We keep our “Three Promises” to become a

Hot Station (Best Relief Hub)in Our Communities
that creates happiness andharmony in our communities.

The Sustainable Development Goals(SDGs) were adapted at the United
Nations Sustainable Development
Summit in 2015. The 17 goals set
include No Poverty, Good Healthand Well-Being, Quality Education,
and Climate Action, and there
are 169 targets made to achieve
the SDGs on a global scale by 2030. Through the pledge to “Leave No One
Behind,” each nation is working toward solving the issues. At Lawson, bysetting material issues and KPIs, we are proactively promoting the initiatives
toward the fulfillment of SDGs as part of our aim to achieve our corporate
philosophy of “Creating Happiness and Harmony in Our Communities.”

Lawson’s Material Issues

SDGs Handbook

Lawson, Inc.
CSR Promotion Department,
Franchisee Business Support Division
East Tower, Gate City Ohsaki, 11-2, Osaki 1-chome,
Shinagawa-ku, Tokyo, 141-8643, Japan

http://lawson.jp/en/
Published November 2019. Next issue scheduled for publication September 2020.
© 1975-2019. Lawson, Inc. All rights reserved.

Lawson’s Material Issues
・Based on our business policy the “Three Promises,” our initiatives are divided into six categories taking into account social issues and conditions.
・We decided our material issues from customers’ standpoints emphasizing our initiatives as an organization responsible for safe and secure social
infrastructures, which is the most important role for a retailer.

BusinessPolicy
Superiortaste

ApplicableSDGs

Material Issues(Materiality)

Providing Safety/Security-Oriented
Overwhelmingly High Value-Added
Products and Services Friendly toSociety and the Environment

Surprise “Whew!”
discoveries

Supporting Health Promotion for All
People Through Products and Stores

Humankindness

Surprise “Whew!”
happiness

Environmental(Machi*)friendliness

Surprise “Whew!”
kindness[Note: ほっ = Whew!]* Machi (literally “town”) refers to thecommunities in which Lawson operates and,by extension, the global village as a whole.

See back for specific initiatives

Providing Comfortable Work
Environment Leading to Job Satisfaction

Supporting Women, Senior People
as well as Children’s Growth

Coexisting Synergistically withCommunities by Serving as Part ofSocial Infrastructure
Sustainable Environment
Preservation Activities TowardCarbon-Free SocietyLawson’s SDGs Goals
for 2030 (KPI)
Setting KPIs for social environment taking into
consideration social issues and conditions

50

Reduce by%
v. 2018 levels
・Reducing plastic

30

Reduce by%
v. 2017 levels
Lawson’s original products
Eco-friendly materials

50 %

used

100 %

・Reducing CO2 emissions
CO2 emissions per store

Lawson Blue Challenge 2050!
We take on difficult challenges to achieve
higher goals so that we can create acarbon-free society and contribute to theideal world that the SDGs aim to realize.

・Reducing food wasteReduce by

100 %・Reducing plastic(for containers and packaging)
Lawson’s original products
Eco-friendly materials

Plastic shopping bags

Reduce byeTake on mores!!
nglealchdifficult

Save our blue planet!

・Reducing food waste

Plastic for containers
and packaging

Lawson’s Vision 2050

30

Reduce by%
v. 2013 levels

100 %used・Reducing CO2 emissions
CO2 emissions per store

Reduce by

100 %We examine and discuss what we should
do now by focusing on “Lawson’s Vision
2050,” and looking back on what we havedone so far to steadily proceed with ourmaterial issues and KPIs for the SDGs
(Sustainable Development Goals to beachieved by 2030).

Creating Happiness and Harmony in Our Communities
This is the Lawson Group’s Corporate Philosophy.
We strive to become a “Hot Station (Best Relief Hub)” for everyone
living in our communities by keeping our “Three Promises” at thestore and responding to various customer needs.

Superior taste
Providing safety/
security-oriented
overwhelmingly highvalue-added products
We focus on developing original
products in such categories asrice balls, boxed meals, andbakery items so our customers
can buy safe foods from a nearby
LAWSON store every day. We
pursue “the most delicious taste”
by using carefully selected, quality
ingredients and the best method
for each product.

