Scope of the Living in Harmony with Communities: Initiatives Report 2014
M Organizations covered

The report covers mainly the business activities of Lawson, Inc., franchised stores andcertain affiliated companies. Reporting also covers such areas handled in cooperation
with Lawson’s business partners as distribution, food product manufacturing, andwaste processing.
M Period covered

The report mainly covers fiscal 2013 (March 1, 2013 to February 28, 2014); however,some coverage of activities before and after this period is included.
For more detailed information, please see Lawson’s website: http://lawson.jp/en/csr/

Living in Harmony with Communities:
Initiatives Report 2014

CSR Promotion Office
East Tower, Gate City Ohsaki, 11-2, Osaki 1-chome,
Shinagawa-ku, Tokyo 141-8643, Japan
http://www.lawson.jp/en/

Published in November 2014
The next issue is scheduled for September 2015.
© 1975-2014 Lawson, Inc. All rights reserved.

Creating Happiness and Harmony in Our Communities

Corporate Philosophy:

Creating Happinessand Harmony in
Our Communities

Food recycling
p. 21
Emphasis onmarketingmedication
p. 6“Happiness in
Communities”
fundraising
p. 11

CO2 Offset
Program
p. 20

Local
production for
local consumption,
Local production
for external
consumption
p. 7

Health-oriented
products
p. 4

The Lawson Group aims to create theleading stores enabling health and wellness in communities. We hope to leverage our near-at-hand position as aconvenience store to make communities and the Earth healthierand happier by providing support for customers’ health.

Solar power
generation
systemp. 18

Freezers andrefrigerators that
use CO2 coolant
p. 18

Initiatives
in the Community

Environmental
Initiatives

p. 3–12

p. 13–24

P Supporting Health and Wellness in
Our Communities

P Care for the Environment in the Supply Chain
P From Ingredient Procurement to Distribution
to Stores

P Creating Stores that Fit Local Customers’
Needs and Wants
P Lifeline for Communities

P Bringing Cutting-Edge Technology into
Stores to Save Energy

P Support for the Future

P Saving Energy at Stores
P Initiatives to Reduce Store Garbage
P Effective Use of Resources at Storesand Offices

Large-scaledisaster
response
p. 9

The Three Essential Practices
Serving
customers
courteously

Keeping ourstores andcommunities
clean

1

Providingmerchandise
assortment thatmeets community
needs

As fundamental rules for store operations,Lawson has set out Three Essential
Practices: (1) serving customers courteously;(2) providing a merchandise assortment thatmeets community needs; and (3) keeping ourstores and communities clean. By implementing these practices, we hope toincrease customer satisfaction and create
happiness and harmony in our communities.

Efficientdistribution andeco-driving
p. 16

Corporate Data
p. 25

2

Initiatives
in thecommunity➔ Supporting Health and Wellne ss in Our Communities
P Meal solutions

What does supporting health andwellness in communities mean?
Lawson aims to create convenience stores that contribute to health and wellness incommunities to promote long and healthy lives based on two approaches: meal solutions that nourish the body through daily eating habits, and support for self-medication
through the provision of consultation and assistance for customers in times of need.

Bringing
health tocommunities

Deliciousandhealthy

Meal solutions(healthy foods that address symptomsof possible lifestyle-related ailments)(providing services that help
customers maintain their own health)P Mineral farming: Nakashima Farming
MethodP Products for people worried about carbohydrates: Bread made with bran
P Reduced-sodium, low-calorie menus:
Healthy snacks under the NATURALLAWSON brandP Nutritious menu items:
Health-conscious boxed lunches
P Joint development with ingredientm­ akers/food processors:
Innovation laboratoryPH andle prescription drugs
PH andle OTC medicinesP2
 4-hour drug consultation services via
video chatPH ealth checkups and consultations at
Lawson storesPP artner with sports-related businesses

Convenience
stores3

Self-medication support

Online homedelivery service

Lawson promotes meal solutions based on the concept of delicious, healthy eating, with vegetables rich in minerals; breads made with bran for people worried about their carbohydrate
intake; and reduced-sodium, low-calorie boxed lunches and other products designed to behealthful and help prevent disease.
1 Lawson Farm Hokkaido

Expanding Lawson Farm nationwide toprovide safe, fresh, high-quality vegetables
To provide Lawson Group storeswith a stable supply of safe, highquality vegetables and fruits that
contribute to healthy eating habits, we are
expanding the farming corporation Lawson
Farm across Japan. We hope to create a
network capable of supplying perishable
foods year-round by rotating production
among Lawson Farms across the country. In
addition, we are working in collaboration
with DAICHI wo MAMORU KAI (EarthEnvironment Preservation Society, an organic
food delivery organization) and Radish Boyaboth of which handle certified organic produce and produce grown with low levels ofagricultural chemicals.

