Corporate Philosophy
Creating Happiness and Harmony in Our Communities
VisionTo be a leading company in execution.
Think through customers’ needs and changes, execute with speed andbecome an essential part of our communities.

Code of Conduct
1. Think as customers, communities and stores.
2. Master the basics and strive to innovate.
3. Improve the quality and speed of the Plan-Do-Check-Act cycle.
4. Act with discipline, take initiative and succeed as a team.
5. Grow as individuals and support the growth of our team members.

Living in Harmony with Communities:
Initiatives Report 2017

Lawson communication media
Living in Harmony with
Communities:
Initiatives Report

Integrated Report
An overview of theLawson Group’s businessactivities in local
communities and theoutlook for sustainablegrowthA simple, clearly written report on our
responses to social and environmental
challenges
Corporate Philosophy
Creating Happiness and Harmony in Our Communities
VisionTo be a leading company in execution.
Think through customers’ needs and changes, execute with speed andbecome an essential part of our communities.

Code of Conduct
1. Think as customers, communities and stores.
2. Master the basics and strive to innovate.
3. Improve the quality and speed of the Plan-Do-Check-Act cycle.
4. Act with discipline, take initiative and succeed as a team.
5. Grow as individuals and support the growth of our team members.

Integrated Report
An overview of theLawson Group’s businessactivities in local
communities and theoutlook for sustainablegrowthLiving in Harmony with
Communities:
Initiatives Report
A simple, clearly written report on our
responses to social and environmental
challenges

ローソン統合報告書
INTEGRATED REPORT 2017

マチと共に生きる取り組み報告 2017

INTEGRATED REPORT 2017

Report on industry trends
and the Group’s businessinitiatives and financial
position in relevant years,
as well as projected
earnings assessment/
analysis and outlook fornext fiscal year

Living in Harmony with Communities:
Initiatives Report 2017

Lawson communication media

Creating Happiness and Harmony in Our Communities

Creating Happiness and Harmony in Our Communities

Financial Section

Financial Section

Creating Happiness and Harmony in Our Communities

Report on industry trends
and the Group’s businessinitiatives and financial
position in relevant years,
as well as projected
earnings assessment/
analysis andoutlook fornext fiscal
2017 MD&A
year
Management’s Discussion and Analysis
経営陣による財務状況と業績の評価及び分析

私たちは“みんなと暮らすマ チ”を幸せにし ます。

1 11カ年財務サマリー
3 業界の動向
4 2017年2月期の経営施策
4 商品及びサービスの概況
4 店舗運営の概況
5 店舗開発の概況
6 コンビニエンスストア事業におけるその他の取り組み
8 営業数値の概況
10 その他の事業
10 損益計算書（連結）各項目の状況について
12 貸借対照表（連結）各項目の状況について
13 設備投資等（出資・融資ならびに、リース物件の取得価格相当額を含む）
13 キャッシュ・フロー
13 資本政策：配当及び自己株式消却
14 主な連結子会社・持分法適用関連会社の概況
18 今後の見通しについて
19 連結貸借対照表
21 連結損益計算書
22 連結包括利益計算書
23 連結株主資本等変動計算書
25 連結キャッシュ・フロー計算書

Lawson website Presents information and data not covered by Lawson publications

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 September 2017.
Next issue scheduled for publication September 2018.
© 1975-2017. Lawson, Inc. All rights reserved.

Lawson website Presents information and data not covered by Lawson publications

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 September 2017.
Next issue scheduled for publication September 2018.
© 1975-2017. Lawson, Inc. All rights reserved.

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Next pageCreating Happiness and Harmony
in Our Communities

Contents
Maintain…dreams into the future.

This is the Corporate Philosophy of the Lawson Group.
We aim to create communities where all community members can live in harmonyand feel happiness by helping the communities overcome the challenges facing themand responding to various customer requests and needs.

P02

Helping children achieve their dreams

P04

Ensuring a better life for the next generation

P06

Supporting children’s learning and development

P08

Preparing for disasters and supporting community reconstruction

Lawson Group Environmental Policy

Our Commitment

Our Principles

To sustain the blessings of Earth for future generations,the Lawson Group will consider the environment inevery aspect of our business activities and strive toachieve sustainable development and coexistence withlocal communities.

1 Creation of a low-carbon society

We will combat global warming by conserving energy and resources
and reducing waste in all our business activities.

2 Consideration in the development of
products and services
We will give proper consideration to effects on the natural environment
and local communities at every stage in the cycle of products and services,from procurement of raw materials to sales and disposal.

3 Active participation insocial contribution activities
We will participate actively in social contribution activities, serving
as a member of our communities in efforts to promote greeneryand beautification of the regional environment and pursuing otherinitiatives.

Link the blessings of Earth with
future generations.
P20Stores that “generate” or “save” energy for the future

P24

Effectively utilizing surplus food

P25

Processing imperfect vegetables for prepared dishes

P26

Effectively reusing fixtures and equipment

P27

Proposing a lifestyle with your own bag

P28

Reducing the environmental burden of our supply chain

4 Continuous improvements

We will strive to preserve the environment by leveraging ourenvironmental management systems to make continuous
improvements, which will be measured against objectives and targets.

5 Observance of laws and regulations

We will observe laws and internal rules related to environmental
preservation activities.

6 Promotion of communication

We will foster greater awareness of environmental preservation
through education, while also promoting communication withstakeholders.

Spread energy through our communities.
P10

A cup of coffee from MACHI café to put a smile on your face

P12

Health-conscious food

P14

Always supporting your health

P16

Making our communities vibrant

P18

Looking after your safety and security

Coordinate actions to preserve theenvironment.
P30

Keeping our communities clean and tidy

P31

Continuously improving our environmental performance

P32

Observing environmental laws and regulations

P33

Promoting communication with stakeholders

P34

Data sheet

P36

About usThe Sustainable Development Goals (SDGs) were adopted unanimously by 193 member countries of theUnited Nations Sustainable Development Summit convened at the United Nations Headquarters in September 2015.
The Summit set 17 goals and 169 targets for achieving the SDGs on a global scale by 2030. The Lawson Group iscontributing proactively to these efforts in the areas of economy, society, environment, human rights and governance.

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Lawson Living in Harmony with Communities: Initiatives Report 20171

(Scholarship program for victims of the Great East Japan Earthquake)
The Support Dreams Fund (scholarship program for victims of the Great East Japan Earthquake) is ascholarship program to support students who face difficulties in attending school due to the Great East Japan
Earthquake.
The following introduces the story of a student who is doing her best to realize her dreams with the help of
the scholarship, and the thoughts of the Lawson Group.

Maintain dreams into the future.

Helping children achieve their dreams
Support Dreams Fund

Support Dreams Fund pushed me
to take a step toward my dreams.
Murase: The Lawson Group established this fund on
April 14, 2011 with the belief that the power of young
people is essential for recovery from the Great East Japan
Earthquake and that we should not let young people giveup on their dreams. We want to foster young dreams.
Tabata: March 11 was the day before my junior highMs. Yuuri Tabata

Mr. Tatsuya Murase

Support Dreams Fund (scholarshipprogram for victims of the Great East Japan
Earthquake) scholarship student
From Minamisanriku-cho, Miyagi Prefecture
Senior at the College of International
Relations, Nihon University

Deputy Senior Vice President,
Division Director,
Franchisee Business Support Division

school graduation ceremony. After my house, where myhost family in the U.S. through a program of TOMODACHI

mother ran her hairdressing business, was washed away

Initiative, which is also supported by Lawson. Throughby the tsunami, I was worried that I might not be able tothis experience, I developed a desire to know the world

go to high school due to financial reasons. When I heard

more and hoped to go on to the College of International

about the Support Dreams Fund, I immediately applied for

Relations at Nihon University.

the scholarship and was able to go to the high school ofMurase: Many of the scholarship students express their

my choice.

gratitude for the fund and tell that they will give back to

Murase: It was our pleasure to have helped you. We havethe communities. I am full of emotion as I realize that ouralso developed products, part of whose sales is donatedfounding belief that the power of young people will reviveto the Support Dreams Fund. “Miyano Bread” developed

the communities was correct.

in cooperation with the students of Miyagi Prefecture

Tabata: I have found my dream. In the future, I’d like toAgricultural High School has livened up the communities

increase opportunities for children in Minamisanriku-

and boosted the fund, uniting our customers, businesscho to have more international exchanges. I wish to tellpartners, franchise stores, andthem how fun it is to learn English, give them learning

employees. I really felt that theexperiences that cannot be given at school, and makestudents’ desire to energize

Minamisanriku-cho more attractive.

the communities has been

Murase: It is important for us to continue to support eachconveyed to everyone who

community until the Tohoku region has fully recoveredbought the product.

from the disaster. We will ensure that our new members

Tabata: When I was a hightake over the projects, working together with franchiseschool student, I stayed with aowners for the future.

