Environmental and Social
Activities Report 2006

LAWSON, INC.
CSR Promotion Office
1-11-2 Osaki, Shinagawa-ku, Tokyo 141-8643, Japan
Tel: +81-3-5435-1350
Fax: +81-3-5759-6944
URL: http://www.lawson.co.jp/
Published July 2006
Next publication July 2007 (scheduled)© 1997–2006 LAWSON, INC. All rights reserved.

White wood from forest thinning,approval number K0301090•This report is printed on forest-thinning paper (10% of materials from thinning domestic forests,
90% from recycled paper recovered in the marketplace).
•Printed using soybean-based inks approved by the American Soybean Association.

Printed in Japan“Happiness and Harmony
in Our Community”

C O N T E N T S
Top Management Message
2
30th Anniversary Special Feature
Toward the “LAWSON of the Future”
that Everyone Wants
3
2005 Activities Report
For Customers
9
Customer Input
Trends in New Business Development
Tasty Products that are Safe,
Secure and Healthy
For Owners
15
Support Structure for Owners
For Employees
17
Personnel Training, Workplace Environment
For Society
19
Social Infrastructure
Regional Social Contribution Activities
Supporting Customer
Social Contribution Activities
For the Environment
26
LAWSON Environmental Policy
Measures to Prevent Global Warming
Measures to Curtail Energy Consumption
Waste Reduction
Measures to Conserve Resources
Distribution Efforts
LAWSON Green Fundand Afforestation Activities
Structure for Promoting Environmental Activities
About LAWSON
42LAWSON’s Organization
LAWSON’s History
Company Overview

Company Overview(As of February 28, 2006)
English Company Name
Address(Stores)

10,000Tokyo Headquarters:
East Tower, Gate City Osaki, 11-2,
Osaki 1-chome, Shinagawa-ku
Tokyo 141-8643, Japan
Osaka Headquarters:
9-1, Toyotsu-cho, Suita City Osaka
564-0051, Japan

President and CEO

Takeshi Niinami

Established

April 15, 1975

Capital¥58,506,644,000

Employees

3,120Store Revenues¥1,361.7 billion

Stores8,366 (in Japan)

Store Coverage

All 47 Japanese prefectures, as well as
Shanghai, People’s Republic of China(joint venture)0

LAWSON is strengthening its resolve
to truly live up to its corporate philosophy by promoting “Happiness andHarmony in Our Community.” Thisphilosophy incorporates a sense ofcompassionate consideration fort h e environment—in the specificregions in which we operate, as well
as globally—and LAWSON’s headquarters and stores are cooperating
to undertake environmental preservation and social contribution activities
on a national scale.
This environmental report—oureighth—outlines our environmental
activities in fiscal 2005, including
the saving of energy and resources,
and reduction of waste. The report
also describes LAWSON’s social contribution activities, including our
Green Fund, as well as afforestation
and regional environmental cleaning
initiatives. Also, this report describes
the full extent of our new corporate
philosophy from the viewpoint of ourcontributions to our customers,
the owners of franchise stores, crews(part-time staff), as well as society
and the economy as a whole.
Through the cooperation of ourcustomers and residents of the regionsin which we operate, LAWSON isstriving to become “The ‘Hot’ Stationin the Neighborhood.” This report
describes exactly how.

•ScopeThis report concentrates specificallyon LAWSON as a parent company,
its member stores and some affiliatedcompanies, and includes some of
the cooperative efforts of business
partners involved in distribution, themanufacture of rice-related products,
and sales and waste management.

•Period
The primary period covered by thisreport is fiscal 2005 (the fiscal year
from March 1, 2005, throughFebruary 28, 2006), but also includes
some information from previous fiscal
years as well as activities for fiscal
2006.

•Next Publication
Scheduled for July 2007

•Reference Guidelines
Ministry of the Environment “Environmental Reporting Guidelines, fiscal
2003 edition”

LAWSON ATM Networks, Inc.
Installation, operation and management of jointly operated ATMs in Lawson stores; deposits/withdrawals, transfers and related financial services via ATMs (outsourced
from partner financial institutions)
BestPractice Inc.
All activities related to conducting convenience store surveys, proposals for improving LAWSON stores
NATURAL LAWSON, Inc.
Establishment of the NATURAL LAWSON store format,
product planning and development, oversight of shop
management
VALUE LAWSON, Inc.
Establishment, product planning, development and operational guidance of shops of the LAWSON STORE100 format, which offers value products at simple prices, primarily targeting women and senior shoppers
LAWSON CS Card, INC.
Issuance of LAWSON PASS credit cards to Lawson customers; provision of card-based services through Loppi
multimedia terminals and other channels
SHANGHAI HUALIAN LAWSON Co., Ltd.
Development of Lawson store chain in Shanghai, PRC

2004/2

2005/2

2006/2

1,288

1,329

1,362

2004/2

2005/2

2006/2

246

254

268

2004/2

2005/2

2006/2(Billions of yen)

Total
1,500
Net Sales(Consolidated) 1,200
900
600
300
0

(Billions of yen)

Total Operating 300
Revenues
250(Consolidated)
200
150
100
50
0

(Billions of yen)

25

19

20

20

22

15
10

LAWSON TICKET, INC.
Sales of tickets for concerts, movies, sporting and otherevents, mainly through Loppi multimedia terminals located inside Lawson stores
i-Convenience, Inc.
Operation of the official LAWSON Mobile website formobile phone users; provision of online merchandise,services and information through this site

8,366

2,000

Primary Affiliates

Scope of Report

8,077

4,000

Net Income(Consolidated)

About this Report

7,821

8,000
6,000

LAWSON, INC.

Scope of Operation Development of LAWSON convenience
store franchise chain

Editorial Direction

1

Stores(Japan)502004/2

2005/2

2006/2LAWSON Stores (in Japan, as of February 28, 2006)
Hokkaido
Branch Office
TohokuBranch Office
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima
Niigata
Kanto
Branch Office
IbarakiTochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
Chubu
Branch Office
Yamanashi
NaganoGifu
Shizuoka
Aichi
Mie
ToyamaIshikawa
Fukui

500
861
139
171
162
131
55
97
106
2,218
107
105
68
323
287
843
485
1,109
62
136
91
151
340
80
102
73
74

Kinki
1,818
Branch Office
Shiga
118
Kyoto
181
Osaka
837
Hyogo
471
Nara
100
Wakayama
111
Chugoku / Shikoku
889
Branch Office
Tottori
71
Shimane65
Okayama114
Hiroshima
122
Yamaguchi
110
Tokushima
103
Kagawa
96
Ehime
152
Kochi
56
Kyushu971
Branch Office
Fukuoka
311
Saga
58
Nagasaki83
Kumamoto
89
Oita
113
Miyazaki
80
Kagoshima
110
Okinawa127
8,366
Nationwide Total
283
Shanghai, PRC**As of December 31, 2005

Environmental and Social Activities Report 2006

46

Top Management Message

Top Management Message
June 2005 marked the 30th anniversary of LAWSON’s founding. We areusing this landmark year as a starting
point to create the LAWSON ofthe future.
LAWSON has always aimed continually to meet customer expectations.
We have supported the convenienceof people’s lifestyles through new
products and services—from 24hour opening times to offering boxedlunches, side dishes and other products and to handling public utilities
and other payments, ticket sales andregional product delivery services.
Convenience store operations indisputably have an influence on local
communities and the global environ-ment. LAWSON has always been
receptive to various opinions on its
role as a convenience store, spanning the waste produced by its
stores, the energy and noise generated by late-night operation andother issues.
The Company now needs to meethead on the various problems associated with its role as a convenience
store and seek sincere solutions. We
have to start creating a new LAWSON
that is truly useful to and needed by
local communities.
Embracing these ideas, we aretaking the opportunity of the 30th
anniversary of our founding to
update our corporate philosophy andcode of conduct. “Happiness andHarmony in Our Community” is our
new corporate philosophy. It clarifies the mission of the owners,
crews (part-time staff) of franchise
stores and employees that make up
the LAWSON family and makesa pledge to society as a whole. Our
code of conduct comprises three
directives that embody this corporate
philosophy: “Acting with utmost consideration for others,” “Challenging
with innovative ideas and actions”
and “Having a strong will to attainthe objectives.” By questioning howeach person should behave, we areencouraging behavioral reform.

How to achieve“Happiness and Harmony
in Our Community”
We invited articles and ideas
from staff and customers ont h e subject of “The convenience
store of the future” as part of a 30th
anniversary campaign to realize
the high ideals of our new corporate
philosophy. The number of submissions received from a broad age
range exceeded our expectations,reemphasizing the strong feeling of
the scale of expectations towards
LAWSON and the weight of responsibility that we have to fulfill. We are
truly grateful for the many suggestions we received on How to achieve“Happiness and Harmony in Our

Community,” based on a variety ofcreative and visionary opinions.
LAWSON continues to progress
step by step, while conversing withthe customers, business partners,
local citizens and many others who
support its operations. We target
a future, rising to our daily challenges, where LAWSON is “The ‘Hot’
Station in the Neighborhood” and at
the center of every happy community.

Takeshi Niinami
President and Chief Executive Officer

Environmental and Social Activities Report 20062

3 0 t h A n n i v e r s a r y S p e c i a l F e a t u re

Toward the “LAWSON of the Future”
that Everyone Wants
To mark the 30th anniversary of LAWSON’s founding, last year we invited articles
on expectations of the “LAWSON of the Future” from customers and owners, managers,
crews (part-time staff) of franchise stores and employees throughout Japan.
In response to all the ideas presented in the 1,340 submissions,
we are launching ourselves into the challenges of creating a new LAWSON.

30th anniversary articles and ideas on “The Convenience Store of the Future”
Top Prizewinning Entry

Realizing convenience storesthat support raising kids!
The top prize for the submitted articles and ideas on“The Convenience Store of the Future” was by Ms.
Misato Hanai, entitled “Convenience stores that support
raising kids!”
This article is about developing the convenience store
as a hub of communications for young mothers who arebringing up children.
To realize the ideas of this excellent article, on March
11 we formally established a task force to prepare for the
opening of provisionally named LAWSON for Motherswith Kids stores. LAWSON is cooperating with local
communities to create neighborhoods that are safe forchildren and mothers to live in and stores that are friendly
and secure for women. We are developing new

LAWSON stores that bring a welcome change and provide lifestyle support to mothers with kids and provide a
fun place for children to play and learn.
We aim to open LAWSON for Mothers with Kids
pilots in 2006 centered in commercial areas where families gather and in residential
areas with a high density of families. Applying the know-how
accumulated by repeated investigations at the opened
L A W SON for Mothers with Kids
stores, we plan to develop regular stores to link this concept
throughout the LAWSON chain.

The LAWSON for Mothers with Kids stores task force is launched,aiming to create stores that are friendly for children and mothers
The LAWSON for Mothers with Kids stores task force, based on an idea presented ina submitted article, aims to create new stores that embody our new corporate philosophy of “Happiness and Harmony in Our Community.” It draws on the expertise of 14
members, including store development, product and service development and store
construction representatives. Through a process of trial and error, they are planningthe locations and layouts for stores that are easy to use for children and their mothers
and thinking of services that will attract drop-in customers.
At present, LAWSON is planning to implement wider aisles to aid stroller accessand child toilets. Other initiatives under investigation include cafeteria areas forexchange of childcare information, where mothers can take time out to rest andchat, and short-term crèche services.
The members of the task force are at present enthusiastically rising to the newchallenges of creating stores that are friendly to both mothers and children.

3

The members of the task force meet oncea week to investigate the user-friendliness of
LAWSON for mothers who are bringing up
children30th anniversar y essay

A place where mothers bringing up
kids can shop at leisureand exchange information
Top prizewinning entry, Ms. Misato Hanai“The event of receiving a prize for the 30th anniversary article gave me
new courage,” said Ms. Misato Hanai

I could hardly bear the loneliness being off work in Osakabringing up my child, with just the two of us in the houseon our own. I’d have liked to get out to talk to someone,
but it’s difficult to find somewhere to go with the children.
When I fell pregnant with my third, I moved back home to
Mie Prefecture to devote myself to bringing up the children, but the situation was much the same.
We have currently formed a circle of 15 mothers who
are looking after their children. We meet once a weekand exchange information over lunch together. But still
there are few places to go with the children. If the weather is fine, we can eat outdoors, but we’re really stuck if
it’s raining. If we apply to rent a public hall, when we
explain that we’re bringing the children, we’re refused:

Principal proposals in the article• Sales of baby food• Sales of discounted boxed lunches
and desserts• Restrictions on daytime salesof adult magazines• Facilities for baby care at checkouts
and baby beds and training seats in toilets• Workspace for mothers with children

What if they make the place dirty…
Just when I was really feeling Wouldn’t it be great tohave a place we could use without worrying… I foundout from the in-store announcements that LAWSON was
inviting articles and ideas as part of its 30th anniversary. I
wrote the article and sent it off in one fell swoop.
I feel as though I should apologize for taking the firstprize with a poorly written article that I simply dashed off,
but realizing a LAWSON that supports mothers raisingkids is like a dream to me. Please, I’d love you to createa place that is easy to use with the kids in tow, where wemothers can also exchange information.
I would wish for “The ‘Hot’ Station in the Neighborhood”
to be at the center of our community.

As a mother bringing up kids, I am listening to the opinions of mothers
while creating new stores.
I am a mother, bringing up a four-year-old boy. When I read Ms. Misato Hanai’s article, I remembered the stress when I was off work raising my boy full time, wanting to go out and not being
able to. Further, it reminded me that when I became a mother, I could no longer use the convenience store I had frequented when I was still single, as it was so inconvenient.
As leader of this task force, I truly want to realize stores where mothers can shop with peaceof mind with their children, who themselves adamantly want to go to LAWSON. Accordingly, I
am meeting with employees who are also mothers with children and not members of the task
force to hear the opinions of women in this predicament as often as possible. This allows me tothink about how our stores can best support mothers and the children they are raising.
In addition, stores that are friendly to mothers with kids should also be so to other customers.
By looking again at our products, services and store facilities from a different viewpoint, I want todiscover various features that we can use in regular LAWSON stores and relate this to the creation of the stores of the future.