Honbetsu
2 Lawson Farm Tokachi
3 Lawson Farm Hokkaido
Iwanai4 Lawson Farm Akita
5 Lawson Farm Ishinomaki
6 Lawson Farm Ibaraki
7 Lawson Farm Chiba
8 Lawson Farm Yamanashi
9 Lawson Farm Hyogo< Lawson Farm Tottori
A Lawson Farm Hiroshima
Jinsekikougenchou
B Lawson Farm Oita
C Lawson Farm Oita Bungo
Ono
D Lawson Farm Kumamoto

E Lawson Farm Miyazaki
F Lawson Farm Satsuma
G Lawson Farm Kagoshima
H Lawson Farm Ichiki

21

3
4
5
8

<
A

Kushikino

6
7

9

B
C
DE
F
HG

Emphasis on production: Maintaining the soil’s mineral balance with
the Nakashima Farming Method
The Nakashima Farming Method is an assembly of technologies for creating healthysoil based on soil analysis and technologies for controlling growth aimed at the sustainable production of high-quality agricultural products (see right). The method supplies
cultivated plants with an optimal balance of nutrients based on their stage of growth
while maintaining the balance of mineral nutrients in the soil. The objective of the method
is to produce high-quality fruits and vegetables in a safe and reliable manner.
Regional
healthcareorganizations

Collaboration
withlocal governments

Regularexercise

Lawson selected for three awards in Food Action Nippon Awards 2013
On December 3, 2013, Lawson was selected for three Food Action Nippon
awards, including the Award of Excellence in Logistics. Lawson was recognized
for its contribution to revitalizing communities and for helping to spread the useof domestically produced foods through its sales of vegetables grown by
Lawson Farm, a farming corporation, and creating and selling products madewith ingredients grown in Japan.

4Initiatives
in thecommunity➔ Supporting Health and Wellness in Our Communities

P Meal solutions

P Support for self-medication

Development and sale of healthier bread and treats
Low carbohydrate foods command considerable interest among consumers who are concerned about diabetes prevention and maintaining a healthy, vibrant lifestyle. To meet thisdemand, since June 2012, Lawson has been developing bread for meals, confectioneries andother baked goods made with bran, which is lower in carbohydrates and higher in dietaryfiber than ordinary wheat flour.
In May 2014, we also began selling health-oriented cookies and snacks made with bran andwith less than 200 calories, 10 grams of carbohydrates and 0.5 grams of sodium per serving.

Lawson’s support for self-medication (defined as support for health management and disease
prevention and treatment) encompasses the provision of medicines, 24-hour drug consultation services via video conferencing, health checkups at Lawson stores in coordination withmunicipalities, and health management apps.

Bran hard-baked
snacksBran breadBran soy milk
cookies

Bitter chocolate &whipped cream bran

Partnerships with pharmacy chains to expand storeswith dispensing pharmacies
Lawson has formed partnerships with Qol Co., Ltd., a majordispensing pharmacy chain, and MIZ-Pharmacy Co., Ltd., adispensing pharmacy and drug store operator in Saga
Prefecture and Fukuoka Prefecture. As of the end of July
2014, Lawson has opened 40 convenience stores with dispensing pharmacies.

The LAWSON store in front of Yushima
Station in Bunkyo City, Tokyo, featuresa merchandise assortment of 5,000 items,
60% greater than that of an ordinary
LAWSON store, operating on a model ofideal balance between convenience storeand drug store formats

Expanding stores that handle OTC medicines
In 2009, the Revised Pharmaceutical Affairs Law introduced the registered distributor system
for OTC drugs, allowing ordinary stores to carry more over-the-counter (OTC) medicines.
Including stores with dispensing pharmacies, Lawson has 93 stores that carry OTC medicines
as of the end of July 2014.
Following the June 2014 revision to the Pharmaceutical Affairs Law, we began offeringordering services for over-the-counter (OTC) medicines (types 2 and 3) via our Loppi multimedia terminals in all stores.

Bran bread sandwich

Bran moist
melon breadBran black sesame
cookies

What is Bran?

Outer
husk

Bran is a grain’s outer husk. It is higher in dietary fiber and lower in carbohydrates than ordinary wheat flour.
Lawson’s bran breads are developed in collaboration with THE TORIGOE CO.,LTD., which has patented technologies in Japan, the United States and Europe
for making breads low in carbohydrates that incorporate the outer husks ofgrains. To make the bread more enjoyable, Lawson made several improvements
to the mixture of bran and the production process. Thanks to these improvements, including the addition of rice bran to traditional dough, we succeeded increating a softer, moister bread in May 2014.

5

Wheat

Health checkups at local Lawson stores in coordination
with municipalities
In October 2013, Lawson signed an agreement with
Amagasaki City in Hyogo Prefecture to provide health checkups at Lawson stores in the city. Body measurements, urine
and blood tests, examinations by doctors and optional chest
x-rays were conducted in Lawson store parking lots.
Next, we worked with Matsumoto City in Nagano
Prefecture to implement a neighborhood health consultation
service for nearby residents in cooperation with local healthprofessionals. Furthermore, in July 2014, we concluded ahealth accord with Saga City in Saga Prefecture, and in
August we conducted health checkups at a Lawson store.

Health checkups in the parking lot ofa LAWSON store in Amagasaki City,
Hyogo Prefecture

Neighborhood health consultation service
in Matsumoto City, Nagano Prefecture

6

Initiatives
in thecommunity➔ Creating Stores that Fit Local Customers’ Needs and Wants

P Comprehensive agreements withlocal governments

Agreements formed with:
44 prefectures, 6 cities

Making communities brighter through stores nationwide
The Lawson Group forms comprehensive agreements withlocal governments around Japan to work closely with communities to contribute to the community, including throughstore operation and product development, environmental
preservation, and support for childrearing. Using our networkof about 12,000 stores across Japan, we are helping makecommunities around the country brighter.