Lawson opened a store in “Machi Nami Marché”
in Namie-machi
Namie-machi, a town affected by the Great East Japan Earthquake, in Fukushima Prefecture
opened a temporary shopping center named “Machi Nami Marché” on October 28, 2016, in
preparation for the start of residents’ return in March 2017. Lawson, the first retailer to resume its
business in Namie-machi in 2014, also opened a store in the shopping center. The store delivers
daily essentials and peace of mind to the residents, serving as the community infrastructure.

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Lawson Living in Harmony with Communities: Initiatives Report 20173

Maintain dreams into the future.

“Happiness in Communities” fundraising activity to ensure a better
life for the next generation

Every little donation helps
keep forests healthy.

The Lawson Group is conducting “Happiness in Communities” fund-raising activities in support ofMr. Masaatsu Aoki

“greenery” and “children.” Its four pillars are: Lawson Green Fund, Support Dreams Fund (scholarshipManaging Director
The National Land Afforestation Promotion Organization

program for victims of the Great East Japan Earthquake), Support Dreams Fund (scholarship program for

The National Land Afforestation Promotion Organization is engaged inchildren from single-parent families), and TOMODACHI Fund.

environmental projects, especially afforestation, which include nationwide
tree planting/growing festivals, nationwide greening campaigns, theNational Fund for Forest Greenery and Waters, and the Green Scouts. We
offer support for creating forests both in Japan and foreign countries using
donations collected via the Green Fund, supported by Lawson, from many
citizens, companies, and organizations.
One person's small donation can make a big difference. The accumulation

8.6

Cumulative Donations:Lawson is also collecting
donations via Loppi multimedia
information terminals anddonations of Ponta reward
points and d reward points
in addition to those collected
through in-store donation boxes.

billion yen

About(From September 1992 through February 2017)
The amount above includes donations from Lawson
headquarters, donations via Loppi, donations of point
rewards, and donations for disaster-stricken areas
in addition to the funds raised by the “Happiness in
Communities” fund-raising activity.

2017

Lawson Green Fund

Support Dreams FundTOMODACHI Fund

Support Dreams Fund

Cumulative donations:
Approx. ¥3.91 billion

Cumulative donations:
Approx. ¥1.89 billion

Started(Scholarship program for children fromsingle-parent families)

Cumulative donations:
Approx. ¥90 million

Collection in the stores started on
July 1, 2017

StartedSupport Dreams Fund

(Scholarship program for victims of theGreat East Japan Earthquake)
Recipient: Civic ForceThis scholarship program has been organized to support
students affected by the Great East Japan Earthquake(No repayment required). In addition to providing each studentwith a scholarship amounting to ¥30,000 per month for a
maximum of seven years, it helps the students through various
activities, such as lectures, live performances and practicaleducation programs, until they start earning their own living.

4

anyone to donate whenever they wish. We are very happy about this.

Lawson Green Fund

The Lawson Green Fund is being used to support school greening

Recipient: The National Land
Afforestation Promotion Organization

year. We are also grateful that franchise owners and Lawson employees

2013(Scholarship program for victims of
the Great East Japan Earthquake)a bridge between people and the Green Fund in communities, enabling

installation—carried out at 60 elementary and junior high schools per

2011

Starteddonation boxes in its 13,000 stores throughout Japan, Lawson is offering

projects—including tree planting, tree maintenance, and biotope

1992(See page 5)of goodwill becomes a huge support for growing healthy forests. With

participate in forest improvement activities, including school greening
projects. It is very meaningful to actually enter forests and learn more about
them. In the future, we wish to work with Lawson to devise a mechanism of
cashless donations that is as easy as putting money in a donation box.

We are promoting activities to preserve
forests which are irreplaceable assets
for all creatures living on Earth forthe future. Through this fund, theLawson Group supports school
greening activities carried out mainly atelementary and junior high schools andschools for special needs education in
Japan, and greening projects in various
areas carried out by volunteer groups.

StartedTOMODACHI Fund

Support Dreams Fund

(Scholarship program for children from single-parent families)

Recipient: U.S.-Japan Council (Japan)
Started with the aim of extending support for recovery fromthe Great East Japan Earthquake, the TOMODACHI Initiative isa public-private partnership also aiming to develop leaders of
the next generation through educational and cultural exchange
programs. The Lawson Group has agreed with the purpose of
the initiative and continues to support it.

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Recipient: National Federation of Single Parents and Children's Welfare
Associations in Japan

This scholarship program has been organized to support children from single-parent
families so that they can continue on to receive higher education. A total of 400
students, are selected for the scholarships. Third-year students in junior high schools
and all students of high schools, colleges of technology, upper secondary courses at
specialized training colleges, and high schools for special needs education living inJapan are eligible to apply. It provides each student with a scholarship amounting to¥30,000 per month for up to 4 years (no repayment required).

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Contents

For detailed activities of the National Land
Afforestation Promotion Organization, visit
http://www.green.or.jp/

Lawson Living in Harmony with Communities: Initiatives Report 2017

5

The Lawson Group operates stores in the Student City hands-on learning facilities in Kyoto City and Sendai

Maintain dreams into the future.

Supporting children’s learningand development Student City* toinspire them to dream big

The real purpose of the virtual
experience is to develop
children's “skills for life.”
Ms. Midori Hayama

City to help children learn about social mechanisms through work and to provide an environment where

Teachers' Consultant of the Kyoto City Board of Education

they can learn and grow healthily.
*Student City is a registered trademark of Junior Achievement Japan, Japan headquarters of Junior Achievement, one of the world’s largest
educational organizations.

The KYOTO Student City allows children to have a virtual experience in asimulated city in Ikikata Tankyukan consisting of banks, stores, newspaper
companies, a ward office, etc. They can develop their “skills for life,”
including the ability to think for themselves, discuss, make decisions, andwork together, while understanding how society and the economy work.
Student City is like a “real city” as we want children to feel connected withthe real world. Products displayed at the LAWSON store in Student City
are also real ones. Since most children have experience shopping at areal LAWSON store in their neighborhood, it seems that the Student City
experience helps them understand the structure of society and how money
flows. I think this is because children are very familiar with Lawson.
A visit to Student City can change children dramatically. One principal has
told us that his students said they would study harder to do well at a job
after visiting the virtual city. It is a great pleasure for us that students haverealized what they are learning at school every day leads to their future. We
hope that Student City will provide students with a learning environment
suitable for each school’s circumstances, in further cooperation withcompanies and volunteers.

Student City is an educational program wherechildren can develop their social skills andunderstand the relationship with society,economic structures and what money/workis through hands-on experience as part oftheir learning at school. For example, they
can work as shop attendants, learning cash
register operations, customer service, sales
aggregation, etc.
For detailed activities of the Student City, visit
http://www.ja-japan.org/education/studentcity.html
The KYOTO Student City opened in January
2007 and celebrated its eleventh anniversary
this year. As of today, over 100,000 children
have learned here. For detailed activities of
the KYOTO Student City,visit
http://www.edu.city.kyoto.jp/scfp/

HAPPY LAWSON supports families with children
HAPPY LAWSON aims to support customers raising children. In addition to its wider aisles forstrollers, a multi-purpose toilet room and a nursing room, the store offers space to rest andchat in peace for every generation, from families with small children to visitors to the park.
HAPPY LAWSON Yamashita Park Store(Yokohama City, Kanagawa Prefecture)

6

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Lawson Living in Harmony with Communities: Initiatives Report 20177

In order to fulfill its role as a community lifeline when a disaster occurs, the Lawson Group is not only
prepared for large-scale disasters, but also has various quick disaster response measures and measuresfor continuing business at its stores in place .
We provide food, daily necessities and other relief supplies to the people in affected areas as support for victims.

Disaster preparedness and response
The Lawson Group aims to continue to provide customers with products and services by keeping as many stores open
for as long as possible on the premise of ensuring the safety of human life in the event of a large-scale disaster. For
this, we have formulated a “disaster relief manual” specifically showing what actions we should take when a large-scaledisaster occurs. We regularly conduct emergency drills, and confirm the procedures for disaster relief.
When a large-scale disaster occurs, disaster relief headquarters are set up immediately. Lawson takes advantage of a “disaster
information map system” designed to enable personnel to respond while thedisaster situation is being confirmed in real-time to conduct safety checks,
ascertain the nature of the damage, and implement support measures forshops, factories and shipping centers. We have also signed disaster goods
supply agreements and agreements to help stranded commuters withlocal governments and public organizations nationwide and are prepared
to send relief supplies to evacuation centers in cooperation with those local
Disaster information map systemgovernments.

Lawson won Best Resilience Award/
Selected as a Designated Public Institution
In March 2017, Lawson received a Best Resilience Award (in the field of Risk Communication Information) for its achievementof establishing a disaster information map system, an infrastructure system for sharing disaster
information. The award was part of Japan Resilience Awards 2017, an award developed to
discover, evaluate, and recognize efforts to make society strong and resilient in
preparation for large-scale disasters.
Lawson also became a Designated Public Institution on July 1, 2017, basedon the Disaster Countermeasures Basic Act (designated by the Prime Ministerof Japan). We will work closely with relevant government agencies to play animportant role in disaster prevention, emergency measures, disaster relief, etc.

8

Maintain dreams into the future.