Eri Kojima, leader of the LAWSON
for Mothers with Kids storestask force

Environmental and Social Activities Report 2006

4

LAWSON is starting to respond to 1,340 requests…
The 1,340 submissions received from customers, owners, managers, crews (part-time staff) of franchise
stores and employees are an expression of the scale of expectations we face. Just how far has LAWSON
advanced in responding to everyone’s ideas? Progress towards the principal proposals and suggestions
is outlined below.

Products Ensuring product safety, information sharing and lineup expansion• Completely eliminate artificial preservatives
and colorings from boxed lunches, side dishes
and other such products in favor of organic
alternatives.
• Display for the consumer the product’s
sources of ingredients, nutrients and otherinformation.
• Provide menus, after consideration by dietitians, that provide the necessary nutrients thatcater to age and health conditions.

UpdateSince 2004, we have eliminated the use of artificial colorings and preservatives inoriginal LAWSON products.
(See pages 13 and 14.)
We are expanding the
fresh food products in someof our stores. (See page 12.)Services Providing diverse services that reflect consumer lifestyles and opinions• Accept packages for delivery services, offer DVD
and CD rental and return and provide agency transactions for public utilities.
• Create participatory convenience stores reflecting
consumer opinions.
• Take door-to-door orders and provide delivery services to eliminate the hardship for the elderly andother customers of carrying heavy purchases home.

UpdateWe offer services for payment of public utility bills andcatalog shopping. (See pages 19 and 20.) LAWSON
is also currently investigating its delivery services. We
are considering programs to enhance responsivenessto customer opinions. (See pages 9 to 11.)

Store facilities Building stores that are enjoyable, comfortable and secure to use by everyone• Install slopes and handrails at entranceways andautomatic doors, along with other initiatives, suchas lower counters and Braille signs, to create storesthat consider disabled and elderly access and use.
• Facilitate on-site eating and drinking of purchases.
• Display store guides for easy location of products.
• Introduce checkouts with automatic payment systems for exact payment of purchases only.

Environmental preservation measures

UpdateSince 2005, we have eliminated steps at the entranceways
to new stores and have introduced automatic doors at
some outlets. (See page 20.)
NATURAL LAWSON storesand some other branches have
eat-in spaces. (See page 12.)Installing solar energy systems providing services that feature environmental consideration points• Install solar energy systems and storage cells to accumuUpdate
late energy during the daytime for use at night.
Environmental trial stores• Cultivate greenery in and around stores and on rooftops.
are furnished with solar• Investigate opening hours that consider the environment.
energy facilities. However,• Introduce a point system to reward customers for bringthe power generated is
ing their own shopping bags, chopsticks, straws andinsufficient so we are looking
at expansion. We are currently
spoons.
promoting energy-saving• Provide recycling boxes for cans, bottles, milk cartonsequipment at regular stores.
and other containers.
(See pages 27 to 28.)5

30th anniversar y essay

Community response

New store formats

Serve as a cultural hub through product development andinformation dissemination• Market local specialties and limited-edition products to linkregional production and sales directly.
• Install data terminals to offer such regional information asmaps and tourist guides.
• Publicize cultural activities by the local community throughnotice boards and fliers.
• Offer facilities above the store as community space for use
by local citizens.
• Host “mini-events” periodically, along the lines of small local
festivals with the store as a nucleus.

Expand into mobile store services
and drive-through stores• Provide mobile services operating from trucks to assist during disasters or events in areas not served by an accessible
store.
• Develop drive-through stores, with touch-panel productselection at the entrance and payment-collection boxes onreceipt of merchandise.
• Establish joint stores in tie-ups with the subway or othertransportation agencies, or in conjunction with police
boxes, pharmacies or launderettes.

UpdateWe have introduced a branch office system that provides
impetus to regional product development. Stores provide
guides to the neighborhood and hold their own individual
events as part of our regional social contribution activities.
(See pages 23 and 24.)

UpdateLAWSON mobile stores
currently provide services
at concerts. We also
have stores at post
offices, in subway stations and at hospitals.
(See page 12.)

Hospitality toward
customers

Response to an aging
society

Improve hospitality toward customers
and employ qualified counselors• Rethink personnel training with emphasis on sincere andheart-felt hospitality.
• Encourage staff to train for counseling qualifications to promote exchange with customers.
• Publish user-friendly manuals for each region that are notcompiled top-down from management directives, but thatreflect the opinions of store staff and local customers.

Offer services that provide comprehensive support for
the lifestyles and health of the elderly• Establish 24-hour assurance support services for the elderly to provide assistance with housework and nursing care.
• Market healthy, small-serving boxed lunches and furnish
stores with spaces to rest.
• Employ older staff to ensure stores are attuned to
the needs of the elderly.

UpdateEach branch office has established a training center to honestore management skills. In addition, we have introduced
a “mystery shopper” spot-check survey system. (See pages
15 and 16.)

UpdateSpaces to rest and shopping carts
have already been introduced.
Moreover, we have opened storesthat stock traditional cooking ingredients. (See page 12.)We have also begun employing
people over 50 years of age.

Disaster and crime
prevention measures

Social contribution
activities

Act as a nucleus for neighborhood disaster and crime
prevention, linking external agencies with local citizens• Utilize the 24-hour operations of LAWSON stores to function as a crime-prevention hub, facilitating contact withthe police, fire department and other services.
• Display signs to declare stores a refuge for women andchildren in case of emergencies.
• Link up with external agencies to provide emergency
services in case of disasters: supplying food and water,
confirming the well-being of residents through a communications network and using the store as a place for
local exchange.

Cultivate a symbiotic relationship with local citizens
through volunteer activities and other efforts• Organize volunteer activities based in the local community,
including clean-ups and crime-prevention initiatives.
• Use stores to host extracurricular activities for elementary
school students in the form of work experience placements.
• Earmark a portion of sales for contributions to preservationof the natural environment.

UpdateLAWSON participates in the activities of the Japan Franchise
Association’s Safety Station movement, to cooperate in creating safe and secure neighborhoods. We also have mutual
cooperation agreements with regional autonomous agencies
in the event of a major disaster. (See pages 20 and 21.)

UpdateThrough the “Every Store Can Help”
campaign, stores conduct their own
workplace seminars and work experience schemes for elementary andjunior high school students. (Seepages 23 and 24.) We continue tocontribute to organizations dedicatedto preservation of the natural environment through the LAWSONGreen Fund. (See pages 35 to 38.)

Environmental and Social Activities Report 2006

6

2005 ACTIVITIES REPORTLAWSON and Human Relations
We are taking the opportunity of the 30th anniversary of
LAWSON’s founding to update our corporate philosophy
and code of conduct. These represent our endeavors tocontribute further to societal happiness.
To achieve our new corporate philosophy of“Happiness and Harmony in Our Community,” we conduct our activities while visualizing our operations fromthe viewpoint of others and exchanging opinions withthe people we embrace—customers, owners, crews,
business partners, associates and shareholders—inaddition to considering society and the global environment. This strategy ensures that we share the enjoyment
generated by our activities and bring happiness to all.

Corporate Philosophy

Happiness and Harmony
in Our Community
Code of Conduct• Acting with utmost consideration for others• Challenging with innovativeideas and actions• Having a strong will to attainthe objectives

Note: Crews comprise part-time staff.

Shareholders
LAWSON was listed on the first sections of the Tokyo Stock Exchange andOsaka Securities Exchange in 2000. Our shareholders numbered 45,036 as ofthe end of February 2006.
LAWSON aims to be a corporation with foresight, growth and stability, striking an appropriate balance between pursuit of profits and contribution to society.
This means that through long-term holding of LAWSON stock, shareholders
make an indirect contribution to society and help to achieve goals for the future.

Business Partners
LAWSON depends on approximately 2,200 business partners for
products, materials and service provision, playing a major role inensuring product quality and service delivery for customers.
LAWSON aims to cultivate relations with business partners
that anticipate local needs and share our innovative ideas. Such
relationships can ensure mutual growth and realize joint dreams.

7

For Customers

Customers
LAWSON serves approximately 2.5 billion customers per year, a daily average of 820 visits
per store. All people throughout Japan are valued customers to us.
LAWSON provides a product lineup that meets the needs of the community throughfresh and stimulating products and services, showcased in an agreeable atmosphere. This
combination makes our stores a much-loved drop-in spot.

For Owners

OwnersLAWSON’s stores are managed through approximately 7,000 owners. Our franchisebased store-development approach makes storeowners highly valued business partners
to us.
LAWSON supports owners in contributing to their local communities and deriving
fulfillment from their operations, enabling each storeowner to manage his or her store
with confidence and pride.

For Employees

Employees
LAWSON employs a staff of 3,120, who form the core to propel Company-wide
growth and realize its corporate philosophy. LAWSON evaluates the actions andperformance of its employees, individually and as a team, in their drive toward common objectives. We strive for a workplace that imbues employees with a sense of
pride and social purpose.

For Society

Society
LAWSON is a truly national chain—the first convenience store to open stores in all 47
prefectures in Japan. We maintain a close relationship with all the communities where
we operate. LAWSON, as a national chain, honors all laws and standards and actswith consideration for the local environment to promote safety and security throughout the neighborhoods in which it operates.

For the Environment

Environment
LAWSON consumes electricity, oil, water and other resources while conducting its operations, generating approximately 670,000 tons per year of CO2. We therefore bear a great
responsibility towards the environment.
LAWSON strives to use our limited natural resources effectively, minimizing environmental impact and ensuring that a healthy environment is passed on to successive generations.

Crews
LAWSON employs some 120,000 crew members, who are indispensable to the runningof its stores. It is this body of part-time staff that carries out the sales, orders and stocking of products, in addition to cleaning, administration and other operations.
LAWSON provides its crews with a workplace that fosters personal growth, where
they can work with enjoyment, pride and fulfillment. This is facilitated by working withconsideration between friends and with strong connectivity to customers.

Environmental and Social Activities Report 20068

For Customers

Customer Input
We consider customer input to be an asset, as itallows us to provide products and services thatlead to satisfaction. Accordingly, we proactively
elicit customer opinions and requests to fostera corporate culture that values customer
satisfaction above all else.

LAWSON’s Views
on Customer Satisfaction
To bolster customer satisfaction, we follow three challenge practices, provide great products and operate fromconvenient locations. These are the three focuses of
LAWSON’s operations.
The three challenge practices are: ensuring merchandise assortments are tailored to individual stores, promoting cleanliness in stores and neighborhoods, andensuring courteous service for our customers. Providing
great products is a goal we continuously to strive for, as
it is the key to customer satisfaction. Moreover, we are
ever mindful of ensuring we operate from convenient
locations when opening new stores.
LAWSON’s core views on customer satisfaction are
manifest in its three challenge practices, and its resolve
to provide great products and operate in convenient
locations. These directives are inextricably linked to our
drive to make LAWSON “The ‘Hot’ Station in the
Neighborhood.” We are working to build stores thatmake the people of the neighborhood say: “Thank heavens for LAWSON!”
Note: LAWSON operates under the principle of “individual store orientation,”
which refers to tailoring each store to the customers of a region, rather
than insisting on uniform store management and product lineups.

LAWSON’s Views on Customer Satisfaction
LAWSONcustomersatisfaction
Three challenge
practicesGreat
products

Three challenge
practices
Ensuring
courteous service
for our customers

Convenient
locations

SafetySecurity

Great products
HealthTastiness

PromotingcleanlinessIndividual store
orientation
Convenient
locations9Creating storesthat bring happinessto local customers

3 Providing courteous service to our customers

LAWSON embraces the three challenge practices toenhance the experience for customers of visiting its
stores. These ongoing fundamentals to store management are vital elements in boosting customer satisfaction.

We stress personnel training for meeting customer
expectations with high levels of hospitality. To ensure
courteous service for our customers, we emphasize
combining such educational tools as manuals with practical in-store training.

1 Ensuring merchandise assortments are tailored
to individual stores

LAWSON conducts seminars for franchise stores andcarries out training for owners and crews to ensure thatthe three challenge practices permeate throughout
the organization. (See pages 15 and 16 for information
about the LAWSON training system for owners andcrews.) We are confident that continued application ofthis strategy will further raise customer satisfaction levels.

Based on the principle of “individual store orientation,”
we aim to create stores attuned to local customers, firmly bonded to their neighborhoods and therefore preemptive in providing products on demand. During fiscal
2005, we surveyed each store’s sphere of operations(location, climate, functions) using individual store data
analysis to tailor product lineups to residents in the vicinities of each store. We shall continue this approach during the subsequent fiscal year.

2 Promoting cleanliness in storesand neighborhoods
To make visits to LAWSON
more enjoyable, we keep ourstores and their environs clean.
Through these endeavors, we
aim to enhance the lifestyles of
local citizens.

For Customers

Three Challenge Practices

Great Products
LAWSON has maintained pride in its ability to deliver
tasty, safe products to customers since its founding.
Headquarters and stores are unified in their productdevelopment to ensure that the products that reach customers are safe, secure, healthy and tasty. (See pages
13 and 14.)

Convenient Locations
In our development of new stores, we pay close attention
to proximity to schools, stations, hospitals and otherfacilities and to new residential developments. (See page
12 for information about stores in new residential developments.)

Customer Input Structure

Customer
input
Stores, offices

LAWSON
Customer Center

Supervisors, departments

Network-based“Customers’Comments”

Explanationof improvements, etc.

