-CO2 from FY2019.
Compared with the SBT base year of FY2017, the Groupachieved a 32.0% reduction, proceeding steadily toward
the attainment of SBT.

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The Group obtained a statementof third-party assurance from LloydʼsRegister Quality Assurance Limited(LRQA) for Scope 1 and 2 GHG
emissions in FY2019.

The Group’s Scope 1 & 2 GHG emission
reduction targets & results in FY2020

Scope 1 & 2Target
total
Scope 1 & 2Results
total

FY2020vs. FY2019

vs. SBT baseyear

Emissions(t-CO2)

Reduction (%)

Reduction (%)

156,007

▲4.0

▲19.6

132,106▲18.7▲32.0