Preparing for disasters andsupporting community reconstruction
Serving as a community lifeline

Disaster Response Activities for the Kumamoto Earthquakes
The Kumamoto Earthquakes that occurred in April 2016 caused enormous damage to Kumamoto and Oita Prefectures.
Immediately after the earthquakes, the Lawson Group established a disaster relief headquarters and confirmed the safety offranchise owners, crews, and headquarters employees. We strove to keep the stores open and to reopen the earthquake-impacted
stores as soon as possible, by dispatching headquarters employees and others from around Japan to the affected areas as an
emergency assistance team, arranging alternative deliveries from other undamaged delivery centers,
and sending temporary drivers and trucks to the affected areas.
Lawson immediately started supplying relief goods, such as drinking water and food upon receivinga request from the Disaster Response Headquarters established by Kumamoto Prefecture andKumamoto City. Furthermore, the Lawson Group began accepting donations through in-store
donation boxes, donations via Loppi multimedia terminals, and donations of Ponta reward points andd reward points from all over Japan. The donations received from customers totaled approximately
Emergency Response Team
312 million yen as of July 31, 2017.

Various emergency services in case of large-scale crises
in Japan provided by the Public Interest Incorporated
Association Civic Force
Mr. Taku Shinjo
Civic ForceThe Civic Force was established to realize quick and effective support for victims of largescale disasters, such as earthquakes, occurring in Japan, in collaboration with NPOs,
companies, local authorities, residents' organizations, etc. For Kumamoto Earthquakes
victims, the Civic Force conducted a variety of support activities, including search formissing persons, distribution of relief supplies, and management of evacuation centers.
We used the support offered by Lawson for improving and managing the evacuation
shelters, and three inkjet printers donated to our on-site offices. We cooperate with Lawson
in a variety of projects from emergency support for disaster-stricken areas to long-term
recovery assistance, such as the scholarship program Support Dreams Fund (scholarshipprogram for victims of the Great East Japan Earthquake). Lawson is indispensable for ouractivities, not to mention for people living in the communities.
*For detailed activities of the Civic Force, visit http://www.civic-force.org/

Prefabricated community space installed in
the aftermath of the Kumamoto Earthquakes■Disaster relief fundraisers carried out in FY2016
Name of Fundraiser

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Donations collected2016 Itoigawa City (Niigata
Prefecture) Large-scale Fire
Relief Fundraiser

2,111,567 yen

2016 Typhoon Lionrock
Relief Fundraiser

6,437,546 yen

2016 Kumamoto
Earthquakes Relief
Fundraiser

312,132,193 yen(Excluding products with
contribution)2016 Taiwan Earthquake
Relief Fundraiser

32,404,694 yen

Lawson Living in Harmony with Communities: Initiatives Report 20179

A cup of coffee from MACHI café
to put a smile on your face

Personalized customer service:
My strong desire to interact
with customers in irreplaceable
communities.
Ms. Shizuka Fukushima

MACHI café is our in-store freshly brewed coffee service. Our desire to build bonds with customers isreflected in every phase from growing of individual coffee beans to serving the customer at a store.

Spread energy through our communities.

FY2016 Top of Grand Fantasistas
Store crew, LAWSON Kumamoto Shinmachi 3-chome StoreWe are proud of the taste of the coffee we serve at MACHI café. It is
the fruit of our careful bean selection, post-roast blending, and use ofcustomized espresso machines. We are also proud of our full coffeeservice. This is a big feature of MACHI café, which I am very proud of.
After the Kumamoto Earthquakes occurred, I served a customer who wasa victim of the disaster. When I handed the coffee to her, she told me that it made her feel happy because it felt likethe coffee had been specially made for her. Her words remain etched on my memory. This convinced me that we
can indeed build bonds with our customers. I will continue to serve coffee along with some happiness to customers
in order to spread a smile to the whole community.
Customers of Kumamoto Shinmachi 3-chome StoreI come to the store for a cafélatte a few times a week. In
addition to its excellent taste,
Ms. Fukushima’s customer
service is superb. I can feel her
love and care for each customer
and for the community.

Environmental and social considerations
Rainforest Alliance CertifiedTM

Ms. Minako Oishi

Ms. Mika Asakawa

I think the smiling faces of the store
staff members and personalized
full coffee service give customers asense of security, as many of them
are elderly people and families
with small children living in thiscommunity. I have been a great fanof LAWSON store since the openingof this store 20 years ago.

Mr. Makoto Miyazaki

MACHI café Fantasistas: Our coffee masters

The Rainforest Alliance is a non-profit international environmental protection organization founded
in 1987. Rainforest Alliance certification is awarded to farms that satisfy rigorous standards
in such areas as environmental preservation and life quality improvement for farm workers.
Lawson uses only coffee beans* grown on certified farms for its MACHI café fresh-ground coffeeservice. Furthermore, as a member of the Rainforest Alliance Consortium jointly establishedby the Rainforest Alliance and companies that trade in certified products, Lawson engages inpromotional and educational activities in Japan by hosting symposiums, for example.

Lawson’s Fantasistas are store staff members who have rich knowledge about MACHI café andan abitity to present its uncompromising quality as well as the joy of tasting coffee. There areapproximately 9,000 Fantasistas nationwide (as of end of May 2017). They wear a special black
apron and serve coffee with cordial hospitality. 200 of them are called Grand Fantasistas, coffee
professionals selected from all LAWSON stores in Japan. Fantasistas are building bonds withcustomers through the coffee they serve.

*Excluding single-origin and decaffeinated coffee

10

I tried and compared various
coffee served at different
places, but I love MACHI café's
coffees more than coffee fromanywhere else. I am happy with
its reasonable price as I often
come here with my children.

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Lawson Living in Harmony with Communities: Initiatives Report 201711

Health-conscious foodfor mental and physical health
We offer not only safe, reliable, and health-conscious but also delicious food because we want ourcustomers to be both mentally and physically healthy while enjoying our food. Lawson wants to contribute

Easy to stick to - A major reason to choose
a low-carb diet for healthy eating.

to everyone’s good health by offering low-calorie, low-carbohydrate, and low-salt products.

Dr. Satoru Yamada (M.D., Ph.D.)

Spread energy through our communities.

Director, Diabetes Center, Kitasato University Kitasato Institute Hospital
President of Association for Healthy and Palatable Eating

The low-carb diet, which I recommend, allows you to eat when you feel
hungry without strict dietary restrictions.
Carbohydrates, or “carbs” for short, are one of the three major nutrients.
However, it is important to keep the amount at an appropriate level.
Therefore, I advocate a low-carb diet in which you limit your carb intake to
40g per meal or up to 130g per day.
It is a diet that is easy to stick to, even for taxi drivers who tend to havepeculiar eating habits and lifestyles. Their job often forces them to remain
seated for a long time, and to eat fast or late at night during their long work
hours. Due to their irregular lifestyles, compared to people with other jobs,
it is not possible for them to follow healthy living guidance, such as “eatslowly” or “sleep early and wake up early.” Lawson's low-carb bran bread
is ideal for drivers who often use convenience stores during work. Many
drivers say that they stick to the diet because bran bread is delicious.
The key to keeping your diet on track is to “enjoy the food you eat tobecome healthier.” It is also important that your healthy eating plan can

Bran Breadbe incorporated easily into your daily life. I am most grateful to Lawson
became popular. I am looking forward to the development of new low-carb

Our bran buns use fiber-rich bran (grain
husks) with fewer carbs than flour. Thesesoft, moist buns with a fresh-bakedaroma are low in carbs.

products that are both delicious and exciting.

Each bun contains

for developeding low-carb products and offering them well before the dietCarbs

Our suggestions for delicious
low-carb meals consisting offood sold at LAWSON stores.

Calories

Fiber

2.2 g 66 kcal 5.7g
Practice a low-carb diet with bran bread
HINOMARU Kotsu Co., Ltd.

We have many low-carb
products to reccomend.
Sightseeing taxi driver, HINOMARU Kotsu Co., Ltd.

Mr. Takeshi Watabe

The low-carb diet is easy for me to stick to as it allows me to eat anything I likeas long as I keep my carbohydrate intake low by mainly eating bran bread. I
don’t feel stressed from the diet. I tend to have irregular meal patterns becauseof my job, but I can buy Lawson's bran bread whenever and wherever I want. So
it is very convenient for me. I am also happy that Lawson’s wide variety of branbreads are all delicious.

The flyer images above are for illustrative purposes only.

12

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Lawson Living in Harmony with Communities: Initiatives Report 201713

Always supporting your healthLawson has ventured into providing an extensive range of self-medication support services to help
community residents maintain healthy lives. These services include support for senior citizens and theirfamilies and sales of medicines at LAWSON stores opened in collaboration with drugstore or dispensing
pharmacy chains and nursing care service providers.

There is a pleasure uniqueto convenience stores.
Ms. Haruka Hata

Spread energy through our communities.