Customer Input Structure

Reply to customer

To raise customer satisfaction, we established the LAWSON
Customer Center to respond to customer inquiries, opinions and requests 365 days a year. These comments areintegrated into creating new stores, developing products
and providing services.
Customer input is directed to the appropriate department, where it receives a prompt and sincere response.
Using the Company intranet and in-house publications,issues are shared with all employees with a view tomaking any necessary improvements.
Positioning the LAWSON Customer Center as a newmechanism for eliciting feedback has resulted in a steadyincrease in such communications: from 20,948 during
fiscal 2003 to 27,597 during fiscal 2004, rising to 31,898
during fiscal 2005. Customer comments are compiled ina booklet for internal distribution as a source of helpful
hints for staff.

Reportingat divisional
head meetings

At headquarters

Environmental and Social Activities Report 2006

10

Customer Input

Feedback from the LAWSON Customer Center
During fiscal 2005, our customer center received morethan 30,000 comments. Various campaigns, including
those relating to the 30th anniversary of LAWSON’s
founding and the opening of LAWSON STORE100,
prompted many calls. Rising customer interest in
the calorific values displayed on our “safe, secure andhealthy” product ranges was also a factor int h e increase.
Store operations, spanning such issues as hospitality
and service and product management, was the primarycontributor, representing 34.5% of the total number ofcommunications. This was followed by calls about products and services at 28.0%.
The other opinions andrequests related to a broad
range of subjects and opinions.
These included concerns aboutparking of delivery trucks andgathering of people around ourstores, and an increase in environment-related issues, such as
opinions and suggestions about
decreased use of shoppingbags, energy-reduction measures, the LAWSON Clean
Boxes and cigarette disposal
facilities.
As there were numerous
Sticker explaining goodcomments from customers

relating to the ashtrays provided outside stores, we haveposted signs reminding customers of our smoking policy,
relocated disposal facilities and reinforced adherence tosmoking areas throughout our stores. (See page 20 for
information about relocating ashtrays.)
LAWSON will continue to pay the greatest attention
to customer comments and incorporate them in the
improvements it makes.

Customer Input during Fiscal 2005

Inquiries

7.5%

Other

Store
operations

23.6%

34.5%

Total

Advertisements,
commercials
and campaigns

2.7%Store locations

3.7%

31,878
Products
and services

28.0%

Breakdown of categories:
Store operations
Deportment and language of staff
Sales outside of sell-by date, out-of-stock products,
price and price card disparities

Products and services
Inquiries about Loppi and other services
Product specifications

Other
Inconsiderate parking
Store environs
Such environmental issues as energy reduction and waste disposal

smoking manners

Incorporating customer and owner comments in store improvements
Measures already existed on site for feedback
from customers, owners, crews and employees. However, these were rarely optimized asa result of practical difficulties, problems withcosts and the system. Awareness of this situation led to the establishment of the Workplace
Improvement Office in September 2005. To link
opinions from the workplace with the improvement process, the extraction, analysis and solutions for issues is being investigated under
the auspices of the CEO.
The issues are gleaned from the daily opinions and comments of customers, owners,
crews and employees. We prioritize the issues
we have to deal with by importance, including
pre-emptive measures, regardless of low inci-

11

dence of comments. Take, for example, comments on the placement of ashtrays. The incidence of grievances like “I hate the smoke fromthe ashtrays outside the store” or “I won’t comein if there are people smoking around theentrance” have increased. Along with the product and distribution divisions and CSR
Promotion Office, we have rethought policy onplacement of ashtrays. Accordingly, ashtrays
have been repositioned further from store
entrances.
Last year we primarily focused on putting
the infrastructure in place; fiscal 2006 is theyear for putting the system into practice. Thisshould enable us to implement successive
improvements.

Shuichi Imagawa
Director,On Site
Improvement OfficeTrends in New Business Development

For Customers

LAWSON has established a three-store format system in response to the changing social environmentand shifting customer needs. In addition to regular LAWSON stores, the Company operates through
NATURAL LAWSON, with an emphasis on healthy living, and LAWSON STORE100, focused on low
prices. Through flexible store development attuned to the regions where we operate and their customers,
we are reinforcing our role as a lifestyle base for our diverse customers.

Demand-Driven Business Development Resulting in NATURAL LAWSON
and LAWSON STORE100
NATURAL LAWSONThe keywords to NATURAL LAWSON’s operations arehealth and beauty. Through this concept, we provide
support for customers’ lifestyles by developing uniqueproducts, spanning freshly baked bread, whole-grain riceballs, boxed lunches with heavy vegetable emphasis andsalads. Stores have also been developed that provide
fresh vegetables selected by our “vegetable sommelier”
and seating space for in-store eating and drinking.
Environmental consideration is also manifest throughsuch products as 100% natural detergents and wooden
chopsticks made from Japanese cedar lumber scraps.

NATURAL LAWSON Ebisu Minami 3-chome store

LAWSON STORE100
With a generic pricing system of ¥100 (¥105 includingtax) for many of its products, LAWSON STORE100 was
instigated in May 2005 to supply such sundry products
as fresh foods, tofu (bean curd) and natto (fermented
soybeans) at moderate prices. This strategy has been a
big hit with homemakers and elderly customers. Further,
the product lineup is supplemented by more than 130
items from the Value Line original-brand series.
There were 35 LAWSON STORE100 outlets asof the end of February 2006. In the future, we plan tofortify this growth base, raise recognition and accelerate
expansion of this store format.

LAWSON STORE100 Kawasaki Kannon 1-chome store

Store development in new locations(hospitals, post offices, subway stations,
universities)
LAWSON is developing stores attuned to the differing
customer needs characteristic of individual locations. We
strive to provide optimal products, services and interiors
for the customers of each store.
Current inroads include hospitals and universities,
stores in post offices in a tie-up with Japan Post, andstores with eat-in facilities. In consideration of specificneeds, we also furnish stores having an elderly customer
base with resting areas, wider aisles and shopping carts.

Resting space for the elderly at
LAWSON Kawanishiyoshida store

LAWSON outlet at Kanto Chuo
Hospital

Docho Akarengamae LAWSON
postal store

LAWSON Tokyo University
Yasudakodo store

Environmental and Social Activities Report 2006

12

Tasty Products that are Safe, Secure and Healthy
As a company that provides safe and secure products, LAWSON has a responsibility to respond to customer
needs for tasty and healthy food products. LAWSON has implemented a stringent quality control system tomeet these demands.

LAWSON’s Concept for Safety, Security, Health and Taste
Measures for safety

Measures for health

LAWSON’s products are manufactured and subjected tothorough quality control procedures in conformance withenvironmental and hygiene regulations. This stringent
policy at all stages, from product development throughproduction and sales, ensures that customers can purchase our products free from safety concerns.
Since 2003, we have eliminated the use of artificial
colorings and preservatives in such original LAWSON
products as boxed lunches, rice balls, sushi, preparedbread, side dishes, salads, prepared noodles and pastain the Kanto, Kinki and Tokai regions. This policy has
been expanded throughout Japan since 2004.
Furthermore, we have established in-house standards
to restrict food additives to the minimum necessary
quantities.

LAWSON offers a menu of novel foods that are preparedwith careful attention to ingredients and consideration ofnutritional balance, generous with often-neglected vegetable content. An example is our revival of such traditional fare as the Ichiju-Sansai boxed lunch (containing
three vegetable or fish dishes with soup).
In response to rising customer health awareness, wehave developed the NATURAL LAWSON type of store
that supports lifestyles focused on health and beauty.
Part of the product lineup offered by these outlets is alsoavailable at regular LAWSON stores. (See page 12 formore information on the NATURAL LAWSON store
concept.)

Measures for security
The labels on original LAWSON
products display such mandatory
information as product name, sellby date, ingredients and allergy
warnings.
In addition, nutritional data,
including calorific values, is highlighted independently so that health-conscious customers can shop with peace ofmind. Counter products bear no suchlabels, but calorific and allergy information
for the majority of these is displayed on instore point-of-purchase materials andpublished on our website.
The Quality Control Office carries out
stringent checks on the content of productlabels, which are also checked by specialized external agencies and at the production stage. This ensures that all productlabels have been double- and triplechecked before reaching the consumer.
Note: Counter products include Kara-age Kun friedchicken and other dishes cooked in-store.

13

LAWSON’s concept for safety, security
and healthOfferhealthy
products
Offer safe
and secure
products•Pay careful attention
to ingredients•Consider nutritional balance
in menus•Include often-neglected
vegetable content•Eliminate artificial coloringsand preservatives•Control freshness,
temperature and hygiene levels

Quality Control Efforts
convene to confirm that there are no safety and hygiene
risk factors.
To ensure uniform quality throughout the plants
where our products are manufactured across Japan, we
began trial implementation of uniformity standards in
2003. These stipulate quantities, preparation times,
preparation methods and other specifications for every
product in the production process. On the basis of trial
implementation results, we are currently expanding thesestandards to other plants.

For Customers

LAWSON has created a Hazard Analysis and CriticalControl Point (HACCP) system that controls food product safety and hygiene to prevent outbreaks of food poisoning, intrusion of contaminants and other hazards.
This stringent production control method records cooking time and temperature and other key control items
during the production process, so that if a problem does
occur the cause can be pinpointed immediately.
Each time a new plant comes on line or new facilities
are introduced, members of the Quality Control Office

Developing Products (including such original products as rice and side dishes)

Ingredient selection
Product development

Ingredient selection
We have established a specialist team for strict ingredient selection, ensuring that ourstandards for safety, security and health are observed from the ingredient selection
stage. Checks are periodically carried out to confirm that ingredients received conform to
our standards.

Product development

Quality control at production facilities

Original LAWSON products undergo specific inspections at all stages from ingredients
through to finished products. A document inspection is carried out at the stage when
product specifications are determined and trial production is executed on the actual line
to be used for manufacture so that safety can be confirmed.

Quality control at production facilities
During the production process, heating temperatures and times, duration spent underrefrigeration and other parameters are precisely specified. Controls are in place to ensure
no deviation from standard temperatures. Further, during production ingredients andsemiprocessed goods are sampled and temperature checks are conducted.
Sanitation is rigorously maintained in the plants that manufacture our products, withsuch hygiene control measures in force for staff entering the plant as changing of clothing and washing and disinfecting of hands.

Quality control at distribution centers
Baking stage (ingredient temperature check)

The processes of sorting and shipment from receipt through dispatch determine secureand timely delivery of fresh products. LAWSON effectively employs established procedures to maintain specified temperatures and times. The delivery trucks supplying ourstores are equipped with thermometers to control product storage conditions.

Product quality at point of sale

Post-cooling temperature check

Showcase temperatures are checked four times daily to ensure the in-store freshness
and quality of products. Specialized external agencies make spot checks for hygiene
once a year and thorough temperature and freshness control measures are in place.
Certain products, such as rice balls, boxed lunches and side dishes, have specified
sell-by times, as these are purchased for direct consumption by customers. Checks are
made three times a day, and outdated products are removed from display.
To guarantee safety, checks are also conducted between arrival at store and purchase to ensure that products maintain the condition of manufacture at the plant.

Quality control at distribution centers

Metal detector check for contaminants

Temperature check inside a distribution center

Product quality at point of sale

In-store temperature check

Environmental and Social Activities Report 200614

For Owners

Support Structure
for Owners
The cooperation of the owners who actually manage
stores is vital to attaining customer satisfaction.
LAWSON has created various schemes to support
owners in their store management and incorporates
their opinions into upgrading products and services.

Training and Support Systems
Sharing the corporate philosophy andother information
The owners of stores under the LAWSON franchise system have full responsibility for store management as
independent operators. Headquarters provides various
forms of backup so that owners can devote themselves
solely to this task.
One such initiative is LAWSON seminars, held twice ayear at eight locations
across Japan. These
serve as a forum forowners to share information relating to corporate philosophy,business strategy,
product trends, marketing know-how andindividual store data
Explanations to owners
analysis.
Note: Under the LAWSON franchise system, marketing expertise developed by headquarters and relevant trademarks are made available tofranchise stores. Franchise stores conduct said marketing and recompense headquarters. Headquarters and franchise stores are
entirely independent operators with an equal relationship.

Training and support systems for owners
and crews
The training system for owners and crews implemented
at LAWSON supports smooth store management andcustomer satisfaction. When new stores are launched,
we instigate a study and training program to ensure
understanding of basic store management. After opening, various training
continues at a branch
office training center.
From fiscal 2006,
under the OwnerSupport System headquarters will dispatch
an employee to run astore if an owner is Study and training at a training center

15

absent. Moreover, we have introduced the Store
Support Desk to deal with inquiries related to store
management. These initiatives provide owners with support for harmonious operation of their stores.
LAWSON’s monthly business information magazine
PAL and guide to business strategy Plans for Creating
Stores help to provide store management information.

Owners Welfare Society
We have organized an Owners Welfare Society topromote welfare for owners, their families and crews.
The diverse menu of benefits on offer spans health facilities and sports clubs, correspondence courses, healthmanagement, condolence and congratulatory funds,
loans and insurance.

Communications
Communicating with supervisors

Owner questionnaire
During fiscal 2005, owners of all stores participated ina questionnaire to confirm owner awareness of headquarters’ policy. In the 4,122 responses, 76.6% said
they were “satisfied being a LAWSON owner,” a substantial increase from the previous questionnaire in fiscal
2001. This survey also identified sources of anxiety andproblems, citing intensified competition and personnel
security, and requests to headquarters for improvements. The results from the questionnaire will be instrumental in reinforcing the owner support system, which
will be reflected in the activities of supervisors.

Future sources of anxiety for store management(Number of responses)
Sales (profits) not advancing
as forecast

For Owners

Supervisors form a bridge to headquarters for owners,
which supports them in their store management.
Recently, the role of supervisors has spanned providing
product trend, external environment and other information, analyzing sales, customer and other data, to carrying out market surveys in the environs of stores they
cover and advising on profits. They also pass on toheadquarters comments from owners
concerning customers
and regional conditions for use in future
product development
and services.