Tourism promotion and PR(As of the end of August 2014)

Expanding sales of locally produced
goods and foodSupport for welfare services andchildrearing
Environmental contribution
Crime prevention and youth guidanceDisaster countermeasures

Notes: 1. Initiatives aimed at consumption in a particular area of products produced in thesame area
2. Initiatives aimed at the sale of products made in a particular area outside said area

Okayama Prefecture
Curry Bread (withcurry made with
Chiya beef)

Hokkaido
Takikawa Pork
Boxed Lunch(cooked with butter
and soy sauce)
Miyagi Prefecture
Kesennuma
Recovery (Shark
cutlet) Boxed
Lunch
Ibaraki Prefecture
Grilled Rice Balls with
Hitachiota Soy Sauce

Kyoto Prefecture
Kyoto Specialties
Boxed Lunch

Delivering products and peace of mind
Lawson Fresh is a new online home delivery service
for perishables, the popular 10-minute Simple
Cooking Kit and other high-quality foods and daily
necessities. The service features a merchandise
assortment of about 16,000 safe and reliable fresh
essentials for everyday living.

Lawson Fresh homepage

P Promoting local production for local
consumption and local production for
external consumption
Utilizing local products and foods to revitalize communities
Important initiatives undertaken in line with our comprehensive agreements with local governments include the promotion of local production for local consumption 1 and local
production for external consumption2 as well as the revitalization of communities by selling products made with abundantlocal food resources.

P Convenient home delivery service

Delivering the fun of shopping
Some Lawson stores offer Lawson Delivery Service,* which brings
food to your home. Certain stores also offer Lawson Travelling Sales
Service* for retirement homes and corporations, bringing the enjoyment of shopping to customers.
P Lawson Delivery Service
Orders are accepted over the phone and goods delivered to customers’ homes. Goods available for delivery range from boxed lunches
and rice balls to heavy items, such as beverages, and bulky items,
such as toilet paper. Delivery rates range from free to ¥700.
P Lawson Travelling Sales Service
A travelling store with a wide selection of sweets, beverages, fruit,daily necessities, and other products visits retirement homes, corporations, public halls and other venues.

Lawson Delivery Service

Lawson Travelling Sales Service

Chiba Prefecture
Narita Sky Sweet
Bean & Potato Paste
BreadsOita Prefecture
Gyutto Sweet
PotatoAichi Prefecture
Okazaki Chocolate
Ring
Okinawa Prefecture
Shikuwasa Hotcake

LawsonDeliveryService*
Homes

Tokushima Prefecture
UC Premium Sweet
Potato Cake

LawsonTravelling
Sales
Service*

Retirement
homes,
corporations,etc.

Products developed based on local production for
local consumption
The products shown here are only examples, and some may no longer be available

7*These services are not available through all Lawson stores

8

Initiatives
in thecommunity➔ Lifeline for Communities

P Large-scale disaster response
Aiming to be a lifeline for communities during major disasters
In the event of a large-scale disaster,
Agreements with municipalities
Lawson, including stores in affected areas,in case of disasters
endeavors to remain open for business as(As of August 31, 2014)
much as possible as a lifeline for the resiM Disaster goods supply agreements anddents of the community. Furthermore,agreements to help people unable toLawson has signed disaster goods supply
return home
M Disaster goods supply agreements
agreements and agreements to help people* Agreements with prefecturesunable to return home with local governments around Japan as well as some public
institutions as part of its social role as a convenience store.

P Disaster relief fund to support recovery indisaster-affected areas
Delivering the community’s goodwill todisaster-affected areas
In the event of a large-scale disaster, the Lawson Group’s“Happiness in Communities” in-store fundraising isswitched to fundraising for disaster relief, through which
Lawson delivers the goodwill of people around the country
to those impacted by the disaster. Donations are distributed to areas in need through various avenues, including
local disaster countermeasures offices and the Japanese
Red Cross Society.

Presentation ceremony for 2013 Typhoon
Haiyan (Philippines) Relief Funds

Fiscal 2013 disaster relief fundraising
Fundraiser

2013 Typhoon Haiyan(Philippines) Relief Fund

11,497 Lawson Group Stores*
nationwide

4,018 stores in 10 prefectures
Izu-Oshima Typhoon 26(including one metropolis) ofTokyo Metropolis Relief Fundthe Kanto-Koshinetsu region

Emergency delivery truck

Disaster preparation
To clarify standards of action in the event of
a disaster, the Lawson Group conducts
disaster drills three times a year for its
employees. In addition, we regularly review
our disaster response manual based on
problems identified in responding to actual
disasters or during drills.
Furthermore, we have established a business continuity plan (BCP) that encompasses countermeasures for such eventualities
as a major earthquake occurring in theTokyo area or the offshore Nankai Trough or
an outbreak of a new strain of influenza.
Such measures are part of a rapid disaster
response framework.

StoresPeriodTotal donations

November 13–30,
2013¥42,126,471

October 19–31,
2013¥6,381,192*The Lawson Group: LAWSON, NATURAL LAWSON, LAWSON STORE100

P Safety Station activities

Disaster response manual

BCP Guidelines

Lawson participates in activities of the Japan
Franchise Association to prevent crime, provide a safe haven for
women and children
fleeing attackers,
and ensure the safety of the elderly.

P Preventing the sale ofalcohol and tobacco
to minors
To prevent the sale of alcohol and tobacco
to minors, we thoroughly check customers’
ages and use posters and in-store broadcasting to encourage customer understanding and cooperation.

Age confirmation screen on thecustomer-facing side of a register
Safety Station activities poster
Drills conducted in January, March and September each year

910

Initiatives
in thecommunity➔ Support for the Future

P The Lawson Group’s “Happiness in Communities” fundraising
Support for Greening and Children
The Lawson Group conducts social contribution activities centered mainly on support for greening projects and children.
Fundraising efforts have been ongoing since June 2013 under anew, comprehensive banner as the Lawson Group’s “Happinessin Communities” fundraising initiative. Customer donations are
combined with donations from Lawson headquarters and donated to three public interest foundations, which use the funds to
conduct tree-planting activities, mainly through schools throughout Japan, and to support children as part of efforts to promote
recovery in the Tohoku region of Japan.