Supervisor, Sapporo East Branch, Hokkaido Store Operations Dept., Lawson
Registered seller (qualified in 2012)

I often receive positive comments from our customers. For example, theysay, “It’s convenient that I can buy my lunch/drink and medicine at thesame time” or “I’m glad that I could buy medicine from a familiar face at
the LAWSON store outside the operating hours of local pharmacies.” You
can safely buy medicines from a familiar face at a familiar store whenever
you need to − this must be a huge advantage of buying medicines at
LAWSON stores for customers. As registered sellers, we are able to find themost suitable medicine for each customer through everyday conversationand consultation and can recommend it to support their health. In the past,when I noticed that one of our regular customers looked unwell, I spoke tohim/her and gave advice. I felt relieved when he/she visited us a few days
later in good health. When the customer thanked me, I was really glad to bea registered seller at Lawson.
Now I am working as a supervisor and planning to increase the numberof stores selling OTC medicines. I wish to create stores that give moresatisfaction to our customers. In addition to selling medicines, we hope thatthese stores will serve as “community health hubs” providing various healthservices to our customers. We hope that customers feel peace of mind at
Enhancement of OTC (over-thecounter) medicine sales

Healthcare Lawson offers products thatare not sold in other LAWSON stores,
such as OTC medicines and beauty
products. Registered sellers offer on-thespot consultation and advice, which has
been well received by our customers.
OTC medicines were sold at 158 storesas of the end of May 2017.

14

Opening stores with adispensing pharmacy on thepremiseIn order to open stores with an in-store
dispensing pharmacy, Lawson is working
with Qol Co., Ltd., a major dispensing
pharmacy chain, and MIZ-Pharmacy
Co., Ltd., a dispensing pharmacy anddrugstore operator in Saga and Fukuoka
Prefectures. 42 stores have been opened
as of the end of May 2017.

the stores and visit us again and again. “Creating Happiness and Harmony
Opening “Care LAWSON” stores

Care LAWSON supports senior citizens
and their families. It is complete with acare consultation counter and a salontype space where people of all ages cangather in a casual manner. It offers alarge assortment of products aimed atmeeting the needs of senior citizens andtheir families.
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in Our Communities” through health support services − this is what I wantto achieve.

Establishing collaboration with local governments toimprove community residents’ healthLawson aims to contribute to convenient and healthy community life with the slogan of being“community health hubs.” It has entered into agreements with local governments in Japan
concerning the promotion of health promotion activities. Based on these agreements, Lawson
cooperates with the local governments for their health promotion projects, such as distributionof information on health, health check-ups by examination cars on store premises, and healthconsultation events (projects vary depending on the local governments).

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Signing an agreement with Miyaki-cho
in Saga Prefecture

Lawson Living in Harmony with Communities: Initiatives Report 201715

Making our communities vibrant
Cooperation with local governments
Lawson collaborates closely with local communities and governments to conduct various activities,
including promotion of local production for local consumption, childcare support activities, response to

Bonds with people as the basis forcooperation with communities.

disasters, contribution to the environment, etc.

Mr. Nobuhiro Hagio

Spread energy through our communities.

Kyushu Area Support Dept., Store Operations Division, Lawson

Lawson has signed agreements with all eight prefectures, including Okinawa
and three cities in the Kyushu area, and is implementing various measures
such as sales of local products, promotion and advertising of tourism, andresponse to disasters.
The first prefecture we signed a comprehensive agreement with in this area is
Saga Prefecture. We opened an elderly-friendly store in 2006 at the requestof the prefecture. The store features wide aisles and sells fresh vegetables
and meat produced in Saga Prefecture as well as local specialties.
In Oita Prefecture, we launched two different types of bento (boxed meals)
made with local food ingredients every month under the brand name of"The Oita" in order to promote local production for local consumption. We
also launched cream puffs that contain sweet potato “Kanta-kun,” also
a local product, developed by a local high school student to promote the"Oita” brand.
In Fukuoka City, we have installed a fast EV charger at a store to respond to
EVs’ widespread use. These are just a few of our wide variety of initiatives.
Currently, stores in Fukuoka Prefecture have leaflet racks installed for the
prefecture’s PR materials in collaboration with the prefecture. These racks are
made using local wood (thinned wood) at a local support center for persons

Fukuoka Prefecture PR leaflet rackwith disabilities. This initiative involves many people from timber suppliers,

Using stores nationwide to make communities
happier and livelier

local support centers for persons with disabilities, local governments, Lawson,
and many other people who are willing to cooperate, connecting all the
Promotion andadvertising of
tourism

Lawson has entered into comprehensive agreements with 45 prefectures and7 government-designated cities to revitalize communities and to create better
living environments for every community member. Under these agreements,
Lawson cooperates with each local government and proactively promotes
various community contribution activities. These include making the stores
more community-based, developing products with locally-sourced foodingredients, providing welfare and childcare support, promoting tourism, andimplementing disaster prevention measures. In addition, we have openeda total of 10 antenna shops in collaboration with seven local governments.
Lawson takes advantage of its nationwide network to make communities
16

Disasterprevention
measurespeople involved. The most important thing is the relationships among people.
I have also realized that it is important for every single store to build close
Welfare andchildcare
support

Number ofcomprehensive
agreements signed:
45 prefectures,
7 cities

Promotion ofsales of locallysourced products
and food ingredients(As of the end of
May 2017)

bonds with the people in the local community.
We receive positive feedback on Lawson’s and local governments’collaborative efforts to solve problems andto respond to community needs, as wellEnvironmental
contribution

Crime prevention/
Development of young
peopleas many words of encouragement, fromour customers living in the communities.
Kanta-kun Cream Puff

Flyer at the time of the product launchthroughout Japan happier and livelier.
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Lawson Living in Harmony with Communities: Initiatives Report 201717

Looking after your safety and security
as a community safety station
The Lawson Group is proactively participating in the Safety Station Activities of the Japan Franchise

Prevented a special fraud
A customer in his 70s visited us to buy a gift card worth 38,000 yen. As he looked very unfamiliar

Association (JFA) by promoting cooperative efforts for safe and secure community development,with buying gift cards, a staff member asked the purpose of the purchase. The customer told the staff

environmental improvement for young people, etc.

that he was asked to do so by a third person on the phone. The staff member suspected this might
Spread energy through our communities.

be a scam and reported it to the police. When a police officer came to the store and enquired with thecustomer in detail, it was revealed to be a gift card fraud conducted by stealing the card number.

842

Aid for sudden illnesses & injuries:

stores1,470

Responding to women’s evacuation:

stores698

Protection from stalkers:

stores972

Looked after a lost child
A young child reported being lost. We kept the child while

Prevention of emergency scams:

searching for the child’s parents in the store and parking
area. As we could not find the parents, we called the police.
A police officer searched the neighborhood with the child,storesand the child was able to return home safely.

Source: Extracted from FY 2016 Franchise Owner & StoreManager Questionnaire (JFA) for LAWSON stores only

Protected a woman from a stalker

Mobile sales service

A woman rushed into our store. She said she

Lawson provides mobile sales services that involve

had been stalked by a strange man. We hid her

visiting homes for the elderly, companies, and factories

in the back room temporarily. As we thoughtthat are located far away from our stores to sell foodthat she might be stalked again on the way

products and daily necessities.

home from the store, one of the staff members

We work with local governments to provide an “eye-accompanied her home.

said there was smoke coming out of the house next to hers.
So one of the staff members went out to confirm the housewith the woman, calmed her down, and reported it to the fire
fire. Fortunately, it was just a small fire. Although it happened

the safety of the elderly residents who shop with us

18

A woman rushed into our store on a weekday evening anddepartment. Soon, a fire engine arrived and extinguished theon-the-elderly” service, moreover, in which we confirm
during mobile sales.

Protected a community from a fire

during rush hour, the incident did not have a large impact on
A new-type vehicle dedicated to mobile sales was introduced in
November 2016. The truck has four different temperature sections topreserve food at suitable temperatures and is equipped with mobile POS
devices that can register sales and print receipts.
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the people in the neighborhood.

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Lawson Living in Harmony with Communities: Initiatives Report 201719

Stores that “create” or “save”
energy for the futureFirst convenience store

First convenience store

Five-star & ZEB ratings

IoT-based energy saving support system

the technologies installed at the store and introduce those demonstrating high effects into our next new

The LAWSON Kodaira Tenjin-cho 2-chome Store, an

The system sends notifications to a tablet installed atregular stores.

eco-friendly model store, acquired a five-star rating,the store to carry out daily “energy savings.” It also

the highest in the Building Energy-efficiency Labelingsends the tablet notifications to carry out “energy

System (BELS), which evaluates the energy-savingsaving” (or “energy creation”) during peak energy

performance of buildings on a five-level scale.

consumption periods to ensure a stable power supply.

The store also achieved “net Zero Energy Building”

Upon confirming the notifications, store equipment(ZEB), the highest of the three levels (ZEB, Nearly(refrigerators, air conditioner, lighting equipment, etc.)

ZEB, and ZEB Ready) in the energy rating system forequipped with IoT technology in the store automaticallybuildings. If a building has achieved net zero primary

saves (or creates) energy. This is the first initiative of its

energy consumption (energy used for air-conditioning,kind to receive approval from the Ministry of Economy,

ventilation, lighting, hot

Trade and Industry as

water, etc.) through thea Virtual Power Plant

use of renewable energy,

Test Project in the

installation of highly energy-

convenience store

efficient equipment etc.,

industry.