62.0

Increased number ofcompeting stores

46.7

Shortage of crew members

46.0

Insufficient personal time/lack of holidays

44.5
40.6

Concerns about health
Increased expenses(operating costs/personnel costs)

34.1
0

10

20

30

40

50

60 (%)

Direct line to the CEO
LAWSON has established a direct channel of communications to the CEO for owners, store managers andcrews to express their everyday opinions and ideas.
During 2005, this facility was utilized 866 times, andthe CEO responded directly to each comment.
We are improving store management and upgrading
products and services by absorbing opinions fromthe front line—owners, store managers and crews.
Direct communications with CEO during fiscal 2005
(Number of comments)
Products/distribution
Services
Sales promotion
Systems

287
95
32
57

Facilities/equipment
Franchise agreements
Store instruction
Other

82
72
153
88

Introduction of Mystery Shopper System
To improve business performance, since 2004 LAWSON
has introduced a “mystery shopper” spot-check survey
system carried out by an external agency. The agency
representative drops in and actually uses a store, taking
the role of a customer, and makes objective assessments of product lineup, hospitality and cleanliness. We
receive the observation results, investigate potential

problems, and prioritize and implement measures toimprove operational performance. Since instigating thissystem, hospitality and cleanliness have improved conspicuously, but product lineup upgrading has been tardy.
We are aiming to realize product lineups attuned to local
customers through analysis of data from each store.

Environmental and Social Activities Report 200616

For Employees

Personnel Training,
Workplace EnvironmentLong-term personnel training and a lively workplace are vital to support customer satisfaction.
LAWSON’s training systems, workplace environment and internal communications aim to cultivate a corporate climate that encourages full
expression of individual abilities and opinions.

LAWSON University
Through an original training program named LAWSONUniversity, the Company shares its Corporate Philosophy
and strategies with employees, to cultivate high-performing personnel.
LAWSON University is a forum for open debate
aimed at fostering Company-wide customer awareness.
Courses include customer satisfaction sessions targetingthe entire workforce and leader training for management
candidates to systemize their operational capacity froma business standpoint. The program is based on an integrated training system from joining the Company throughto supervisor level, spanning store employee training,training for promotion to store manager and training for
promotion to assistant supervisor. In addition, LAWSONUniversity encompasses training for management promotion and functional training for specific jobs to cultivatea professional class with high business promotion capacity melded with adherence to our corporate philosophy
and customer awareness.
During 2005, we established the LAWSON Learning
Center and e-Learning System to create an environment
more conducive to employee study. LAWSON Learning
Center, located close to the Head Office, forms a nucleus for LAWSON University’s activities. It serves as a hub
for employee training, led by the leader training program.
Through the introduction of the e-Learning System, we
have created a flexible nationwide environment for
employees to study—anytime, anywhere. Moreover,this transition to computer-based training reduces paper
consumption and travel. During 2005, our sixth year of
training, the number ofparticipants reached10,000. In the future,
we aim to continue toraise the results oftraining and carry out
training programs thatare sympathetic with
The training environment of the LAWSON
Learning Center
the environment.

17

LAWSON University Structure

Basic knowledge
for LAWSON
employees• Employee awarenesssurveys• Customer satisfaction
sessions• Basic knowledge
for franchise businessand retailing skills

Training future
leaders

Selfdevelopment

Job skills

Skills to further the
corporate philosophy
and career development

Providing a
selective menu

Gainingfunctional jobspecific skills

Job rotation and evaluation

Training in customer
awareness; creating afulfilling workplace

Functional
training• Store developmenttraining• Merchandising• Information systems
training• Supervisor training

Better store
management
skillsNext-generation
management
training• Correspondence
and day-releasetraining• Overseas and externalseminars• Annual magazine
subscriptions• Elective training

LAWSON
Basic• Manager training• New employee training• Training witha store manager• Store employee training• Training for promotion
to store manager

ES/CS*
promotion• Logical thought• Management strategy• Marketing• Accounting• In-house casestudies• Training session
with the CEOFranchisetraining• Training for store
opening• Crew leader
candidate training• Crew leader course• Store manager training
for existing stores

LAWSON University

Group training
e-Learning*ES/CS: employee satisfaction/customer satisfaction

At LAWSON, promotion and advancement
are based on individual abilities; no discrimination is made on
the basis of religion or
beliefs, gender, placeof birth or other factors.
The Company provides various employee tools,
including a training system to raise personal abilities,

For Employees

Building an Amenable Workplace
an assessment system to evaluate abilities and performance and a backup system for working conditions to
support employee lifestyles. In particular, LAWSON
facilitates a system of leave or reduced working hours
for childcare, healthcare, nursing and other reasons.
Employee breakdown
No. of employees
Female (%)
Average age

Fiscal 2003
3,148
7.4
36.3

Fiscal 2004
3,095
8.6
36.4

Fiscal 2005
3,120
8.6
37.1

Internal Communications
Employee feedback
The LAWSON intranet hosts a forum for exchange of
employee opinions, which is a means for reflecting
employee input in business reform and store management. The content of submitted opinions is primarily
suggestions to headquarters by supervisors, and aftergathering opinions the person in the relevant position
posts a response. By extending this internal communications tool to allow any employee to post or checkcomments, share and accumulate information.

Employee awareness surveys

response rate from employees, indicating a sense of fulfillment from the majority of staff and a forward-looking
approach to work from the organization as a whole.
Results confirmed that communications with management are needed to achieve our targets and that there isa high level of awareness of business strategies.
However, we must deal with such issues as high workloads and gaps between expectations and results ofassessments. By continuing to conduct such surveys,
we can extract the issues facing LAWSON to realize apersonnel system that is honed by employee opinions
and an improved working environment.

We conduct employee awareness surveys to monitor
employee satisfaction. The 2005 survey had a 90.6%

Environmental and Social Activities Report 200618

For Society

Social Infrastructure
Through its nationwide chain of stores, LAWSON fulfills its role as “The ‘Hot’ Station in the Neighborhood”
by activities that enhance the secure, comfortable lifestyles of the people in the areas it serves.

Gateway to a Host of Services
Expanded postal services
In addition to sales of stamps, postcards and other standard postal products, in 2003 LAWSON became the firstin Japan’s convenience store industry to provide postboxes in all its stores. In November 2004, we introduced
Yu-Pack postal packaging services in stores nationwide,
followed by Ex-Pack 500 postal deposit
services in September 2005. Suchservices have proven extremely popularwith customers who do not live near apost office or who find it difficult to visit
a post office during standard businesshours. We are investigating other new
services we can provide in cooperation
with Japan Post.

Extended public services
LAWSON stores accept payment for electricity, water,
gas and other public utilities, as well as for telephoneservices, catalog sales and various other services. Since
February 2004, stores have also been acting as a collection agency in accepting Nation Pension System payments and, in some cases, National Health Insurance,
residents’ tax and automobile tax.
In the city of Ichikawa, Chiba Prefecture, and in Tokyo’s
Kita Ward, residents can receive a copy of their certificate
of residency from a LAWSON store by prior arrangement
over the telephone with the relevant municipal office.

Loppi multimedia data terminals
LAWSON stores are equipped with
Loppi multimedia data terminals. These
multifunctional units facilitate sales ofconcert tickets, travel reservations, DVD
reservations and applications for certification tests. Moreover, customers canutilize the Peek-a-boo share transaction
service, provided in affiliation with Nikko
Cordial Securities Inc. The Loppi multimedia data terminals installed at LAWSON
stores place an expanded array of
products at customers’ fingertips.

19

Automated teller machines
LAWSON stores are furnished with ATMs that facilitate
withdrawals using cash cards issued by all city banks,regional banks and shinkin banks, as well as cashing

functions offered by credit companies. As of the end of
February 2006, LAWSON maintained tie-ups with 17
financial institutions and had 3,812 ATMs in place. We
plan to expand our ATM services.

Measures to Make Regional Societies Safer and More Secure
Participation in the Safety Station movement
Recently, convenience stores have been called upon bysociety to instigate measures for crime and disaster prevention, public safety and youth education. LAWSON
participates in activities of the Japan Franchise
Association’s Safety Station movement, an autonomous
organization formed by convenience stores with support
from the relevant municipal and law-enforcement agencies. Through these activities, we aim to create a focal

point for safe and secure lifestyles in the neighborhoodand promote education among upcoming generations.
Through such initiatives as reinforcing
crime-prevention systems and acting
as a refuge for women and children in
need, the Safety Station movement
provides an industry-wide platform forfulfillment of social responsibility.
Poster advertising the
Safety Station movement

Making Stores Friendly to Use
LAWSON is promoting the floor space and access pointsof its stores as barrier-free zones to better accommodate
elderly customers, expectant mothers and othercustomers with special
needs. We have eliminated steps at the entranceways to new stores andintroduced automatic Clean, Western- Elimination of floor
style toilets with height changes atdoors at some outlets. safety handrails
doors

Moreover, toilets have been furnished with Western-styleseats and handrails and access has been improved withsame-level floors. Since fiscal 2006, stores with parking lots
have one dedicated parking space for disabled customers.

Guide dogs (working dogs) welcome
Guide dogs for the visually impaired andhard of hearing and dogs assisting individuals with other disabilities are welcome to enter LAWSON stores.

For Society

Barrier-free stores

A sticker displayed on the glass front of LAWSON
stores to declare that guide dogs are welcome

Repositioning of Ashtrays and Deterring Underage Drinking and Smoking
Repositioning of ashtrays

Deterring underage drinking and smoking

As LAWSON stores are no-smoking areas, ashtrays havebeen located outside the doors for customers to extinguish their cigarettes before entering. Recently, regional
legislation has been introduced in Japan to prohibit
smoking on pavements and thoroughfares. In response,
LAWSON has introduced new restrictions for the benefitof smokers and nonsmokers alike.
Where bylaws prevent roadside smoking, we have inprinciple removed cigarette disposal facilities. If bans are
not yet enforced, ashtrays are repositioned away fromstore entrances. Also, in cooperation with Japan Tobacco
Inc., we display stickers at disposal points to reinforce
adherence to smoking policies and disposal etiquette.

To prevent underage consumption of alcohol and tobacco, we demand proof of age from customers who
appear to be under the legal thresholds. LAWSON also
displays posters and makes announcements on the instore PA to heighten customers’ awareness of this issue.
We shall reinforce this system in the future to ensure acomplete ban on sales ofalcohol and tobacco tounderage customers.

Environmental and Social Activities Report 200620

Social Infrastructure

Disaster Response
Agreements to provide support during disasters
LAWSON stores can become major support lifelines inthe event of a natural disaster by continuing to provide
uninterrupted operations. We have concluded agreements with regional agencies and other organizations tooffer support during natural disasters by supplying provisions and helping displaced victims return to theirhomes.
In October 2005, LAWSON signed an agreementwith Japan Post for the eventualities of disasters.
Cooperation with this entity, which has Japan’s largest
network, can realize swifter implementation of effective
measures and contribute to early recovery of afflicted
areas.
LAWSON enters agreements for procurement of provisions in the case of major calamities. As of the end of
February 2006, we had 18 such pledges in place to provide emergency provisions to possible affected areas.
This agreement covered the Nagano Prefectural Office’s
response to requests for assistance from the Mid Niigata
prefecture earthquake. We responded to 13 requests
between March 6, 2003, and February 4, 2006, to provide food to Japan Airlines Corporation passengers
stranded when typhoons or snow grounded flights.
We also have entered agreements to provide assistance to people stranded and forced to return to theirhomes on foot in the event that a disaster renders othermodes of transport inoperable. LAWSON pledges tocooperate in providing sanitation facilities and information. Such agreements existed with 22 agencies as ofthe end of February 2006.

A Company-wide earthquake drill held in January
2006 included confirmation of employees’ whereabouts
and satellite mobile telephone communications. We also
conducted a special drill using a simulation of an earthquake directly impacting on the Kanto
region. We carefully
investigate the resultsof such training exercises, to bolster ourdisaster response
Disaster response drill
strategies.
Agreements for procurement of provisions
Date of signing

PartnerMarch 24, 1998
April 1, 1999
June 1, 1999
August 27, 2002
November 29, 2002
February 12, 2003
March 7, 2003
December 25, 2003
February 20, 2004
November 9, 2004
January 15, 2005
February 14, 2005
July 13, 2005
October 19, 2005
October 27, 2005
October 28, 2005
November 1, 2005
February 14, 2006

Nara City, Nara Prefecture
Izu Nagaoka (currently Izunokuni
City), Shizuoka Prefecture
Himeji City, Hyogo Prefecture
Sumida Ward, Tokyo
Shimizu City (currently Shizuoka City),
Shizuoka Prefecture
Edogawa Ward, TokyoJapan Airlines Corporation
Nagano Prefecture
Wakayama Prefecture
Tokushima Prefecture
Tokyo Fire Department
Ehime Prefecture
Saga Prefecture
Japan Post
Niigata Prefecture
Gifu Prefecture
Hyogo Prefecture
Oita Prefecture

Agreements for assistance to displaced people
Date of signing

Concluding an agreement with Japan Post

A sticker declaring LAWSON
a disaster return station,
helping displaced persons
returning to their homes

November 9, 2004

Tokushima Prefecture

February 17, 2005

Kansai Council (Shiga Prefecture,
Kyoto Prefecture, Osaka Prefecture, Hyogo
Prefecture, Nara Prefecture, Wakayama
Prefecture, Mie Prefecture, Kyoto City,
Osaka City, Sakai City, Kobe City)

June 9, 2005

Aichi Prefecture

August 31, 2005

Eight cities and prefectures (Saitama
Prefecture, Tokyo, Chiba Prefecture,
Kanagawa Prefecture, Saitama City, Chiba
City, Kawasaki City, Yokohama City)

In-house disaster procedures
LAWSON holds disaster training drills twice a year toensure all employees are clear on and prepared for how
to act in case of a disaster. In addition, we periodicallyrevise our emergency procedures and manuals to realizea system to ensure continuous operation and speedy
recovery of stores in this eventuality.