Creating smiles
through products madewith local ingredients
We actively work on thedevelopment and sales of theproducts made with local ingredients
as well as those reflecting local
specialties, cooperating with local
governments, high school students,and manufacturers.

Machikado Chubo
In-store Kitchens
Approximately 6,000 LAWSON
stores across Japan have
“Machikado Chubo In-storeKitchens” to prepare dishes onsite. Freshly made dishes, suchas cooked rice and thick pork
cutlets deep-fried, are preparedand cooked in the store and havea taste that can only be achievedby preparing them in the in-store
kitchen.

LAWSON Farms
We operate 21 “LAWSON Farms”(as of May 31, 2019) nationwide
to ensure the stable supply ofsafe, secure and high-quality
fresh produce that supports ourcommunities’ healthy diet to theLawson Group’s stores.

Human kindness
Care LAWSON“Care LAWSON” stores provide
support for elderly people and theirfamilies to meet the needs of theaging population. Each store offers
nursing-care consultation services
or a community space inside
the store. The stores also offer
nursing-care foods and products.

Developing healthy
food products
We work on the development ofproducts that are both “deliciousand healthy” to meet the growing
health consciousness.

Promotingcommunity health inpartnership with local
governments
We cooperate with local
governments, offering our store
parking spaces as venues forresidents’ health checkups andconsultations.

Management Owner System
Lawson's “Management Owner (MO) System”
supports FC owners to further expand theirmultiple-store operations through a strong
partnership with the headquarters. The programprovides them with multiple-store management
know-how as well as training opportunities todevelop skills necessary to become an excellent
management owner.

Introducing easy-touse store equipment

Mobile sales services

We have introduced tablets thattell store staff what, when, andhow tasks should be done so thatnew employees and inexperienced
crews* can quickly adapt to theirtasks. We have also introduced
POS cash registers with automaticchange dispensers to improvethe efficiency of cash registeroperations.

We provide mobile sales services
to care facilities, companies, andfactories that are located far fromour stores by visiting them andselling food products and daily
essentials. We also offer “eye-onthe-elderly” service, in which we
confirm the safety of the elderly
residents in cooperation with localgovernments.

* crew: part-time workers

Safety Station activities
We proactively participate in the Safety Station
Activities of the Japan Franchise Association (JFA).
Every store is committed to providing aid for suddenillnesses and injuries, protection from stalkers, andhelp for women, children, and the elderly in trouble aswell as preventing emergency scams.

Aid for sudden
illnesses & injuries:

Protection
from stalkers:

Responding to women's,children's and elderly's
evacuation:

Prevention ofemergency scams:

674 stores

3,663 stores

446 stores
1,857storesSource: FY2018 (JFA) questionnaires for franchise owners and store managers.
Extracted answers only applicable to Lawson.

“Happiness in Communities”
Fundraising
Support Dreams Fund(Scholarship program for children from single-parent families)
The scholarship program helps children in single-parent families make their
dream of continuing their studies come true through the National Federationof Single Parents and Children's Welfare Associations in Japan. A totalof 400 3rd-year junior high school students and high school students arereceiving 30,000 yen per month (no repayment required).
Lawson Green Fund
We provide support for elementary, junior high, and special needs school
greening activities across the country as well as for forest maintenance activities
conducted by volunteer groups through the National Land Afforestation
Promotion Organization. The number of projects that Lawson franchise owners
etc. had participated in has reached 1,467 (as of February 28, 2019).
“Dream Classes” FundWe support the Japan Football Association’s JFA KOKORO (HEART)
PROJECT "Dream Classes" to deliver the importance of having a dream andmaking efforts toward the dream to children.

Expanding ourservices for medicines
At our 214 stores* that offer OTC
medicines, including the “Healthcare LAWSON” stores, registeredsellers recommend appropriate
medicines for customers aftera consultation. Of these stores,
48 stores* also offer prescription
medicines. They are the storesthat you can rely on as you canbuy medicines on your way towork or home.
* As of May 31, 2019. The hours of OTC andprescription medicines sale vary depending on
the store.