The latest eco-friendly model store, the LAWSON Kodaira Tenjin-cho 2-chome Store(Kodaira City, Tokyo)

1

Energy creation (Create)52

6Solar power generation system:

14%

Approx.

Energy saving (Save)

3

First convenience store

Electricity
consumption to be
reduced by

60%

4

8%

Radiant panel air conditioner (with dehumidifier):Freezing and refrigeration systems using CO2 coolant+ refrigeration display cases with doors*:
Others:

16%
13%

37%

Approx.

compared to thefiscal 2015 level

Link the blessings of Earth with future
generations.

Lawson opens eco-friendly model stores featuring cutting-edge technologies. We verify the effects ofthe building is given a ZEB

1 Solar collector roof windows
Automatic lighting control
responding to natural light. Solarheat collected by the windows isused for heating during winter tosupplement the air conditioner.

3 Polycarbonate eaves
These brighten the sales floor,
contributing to reducing lighting
costs. During summer, they deflectsolar radiation and reduce solar heat,
improving air-conditioning efficiency.

rating.

2 Sloped ceilingLawson is introducing the latest energycreation and energy-saving technologies
to many of its stores.

This improves air-conditioning andventilation efficiency. A naturalconvection flow created by warm
air (heat) in the store rising tohigher part of the ceiling creates air
circulation or ventilation.

Mr. Naoto Tsuda

Store Construction Dept., Corporate Sales and Store Development Division, Lawson

4 Use of under-floor geothermal energy

We implement the latest energy-creation and energy-saving technologies

Geothermal energy accumulated in
the under-floor space is used for store
ventilation. The system improves airconditioning efficiency as it supplies
air close to room temperature.

at our eco-friendly model stores. Then, we verify the effects of thetechnologies and promote the introduction of those demonstrating
significant effects into other stores. As a result, LED lighting has now
been introduced at almost all stores while solar power generation systems
and freezing and refrigeration systems using CO2 coolant have been

5 Solar power generation system

6 Radiant panel air conditioner

Solar panels equivalent to 22kW are
installed on the rooftop of the store forpower generation. Power equivalent
to 10kW is to be sold, while power
equivalent to 12kW is to be consumed
in the store.

(with dehumidifier)introduced into about 2,000 stores. Our latest eco-friendly model store, the Kodaira Tenjin-cho 2-chome Store,

Radiation panels on the ceilingkeep the store cool in summer anddehumidify the air by discharging
the condensation generated.

has received the highest rating in the BELS, a system to evaluate the energy efficiency of buildings. In addition, 93
stores are equipped with the IoT-based energy saving support system that saves energy automatically when power
consumption peaks. The system would save a significant amount of energy if implemented in all our stores. I am
convinced that the Lawson Group, including franchise stores, can contribute to solving Japan's energy problems.

* See p.23 for freezing and refrigeration systems using CO2 coolant and refrigeration display cases with doors

20

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Lawson Living in Harmony with Communities: Initiatives Report 201721

Stores that “create” or “save” energy
for the future<Create>Lawson has set the goal of reducing per-store electricity consumption by 20% by fiscal 2020 (compared to

Solar power generation system

the fiscal 2010 level).

Lawson had installed solar power systems on the rooftops of about 2,000
stores by fiscal 2016. These systems have a generating capacity of 12

Energy-saving target
Lawson has set the goal of reducing per-store
electricity consumption by 20% by fiscal 2020
(compared to the fiscal 2010 level) and is promoting
measures to save and create energy.
*1 CO2 emissions derived using adjusted coefficients for receiving-end
terminals published by the Federation of Electric Power Companies ofJapan. The figures for fiscal 2016 and 2020 are estimates based on
coefficients for fiscal 2015.

■Per-store electricity consumption (index) and CO2 emissions*1
Annual electricity consumption index (left scale)CO2 emissions (right scale)

(%)
120
100
80
60
40

68.2

95.4

Base year
100.0

92.4

20
0

2010

*2 Calculated for April 1 to March 31 to coincide with the administrative
fiscal year.

2016

kW, comprising 10 kW (two 5 kW devices) for use in energy sales and 2
kW for in-store use.

(t-CO2)120

82.6
Target:reducedto 80.02020 (FY*2)

Solar panels equivalent to 22 kW installed at the Kodaira
Tenjin-cho 2-chome Store (excelling the usual 12 kW)

100
80
60
40
20
0

※1 CO2排出量は電気事業連合会で<Save>
出している受電端の調整後係数を使用。2016年度、2020年度
は2015年度の係数で試算。
※2 行政年度4月1日から翌年3月31日で算定Active introduction of freezing andrefrigeration systems using CO2 coolant
In fiscal 2010, Lawson began installing CFC-free (CO2 coolant)
freezing and refrigeration systems that have high energy-saving
Link the blessings of Earth with future
generations.

effects. The total number of stores with the systems reached about<Save>

2,000 as of February 28, 2017. The impact of CO2 coolant on

Ten Energy-saving Rules

1

Clean refrigerator and air conditioner
filters once a week

Earth’s atmosphere is very small, just 1/4,000 that of CFC coolants,

6

Restock hot drinks with products thathave been stored at room temperature

greatly reducing greenhouse gas emissions. CO2 coolant is also2

Keep air conditioner temperature settings at
27°C in summer, 18°C in winter, and OFF in
spring and autumn

7

Do not overfill storage freezers andrefrigeratorsstores by 12%.

3

Minimize the time for which doors to walk-in
and storage freezers and refrigerators are open
while moving products in and out

8Turn off lighting and air conditioning inback rooms and storage areas when no
one is present

4

Keep the area around outdoor units ofrefrigerators and air conditioners neat and tidy

9

Arrange products so that they do not
disturb the air curtains on open cases

Refrigeration display cases with doors

5

Restock summer products that are frozen instore from stocks that have been refrigerated

10

Minimize the number of times storage
freezers and refrigerators are opened

glazed doors to prevent cool air from leaking. Thermal insulators arehighly energy efficient, reducing the electricity consumption in all■ Reduction of electricity consumption

through use of CO2 coolant

12%

reduction

27%

reduction

Refrigerationequipment

Electricity consumption
at all stores<Save>

Refrigerationequipment

Electricity consumption
by cooling systems

Refrigeration display cases in some stores are equipped with doublealso enhanced for increased thermal insulation performance. These
improvements contribute to higher refrigeration efficiency.

Idea behind CO2 offsets
CO2 emissions are offset by efforts to reduce them elsewhere, such as afforestation, forest preservation and clean
energy use. LAWSON customers can exchange shopping Ponta reward points acquired by using their d point cards
for CO2 offset credits or purchase CO2 offset products. By offering these credits, we help customers offset their CO2
emissions. The total volume of CO2 offset so far is approx. 27,600 tons,
achieved by 33.16 million participating customers.

22

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Lawson Living in Harmony with Communities: Initiatives Report 201723

Effectively utilizing
surplus food
LAWSON Farms nationwide analyze the soil and grow agricultural products in healthy, mineral-fortified
soil. Also, LAWSON Farm Tottori uses compost made from waste food or other products from LAWSON
stores around the area for soil cultivation.
We have realized a food “recycle loop” system in which compost is made from waste food from stores,
the recycled compost is used for production of radishes, and the radishes are sold as ODEN products at
LAWSON stores.

Using imperfectvegetables for prepared foodor other deli items
Imperfect vegetables are agricultural products that are slightly different from perfect vegetables in termsof their appearance, such as their shape or size, although they have the same quality in terms of taste andnutrition. These imperfect vegetables are generally not suitable for sale and may be disposed of before
being delivered to stores. At LAWSON Farms, 10-15% of agricultural products are imperfect vegetables.
They are processed for deli items, salads, Japanese pickles, and other food items. This helps make

■Food recycling loop - a model in which waste food is circulated as resources -effective use of agricultural products.

Lawson ODEN

Production andprocessing ofradishes

LAWSON stores

Generation of waste“Recycle loop”
systemIntermediate
treatment

LAWSON Farms

Rawmaterial
supplyKatori Process Center

Product
supplyLAWSON stores

Use for salads, pet food, and other products

LAWSON Farms have earned JGAP
certification for their efforts to ensure
food safety and environmental
conservation

Composting facilities

certification in order to establish a proper farm management system for
LAWSON Farms. In FY 2016, 22 LAWSON Farms*2 nationwide earned
JGAP certification. This is the first case in which a retail company andagricultural corporation working together have obtained JGAP certification.
*1 JGAP (Japan Good Agricultural Practice): This is the certification for farms that work on foodsafety and environment conservation. It represents the good agricultural practices that arepromoted by the Ministry of Agriculture, Forestry and Fisheries of Japan for introduction.

LAWSON Farms*2 All LAWSON Farms except LAWSON Farm Jinsekikougenchou (which has met the JAS
standard for organic vegetables) have obtained the certification.