21

PartnerNovember 25, 2005 Gifu PrefectureDisaster Relief Funds
LAWSON helps provide for areas stricken by largescale disasters by replacing its LAWSON Green Fundcollection boxes with a special disaster fund appeal fora limited period. These funds are used to alleviate
the hardships of disaster victims.
During fiscal 2005, LAWSON carried out collectionsof the disaster relief funds listed below. The received
contributions were passed on to disaster victims throughthe Japan Red Cross Society, Disaster Countermeasures
Office and other organizations.

Presenting disaster relief funds at the
Akita Prefectural Office following donations following heavy snowfalls

Disaster relief funds collected in fiscal 2005
Fund
Fukuoka West Coast Earthquake Relief Fund
Typhoon No. 14 Disaster Relief FundNorthern Pakistan Earthquake Relief Fund
Snowfall Relief Fund

Collection area
All Kyushu branches (excluding Okinawa)
Nationwide
Nationwide
Nationwide

PeriodAmount collected

March 20–April 3, 2005
September 10–25, 2005
October 15–31, 2005
January 18–31, 2006

¥4,322,083¥21,015,555¥23,303,402¥15,125,696

The First LAWSON Cup Mothers’ Volleyball
Tournament—serving to the world

Contributing to “Local Rice Paddies andWater,” an exhibition of children’s art

LAWSON promotes lifelong sports as a vehicle for contributing to a happy and healthy society. As part of thiscommitment, we hosted the First LAWSON Cup
Mothers’ Volleyball Tournament. In February 2006, 49
representative teams that qualified in prefectural elimination rounds met for the national finals. The winning teamand one runner-up then toured Hawaii, participating ininternational friendship matches with local teams.
We plan to continue to host the LAWSON Cup, supporting mothers who love to play volleyball, with oursights set on a world cup event in the future. We hopethat mothers’ volleyball will be launched from Japan to
become a contribution to lifelong sports worldwide.

To support the environmental education of upcoming
generations, LAWSON is a sponsor of “Local Rice
Paddies and Water,” a showcase for children’s art heldby the Japan Land Improvement Operations Federation.
By depicting beautiful rural landscapes and agricultural
lifestyles, including such scenes as rice paddies, terraced
fields, pond irrigation and agricultural work, children
throughout Japan discover the wonder of their own
towns and villages. LAWSON has participated since2004, selecting one entry for the LAWSON Award.

For Society

Supporting Sports and Children

This year’s LAWSON Prize: “After Pushing
through the Rice Plants…” by Toshihiro
Ihara

Environmental and Social Activities Report 200622

Regional Social Contribution Activities
This year marks the 10th anniversary of the start in March 1997 of LAWSON’s “Every Store Can Help”
campaign. Through this program, individual stores pursue their own activities to contribute to their communities and create stores that bring happiness to the neighborhoods to which they belong.

“Every Store Can Help” Campaign
Crime-prevention activities build secure neighborhoods
Tadahiro Yokoyama,
Owner of Higashijujo 2-chome store (Tokyo)“More than 90% of visits are by regular customers who work or live in
nearby, so we take links with the neighborhood seriously. Thinking ofwhat the store could do for the local community, we hooked up withthe local police station and set up a Convenience Store Cooperative
Council on Crime Prevention, and participated with other chain stores incrime-prevention activities within the Police Department. In addition tocrime-prevention training to target burglaries, we are cooperating withlocal elementary schools and the police station in a campaign called ‘Kids
110.’ Such initiatives are helping to eradicate crime and make the local
community a safer and more secure place to live.”

Product delivery services to the elderly
Yuichi Hamahira,
Owner of Kawasaki Shukukawara store (Kanagawa)“We have implemented delivery services aimed at our elderly customers,
for water, beer, and other heavy purchases. To customers who place
periodic orders, deliveries are made two or three times a week. We also
help with preparations for senior citizen and community meetings. Someolder people can struggle with making photocopies, so we provide assistance with this or with setting tables, and are more than rewarded by thegrateful response our help receives. Our store also carries out clean-ups
in neighborhood parks, and we hope to be seen as a harmonious store
by the local community.”

The annual visit of the evil being to the nursery school
Akiko Kajihara,
Owner of Toyama Fuchusasakura store (Toyama)“For the last three years around Setsubun no Hi, crew members haveparticipated in the traditional celebrations by taking on the role of evil
beings at a local nursery school. Although mindful of not reducing thechildren to tears, we revamped our performance after a school staff
member told us: ‘Exposure to scary things is an important part of emotional education, so go ahead and make them cry!’ As predicted, there
were many children who were frightened and tearful, but others felt so athome that they didn’t want us to leave.
“Other activities have included carrying out work experience induction
for junior high school students, who experienced the importance of workthrough such activities as greeting customers and cleaning. As a local
business, we want to continue to help with the education of children.”23

Portrait exhibition for Fathers’ Day
Mitsuko Kobayashi,
Wife of the owner of Shimoyamate 7-chome store (Hyogo)“It is nine years since we opened a store in thisneighborhood. We thought that we would like to contribute to the community by hosting some sort oflocal event, so last year we advertised for contributions for a Fathers’ Day portrait exhibition, targetingkids up to early elementary school age. The
response exceeded expectations, and the families
visiting the exhibition filled the store with a congenial
atmosphere. Customers told us gratefully that theywould like to see further plans carried out,
so we are thinking of
periodically hostingother events in future.”

Workplace experiencefor second year junior high school students
Mika Takemura,
Wife of the owner of Nankokutochi Park Town store (Kochi)“The store is located in a new town, with many elementaryand junior high schools nearby, and students frequently visit
the store. For some time, we have hosted elementary school
pupils on field trips for social studies in workplace seminars.
Last fall, we took second year junior high school students
for a three-day work experience placement. They were evenmore enthusiastic than expected in greeting customers,
helping with cleaning, setting up displays and other activities. Afterwards, it delighted us to receive a letter saying: ‘In
the future, I want to work with customers, like at LAWSON.’
We want to cooperate with other regional school activities in
the future, and continue tostay in touch with the neighborhood children.”
Exhibition of“Hot” Station
Maps to disseminate local
information

Clean Aid

Road Safety Station

In addition to its own cleaning operations, LAWSON participates in regional clean-up activities, aiming toenhance the beauty of the areas where it operates.
The Clean Aid movement is founded on the conceptof residents working with municipal, corporate and otherentities to keep their communities, riverbanks andseashores clean. As a community member, LAWSON
helps these cleanup efforts by picking up trash and evaluating the collected garbage. LAWSON franchise owners, store mangers, crews,
head office employees andtheir families all assist inthese efforts, helping forge
stronger links with thepeople of the neighborhoods where they operate.

As some LAWSON stores face major national roads, weare participating in Road Safety Station volunteer activities
at the request of the Ministry of Land, Infrastructure andTransport. The relevant stores provide a contact point toan office for each national road in the event of an incident.
Moreover, staff carry out activities to keep the walkways
and verges in front of the store clean.
LAWSON stores in Osaka and Kobe are participatingin the Osaka Adopt a Road Program and the Bi-ing Kobe
Citizen Movement. These initiatives consist of cleanup activities to keep the walkways, including those infront of stores, litter-free and attractive, and therefore
pleasant for customers and pedestrians to use.

Arakawa River Clean Aid

For Society

Regional Clean-up Activities

Participating stores
Road Safety Station
Tohoku, Chubu, Chugoku and Shikoku regions 439 stores
175 stores
Adopt a Road Program Osaka Prefecture
133 stores
Bi-ing Kobe Citizen Movement Kobe City

Participation in Clean Aid Events in Fiscal 2005
Clean Aid project

Date

Tama River Clean Aid
2005

May 29,2005

Futagobashi region, 20 people, comprising Setagaya region
Setagaya-ku, Tokyo office employees and their families

Location

ParticipantsType of trash

Twelfth Fukuoka Love
Earth Cleanup 2005

June 122005

people, including 78 employees Total of 332 bags of trash, comprising 235 bags of burnable trash,
Ohori Park, Chuo-ku, 1,632
and family members from Kyushu
38 bags of plastic, 24 bags of cans and bottles and 35 bags of nonFukuoka
branch officeburnable trash, as well as tires, bicycles and other larger objects

First Akutagawa River
Clean Aid

July 17,
2005

Akutagawa River,Takatsuki City, Osaka

117 people, including 67 employees andfamily members from Kinki branch officeEleventh Arakawa
River Clean Aid 2005

October30, 2005

Arakawa Riverside,
Edogawa-ku, Tokyo

85 people, comprising Kanto branch
Total of 92 bags of trash, comprising 33 bags of burnable trash, 22 bags ofoffice, Tokyo Head Office and related such recyclable trash as cans, bottles and PET bottles, and 37 bags of noncompany employees and their families burnable trash, as well as futons, motorbikes and other larger objects

Total of nine bags of trash, comprising three of burnable trash andsix of nonburnable trash

Total of 19 bags of trash, containing cigarette butts, PET bottles,
cans and bottles, plastic bags, etc.

Environmental and Social Activities Report 2006

24

Supporting Customer Social Contribution Activities
LAWSON takes the role of a platform on which customers can carry out social contribution activities withease. We have implemented a structure such that product sales contribute to society and are launching
new projects.

Environmental and Social Contributions through LAWSON PASS
The LAWSON PASS has an Environmental Contribution
Course option to enable the cardholder to support customer social contribution activities.
The LAWSON PASS accumulates points corresponding to the amount of payment each time a purchase ismade at a LAWSON store. These points are rewarded invarious ways, one being to use the Environmental
Contribution Course option to exchange them in 50-unit
increments to selected organizations that carry out social
contribution activities. This option has been available
since 2003, and this year we
made our third set of donations. The total funds generated came to ¥2,572,600,
which were donated to thefollowing four nonprofit
organizations (NPOs).

NPO Education Sponsorship in Asia (ESA)
ESA supports education forpoor children, encourages
autonomy for women andprovides environments conducive to education in India,
Bangladesh and Nepal.
Funds received to date havebeen used to open newschools.
Kalagul School opening ceremony

Japan Guide Dog Association
This association trains guidedogs, helping the visually
impaired to participate more
actively in society.

Registered NPO caring for young refugees
This NPO supports the operationof care centers for children displaced from Cambodian villages
and cities. Stable environments
for children are created in cooperation with local residents.

© Masanori Kobayashi
Reading a picture book (left) created fromdonated funds and a letter of thanks fromthe children.

NPO Bridge Asia Japan
This NPO provides opportunities
for refugees, disabled children
and youths, women with few job
prospects and other deservingcases with vocational training.
Workplaces to turn these skills toincome are also being created,such as through the use of funds
Classroom equipped with sewing so far to purchase sewing
machines.
machines

Love Saves Life! Project to Support AIDS Victims
LAWSON is cooperating with the Keith Haring
Foundation and Sagami Rubber Industries Co., Ltd., toprovide support to HIV-infected patients and AIDS victims through the Love Saves Life project, instigated in fiscal 2005. This campaign raises funds from condoms
manufactured by Sagami Rubber marketed in packages
bearing works by acclaimed New York artist Keith
Haring, who died from the disease at the age of 31.
A portion of sales are contributed to the Japan Stop
AIDS Fund through the Japanese Foundation for AIDS

25

Prevention. The money is used forsocial support operations for HIV and
AIDS sufferers, a telephone helplineand for AIDS-prevention education,
publicity and other activities.
Condom sales in themselves
are helping fight the spread of HIV
infection, while donations fromsales further support HIV and AIDS
victims.

© Haring Estate

LAWSON has created an environmental policy to
reduce the burden it places on the environment
and to form a basis to promote its activities.
The Company has also established systems tomove it steadily toward its activity targets.

Environmental Policy
Fundamental philosophy
LAWSON believes in operating stores that are friendly
to people and the environment. To ensure the health ofthe environment that we will pass on to future generations, we incorporate environmental consideration into all
our actions, seek to operate in a sustainable manner thatis in harmony with our environment, and participate
actively in social contribution activities.

Policies

For the Environment

LAWSON Environmental Policy(1) Provide information on safe and secure products andservices, and continuously pursue activities that reduce
our load on the environment.
(2) Based on environmental evaluations of our operations,products and services, set environmental goals and targets, strive to continuously improve them, and prevent
pollution.
(3) Respect all laws and regulations concerning environmental preservation activities and improve our environmental
management system.
(4) Strive to reduce environmental emissions and pollutantsby conserving energy in our daily operations, conserving
resources, minimizing waste and recycling.
(5) Promote regional greening and beautification by participating in and supporting the environmental preservationand social contribution initiatives of municipal bodies.
(6) Raise awareness of environmental protection throughenvironmental education and communications.

Environmental Management System
8,366 stores throughout Japan (Owners, store managers, crews)
Store environmental auditors
Nationwide branches and offices

Internal Audit & Correction Office

Chief Information Officer’s Office

IT OfficeQuality Control Office

General Affairs Office

CCO Office

CSR Promotion Office

On Site Improvement Office

Human Resources Office

Corporate Communications Office

Management Services OfficeFinance & Accounting Office

Corporate Planning Office

Next-Generation Business Development Division

Store Development Integration Division

Operations Planning DivisionMarketing OfficeService Division

Merchandise & Logistics Division

Eco-leaders

Environmental Management Office
Chief Environmental Officer
Management Council
President & CEO

As of 1 March 2006

Environmental and Social Activities Report 2006

26

Measures to Prevent Global Warming
LAWSON’s three-pronged strategy to prevent global warming, executed through its stores, distribution
activities and various headquarters divisions, is spearheaded by measures to reduce energy consumption,
minimize use of materials and cut waste production.