LawsonGreen Fund
Lawson Green Fund
Results

Recipient: The National Land Afforestation Promotion Organization

Total customer donations¥3.56bn
Activities sites

3,489

Area greened

approx. 6,679 ha

Trees planted 

approx. 16.69m

The area greened and number of trees
planted are based on calculations using
the total collections of the Lawson
Green Fund and Green Fund and certain
assumptions. Data as of February 28,
2014.

SupportDreams Fund

LawsonHeadquarters

The Lawson Green Fund supports greening projects carried out by
school volunteer groups mainly from elementary, junior high andspecial needs schools throughout the country as well as projects
in and outside Japan implemented by volunteer groups.

(scholarship system for victims of
the Great East Japan Earthquake)Greening at a school

Participation in greening contribution projects
Franchise owners, store managers, store crews and headquarters
employees participate in greening contribution projects that makeuse of the Lawson Green Fund. 2013 marked the 20th year ofthese projects, which began in May 1994. The total number ofprojects undertaken now stands at over 1,000.
Many students have faced difficulties in continuing their education
due to the impact of the Great East Japan Earthquake. The
Support Dreams Fund provides scholarships of ¥30,000 per
month to 1,097 such students for up to seven years. The Fundalso organizes social events, hands-on educational programs andother activities to support students until they finish their education.
Recipient: Civic ForceThe TOMODACHIFund

The Lawson Group’s “Happinessin Communities” fundraising(U.S.-Japan educational and culturalactivities for students in the Tohoku region)

Total amount donated

7.1 billion*

approx. ¥The TOMODACHI Initiative is a U.S.-Japan private-public partnership to support recovery in disaster-affected areas. Backed by the
U.S. government and the U.S.-Japan Council (Japan), the initiative
has its roots in Operation TOMODACHI, launched in the aftermathof the Great East Japan Earthquake. Lawson embraces the initiative’s vision and supports students in the Tohoku region of Japanthrough U.S.-Japan educational and cultural activities.

Greening in mountain areas

Social event for scholarship recipients(Photo courtesy of Civic Force)

TOMODACHI Leadership Program

Recipient: U.S.-Japan Council (Japan)(For September 1992 through February 2014)*Donations include those collected in stores, donations from headquarters, and donations of Ponta reward points

Simulated work experience at a LAWSON store through KYOTO Student City

F 77,000 children experienced

KYOTO Student City from 2007
to July 201411

Since January 2007, Lawson has maintained an experiential simulated store at KYOTO Student City.* In addition to Lawson, 12 other companies and organizations,
including City Hall, a bank, a newspaper company anda Kyoto-style pickled goods store maintain booths, simulating a small community. Students in 4th to 6th

grades in Kyoto City elementary schools can experience
serving customers, operating cash registers and otheraspects of working at the simulated LAWSON store.
In August 2014, Lawson set up a second experiential simulated store in the Student City of Sendai City’s
Sendai Children’s Experience Plaza.

* KYOTO Student City: A facility set up by the Kyoto City Board of
Education and the Japan headquarters of Junior Achievement(Junior Achievement Japan), one of the world’s largest educationalorganizations

12

Environmental
Initiatives➔ Care for the Environment in the Supply Chain

Lawson aims to be a manufacturing retailer based on
small commercial areas, producing high-value-added
products and selling them right in customers’ neighborhoods. To this end, Lawson is extending its
involvement at all stages of the supply chain toenhance added value by, for example, making maximum use of ingredients during food processing to
reduce waste and carrying out efficient distribution. In
all its efforts, Lawson seeks to be considerate ofcommunities and the environment.

Lawson’s SCM–CRM model
Supply Chain
Management (SCM)
Comprehensive management from procurement to marketing, for
optimal efficiency of thewhole process

High-value
added rawmaterial
procurement

Material flow in our supply chainINPUTOUTPUT

Visualization ofopportunity
loss

Product
development
Analysis of purchasing
behavior of customers

SCM
Supply Chain
Management

Ponta Card

CRM
Customer RelationshipManagement

Manufacturing/
distribution

Optimalmerchandise
assortment

Improve Gross
Profit Margin

Increase Sales
and Profits

P Electricity P Water
P Gasoline & diesel oil
P Fuel oil
P Foods, etc.

P Electricity P Water
P Propane P Fuel oil
P Raw materials including packaging
materials, etc.

P Electricity
P Gasoline, diesel oil &natural gas
P Packaging materials

P Diesel oil & natural gas

P Electricity P Water
P Containers &packaging, etc.

Procurement of
raw materials

Manufacturing plants

Delivery centers

Delivery trucks

Stores

P CO2 (1) *P Waste products
P Wastewater

P CO2 (2)
P Waste products
P Wastewater

P CO2 (3)
P Waste products

P CO2 (4)Planned orderplacement

P Gasoline
P Electricity

Company cars

P CO2 (5)
P Waste products
P Wastewater

P CO2 (6)Customer
RelationshipManagement (CRM)
Marketing approach toprovide goods andservices according to
specific customer needs

P Electricity P Water
P Paper, office supplies,
etc.

Corporate
headquarters & offices

P CO2 (7)
P Waste products
P Wastewater* The numbers placed after “CO2” correspond to those in the pie chart below

PR educing CO2 emissions throughout the supply chain
The provision of products and services entails the use of such natural resources as electricity,
gasoline, and other forms of energy as well as water throughout the supply chain, resulting in
the emission of CO2 and waste byproducts. To minimize its environmental impact, Lawson
works to monitor CO2 emissions at each stage of its supply chain, from ingredient procurement to product production, distribution and sale at its convenience stores, and implements
various measures to reduce them.