Our “LAWSON Farms” have expanded to 23 locations nationwide (as of the end of February 2017) toensure a stable supply of safe, fresh, high-quality fruits and vegetables to Lawson Group stores in order tocontribute to healthy lives. We procure fresh vegetables for LAWSON stores year-round from a nationwide
network of production areas.

24*3 The number below the JGAP certification logo is for LAWSON Farm Chiba.

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Manufacturing plants*3*1

Production of compost

Pre-cut
vegetables■Acquisition of JGAP certification

Lawson is working to ensure further food safety as well as to obtain JGAP

Use of compost

Link the blessings of Earth with future
generations.

LAWSON Farms andcontracted farms nationwide

As of the end of February 2017

Farm nameApplication items

Chiba
Hyogo
IbarakiIshinomaki
Oita Bungo Ono
Yamanashi
Hokkaido Honbetsu
Aichi
Miyazaki
Tokachi
Hokkaido Iwanai
Akita
NigataNagasaki
Tottori
Kumamoto
Satsuma
Ehime
Aichi Toyohashi
Kagoshima
Oita
Ichiki Kushikino

Radish, Japanese mustard spinach, carrot

Onion, Chinese cabbage, lettuce
Bunashimeji mushroom
Grape tomato, cucumber, green onion
Green onion

Grape
Wheat
Cabbage, Chinese cabbage
Cucumber

Onion
RadishMesclun green

Rice
Leaf lettuce, sunny lettuce, green onion, onion
RadishJapanese orange
Cabbage
Japanese orange

Strawberry
Radish, carrot, sweet potato
Tomato, grape tomato
Lettuce, leaf lettuce

Lawson Living in Harmony with Communities: Initiatives Report 201725

Effectively reusing fixturesand equipment
When we refurbish or close a store, we keep its fixtures and equipment that meet a certain standard in
our reuse centers and reuse them for refurbished or new stores. One reuse center is located in westernJapan and the other in eastern Japan. All fixtures and equipment are numbered for identification to enableeffective reuse in the stores regardless of their location.

Bring Your Own Bag campaign
to reduce the use of plastic
shopping bags
We cooperate with customers in reducing the use of plastic shopping bags by having store staff ask
customers whether they need them, and by creating and distributing our reusable shopping bags, theConvenience Store Eco Bags.

Fried foodcookerCreation and distribution of reusable shopping bags
Lawson makes Convenience Store Eco Bags to help reduce

Refrigerationequipment

the use of plastic shopping bags. These reusable shoppingbags are just the right size for the boxed meals and bottled

Magazine rack

drinks that customers buy frequently. In March 2007, weAir conditioning
equipment

Microwave

started handing out these bags in some LAWSON stores to
Link the blessings of Earth with future
generations.

promote our Bring Your Own Bag campaign. Later, we started
selling the bags through Loppi multimedia information
terminals. We also promote penetration of the bags outside
the company by releasing the bags’ specifications andinviting other companies to collaborate. We have distributed

Items to be stored
for reuse

4.38 million reusable shopping bags* in the 9 years since
we introduced the initiative.
* Including reusable shopping bags other than our Convenience Store Eco Bags

■Total number of distributed reusable shopping bags
Fiscal 20144.31

millionFiscal 2015

4.34

Fiscal 2016

million4.38

millionReducing the use of plastic shopping bags

Reuse center

We work to reduce the use of plastic shopping bags by having store staff ask
customers whether they need them, using in-store broadcasting, and putting

Reusing fixtures andequipment

up posters. We also participate in municipal campaigns to reduce the use ofplastic shopping bags by posting campaign notices and promoting the use of
appropriately sized plastic shopping bags. In fiscal 2016, the per-store use ofplastic shopping bags decreased by 25.9% compared with fiscal 2000, andthe plastic shopping bag handout rate was 78.0%.
■Municipalities conducting campaigns to reduce the use of plastic shopping bags
Prefectures: Fukushima, Okayama, Fukuoka, Nagasaki, and Kagoshima.
Cities: Asahikawa (Hokkaido), Sendai (Miyagi), Edogawa (Tokyo), Musashino (Tokyo), Yokohama(Kanagawa), Nagoya (Aichi), Kyoto (Kyoto), Nara (Nara), Izumiotsu (Osaka), and Amagasaki (Hyogo)

New or refurbished store
26

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A plastic shopping bag reduction campaign
poster posted in the stores

Lawson Living in Harmony with Communities: Initiatives Report 201727

Reducing the environmental burden infrom raw materials procurement toour supply chain
sales activities at stores

The Lawson Group operates as a manufacturing retailer based on a small commercial area model,
producing high value-added products and selling them in customers’ neighborhoods.

Lawson supports the“COOL CHOICE” Movement

To support these operations, Lawson is enhancing efficiency by expanding its involvement in every
stage of the supply chain, avoiding waste of ingredients in food processing and maximizing distribution“COOL CHOICE” is a national movement which aims to “reduce emissions of greenhouse gases(such as CO2).” This campaign encourages people to make smart energy-saving choices in their
daily lifestyles, such as by turning on or off lights in a room, turning on or off the water tap when
washing the face, and setting air-conditioner temperatures to appropriate levels. The Lawson
Group collaborates in this initiative and contributes to realizing a low-carbon society.

efficiency. In all these efforts, we are working to reduce the environmental burden.
■Materials flow and CO2 emissions in our supply chain

INPUT•Electricity•Water•Gasoline & diesel fuel•Crude oil•Foodstuffs, etc.

•CO2 1 *1•Waste materials•Effluent

Manufacturing plants

OUTPUT

Total CO2 emissions in fiscal 2016

•Electricity•Water•Containers &packaging, etc.

& natural gas•CO2 4•Gasoline•Electricity•CO2 5•Waste materials•Effluent•CO2 7•Waste materials•EffluentElectricity consumption
by franchise stores 5*2

1.73％［86.6］

Headquarters & offices•CO2 674.46％［3,711.8］

Energy consumption
by delivery centers 3 4•Electricity•Water•Paper & office supplies,etc.

Company
vehiclesStores

Delivery vehicles•CO2 3•Waste materials

4,985.1thousand tons

*1 The numbers 1 to 7 after “CO2” correspond to
the numbers shown in the bar graph.
*2 CO2 emissions in brackets (thousand tons)
Calculations are based on “Explanations by Industry (Retail Industry)
for the Basic Guidelines on Accounting for Greenhouse Gas
Emissions throughout the Supply Chain,” Ver. 1.0

28

Delivery centers•CO2 2•Waste materials•Effluent

1 2
Stocked raw materials(private and national brand products, plastic shopping bags, etc.)•Diesel fuelDisposal of containers,
disposable chopsticks andplastic shopping bags 5

0.69％［34.6］

Waste materials generated
by stores and industrial waste
generated at times of store
closures and remodeling 5

0.53%［26.3］

Electricity consumption byheadquarters,areas, branches,
and Company-operated stores

0.51％［25.3］ 5 7

Gasoline consumption
by Company vehicles［5.3］ 6%0.11

20.47％［1,020.4］

Business trips 7

0.01%［0.5］Electricity consumption
associated with procurementof electric power

1.49％［74.3］

In raw materials procurement process:In manufacturing process:In delivery process:At stores:

Lawson produces boxed meals, rice balls, desserts andother products using as many domestically sourced,
seasonal ingredients as possible. This not only contributes
to the revitalization of local communities across Japan,
but it also reduces energy consumption in transportationcompared to using ingredients imported from overseas.

We have introduced the Production Process
Management System, which carefully measuresingredients, product volume and servings down to agram. The system enables us to reduce food waste
by eliminating over-production.

Lawson promotes multi-drop deliveries andoptimizes delivery frequency. In addition, ourtrucks are fitted with eco-friendly tires to improvefuel economy. We also train drivers to prevent
unnecessary vehicle idling.

A semi-automatic ordering system has been
introduced for products such as boxed meals, riceballs, and bakery items. A proper merchandise
assortment and ordering quantities contribute towaste reduction by enabling customers to find what
they want whenever they come to a store.

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Link the blessings of Earth with future
generations.

Raw materials procurement•Electricity•Gasoline, diesel fuel &natural gas•Packaging materials•Electricity •Water•Propane gas•Crude oil•Raw materials &packing materials, etc.

Lawson Living in Harmony with Communities: Initiatives Report 201729

Keeping ourcommunities clean and tidy

Continuously improving
our environmental
performance

The Lawson Group participates proactively in local cleanup and beautification activities andenvironmental events that are hosted by municipalities or other organizations.

Lawson strives to preserve the environment by utilizing the ISO 14001 Environmental Management System

We introduce our environmental activities and promote the Lawson Green Fund in local

to make continuous improvements, which will be measured against targets.

environmental events.