Measures to Reduce CO2
Assessing CO2 emission and setting targets
In recent years, global warming has escalated as a resultof increased gases that exacerbate the greenhouseeffect, such as CO2. This has in turn caused such problematic phenomena as rising sea levels, intensified
typhoons and droughts.
The Kyoto Protocol on reduction of greenhousegases obliges us to reduce emissions. Japan has
pledged to the international community to curtail emissions by 6% from the figure for 1990 in the five years
from 2008 to 2012. LAWSON is leading its initiatives todecrease greenhouse gas emissions by accurately
assessing CO2 emissions. With cooperation throughout
Japan from power companies and the business partners
that provide our distribution services, we calculated
LAWSON’s total CO 2 emissions for fiscal 2005 at
674,937 tons.

LAWSON CO2 emission volumes (Fiscal 2005)
CO2 emission
volume (tons)

Contribution
to total (%)

545,52980.8

Electricity
Company vehicles (gasoline)
Delivery vehicles (light oil)
Waste (plastics, paper)
Water supply
Total CO2 emissions

5,604

0.8

72,005

10.7

48,943

7.3

2,856

0.4

674,937

100.0

Based on this breakdown of CO2 emissions, we canset targets and manage progress toward thesegoals. LAWSON is aggressively pursuing measures, led
by its stores, to reduce energy consumption by curtailinguse of electricity, to minimize use of such materials
as shopping bags at checkouts and containers for original LAWSON products, and to cut waste production
by recycling food product waste.
We are participating in the consolidated national
Team Minus 6% campaign to reduce CO2 emissions by
6%. This reaches out beyond corporations to private citizens to cut their consumption of energy and resources.

Team Minus 6% markMeasures to Curtail Energy ConsumptionMore than half of LAWSON’s energy consumption is accounted for by store electricity usage. We areattacking this figure by realigning air conditioning, cooling, lighting, ventilation and other systems to
reduce in-store power use.

Introducing Energy-Saving Systems
Energy-Saver Pack and Eco-Pack
The average daily electricity consumption over a year of
one store is approximately 176,000 KWh, accounting for
80% of LAWSON’s energy consumption. We are introducing new energy-saving systems, spanning chilling
and refrigeration units and air conditioning, to reduce
power use by stores.
Our new stores are equipped with an Energy-Saver
Pack, comprising an integrated cooling and ventilation
system. Consolidating the outside units for chilling, refrigeration and air conditioning, which are conventionally27

controlled separately, boosts efficiency. This initiative has
reduced annual CO2 emissions by 7.5 tons (11.3%). In
existing stores, we are installing Eco-Pack automatic
control systems for chilling and air conditioning units andanti-condensation heaters that monitor exterior unit gas
pressure. This measure will cut annual CO2 emissions by
a further 5 tons (7.5%).
To facilitate real-time inspection of store electricity use
and effectiveness of energy-saving equipment, we haveintroduced an Energy-saver Eco Monitor to automaticallygather measured data from each store. We are linking thisto reduction of energy consumption and CO2 emissions.

Results of introducing energy-saving equipment
No. of stores
Energy-Saver Pack

Fiscal 2005

Fiscal 2006 (forecast)

483

1,000

223

2,000

Fiscal 2005

Fiscal 2006 (forecast)

1,999

5,561

Eco-Pack
CO2 emission effect (tons)
Energy-Saver Pack
Eco-Pack

1,020

5,558

Total

3,019

11,119

Eco-Pack forexisting stores

Energy-Saver Pack
outdoor unit for new stores

Minister of Economy, Trade and Industry prize
In February 2006, LAWSON became the first convenience store to be awarded a Minister of Economy, Tradeand Industry prize at the 2006 National Convention ofEnergy Saving Cases of Excellence, hosted by
the Energy Conservation Center, Japan.
This award was in recognition of LAWSON’s introduction of Eco-Pack energy-saving equipment andEnergy-Saver Eco
Monitor in pursuitof reduced energy
consumption andCO2 emissions. By
fiscal 2005, EcoPack had been
installed in 223
stores, curtailingannual CO2 emissions by 1,020 Award ceremony for the Minister of Economy,
Trade and Industry prize
tons.

Other Measures
Adjustable lighting systems provide an in-store illumination of 1,000 lux immediately when powered up.
This level of lighting facilitates easy viewing of products
and a bright ambience for the store, while reducing electrical power consumption. We also use automatic lightsensor systems on windows, which cuts electricity use
by 30% through more efficient use of natural sunlight.
This is achieved by sensing the natural sunlight incident on fluorescentlights in the window
area, and using sensors to make corresponding adjustments
to illumination. The
electricity-saving benefits of this initiative Automatic adjustable lighting system

Introduction of automatic adjustable lighting systems(Stores)

2,456

2,500
2,000

1,786

1,500
1,094
1,000
500
0

2003

2004

2005 Fiscal year

were gained at an additional 670 stores during fiscal
2005, bringing the total to 2,456.
We also use reflectors in our fluorescent store signage, achieving amplified lighting with half the fluorescentlights, and thus reducing electricity consumption by 50%.
During 2006, 2,900 stores were fronted with such lighting.

Total enthalpy heat exchangers
LAWSON is promoting the introduction of total enthalpy
heat exchangers, which were employed in 130 stores
during fiscal 2005. These units only dispel contaminated
air during the heat exchange process, efficiently recovering heat and humidity through combined heating/coolingand returning it to the store interior. Heat recovery ismore than 70% higher than for conventional systems that
only recover heat, and air conditioner efficiency is alsoenhanced.
We are also restricting contamination of the outside
air with dust and other impurities through positive
pressure control in all stores. Moreover, we deal with
the issue of odors from toilets and other sources withindependent exhaust outlets, not integrated to the totalenthalpy heat exchanger system, ensuring unpleasantsmells do not infiltrate the store interior.
Compared with our former system, total enthalpy
heat exchangers reduce annual power consumption byapproximately 5,300 KWh per store, providing a further
contribution to energy conservation.

Environmental and Social Activities Report 2006

For the Environment

Adjustable lighting systems

28

Waste Reduction
Stores emit a variety of waste, from cardboard packaging to outdated boxed lunches. To minimize its
environmental burden, LAWSON seeks to constrain waste generation and promote recycling.

Survey on Waste Production
LAWSON conducts fact-finding surveys on the wastethat stores generate to reduce volumes and promote
recycling. Each year, six LAWSON stores in Hiroshima
City collect their daily garbage output, sort it by category
and weigh each component.
During fiscal 2005, the average daily waste output
per store was 52.2 kg. The largest contributor was card-

Waste disposal survey results (weight per store per day)
kg
50

48.8
42.1

40

4.7

30

7.6

20

14.7

5.2
7.8
15.2

10
11.2
0

0.9
1.1
1.9

Fiscal 2003

15.9
Fiscal 2004

52.2
1.9
1.0
1.8

5.5
10.2

16.0

15.2

1.8
1.4
2.1
Mixed
waste1
BottlesCans
PET bottles
Other typesof paper2
Cardboard
Organic
trash3Fiscal 2005

1. Mixed waste comprises glass fragments, cigarette butts, etc.
2. Other types of paper comprises used newspapers and magazines, etc.
3. Organic trash comprises boxed lunches, side dishes, bakery items, etc.

board boxes for packaging, at 16.0 kg, followed closely
by 15.2 kg of discarded food products past their sell-by
dates, such as boxed lunches, side dishes and bakery
products. Another major category was paper, at 10.2 kg,
which included used newspapers and magazines.
Investigating the Clean Box store front disposal
facilities showed a year-on-year increase in garbage
volumes, rising 23.8% during fiscal 2003 and 24.6% in
2004, with a 27.8% rise for 2005.
Note: LAWSON independently sets sell-by dates, incorporating a hypothetical consumption period between sale of the product and consumption by the customer.

Trends in waste disposal (by weight)
%
100
80

23.8

24.6

27.8

76.2

75.4

72.2

Fiscal 2003

Fiscal 2004

Fiscal 2005

60
40

Store garbage
disposalfacilities
In-store waste

200Store-Front Clean Boxes
LAWSON places Clean Boxes (trash cans) outside its
stores to help keep surrounding neighborhoods clean. In
response to increasingly strict municipal regulations forthe sorting of trash, we amended the classifications of
our Clean Boxes in February 2005. These facilities had
been introduced at 253 stores by fiscal 2004, 1,325 byfiscal 2005, and with new store openings this number isforecast to rise to 1,700 in fiscal 2006. There are fourtypes of new-style Clean Boxes accepting different sortsof trash: paper, plastics, bottles and cans (divided),and PET bottles. Depending on regional requirements,
the insertion slots can be removed and tailored todifferent sorting stipulations. The Clean Boxes
themselves are manufactured with environmental
consideration from plastic recycled from PET bottles.

29

This material also renders them more durable than conventional steel models.
From April 2006, a sticker, issued in cooperation with Ministry oft h e Environment, hasbeen displayed at the slots
to Clean Boxes, declaring Sticker commending waste reduction
and sorting issued in cooperation with
“Cooperating with waste Ministry of the Environment
reduction and sorting.”
Through the new specifications and appeals tocustomers, we are striving
to turn around the yearly
increases in waste that our
Clean Boxes invite.

Food Waste Reduction Measures
is recycled and treated at a recycling plant to produce
fodder material, construction coatings, alternative fuel for
public buses, additive-free soap and other products.

Recycling

Recycling plant

Collection
and transportation

Waste oilcollection company

Appropriate
treatment

Waste oil recycling system
LAWSON store

LAWSON has designed its supply routes to provide customers with products that are safe and fresh. At the sametime, waste from our stores includes a large proportion offood products past their sell-by dates. We are rapidly
decreasing food product waste to conform to the Food
Product Recycling Law, which went into force in 2001.
LAWSON is striving to tackle this problem on threefronts: curtailing waste generation, implementing recycling and reducing waste volumes.
In areas of Kumamoto and Nagano cities, food product waste is recycled to manufacture agricultural fertilizer
and in Tokyo to produce animal feed. In the future, weplan to continue expanding this policy of recycling foodproduct waste.
Note: The Food Recycling Law refers to the Law Concerning Reuse, etc.
of Food Product Recycling Resources, which requires that foodproduct recycling levels must reach at least 20% by fiscal 2006.

Curtailing waste generation
Reduction of waste begins at the production stage,
where LAWSON has introduced production treatment
management systems and improved process management to eliminate unnecessary waste.
In our stores, computers are used to track the pastsales performance of each product line in relation to
the day, weather and local conditions. This information is confirmed during stock taking before placing
orders in an ongoing drive to reduce waste generation.

Eco-Town Recycling Plant
in Kitakyushu (Kyushu
Yamaguchi Oil and Fat
Industry Cooperative)

Examples of recycled products
1. Additives for animal feed
Fodder material

2. Construction coatings
Rust inhibitors for construction materials

3. Bio-diesel fuel
Fuel for public buses and garbage trucks

4. Pharmaceuticals and cosmetics
5. Additive-free soap
Waste oil is refined and recycled to high-purity fatty acids, which areused as raw materials for antioxidant, coloring, antiseptic, perfumed
additive-free soap.

Computerized stock taking and ordering

Implementing recycling
Waste oil remaining from deep frying of Kara-age Kunchicken nuggets is being recycled from January 2006,
which was already the case in some parts of Akita andHyogo prefectures. By the end of February, 860 stores
were recovering
waste oil, and thispolicy should extend
Company-wide byAugust 2006.
The waste oil isrecovered by a col- Additive-free soap produced
lection company and from waste oil

For the Environment

Reducing waste volumes
Organic waste is dehydrated and dried using a processor to reduce volumes. From 2005, we introduced
organic waste processors on a trial basis at two stores in
the Tokyo metropolitan
area to reduce store foodproduct waste volumes.
We are currently examining the results with a viewto expansion.
Organic waste processor

Through this multifaceted approach, LAWSON forecaststhat it is on target to meet the Food Recycling Law
mandatory levels for food product recycling of at least
20% by fiscal 2006.

Environmental and Social Activities Report 2006

30

Measures to Conserve Resources
LAWSON has extended its consideration for safety, security and health to shopping bags and packaging
of boxed lunches and side dishes. We are implementing measures to use environmentally friendly
materials in reduced volumes that are free from noxious substances.

Reduced-Weight Shopping Bags
To avoid unnecessary use of resources and generationof waste, LAWSON is implementing measures to reduce
the weight of shopping bags dispensed at checkouts
and appealing to customers to refrain from overuse of
these items.
Each year in October, LAWSON joins local municipalities in a one-month Environmentally Conscious
Shopping Campaign, encouraging shoppers to bring
their own carrying bags, to use recycled items and tofavor purchases with less packaging.
In the month from November 29 to December 31, we
carried out activities to promote reduced use of store
shopping bags to customers. The staff at registers ask
customers if they are happy to take their purchases without a bag if appropriate for the volume of shopping. Thisis supported by posters, notices at checkouts and instore announcements. As a result of these endeavors,
average annual weight of shopping bags used per store
during fiscal 2005 was 16.9% lower than during 2000.
This represents a 9.5% reduction for LAWSON as

Weight of bags used
(Tons)

8,000

7,531

7,000

6,778

7,709
7,060

7,680

7,723

7,949

6,000

kg

900
5,918

Poster from our activities to promote
reduced use of store shopping bags
from November to December 2005

900

916

878
798

800

6,135

16.9%
reduction fromfiscal 2000 to
2005
744

748

2004

2005 Fiscal

700

5,000

0

Store
shoppingbags

Weight of bags used per store

8,204

6,746
6,163

a whole, a saving equivalent to 246,000 liters of crudeoil, or 1,367 barrels.
From 2006, the Japan Franchise Association, in
which LAWSON and other convenience stores participate voluntarily, is setting its own targets and reinforcing
measures for reducing shopping bag use. Consumption of
shopping bags per store forfiscal 2006 is cited at 20%
below 2000, with a gradualdecline thereafter, attaining
a 35% cut by fiscal 2010.