Supply chain CO2 emissions in FY2013
0.15% [6.5]

4,342 thousand tons

Electricity consumption of headquarters,
branches, and directly-managed stores (5) (7)Electricity
consumption
by franchise
stores (5)Calculated as per industry-classified interpretation regarding Basic
Guidelines on Greenhouse gas
emissions calculation for retailers,Ver. 1.0

20.24%[878.6]

Procured raw materials (1) (2)(including private and national
brand products,
plastic shopping bags)
Business trips* CO emissions in brackets
2(Thousand tons)

13

Gasoline usage of company vehicles (6)Total annual CO2 emissions

0.01% [0.5]74.39%[3,229.8]*

0.37% [16.0]

Waste material and industrial waste dueto the refurbishing and closing of stores (5)0.57% [24.8]

Disposal of packaging, disposable chopsticks
and plastic shopping bags (5)1.10% [47.6]

Power used in electricity procurement

1.45% [63.1]

Energy consumption at delivery centers (3) (4)

1.72% [74.8]

14

Environmental
Initiatives

Procurement of
raw materials➔ From Ingredient Procurement to Distribution to Stores

Manufacturing plants

Delivery centers

Delivery trucks

StoresCompany cars

Corporate
headquarters & offices

P Using plant-derived plastic in packaging

Procurement of
raw materials

Reducing CO2 emissions using lighter, plant-derived packaging
Lawson proactively uses plant-derived plastics in containers and packaging for the original
products sold at Lawson stores. Salad containers are made with polylactic acid (PLA) derived
from corn, and containers for chilled noodle products are made from bio-PET, part of which isderived from sugarcane. The CO2 released when such containers and packaging are incinerated is absorbed by the growing plants that make up their raw materials, largely cancellingout emissions over the packaging’s entire life cycle.
At the same time, while ensuring packaging safety, Lawson strives to reduce packaging
weight as a way of more effectively using limited natural resources. Weight per container in fiscal 2013 was down 15.5% from fiscal 2006, for a total reduction of about 670 tons. Throughthese efforts, we have cut CO2 emissions by approximately 13,000 tons, or 31.3%, based on
calculations of emissions when containers are incinerated.

P Developing products that use domestically
produced ingredients
Reducing the energy consumed in transportation
Lawson creates boxed lunches, rice balls,
desserts, and other products that takeadvantage of domestically produced, seasonal ingredients. Not only does this help torevitalize rural areas around Japan, but
because ingredients do not have to travel as
far as those produced overseas, less energy
is used in transportation.

Procurement of
raw materials“Delicious! Local Specialties”
Chirashi sushi with salmon
from Shiretoko

Delicious! Ehime’s Specialty
Uwajima Sea Bream Rice, ofthe “Delicious! Local
Specialties” series

P Manufacturing at factories

Manufacturing
plantsMinimizing waste in the production system
In order to cut waste at the manufacturing stage, we haveintroduced the Production Process Management System tocarefully measure ingredients used, product volume, andservings down to the gram.

Container/packaging weight and CO2 emissions
when incinerated
(t)

(g)

50,00010
41,57640,000
Container made from polylactic acid (PLA)
derived from corn

828,54230,0005.81
20,00010,00010,6856

4.91

410,0180

2006(Base year) Total weight  CO2 emissions (left scale)

2013

2

(FY)

0

P Distribution centers and trucks
Efficient deliveries and eco-driving
Lawson aims to efficiently deliver products by promoting
multi-drop deliveries and optimizing delivery frequency. In
addition, our trucks are fitted with eco-tires to improve fueleconomy. Lawson uses a traffic control system to monitor
the status of trucks in the field and promote eco-driving. We
also raise awareness by training drivers on how to prevent
unnecessary vehicle idling and noise.

Delivery centers Delivery trucks

Daily number of delivery
trucks per store*
16.0 trucks

7.0 trucks

 Weight per container/package (right scale)
1989

Container for chilled noodle products
made with bio-PET

2013

(FY)

*D
 elivering goods, except for newspapers
and cigarettes
Recognition for excellent drivers

15

16

Environmental
Initiatives➔ Bringing Cutting-Edge Technology into Stores to Save Energy
P Solar power systems installed

Procurement of
raw materials

Manufacturing plants

Delivery centers

Delivery trucks

StoresCompany cars

Corporate
headquarters & offices

P Solar power generation and natural CO2 coolant use at
experimental energy-saving stores
Examining energy-saving benefits and applying results in our stores across the country
Since fiscal 2008, Lawson has operated
experimental energy-saving stores around
Japan to examine the benefits of using energy-conserving equipment with cutting-edge
technologies. Leveraging the knowledge
gained from these experiments, we plan toroll out the newest energy-saving equipment
LAWSON store in front of Panasonic head officeat all our locations in Japan and develop(Moriguchi City, Osaka)even better equipment to slash CO2 emissions further.
Initiatives at the LAWSON store in front of Panasonic head officeLawson is installing solar power generation systems as part of efforts
to promote the use of renewable energy sources. As of the end of fiscal 2013, such systems have been installed at about 1,600 Lawson
Group stores. Lawson’s systems have a generating capacity of 12
kW, comprising 10 kW (two 5 kW devices) for power sales and 2 kW
for in-store use. With these systems, one store generates about
13,000 kWh per year. Lawson is the first in the convenience store
industry to introduce systems with a capacity greater than 10 kW.

