Sustainability

Sustainability▶Promotion of circular economy

Toward Realization of CircularSociety

Promotion ofcirculareconomy

Background

Targets/KPIs for FY2023

As we face the globally challenging issue of environmental problems
caused by the conventional “linear economy” based on mass
production and mass disposal, the Group has positioned as one ofits new materiality issues the “promotion of circular economy” thatmaximizes the value of resources and products.

●Amount of waste (incl. food) down 14% (from FY2019)●Amount of goods collected via ECOFF recycling 1,500 tons
●Recycling of used products & their reproduction in partnership withsuppliers and customers●Entry into new businesses such as sharing economy and upcycling incollaboration with suppliers

Goals (commitments)
We will create innovative business models for the purpose ofgenerating new environmental value, and acquire a competitive
advantage in a circular economy, working together with suppliersand customers.

Major actions in FY2020●Reduction in & recycling of store food waste, initiatives to reduce food loss
●Reduction in packaging materials by charging for plastic bags
●Collection, reuse, recycling of clothing through ECOFF blitz●Fashion subscription service launched●Floor gathering shops for clothing repair, shoe cleaning, specialist

secondhand dealers (Shibuya PARCO)

Build circular economy business models
toward a sustainable future
A circular economy is an economic system in which we
use natural resources and products efficiently and cyclically,
minimize the generation of waste, and commercialize suchpractices. The concept of a circular economy emergedin Europe in 2015. It has spread globally as an economicsystem, replacing conventional “linear economy” that isbased on mass production and mass disposal.
To date, the Group has been engaged in activities associatedwith the 3 Rs* that constitute part of the circular economy.
Daimaru Matsuzakaya Department Stores is undertaking
an “ECOFF” campaign in which we collect clothing, bags,shoes, etc. disused by customers at storefronts, recycling
and reusing them to reduce environmental burden. In thecampaign, we give customers “shopping support tickets”

in proportion to the number of goods collected. We have
had many customers participate in this cyclical shopping andrecycling drive, which allows them to shop at a discount.
On the other hand, the Group believes it important toacquire new business opportunities at the same time as
reducing the environmental burden, in order to further evolvethe 3 Rs initiative and eventually realize a circular economy.
Daimaru Matsuzakaya Department Stores launched afashion subscription service dubbed “AnotherADdress”
in March 2021. “AnotherADdress” is a service seeking toevolve into a highly sustainable business model in social andenvironmental terms by giving priority to the essential value
and sustainability initiatives of fashion.
The Group will strive to establish business models, taking
advantage of its strengths and take on the challenge ofdeveloping new businesses with a view to realizing a circularsociety.

Schematic overview of the Group’s initiatives for circular economy
Shopping bag/plastic bag

RecycleReduceProduction

Recycling

Development ofnew business
model

Another
Address

Consumption

ECOFF

Share

Waste
reduction

Disposal

Reuse*The 3 Rs stand for Reduce, Reuse and Recycle.

Integrated Report 202157