600

2000

2001

2002

2003

2004

2005 Fiscal
year

0

2000

2001

2002

2003

year

Note: The number of stores is calculated by taking openings andclosures during a period to represent a half-year operation.

Cutting Disposable Chopstick Use
In a year, each LAWSON store hands over approximately
60,000 sets of disposable chopsticks withpurchases of boxedlunches and side dishes.
NATURAL LAWSON’s chopsticks madefrom Japanese cedar lumber scraps
To reduce this figure,31

customers are asked at checkout if they would like chopsticks to avoid unnecessary default distribution.
Moreover, NATURAL LAWSON stores supply wooden chopsticks made from Japanese cedar lumber
scraps, as opposed to the Chinese white birch generally
used, as part of promotion of domestic materials.

Giving Careful Consideration to Packaging
LAWSON applies its commitment to safety, security andhealth in seeking to reduce levels of toxic emissions in
the usage and production of packaging materials.
Accordingly, we are implementing measures to upgrade
packaging materials and facilities.
Currently, we use such environmentally consideratematerials as polypropylene and polyethylene to package rice and side dishes and we promote the use ofenvironmentally friendly film printing processes using
water-based inks.
During fiscal 2005, we started to use non-petroleumbased plastics, offsetting declining total volumes of environmentally friendly materials used during the year. From
September 2005,
NATURAL LAWSON
salad containers
have been madefrom corn-oil plastic.
By using thinnerf i l m w r a p f o r r i c e Packaging for rice Our finer sandwich
balls with thinner wrapping materials areball packaging, we wrapping and higher endorsed with theTeam Minus 6% logo
reduced consumption paper content

by 9.2 tons during fiscal 2005. Increased use of paper inpackaging also favors the environment, and we boosted
the proportion of paper materials from 1.3% to 5.6%
during the year. From April 2006, we have shaved 25%
from the thickness of sandwich wrapping film, from
40µm to 30µm, a move that is forecast to save 40 tonsof materials during fiscal 2006.
LAWSON is also developing other packaging that islighter and does not use wrapping in its ongoing drive toconserve resources.
Proportion of total packaging materials accounted
for by environmentally friendly resources(Tons)

15,000Stocking environmentally considerate products

12,00011,464

9,000

53.6%

12,306
49.2%

6,000
3,000
0

2004

2005 Fiscal year

Proportion of Environmentally Friendly Materials
NATURAL LAWSON stores stock an array of environmentally considerate products that support the lifestyles
of customers with high consciousness of health andbeauty. (See page 12
for information about
NATURAL LAWSON.)The Eco Personal Shampoo
Series’ six-item lineup
includes shampoo,
conditioner and body soap.

For the Environment

LAWSON stocks such environmentally conscious products as office supplies made from recycled plastics anditems bearing the Japan Environment Association’s EcoMark to denote environmental consideration. In March
2006, we began marketing the Eco Personal Shampoo
Series, jointly developed with Sunstar Inc., and TRAINCORPORATION. The flexible packaging serves as a refillable dispenser for the shampoo to save on unnecessary
use of resources.

Other Measures
LAWSON is promoting paperless operations at its headquarters through electronic accounting and through “green
purchasing,” prioritizing procurement of environmentallyfriendly products. We also reduce our environmental burden by enforcing sorting of garbage to constrain waste
generation and promote recycling.
In fiscal 2005, we introduced ETC to our entire fleetof Company vehicles. This fuel upgrade reduces CO2
emissions, in addition to enabling such businessefficiency benefits as lightening the accountancy loadand cutting toll charges on highways.

We extended our environmental measures to allcompany vehicles (excluding four-wheel drives) during
fiscal 2006, installing an automatic cut-off function
during idling throughout the 1,281-vehicle
fleet. Moreover, wehave embarked ona gradual program toconvert all cars tohybrid vehicles.
Company vehicle

Environmental and Social Activities Report 2006

32

Distribution Efforts
LAWSON’s distribution network plays a vital role in the process of receiving items from its business partners
and transporting products throughout Japan. We maintain stringent quality control during delivery, andstrive to enhance the efficiency of our distribution system and reduce its environmental burden.

Product Delivery System
Items from our business partners are delivered to our
distribution centers before being divided for dispatch toindividual stores. Throughout Japan, we operate 118
distribution centers, which classify products into threetemperature bands: chilled products, including rice-related products, dairy products, desserts and other itemswith short quality guarantee periods; normal related
products, consisting of such processed foods as confectioneries and seasonings; and frozen products.
At distribution centers, products are stored andmanaged according to their temperature classification.

Such information as the date products are received anddispatch limits is monitored. We also check products at
the point of loading them onto delivery trucks.
During delivery, the temperature of products is
closely monitored. Trucks equipped to deliver chilled
products have a thermometer mounted near the driver
seat for easy monitoring of cargo temperatures. If
product temperatures rise above the specified level,
the driver immediately alerts the distribution center.

Delivery

ChilledNormaltemperature
Frozen• Product storageand management• Division by store• Ordering

Business
partner

Distribution center

Delivery flow
• Two temperaturebands (chilled & normal)• Normal-temperature
products

Store• Frozen products

Thermometer mounted in a delivery truck

Promoting Joint Deliveries
LAWSON is promoting multidrop deliveries and revamping its delivery system to reduce the number of trucks
that visit one store and consequently lower environmental impact. Chilled products subclassify into rice-related
products, which are stored at 20ºC, and diary products,
desserts and other items that are stored at 10ºC or
below. We have partitioned the cargo areas of delivery
trucks into different zones to allow both types of products to be transported in the same vehicle.

Through this practice, as well as by reworking oursundry item delivery schedules, we have cut average daily
deliveries to 7.6 trucks
per day. Moreover, weare continuing to revise
delivery schedules androutes.
Average daily deliveries of
7.6 trucks per store

Using Low-Pollution Vehicles
In 1997, LAWSON became the first company in its field
to use delivery trucks powered by natural gas to lower
emissions and reduce the environmental burden. Our

33

next-generation low-pollution vehicles were led by the
introduction of a hybrid fuel truck in March 2004. By theend of fiscal 2005, we had expanded our low-pollution

truck fleet to 60 vehicles. The Company also plans tostart trial introduction of biodiesel-fuelled delivery trucks,
using vegetable oils as a raw material.
In cooperation with our business partners, in June
2005 we carried out a survey of total CO2 emissions fromdelivery trucks. Totalannual CO 2 generation
was calculated at 72,005
tons. We plan to continue
to conduct such surveys
as part of our strategy to
reduce emissions.

Introduction of low-pollution vehicles(Number of vehicles)

8070

Hybrid vehicles
Natural gas vehicles

60

60

48

45

1

13

13

40
20
0

45

47

47

2003

2004

2005

57

2006 Fiscal(Target) year

Noise-Reduction Efforts
metal exhaust pipe to reduce tail-note resonance.
By 2005, our fleet included 561 reduced-noise powergate trucks (an introduction ratio of 86%) and 71,700
reduced-noise cargo trolleys (94%).

Noise-pollution strategyof( Numbertrolleys )of( Numbertrucks )Reduced-noise cargo trolleys
Reduced-noise power gate trucks

80,00071,70068,95060,000

523

499

561

73,950
600

800

600

40,000400

20,000

200

0

2,500
2003

2004

2005

2006 Fiscal

0(Target) year

For the Environment

LAWSON is implementing measures to reduce noise,
which is potentially annoying to customers and local residents, from trucks and trolleys during delivery. We haveupgraded metal casters to all-plastic units as part ofdevelopment of a reduced-noise trolley. These trolleys
are now being introduced to deliver all our chilled andfrozen products.
Power gate trucks, with an elevation platform
between ground and cargo deck level, generate noisefrom their motors and through contact with the ground.
We have reduced this noise pollution through slower elevation speeds and by
installing rubber stops
to the contact surface
with the ground.
Moreover, we havedeveloped a reducednoise cargo trolleywith a dual-structure

Traffic Management System
All trucks that deliver chilled products are mountedwith a travel management system that is linked toa mobile communications network. This allows
LAWSON headquarters and distribution centers tomonitor cargo temperatures and arrival and delivery
status in real time, facilitating more accurate quality
control.
The system also allows monitoring of driver safety,
including over-acceleration, over-braking and speeding.
In addition, it promotes travel efficiency and is useful inchecking whether trucks are being shut off while idling,as leaving the engine running during deliveries

contributes to global warming and atmospheric pollution
and wastes fuel. To further enforce this practice, eachdriver has a key on key rope that must be removed fromthe ignition for the driver to disembark. To heighten driverawareness of this issue,
we have produced
a driver’s manual video,
and also carry out
driver training and promote “eco-driving.”
The Travel Management System

Environmental and Social Activities Report 2006

34

LAWSON Green Fund and Afforestation Activities
The LAWSON Green Fund and the afforestation activities it supports are entering their 15th year. We can
all join forces in projects to ensure that future generations can enjoy Japan’s forests.

LAWSON Green FundLAWSON Green Fund activities were instigated in 1992
to ensure that the forests survive to absorb and store
CO 2 , protect the soil and prevent landslides, andpreserve water resources into the future.
Funds donated at stores throughout Japan are provided to the National Land Afforestation Promotion
Organization, which promotes volunteer tree planting,thinning, undergrowth clearance and other forestation
activities in Japan and overseas. Franchise owners,
crews and employees participate in some of these activities.
Donations to the LAWSON Green Fund, including
contributions from headquarters, totaled ¥2,039 million

as of the end of February 2006. Forestation activities
have benefited 1,340 locations in Japan and overseas,
over 4,100 hectares, benefiting more than 10 million
trees through planting and arboriculture.
Trends in land tended and afforested area (cumulative)
ha
6,000

Area

5,000
4,000

Number of trees
9,120
8,140
3,650
3,256

12,000

10,23010,000

4,093

8,000

3,000

6,000

2,000

4,000

1,000

2,000

0

2003

2004

2005 Fiscal
year

0Green Fund donations(Millions of yen)
400
300

Disaster Relief FundGreen Fund
45

200

167

100
0

274

154

166

190

93

154

77

192

64
45

177

7

196

175

232

107
96
98
79
24
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Fiscal
year

Note: LAWSON Green Fund collection switches to a Disaster Relief Fund in the event of amajor disaster. (See page 22 for information about Disaster Relief Funds.)

Green Culture Prize
In April 2005, the LAWSON Green Fund and forestation
activities were recognized by His Highness the Prince
Akishinonomiya by the award of the Green Culture
Prize—the first time a private-sector entity has received
this honor.
Acclaim was given for participation by citizens
through the LAWSON Green Fund in forestation activities
that contribute to reducing CO2 levels and preventing
global warming. LAWSON franchise owners and crews
and employees have been vital to the success of thesenationwide programs.

35

Presentation by Speakerof the House ofRepresentatives Yohei
Kono of a letter ofcommendation at
the Green Appreciation
Celebration, presided
over by His Highness
the Prince
Akishinonomiya

LAWSON Flower and Greenery Day
In 2001, as a symbol of the LAWSON Green Fund andforestation activities, we declared the third Sunday in
May as LAWSON Flower and Greenery Day. This celebration is marked by a LAWSON Flower Event andMount Fuji LAWSON Greening Program.

Mount Fuji LAWSON Greening Program
The object of this program is to restore a 34-hectare
tract of land at Mount Fuji that was devastated by
Typhoon Number 17 in 1996 to the ecological state ofa natural forest. Franchise owners and crews, employees, and their families participate in tree planting andundergrowth clearance operations. Progress to date is
attributable to some 1,700 volunteers.

Notices concerning the event
displayed at checkouts

LAWSON Flower Event
The LAWSON Flower Event consists of free distributionof flower seeds to customers at stores nationwide, withthe aims of encouraging the adornment of local towns
across all regions and heightening awareness of the dateof LAWSON Flower and Greenery Day.
In 2005, approximately 800,000 customers (100 per
store) were presented with Cosmos seeds.

New employees each year experience
tree planting during their induction
training. (Photograph of fiscal 2006
entrants)

Cosmos seeds

For the Environment

A hinoki cypress
tree from the firstwave of planting
now stands at
almost two
meters.

Mount Fuji Greening Program—I’ll continue to participate if I possibly can!
Kazuo Kubo, Owner of Numazu Satsuki-cho store,
Shizuoka Prefecture
I have participated in the Mount Fuji
Greening Program forestation activities
since the second year. When I wasa child, I helped with tree planting andthinning around the local hills, and I
basically enjoy these types of green
activities.
It is satisfying to see the landformchanging as a result of the trees planted each year. I put my heart into planting each tree, to ensure it takes root.

When dealing with customers at
the checkout in the store, I tell them
about the 100-year plan to reforest
Mount Fuji. Some stop in their tracks
and listen, praising what we are doing.
Very often, people also make a donation.
Saplings don’t grow into trees
overnight. Reforestation is an arduous
process, but it is a path that I want tocontinue to progress along. It will be

my grandchildren’s generation by thetime it grows into a forest. I’d like tokeep participating for as long as I possibly can: 50 years is out of the question, but I’m aiming for another 20.