P Freezers and refrigerators that use CO2 coolant
In fiscal 2010, Lawson
began installing freezers andrefrigerators that use CO 2
coolant in its stores. The
global warming potential of
CO2 coolant is very low, just
1/4,000 that of freon, andL
CO2 coolant is very effective
Outdoor units of CO coolant
at conveying heat. As aR
result, these coolants can help reduce annual CO2 emissions
by half compared with equipment using conventional freonM
alternatives. We installed such equipment at 63 stores in­fiscal 2013, for a total of 138 stores to date.
B
2

P Cutting energy use by 50%
We aim to reduce electricity usage by 50%(compared with 2010) through various energy
saving ­technologies aswell as energy management that includes
power generation andstorage.

P 100% LED use and lighting adjustment
Using exclusively LED
lighting, stores are welllit while saving energy.
Zone-based lighting
adjustment and brightness variation reduces
electricity usage, making the space both
eco-friendly and pleasantly illuminated.

17

P Refrigerator cases that use CO2 coolant(See next page for details)
We use CO2 coolants, whichhave a global warming
potential just 1/4,000 that offreon gas, to combat global
warming. Glass doors on
showcases and precise interior controls help achieve further energy savings.

P Air conditioning and ventilation control
Linking air conditioning and ventilation systems,
we are reducing the amount of outside air let intoa store when its doors
open. Sensors detect
people and control air
flows appropriately,
conditioning the air
inside stores effectively
while saving energy.

Solar power system on the roof of
our store in front of Panasonic head office

CO2 emissions reduced using
CO2 coolant(t-CO2)
60

58.0
19.4

40

20

38.6
28.0

0
Using conventionalUsingfreon alternatives
CO2 coolant
 CO2 due to coolant leaks during use
 CO2 due to electricity used

conL
Using CO2 coolant and expanding energy-saving experimental stores, commendation received
conR
from Minister of the Environment for promotion of measures to cope with global warming

conM

Lawson was commended by the Minister of theEnvironment for promotion of measures to copewith global warming by deploying advanced
technologies in 2013, in recognition of the introduction of CO2 coolant in refrigeration systems innew, experimental energy-saving stores. Thisaward recognizes the benefits of using cuttingedge energy-saving equipment in our experimental energy-saving stores and the use of
freezers and refrigerators that use CO2 as coolant since fiscal 2010.

conB

18

➔ Saving Energy at Stores

Environmental
Initiatives

Procurement of
raw materials

Manufacturing plants

Delivery centers

Delivery trucks

StoresCompany cars

Corporate
headquarters & offices

P Saving energy by installing and managing the use of
new equipment
Aiming for a 20% reduction in per-store electricity use by 2020
Lawson’s medium-term energy-saving goal is to reduce per-store electricity consumption to
20% below the levels recorded in fiscal 2010 by fiscal 2020. To reduce electricity use, we areproactively installing energy-efficient equipment, including energy-saving refrigerators and air
conditioners as well as LED lighting.
Per-store electricity use (index) and CO2 emissions1
(%)

100

(t-CO2)
Base year
100.0

101.8
91.7

88.8
80.0

Target120

80

Reduce per-store electricity

40

Helping customers offset CO2 emissions
Through the CO2 Offset Program, customers can exchange shopping reward
points using their Ponta multi-partner loyalty point cards for CO2 offset credits, purchase CO2 offset credits with cash using Loppi multimedia terminals inour stores, or purchase products with attached CO2 offset credits. By offering
these credits, we are helping customers offset CO2 emissions.

How the CO2 Offset Program works
Number of participants:

29.93 million

2010

2013

 Annual electricity consumption (index) (left scale)

2020

(FY2)

consumption by

23,450 tons

20%
Purchase ofoffset credits
through Loppi

0 CO2 emissions (right scale)Notes: 1. The power-receiving end coefficient after adjustment identified by the Federation of Electric Power Companies of Japan is used tomeasure CO2 emissions. Data for fiscal 2020 is calculated using the coefficient for fiscal 2013.
2. Calculated in line with the administrative year from April 1 to March 31

Ten Energy-Saving Rules for store equipment management
We have established the Ten
Ten Energy-Saving Rules
Energy-Saving Rules to help
1 Clean refrigerator and air conditioner filters once a week
2 Keep air conditioner temperature settings at 27°C in summer, 18°C inincrease the operational efficiency
winter, and off in spring and autumnof refrigerators and air conditioners
3 Minimize the time that doors to walk-in and storage freezers andrefrigerators are open when moving products in and out
in stores and reduce unnecessary
4 Keep the area around the outdoor units of refrigerators and air condipower use. In the course of theirtioners neat and clean
5 Restock summer products that are frozen in-store from stocks that
normal operations, stores are takhave been refrigerated
ing such measures as cleaning
6 Restock hot drinks with products that have been stored at room temperaturerefrigerator and air conditioner fil7 Do not overfill storage freezers and refrigerators
ters and using designated air con8 Turn off lighting and air conditioning in back rooms and storage areas
when no one is present
ditioner temperature settings.
9 Arrange products so that they do not disturb the air curtain on opencases
10 Minimize the number of times storage freezers and refrigerators are
opened19

approx.