■Lawson Group’s target image

Contributing to achieving a sustainable
society from two perspectives
The Lawson Group seeks to contribute to achievement of a sustainable
society from the following two main perspectives.
First, we pursue activities that make proactive contributions to society
and the environment. In particular, we are endeavoring to determine thevolume of CO2 emissions released from our supply chain and installing
the latest energy-efficient equipment in our stores as part of our efforts
to reduce CO2 emissions from our operations.
Second, we provide proactive support for our customers’ social andenvironmental activities by delivering eco-friendly products and services.

n Drive
All Kyoto Beautificatio .)Sendai Eco Festa 2016

Date: September 4, 2016 (Sun.)
Place: Civic Square, Kotoudai Park (Aoba-ku, Sendai City,
Miyagi Prefecture)
We have been active participants since 2012.

30

Using the ISO 14001 Environmental Management
System to reduce the environmental burden

Tanba FriendshipWe employ the ISO 14001 Environmental Management System to promotebusiness activities that are considerate of society and the environment andimplement the PDCA (Plan-Do-Check-Action) cycle to promote a harmonious
relationship with society and reduce the environmental burden. To promote
the ISO 14001 Environmental Management System, the CSR Promotion
Department of the Franchisee Business Support Division acts as a secretariat,
and cooperates with the representatives of headquarters, the various areas,
and the Group companies responsible for CSV* promotion to conduct activities
including managing progress with respect to social and environmental goals,
providing guidance and assistance for stores and responding to internal andthird-party environmental audits. To ensure that the management system isfunctioning effectively, in addition to internal environmental audits conducted
several times a year, the Company is subject to third-party audits. We arecontinuously verifying the status of our activities through such means andworking to improve them. In FY 2016, our management system was assessedby third-party auditors for the transition to the ISO 14001:2015 standard, andthe certification was successfully registered.

Fe

stivalDate: October 29
Place: Tanba-no-mand 30, 2016 (Sat. and Sun.)oriPark, (Tanba
We have been act
ive participants sinCity, Hyogo Prefecture)ce 2009.

Proactive social andenvironmental activities

Reduction of theenvironmental burdenin everything from raw
materials procurement
to sales activities atstoresCooperative social andenvironmental
activities with customers

Support for customers’
activities throughproducts and services■We utilize the Environmental
Management System to monitor progress

Coordinate actions to preserve theenvironment.

6 (SunDate: November 6, 201 g districts and tourist spots)
Places: Kyoto City (shoppin
Participants:41
icipants since 2004.
We have been active part

Love Earth Cleanup2017
Date: May 21, 20
Places: Oohori Pa17 (Sun.)
Participants:88 rk (Chuoh-ku, Fukuoka City)
We have been act
ive participants sin
ce 1994.

Achievement of asustainable society

Plan

ActionEnvironmental
Management System
ISO 14001

Check

Do

[Applications forISO14001
certification](As of March 1, 2017)

20 divisions, 8 areas,
4 Group companies and13,111 stores**As of end of February 2017

* CSV: Creating Shared Value, the creation of value through business activities that both addresssocial issues and contribute to corporate growth.
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Lawson Living in Harmony with Communities: Initiatives Report 201731

Observance of environmental
laws and regulations

Promotion ofcommunication with stakeholders

The Lawson Group observes environmental laws and regulations, identifies potential environmental risks

We will foster greater awareness about environmental preservation by promoting social and environmental

through internal audits and endeavors to prevent environmental accidents.

education while also promoting communication with stakeholders.

The Group also shares results of internal audits, trends of new regulations, examples of accidents
experienced by other companies and other information within the Group, and seeks to raise awarenessInternal environmental training

Groupwide.

The Lawson Group provides social and environmental
education for headquarters employees as well as for
franchise owners and store managers and crews. We also
conduct new employee training as well as annual generalenvironmental training for all employees via e-learning.
Franchise stores receive training at the time of store
openings and a flow of information through in-housemagazines and our Living in Harmony with Communities:
Initiatives Report. The representatives responsible forpromoting CSV activities participate in internal and external
training and take the environmental certification test to raise
their own awareness of the environment.

Main laws and regulations
Name

Category
Energy efficiency

Act on Promotion of Global Warming Countermeasures(Global Warming Countermeasures Act)

Energy efficiency

Waste Management and Public Cleansing Law

Waste reduction

Law for Promotion of Recycling and Related Activities for Treatment of
Cyclical Food Resources

Waste reduction

Law for the Promotion of Sorted Collection and Recycling of Containers andPackaging (Container and Packaging Recycling Law)

Waste reduction

Private Sewerage System Act

Water pollution

Act on Rational Use and Proper Management of Fluorocarbons(Fluorocarbon Emission Control Act)

Ozone layer
protection

Act on Special Measures Concerning Procurement of Electricity from
Renewable Energy Sources by Electricity Utilities (Renewable Energy Act)

Energy efficiency

Communication with business partners
who collect waste oil
Once a year, Lawson and its business partners whocollect waste oil across Japan gather and engage in directcommunication to cooperate in improving the observance oflaws and regulations and service levels. As part of this effort,
we present awards to the partners and their drivers who
were highly rated in store questionnaires to raise awarenessof further improvement.

Recycling unsold food
Each day, the average LAWSON store generates
approx. 9 kg of unsold food waste and approx. 2 kg of■Lawson Group
Number of stores conducting food recycling(Number of stores)103

oil (waste oil) used in the preparation of fried foods. The

15,000170

174

Lawson Group sends unsold food to recycling plants,

12,000where it is processed into feed (for pigs and chickens)

906

2,381
11,47012,348

9,000

2,475
11,059

7,403

44.7

41.1

44.3

6,000

36.5

38.5

40.5

2014

2015

2016 (FY)and compost. Collected used cooking oil is made into
livestock feed additives, biodiesel, and other products.
As a result of such efforts for recycling, we achieved afood recycling ratio of 44.3% in fiscal 2016, above thestatutory target of 40.5%.

3,000
0

2,582

22.5
2007

(Base year)

(%)

100
80
60
40
20
0

*2

Waste oil recycling (left scale) Recycling into feed and compost (left scale)
Thermal energy recovered (left scale)
Rate of implementation of activities such as food recycling*1 (right scale)Statutory target (right scale)*1 The food recycling ratio does not include Lawson Okinawa, Inc.,
Lawson Minami-Kyushu Inc., Lawson Kouchi, Inc., or Lawson Sanin, Inc.
*2 April 1 to March 31.

32

Coordinate actions to preserve theenvironment.

Act on the Rational Use of Energy (Energy Saving Act)

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CSV Subcommittee
With the CSR Promotion Department of the Franchisee Business Support
Division acting as a secretariat, the CSV Subcommittee convenes
meetings every month attended by representatives of headquarters, thevarious areas, and the Group companies responsible for CSV promotion.
Its principal activities include managing progress and sharing information
with respect to social and environmental goals, providing guidance andassistance for stores, responding to internal and third-party environmental
audits, and promoting social and environmental education.
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Lawson Living in Harmony with Communities: Initiatives Report 201733

Data sheet (As of end of February 2017, except items with a specific date)Per-store electricity consumption (index)
and CO2 emissions*1
Annual electricity consumption
index (left scale)CO2 emissions (right scale)（%）
100

Base year

80

68.2

Target:2）
20% reduction （t-CO120
in electricity
consumption

95.4

82.6

CO2 Offset Program
Total number of participating customers

33.16

100
80

60

60
100.0

92.4

40

80.0

20

0
2010

2016

（t）
40,0002020(Fiscal year)*2*1 CO2 emissions are derived using adjusted coefficients for receiving-end terminals published by theFederation of Electric Power Companies of Japan. The figures for fiscal 2016 and fiscal 2020 are
estimates based on the coefficients for fiscal 2015.
*2 Calculated for the year from April 1 to March 31 to coincide with the administrative fiscal year.

Approx.

35,891

million27,6004,985.1

Disposal of containers,
disposable chopsticks andplastic shopping bags

thousand tons 1.73％

Stocked raw materials(private and national brand products,
plastic shopping bags, etc.)

0.69％［34.6］［86.6］

74.46

10,000Waste materials generated
by stores and industrial waste
generated at times of store
closures and remodelingElectricity consumption
associated withprocurement ofelectric power

1.49％［74.3］

0.53%［26.3］■ １店舗１日当たりの廃棄物量推計
Waste oil

8.8

11.0kg

0.1

Combustibles

20.8

Non-food waste

44.4kg*Cardboard

15.1

Plastic
PET bottles 1.3
Cans 2.5*The sum of food and other waste is 55.4 kg.
*April 1, 2016 to March 31, 2017.

34

3.5

Glass bottles

1.1

12,000
9,000
6,000
3,000

2,475

2,381

11,05911,470

3
0.02

906
44.7

41.1

36.5

38.5

7,403

44.3

80

42

20

0
2014

2015

2016

(Fiscal year)*2*1 The food recycling ratio does not include Lawson Okinawa, Inc.,
Lawson Minami-Kyushu Inc., Lawson Kouchi, Inc., or Lawson Sanin, Inc.
*2 April 1 to March 31.

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76.8

78.0

667

668

667

(As of end of May 2017)

Contents

（%）
100
75

600

50

300

25

0

0
2000
(Base year)

2014

2015

2016
(Fiscal year)

Achievements of Lawson Green Fund
activities
Cumulative donations:

Activities conducted in

3.91

4,148

Approx.

