Sustainability

Management of the Entire Supply Chain

Sustainability, from Procurement to Consumption
Management of the entire supply chain

Supply chain of the Group

Solving environmental and social issues
in the entire supply chain is necessary
Disposal and recycleof products

Use of products

Customer visit andgoods delivery

Sales/services
in stores

Transportation

Manufacture ofproducts

Raw materialprocurement

The Group

Customers

Formulation of“JFR Principles of Action”
and“Principles of Action for Suppliers”
We have formulated“JFR Principles of Action”and“Principles of Action for Suppliers” to eliminate
environmental and social risks in the entire supply
chain.
These Principles define basic actions to beunderstood and followed so both the Group and oursuppliers can fulfill social responsibilities. “JFRPrinciples of Action”are composed of“JFR conductpolicy”and four policies common with“Principles ofAction for Suppliers”:“Procurement policy,”“Humanrightspolicy,” “Anti-corruptionpolicy,” and“Occupational health and safety policy.”“JFR
Principles of Action for Suppliers”are composed of“Guidelines for action for suppliers”and the fourcommon policies mentioned above. By complyingwith these Principles, we will fulfill social
responsibilities together with our suppliers and strive
to enhance corporate value of both parties.

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Awareness of supply chain policy (Principles of Action for Suppliers)
Target: 100％
Scope 3 CO2 emissions reduction target
Aiming for 40％ reduction(compared with FY 2017)

Future initiatives related to“Principles ofAction for Suppliers”

In the retail business, the core business of theGroup, we sell goods and offer services in a supply
chain that extends from procurement of raw
materials to production/sale/consumption. Thus,initiatives to solve environmental and social issues
in the entire supply chain, including our suppliers,
are essential, not just in the areas where we aredirectly involved.

Suppliers

CLIMATEACTION

Target to be achieved by 2030

TargetBy fulfilling social responsibilities and promoting
environment-friendly initiatives throughout the entire
supply chain, we will eliminate risk in the entire
supply chain. Also, by providing products that
customers can enjoy without concern for social andenvironmental issues, we will enhance the corporate
values of both the Group and its suppliers.

AFFORDABLE AND
CLEAN ENERGY

Starting in the summer of 2019, we will holdexplanatory sessions, etc., of the“Principles of Action
for Suppliers”in order to obtain the understanding
and support of suppliers and request them to follow
the Principles in their operations. In addition, we will
carry out a survey to confirm compliance with thePrinciples and gradually develop a system to assess
compliance. We will find new suppliers who willcommit to fulfilling social responsibilities and businessfocusing on products and services with lessenvironmental burden.

Initiatives to realize a recycling society inthe entire supply chain
The Group aims to propose a shopping style withcustomer-participation through eco-friendly recycling
and reuse activities, as well as develop a new
business model regarding a sharing economy.
Daimaru Matsuzakaya Department Stores havebeen carrying out the“Ecoff”recycling campaign
since fiscal year 2016. Starting August 2019, 16
stores will use shopping bags made of environment
friendly FSC® certified paper. The stores are graduallyswitching plastic bags for food items to 30% plantbased packaging material. Through these initiatives,
we are working on realizing a recycling society.

Initiatives to realize a recycling society in the entire supply chain
RecyclePaper shopping bags andplastic grocery bags

RecycleEcoﬀ

ReduceProduction

Developing
Consumption
a newbusiness model

Reduction offood waste

Disposal

Sharing

Sharing
Reuse