Participating in the CO2 Offset Program

compared with fiscal 2010
0

Cumulative CO2 offset:(As of February 28, 2014)

Medium-term goal
for fiscal 2020

68.2

Social andenvironmental
initiatives with
ourcustomers

We send a certificate of participation in the CO2
Offset Program** N ot available for offset
credits sold attached topromotional products

Noticeoftransfer

Exchange ofpoints foroffset credits

Purchase of
products with
attached CO2
offset credits

Helping to reduce Japan’s
net CO2 emissions

Ministry of the Environment/
Ministry of Economy, Trade andIndustry Japan Quota Account Book
(National account)

Offsetcredittransfer

Purchaseof offset
creditsCO2
reductionbusiness

Offset credits created throughCO 2 reduction business indeveloping countries (hydropower and biogas electricity
generation) and CO2 reduction business in Japan

CO2 offset with freshly brewed coffee at MACHI café
For two weeks starting February 11, 2014,
Lawson sold its MACHI café hot coffee and cafélatte with attached CO2 offset credits. Having calculated the amount of CO2 emitted over eachproduct’s entire life cycle, from procurement tocontainer disposal, we offset the amount corresponding to the products sold, for a total ofaround 1,500 tons (approx. 300 g–600 g per cup).
Sign advertising CO2 offset campaign

20Environmental
Initiatives➔ Initiatives to Reduce Store Garb age
Some Lawson stores sell eggs from chickens
raised on eco-feed recycled from unsold foodP Food recycling in Toyama Prefecture
Procurement of
raw materials

Manufacturing plants

Delivery centers

Delivery trucks

StoresCorporate
headquarters & offices

Company cars

P Improving the accuracy of orders placed to reduce waste
We work to reduce waste by optimizing the merchandise assortment in stores. Sales data
gathered through the multi-partner loyalty point program Ponta* is analyzed and hypotheses
are formulated, taking into account day of the week, weather patterns, regional events, andother factors in order to find an optimal volume and assortment of merchandise. This allows
greater precision in ordering and helps reduce waste. We also reduce waste by adjusting the
preparation of food in “Machikado Chubo” in-store kitchens in line with customer visits.
*The identities of individual customers are protected

Unsold food from stores is reborn as high-quality compost (for soil improvement) at the recycling facilities of Toyama Green Food Recycle, Inc. Using bio-gasification technology, themethane produced during composting is used to generate electricity, which helps power therecycling facilities.

BiogasIntake and sorting of
unsold foodP Recycling unsold food

2.1

Unsold
food

7.8
0.1

0.5

(%)

2,292

Food

Non-food

Combustibles

19.6

9,000

6,000

Cardboard

3,000

16.0

40

30

906

22.5

10,468
7,403

20

2.1

4.3

Glass bottles

1.2

The sum of food and other waste is 53.7 kg.
Food waste data: About 2,300 Lawson stores participate in food recycling
Non-food waste data: About 400 stores in Tokyo Metropolis participate
Survey period: April 1, 2013 to March 31, 201421

P Reuse of store fixtures and equipment
Some of the display cases, air conditioners, microwaves and other fixtures and equipment
removed from stores that are being remodeled or closed are reused in other, newly opened
stores. When stores are remodeled or closed, fixtures and equipment that meet certain standards are stored at one of two reuse centers in east and west Japan. These items are numbered, stored and then redeployed, allowing reuse that spans large geographic areas.

10

Plastic
Cans

The resulting fertilizer

50

47.6

164

43.8 kg
PET bottles(Stores)
15,00012,0009.9 kgOther

Pruned branches arechipped and fermented and mixed withthe fermented liquid

Lawson Group stores that conduct food recycling

Used cooking oil

Electricity is generated using biogas

Fermented
liquidEach day the average store generates 7.8 kg of waste in unsold food (boxed lunches, rice balls,etc.) and 2.1 kg of oil (used cooking oil) used in the preparation of fried foods (figures for stores­participating in food recycling). Unsold food is sent to recycling factories and processed into livestock feed for pigs and chickens or compost. Used cooking oil is made into livestock feed additive,
biodiesel for public buses, and additive-free soap. As a result of such initiatives, we achieved a foodrecycling ratio of 47.6% in fiscal 2013, well in excess of the statutory target of 34.5% or above.
Average daily waste per store

Unsold food is fermented to produce
biogas and fermented
liquid for fertilizer

Fixture and equipment reuse flow
0

(FY)
2007
2013
(Base year) Used cooking oil recycling (left scale) Food used in livestock feed and compost (left scale) Thermal energy recovered (left scale) Food recycling ratio (right scale)*0* The food recycling ratio does not include Lawson Okinawa, Inc.
and Lawson Minami-Kyushu Inc.

Items
to be stored
for reuse
Closing/remodeling

Redeploymentof fixtures andequipment
Reuse center

New store opening

22

Environmental
Initiatives

Procurement of
raw materials➔ Effective Use of Resources at Stores and Offices

Manufacturing plants

Delivery centers

Delivery trucks

StoresCompany cars

Corporate
headquarters & offices

P Talking to customers to reduce plastic shopping bag anddisposable chopstick use
We work to reduce the use of plastic shopping bags and disposable chopsticks in our storesby having staff ask customers whether they need them, using in-store broadcasting, putting
up posters, and handing out reusable “Bring Your Own” bags. In fiscal 2013, the per-store
use of plastic shopping bags decreased by 24.1% compared with fiscal 2000, and the plastic
shopping bag handout rate* was 78.3%. Pairs of disposable chopsticks used per store fell
9.4% from fiscal 2006 to about 54,000 pairs.

Procurement of
raw materials

Manufacturing plants

Delivery centers

Delivery trucks

StoresCompany cars

Corporate
headquarters & offices

P Company use of hybrid and other eco-friendly vehicles
Lawson is in the process of changing over its entire fleet of company cars used by supervisors and store development counselors to hybrid cars (about 2,200 cars, excluding fourwheel drive vehicles). To promote the safe and eco-friendly use of company cars,
representatives of relevant departments meet monthly to discuss accidents and traffic violations that have occurred as well as prevention measures.