Nutrition labels
Our original products show
nutritional information in an easyto-understand manner. Ouroriginal logo is on the front of
the packaging; the nutritional
information on the back.

Efficient logistics
Environmental (Machi) friendliness
Minimizing andrecycling food waste
The cooking oil used for deepfrying (waste oil) is recycled intoa feed additive (livestock feedingredient), and biodiesel fuel while
unsold food is turned into pig
and chicken feed and fertilizer at
recycling plants. Our food waste
recycling rate achieved 47.9% inFY2018.

Experiment toreduce food waste
In an effort to reduce food waste,
we experimented a food waste
reduction program in Okinawa
and Ehime prefectures from June
to August 2019. In this program,customers earned extra points
when they purchased a boxed
meal or rice ball that was about
to reach its limit of recommended
time of consumption, after 4 p.m.
Furthermore, 5% of the total salesof these items was donated tochild support organizations.

Reduce plastic
shopping bags
NATURAL LAWSON's plastic
shopping bags partially use
polyethylene made from sugar
cane. In addition, in order toreduce plastic shopping bags,
we created a "Convenience Store
Eco Bag" and have been runningsome campaigns to promote theuse of reusable bags since March
2007. The total number of eco
bags distributed has reachedapproximately 4.44 million* as ofFebruary 28, 2019.
* Includes eco bags other than theConvenience Store Eco Bags.

Reduceplastic for containersand packaging
In 2019, we started replacing cups
for "MACHI café"'s iced coffeewith paper cups. The lid for an
iced coffee cup has a drinking holeand does not require a straw.

We strive to improve fuel efficiency
by introducing hybrid delivery
vehicles in addition to promoting
joint deliveries and optimizing
delivery frequency. We provide
our drivers with guidance on safe
driving supported by delivery
management systems and drive
recorder, and we encourage themto stop idling.

Introducing energyefficient equipment
We began installing highly energyefficient CO2 refrigeration systems
in 2010. As of February 28, 2019,
approximately 3,400 stores have
iimplemented the systems.

Supporting areas
affected by disasters
When a large-scale disasteroccurs, we immediately set
up disaster relief headquarters
as a lifeline for the communityand provide support to stores,
factories, and delivery centers
to keep the stores open. In
addition, we deliver emergency
supplies, such as food and daily
essentials, to evacuation centers,
working together with the local
governments.

The Ten Energysaving Rules at stores
In order to stop wasting powerand reduce energy consumption atstores by improving the efficiencyof refrigeration and air-conditioningsystems, we have formulated
the "Ten Energy-saving Rules,"and every store is committed topracticing these rules.

Corporate profile

As of February 28, 2019/Consolidated

Company name

Lawson, Inc

Headquarters

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

President and CEO,
Representative Director,
Chairman of the Board
Established

Sadanobu Takemasu
April 15, 1975

Capital58,506.644 million yen

Number of employees

10,395 (consolidated)

Business activities

Franchise chain development of LAWSON, NATURAL LAWSONand LAWSON STORE100.
Net sales for all stores 2,424.5 billion yen (consolidated)
Number of stores

17,015 stores (worldwide)

Operating areas

All 47 prefectures in Japan, China (Shanghai, Chongqing, Dalian,Beijing, Wuhan, Hefei), Indonesia, Hawaii, Thailand, Philippines

Note1: Net sales for all stores is the sum of total sales by the domestic convenience store
business, overseas business and Seijo Ishii stores (consolidated subsidiaries only). For theSeijo Ishii business, only the total for its Company-operated stores is included.
2:The total number of stores is the total of LAWSON, NATURAL LAWSON, and LAWSONSTORE 100 stores operated by Lawson, Inc.; LAWSON stores operated by Lawson Sanin,Inc., Lawson Okinawa, Inc., Lawson Minami-Kyushu, Inc., and Lawson Kochi, Inc.; SeijoIshii stores directly operated by SEIJO ISHII CO., LTD.; and overseas LAWSON brandstores managed by regional operating companies.