Approx.

billion yen

locations

Size of the area planted Number of trees
for greening:planted for greening:

17.76

ha

millionThe size of the area and the number of trees planted for greening have been
calculated on the basis of the total amount of donations raised through Lawson
Green Fund activities, the overall achievements of the Green Fund activities, andother assumptions. (From September 1992 through February 2017)

Bodies concluding disaster goods
supply agreements
Others:Tokyo Fire Department andJapan GroundSelf-Defense Force

47
17
8

prefectures;cities and wards

stores0
2007(Base year)

900

900

77.1

Local governments:

Number of stores with a dispensing
pharmacy on the premise

40.5

22.5

(Fiscal year)

stores

100

40

2016

2012

158

(%)

60

2002

Plastic shopping bags used per store (left scale)
Plastic shopping bag handout rate (right scale)

7,104

2.0

Number of stores selling over-thecounter (OTC) medicines

2,582
12,3488.6

4.38million

Plastic shopping bags used per store

Approx.

billion yen

Fiscal 2016

mass transit systems

2

Data sheet

Others

Food

0.01

103
174

2016
(Fiscal year)

8.6

1992

170

2015

6

0

(Number ofstores)
15,0002014

6.6

Waste oil recycling (left scale) Recycling into feed and compost (left scale) Thermal energy recovered (left scale)Statutory target (right scale)
Rate of implementation of activities such as food recycling*1 (right scale)

2.2

Unsold foodResults for about 420 LAWSON stores in Tokyo

Results for about
2,500 LAWSON
stores conducting
food recycling

20(Billion yen)
9

Food recycling ratio & number of stores
conducting food recycling

Average daily waste per store

10,721

10,339Approx.

Gasoline consumption Business trips
Electricity consumption byheadquarters, areas, branches, by Company vehicles%［0.5］and Company-operated stores

0.11%［5.3］

10,189Total customer donations received
since 1992 (including disaster relief funds)

20.47％［1,020.4］

0.51％［25.3］

10,6854.34million

（kg）
1,200

4

2006
(Base year)* CO2 emissions in brackets (thousand tons)
Calculations are based on “Explanations
by Industry (Retail Industry) for the Basic
Guidelines on Accounting for Greenhouse
Gas Emissions throughout the Supply
Chain,” Ver. 1.0

4.94

Fiscal 2015

4.31million

60Electricity consumption
by franchise stores*％［3,711.8］

5.02

5.41

20,000tons

Energy consumption
by delivery centers

34,63732,511

5.81

30,000CO2 emissions from our supply chain in fiscal 2016
Total CO2 emissions（g）
841,576

Total number of distributed reusable
shopping bags
Fiscal 2014

Total weight (left scale)CO2 emissions (left scale)
Weight per container (right scale)

Total CO2 offset

40
20

0

Container/packaging weight and CO2
emissionselectric power companies

Conclusion of agreements to help
stranded commuters
Local governments:

41

prefectures;

10

government-designated cities(As of March 1, 2017)

Lawson Living in Harmony with Communities: Initiatives Report 201735

About us
Corporate profile
Company name
Headquarters

As of end of February 2017 (Consolidated) (As of end of May 2017 for representative)

Business activities

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

Franchise chain development of LAWSON,
NATURAL LAWSON and LAWSON STORE100.
Net sales for all stores 2,157.9 billion yen (consolidated)
Number of domestic 13,111 storesstoresOperating areas
All 47 prefectures in Japan
China (Shanghai, Chongqing, Dalian, Beijing,Wuhan),Indonesia, U.S.A (Hawaii), Thailand, and Philippines

President and CEO,
Representative Director Sadanobu Takemasu
Chairman of the Board
Established
April 15, 1975
Capital58,506.644 million yen
Number of employees 9,403

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 the SEIJO ISHII business, only the total for its company-operated stores is included.

Main Lawson Group Companies
Field
Domestic convenience
store businessCompany name
Lawson, Inc.
Lawson Store100, Inc.
SCI, Inc.
Lawson Okinawa, Inc.
Lawson Minami-Kyushu, Inc.
Lawson Kochi, Inc.
Lawson Sanin, Inc.

Entertainment business

Lawson HMV Entertainment, Inc.
United Cinemas Co., Ltd.

Financial services business

Lawson ATM Networks, Inc.

As of end of February 2017
Field

Company name

Consulting business

BestPractice, Inc.

Overseas business

Lawson (China) Holdings, Inc.
Shanghai Hualian Lawson, Inc.
Chongqing Lawson, Inc.
Dalian Lawson, Inc.
Beijing Lawson, Inc.
Saha Lawson Co., Ltd.

SEIJO ISHII business

SEIJO ISHII, CO., LTD.

2: The total number of stores in Japan is the total of LAWSON, NATURAL LAWSON and LAWSON STORE100 stores operated by Lawson, Inc., Lawson Sanin, Inc.,
		 Lawson Okinawa, Inc., Lawson Minami-Kyushu, Inc., LAWSON stores operated by Lawson Kochi, Inc., and Seijo Ishii stores operated directly by SEIJO ISHII, CO., LTD.

Main businesses and services

Total number of stores (in Japan and overseas)*

Areas in which stores are operated 14,267stores
Number of stores in Japan*
Hokkaido region

637 storesTohoku region

1,053 stores
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima

234
169
227
188
105
130

As of end of February 201713,111stores

Kanto/Koshinetsu region

Chubu region

Kinki region

Chugoku region

Kyushu/Okinawa region

4,517stores 1,580 stores 2,458 stores 779 stores
IbarakiTochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
Niigata
Yamanashi
Nagano

193
157
115
599
550
1,588
872
148
122
173

ToyamaIshikawa
Fukui
Shizuoka
Aichi
Gifu
Mie

186
104
110
256
629
164
131

Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama

154
328
1,048
663
128
137

Shikoku region
Tokushima
Kagawa1,473 stores

137
149
172
199
122

Tottori
Shimane
Okayama
Hiroshima
Yamaguchi

614 stores

134
131

Fukuoka
Saga
Nagasaki
Kumamoto
Oita
MiyazakiKagoshima
Okinawa

473
68
106
145
176
104
191
210

214
135

Ehime
Kouchi

1,156 stores

Beijing

48 stores

Dalian82 stores

Lawson Kochi, Inc.
Lawson Sanin, Inc.

A store that contributes to savings and an easy,
convenient daily life by selling a range of products suchas perishable foods, prepared foods, and daily necessities
at a uniform price of 100 yen (108 yen, including tax).

Thailand136 stores

85 stores

Shanghai

665 stores

72 stores
The Philippines 30 stores

A home-delivery service providing healthful and delicious
food. An all-round home delivery site on which customers canpurchase not only Lawson Fresh products but also food, daily
necessities, and other items handled by the Lawson Group.

Indonesia

36

2 stores36 stores

Twenty-three farms nationwide producing fresh fruit andvegetables for Lawson Group stores.

Operating company

Lawson, Inc.

Individual LAWSON farms

55 stores nationwide specializing in CDs, DVDs,
and books.

Sales of the full range of entertainment tickets, including
tickets to concerts, sports events, plays and movies.

Operating company

Lawson HMV Entertainment, Inc.

Lawson HMV Entertainment, Inc.

A comprehensive entertainment e-commerce website
selling CDs, DVDs, and books as well as concert, sport,
and theatre tickets.

Operation of multiplex movie theaters offering not only
film entertainment but also such enriching experiences
as 4DX® (experiential viewing) and various contents
other than movies.
Operating company

Lawson HMV Entertainment, Inc.

United Cinemas Co., Ltd.

A business that provides installation, management
and operation of ATMs installed at LAWSON stores incooperation with banks.

Delivery of products handled by the Lawson Group andhome-delivery items handled by Sagawa Express Co., Ltd.
and other services related to shopping and housing/livingwith LAWSON stores as the starting point.

About us

HawaiiA food-lifestyle supermarket for people who care about
food, providing food from around the world at affordable
prices.

SEIJO ISHII CO., LTD.

Operating company

Wuhan

Lawson, Inc.

Operating company

Operating company

Lawson Store100, Inc.

Operating company

Chongqing

A nearby store, observing a “daily and reliably” conceptthat supports customer lifestyles embracing “beauty,
health, and comfort”.
Operating company

Operating companies

Lawson, Inc.
Lawson Okinawa, Inc.
Lawson Minami-Kyushu, Inc.

Operating company* The number of stores above includes stores operated by Lawson Sanin, Inc., Lawson Kochi, Inc., Lawson Minami Kyushu, Inc., and Lawson Okinawa, Inc.
The number of overseas stores is the number of LAWSON brand stores run by the operating company in each region.

Overseas stores

A nearby “neighborhood store” that seeks to realize its
Corporate Philosophy of “Creating Happiness and Harmony in
Our Communities” by conducting business as a manufacturingretailer based on a small commercial area model.

As of end of February 2017

Operating company
Operating company

Lawson ATM Networks, Inc.

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Lawson Living in Harmony with Communities: Initiatives Report 201737