* Plastic shopping bag handout rate = Number of bags purchased by stores ÷ Number of customers

Plastic shopping bags
used per store and plastic
shopping bag handout rate

Pairs of disposable
chopsticks used per store(kg)(pairs)1,200
900

50,000900
300

In-store poster promoting reduced
plastic shopping bag usage

Lawson participates in local cleanup and beautification activities around rivers and parks incoordination with the municipalities, companies and residents of the communities where it
operates. FC owners, store managers, store crews (part time employees) and employees
from Lawson’s headquarters along with their respective families and Lawson’s business partners participate in picking up garbage and making the communities they live in more beautiful
alongside other local residents.

60,000600

0P With the Lawson Family, keeping our communities clean

70,000Handout
rate
78.3%

59,525683

40,00030,0002000(Base year)

2013

(FY)

Concept art ofa hybrid company car

2006(Base year)

53,9082013(FY) Plastic shopping bags used per store

Promoting the use of reusable shopping bags
To help reduce the use of plastic shopping bags, Lawson makes andworks to distribute Convenience Store Eco Bags, reusable bags thatare just the right size for the boxed lunches or bottled drinks that customers buy frequently. Lawson has distributed 4.29 million reusable
shopping bags since March 2007.
Arakawa Clean Aid 2013

23

Participation in a Kyoto City municipal community beautification
project

24

Corporate DataStore Information for Japan
As of July 31, 2014

Company Profile

Total number of stores in Japan:PH okkaido region:

11,922As of February 28, 2014/Consolidated (Chief Executive Officer as of May 1, 2014)

Company name

Lawson, Inc.

Head Office Address

East Tower, Gate City Ohsaki, 11-2, Osaki 1-chome, Shinagawa-ku, Tokyo 141-8643, Japan

President and CEO
Genichi Tamatsuka
Representative Director

614 stores

P Chubu region: 1,409 stores
Toyama184
Ishikawa101
Fukui105
Shizuoka213

P Tohoku region:

942 stores

Aichi553
Gifu146
Mie107

Established

April 15, 1975

Capital¥58,506.644 million

Number of employees

6,336

P Chugoku region: 647 stores

Business activities

Franchise chain development of LAWSON, NATURAL LAWSON, LAWSON STORE100, and
LAWSON MARTNet sales of all stores¥1,945.4 billion

Tottori108
Shimane112
Okayama137

Number of stores

11,606 (Stores in Japan)

Aomori204
Iwate163
Miyagi221
Akita182
Yamagata73
Fukushima99

Hiroshima172
Yamaguchi118

P Kanto/Koshinestu region:

4,105 storesNote: The total number of stores in Japan is the total of stores operated under Lawson, Inc., Lawson Mart, Inc., Lawson Okinawa, Inc.,
Lawson Minami-Kyushu, Inc. and Lawson Kumamoto, Inc.

1,359 stores

Overseas Business
As of July 31, 2014

Overseas stores: 509

Shanghai: 298 stores

Dalian: 21 stores

Shanghai Hualian Lawson, Inc.
Established in February 1996

Dalian Lawson, Inc.
Established in September 2011

Chongqing: 87 stores

Hawaii: 4 stores

Chongqing Lawson, Inc.
Established in April 2010

Lawson USA Hawaii, Inc.
Established in January 2012

Ibaraki143
Tochigi133
Gunma89
Saitama492
Chiba458

P Kyushu region/
Okinawa:
Fukuoka425
Saga65
Nagasaki
103
Kumamoto
136
Oita
161
Miyazaki100
Kagoshima2001
Okinawa1692

P Kinki region:
P Shikoku region:

482 stores
Tokushima121
Kagawa118
Ehime176
Kochi67

The Lawson Group Environmental Policy

Tokyo1,570
Kanagawa834
Niigata130
Yamanashi107
Nagano149

2,364 stores
Shiga152
Kyoto325
Osaka1,014
Hyogo620
Nara132
Wakayama121

Notes: 1. S tores operated underLawson Minami-Kyushu, Inc.
2. S tores operated underLawson Okinawa, Inc.

Building a more sustainable society

Our commitment

Thailand: 32 stores
Saha Lawson, Co., Ltd.
Established in November 2012

Beijing: 8 storesIndonesia: 59 stores

To sustain the blessings of the earth for future gener-

PT Midi Utama Indonesia Tbk
License agreement in June 2011

ment in every aspect of our business activities andBeijing Lawson, Inc.
Established in May 2013

strive to achieve sustainable development and coexistence with local communities.

Group Companies

Our principles

As of February 28, 2014

1. Creation of a low-carbon society

Major consolidated
subsidiaries

Equity method affiliates

P Lawson Mart, IncP Lawson HMV Entertainment, Inc.
P Lawson ATM Networks, Inc.
P BestPractice Inc.
P SCI, Inc.
P Lawson Okinawa, Inc.

P Shanghai Hualian Lawson, Inc.
P Chongqing Lawson, Inc.
P Dalian Lawson, Inc.
P Saha Lawson, Co., Ltd.
P Lawson Asia Pacific Holdings Pte. Ltd.
P PT Midi Utama Indonesia Tbk

Realizinga sustainable
societyations, the Lawson Group will consider the environ-

Our own
environmental
preservation
efforts

Activities
conducted
withcustomers

2. Considerations in the development of
products and services
3. Active participation in social contribution activities

Guided by its Corporate Philosophy and4. Continuous improvements

Environmental Policy, the Lawson Group seeks to

5. Observing laws and regulations

implement socially and environmentally conscious

6. Promotion of communication

operations throughout its business and to cooperatewith customers to realize a sustainable society.

2526