Environmental and Social Activities Report 2006

36

LAWSON Green Fund and Afforestation Activities

School Greenery Activities
To reinforce its useful role in local communities, LAWSON has expanded its forestation activities from mountainous areas to urban neighborhoods. We have started
applying the LAWSON Green Fund to activities atschools, to ensure that the next generation is cultivatedin a verdant environment.
School greenery activities luxuriate the environmentof educational facilities through creation of trees andbiotopes, which boosts the opportunities for children toexperience nature handson and contributes totheir healthy growth.
In urban environments, the phenomenonof heat islands arises
from heat discharge
The opening ceremony for the Asuke
W i n d G a r d e n , a t t e n d e d b y 3 1 0 from the external units
participants, including all 276 Asuke of air conditioners andJunior High students, plus parents,
forestry cooperative representatives r e t e n t i o n c a u s e d b yand otherst h e concrete-covered
ground. Flora intercepts
the hot rays of the sunand eases the heatbuild-up through evaporation, which are effective deterrents to thisThe transformed Asuke Wind Garden
phenomenon.

In May 2006, LAWSON supported Asuke
Junior High School,
Toyota, Aichi Prefecture,in the constructiono f t h e Asuke Wind
Garden. We were
responding to a request
to help build a tranquil
Tree planting by LAWSON President and
CEO Takeshi Niinami and Kanto Branch space for the children
President Norikazu Nishiguchi, along with amid the hustle andall the children, at a ceremony to markcompletion of work at Hosui Elementary bustle of the school
School, Shinagawa, Tokyo
grounds. The LAWSON Green Fundsponsored procurement of trees and materials, and fortwo days more than 200 students, parents, teachers andother volunteers prepared the site, building wooden platforms, a stone pavement, paths and other features.
Moreover, to utilize local resources, some of the trees
were transplanted from the nearby hills.
Through school greenery activities, LAWSON had
supported 24 establishments by August 2006, We plan
to extend these benefits to 50 schools between
September 2006 and August 2007.
Note: A biotope is an independent space of variable size with a unique ecology and environmental conditions necessary for survival of wildlife, inthis case in the form of swamp, grass and miscellaneous trees.

From the first step through LAWSON Green
Fund, to hosting social contribution events
Takumi Fujisawa, Headmaster of Asuke Junior High School,
Toyota City, Aichi Prefecture
The construction amid the hustle
and bustle of the school grounds of“a tranquil place where we can gather” was spawned from the students’ideas. The project team was also student based, with volunteer staff andparents following their directives.
When it came to actual building workin the school grounds, the pupils
themselves cut and carried trees
from the hills and laid the stones. As

37a result, I think that this achievement will remain with them forever.
I first heard of the LAWSON Green
Fund when we were at the planningstage. Funds had mainly been collected through contributions and voluntary
activities, but the assistance offered
was an exact match to our plans, so
we applied. We are grateful that asa school we were given free rein withuse of the funds, so long as it was

related to greening activities.
At Asuke Junior High, we are
currently developing projects outside
the school, such as riverside androadside clean-ups and other activities to restore the local environment.
From here on, after this first step takenwith LAWSON Green Fund we would
like to investigate hosting litter-gathering and other events.

Forestation Activities Participated in by the LAWSON Family during Fiscal 2005
During fiscal 2005, the LAWSON Green Fund supported
forestation activities in 186 locations, bringing the total todate to 1,340 sites covering 4,100 hectares. Sucharboricultural activities as tree planting and thinning havenow spanned more than 10 million trees. Of theseMiyazaki City, Miyazaki
Prefecture
Forestation voluntary
improvement activities,
April 24, 2005

endeavors, LAWSON franchise owners and crews andemployees have directly participated at 289 locations inJapan and abroad, carrying out tree planting, thinningand undergrowth clearance alongside volunteers toluxuriate our forests.

Tomacho, Hokkaido
Forestation experience activities,
May 29, 2005

Sangou-cho, Nara Prefecture
Ongoing Sasayuri Path
Project,
November 12, 2005

Krabi, Thailand
Japan–Thailand Friendship
Mangrove Planting 2005,
November 26–27, 2005

During 2005, LAWSON participatedin forestation activities at 52 sites
across Japan and one overseas location.

Odate City, Akita Prefecture
Forestation at the riverheadof Nagaki River,
October 30, 2005

Sabae City, Fukui Prefecture
New Lapause Kawada
forestation volunteers,
March 26, 2005

To-on City, Ehime Prefecture
1,000-year Forest Treeplanting Festival,
March 20, 2005

Hachioji City, Tokyo
Fifth Mount Takao
Forest Planting,
April 10, 2005

In addition to LAWSON Green Fund and forestation
activities, we are contributing to cultivating domestic
forestry and preventing global warming by actively using
Japanese materials.
Through the Kyoto Protocol, the Japanese
Government has committed to a 6% reduction in CO2
and other greenhouse gases. It is forecast that
two-thirds of this figure, or 3.9%, can be accounted forby CO2 absorption attributable to domestic forestation. It
is important to stimulate the forestry cycle by successively using products made from Japanese resources in daily
life, supported by planting, cultivating, harvesting andcareful use of these products. The Forestry Agency is
carrying out activities to promote use of products madefrom Japanese materials and cultivation of forestry. Partof this drive is to encourage a lifestyle plan conducive to

For the Environment

Promoting CO2 Absorption by Utilizing Japanese Materials
these aims, under the banner “3.9 Green Style.” LAWSON is demonstrably sympathetic to the targets of these
activities, using paper made from domestic forest undergrowth clearance in publications issued by headquarters
and aggressively promoting use of domestic resources.

Booklets made from forestry
undergrowth clearance

Environmental and Social Activities Report 2006

38

Structure for Promoting Environmental Activities
LAWSON has established an environmental policy to reduce the burden it places on the environment. Inline with this policy, we have set activity targets and created flexible systems to move steadily toward
these objectives.

Environmental Targets and Results
LAWSON has carried out its environmental protection
activities during fiscal 2005 based on targets in fourareas: saving energy, saving resources, reducing waste

and regional social contributions. We will continue toadjust our targets upward as we strive to achieve theseobjectives.

Environmental targets and results for fiscal 2005
Area

Actions

Saving energy
Saving resources
Reducing waste
Regionalsocial contributions

39

Activities

Targets

Cut store air conditioner andcooler electricity use

Introduce energy-saving units
in 2,000 existing stores
Introduce 300 energy-saving units
in new stores (total 500 units)
Cut CO2 emissions by
Boost total low-pollution delivery
Improve delivery
upgrading delivery truck fuelvehicles to 51
truck fuelconsumption
Implement Eco-Drive for delivery
truck drivers
Cut CO2 emissions by
Decrease fuel costs 1%
Improve Company
vehicle fuel consumption upgrading Company vehicle fuel by introducing ETC
Create measures for accurate
Promote prevention Assess CO2 emission volumes
assessment of CO2 emission volumesof global warming(reduce CO2)
Gather data as a basis for CO2
emission volumes
Reduce weight ofReduce weight of shopping
Appeal to customers at storesshopping bags used bags used
for restraint
Reduce volume of
Reduce weight of container
Use thinner film wrap and increased
container packaging packaging and store
paper materials for packaging
materials
consumables and use
Niigata Koshihikari rice balls
environmentally consideratematerials
Reduce electricity
consumption

Reduce sales
promotion materials

Reduce foodproduct waste,
recycleReduce sales promotion
materials, use environmentallyconsiderate materials
Reduce food product waste,
recycleReduce store waste

Modify Clean Box (trash cans)specifications and change
locationsSupportenvironmental
protection

Continue collecting conations
through LAWSON Green Fund

Use of “green plastics” for container
packaging
Reduce delivery volumes of sales promotion
materials 5% from fiscal 2004 (per store)
Promote use of recycled materials forsales promotion materials (to 3% or more)
Full introduction of waste-oil
recycling
Trial introduction of organic
waste processors
Expand areas for recycling to fodder
and fertilizer
Introduce new Clean Boxes
conforming to regional municipal
regulations, promote moving Clean
Boxes in store
Continue fundraising activities in all
storesExpand greenery operations to new
areas

Progress
Introduced in 38 stores
Introduced in 433 stores(total 483)
Introduced to 60 trucks

StatusNotachieved
Not
achieved
Achieved

Made a video manual andAchieved
gradually carrying out training
ETC introduced to all Company
Achieved
vehicles (1,663)
Created
Achieved
Data gathered
Increase of 0.5% from fiscal
2004 in weight of bags used
Switch to thinner film wrap
and increased paper materials
completed (paper content from
1.3% to 5.6%, container
weight down 0.07%)
Green plastics used at
NATURAL LAWSON stores
Delivery volumes of sales
promotion materials up 14%
Recycled material content
approximately 25%
Introduced at 856 stores
Trial introduction at 2 stores
Areas expanded

Achieved
Not
achieved

Achieved

Achieved
Not
achieved
Achieved
Achieved
Achieved
Achieved

Introduced new Clean Boxes
conforming to regional municipal
Achieved
regulations, promoted moving
Clean Boxes in store
Total raised to date ¥2,039
million, ¥232 million raised
Achieved
during fiscal 2005
Green Fund support to 186
ventures, including
Achieved
4 representing start ofschool greenery activities

Fiscal 2006 environmental targets

Regionalsocial contributions

Reducing waste

Saving resources

Saving energy

Area

Actions

Activities

Reduce electricity
consumption
Improve delivery truck
fuel consumption
Improve Company
vehicle fuel consumption
Promote prevention of
global warming (reduce CO2)
Reduce weight of
shopping bags used
Reduce volume ofcontainer packaging
materials

Cut store air conditioner
and cooler electricity use
Cut CO2 emissions by upgrading
delivery truck fuelCut CO2 emissions by upgrading
Company vehicle fuelPromote reduction of CO2
emission volumes Company-wide
Reduce weight of shopping bags
usedReduce weight of container
packaging and store consumables
and use environmentallyconsiderate-materials
Reduce sales promotion
materials, use environmentallyconsiderate materials
Food product waste recycling
ratio of 20% or more

Reduce sales
promotion materials
Reduce food productwaste, recycle

Reduce store waste

Support environmental
protection

Targets
Introduce energy-saving units in 2,000 existing stores
Introduce energy-saving units in 1,000 new stores
Boost total low-pollution delivery trucks to 70
Implement Eco-Drive for delivery truck drivers
Introduce 869 low-fuel-cost Company vehicles
Reduce CO2 emission volume base units* to 28% of fiscal 1990 value
Appeal to customers at stores for restraint (decrease weight use perstore by 20% of fiscal 2000 value)
Use thinner film wrap for packaging rice balls and sandwiches,
reduce container weight
Use non-plastic container packaging materials
Reduce delivery volumes of sales promotion materials 5% from fiscal 2004
Promote use of recycled materials for sales promotion materials

Introduce waste-oil recycling Company-wide (7,500 stores)
Promote waste reduction through introduction of organic waste
processors (100 stores)
Expand areas for recycling to fodder and fertilizer (750 stores)
Promote introduction of modified Promote introduction of new Clean Boxes, promote moving Clean Boxes
Clean Boxes, change locations, in store, display waste reduction and sorting promotion stickers
educate customers
Continue fund-raising activities in all stores
Continue collecting donations
through LAWSON Green Fund
Expand greenery operations to new areas*Base units (kg CO2/m2h): CO2 emissions corresponding to unit is floor area x operating hours.

Environmental Management System Activities
LAWSON conducts efficient and effective activities, which
it strives to improve and upgrade, in accordance with its
Environmental Policy. To this end, an Environmental
Management System has been in effect in all LAWSON
stores since December 1998, which have been awarded
ISO14001 certification. To ensure continual improvement,

our Environmental Management System operates
through a cycle of Plan > Do > Check > Action.
Note: ISO14001 certification is conferred by the International Organizationfor Standardization (ISO) to confirm that an organization has createdan environmental management system to promote ongoing
improvements in environmental performance. Prior to receivingsuch certification, an organization must undergo assessment andregistration.

LAWSON conducts various types of environmental education and training and in-house promotion activities toensure that all staff at stores and headquarters understandenvironmental issues and the Company’s environmental
preservation activities and act in an environmentally
appropriate manner.
All employees are required to undergo general environmental training once a year. The theme for the 2005
program was “Considering global warming.” To raise
effectiveness of our environmental education, we provide
this training as an e-learning course. Additional grouptraining is provided to staff with responsibilities in departments that have particular impact on the environment,such as product development and store construction.

For the Environment

Environmental Education and Training
Environmental training is scheduled so that franchiseowners can participate at times of store openings. In
addition, headquarters circulates in-house publications andpromotional materials to shareenvironmental knowledge andinformation.
To ensure understandingof our environmental preservation measures by as many
people as possible, we issue
environmental bulletins andpromulgate information on our
homepage and through adver- LAWSON Green Fund advertisement in Nikkei Shimbun
tisements.
newspaper.

Environmental and Social Activities Report 2006

40

Systems to Promote Environmental Activities

Environmental Accounting
Environmental accounting is the process of assessing
a company’s costs arising from environmental preservation activities as well as quantitative expression of

the results of these actions on a monetary or volumetricbasis. We use this information to optimize future environmental management.

Environmental accounts(For the period from March 1, 2005, to February 28, 2006; encompassing LAWSON INC., franchised stores and some logistics service providers)[Environmental preservation costs](Thousands of yen)Classification(1) Business area costs• Global environmental
protection costs

Principal measures

Investment

Introduction of energy saving equipment (automatic adjustable
lighting system, Eco-Pack, Energy-Saver Pack, etc.)
Collection and disposal of fluorocarbon gases

4,734,694

Industrial waste disposal and processing
General waste disposal and processing
Food product waste recycling
Expenses for survey on waste production and other• Resource cycle costs

58,5001,072

138,000
3,269,655
62,705
1,218(2) Upstream and downstream costs

Consignment fees for recyclable products in accordance with theContainers and Packaging Recycling Law

261,182(3) Management activity costs

Environmental Management System Operation
Environmental education
Environmental publications and corporate advertising
Environmental publicity activities

1,485
300
15,8654,105(4) Research and development costs

Recycling R&D costs
Purchase of environmental reporting books, participation inseminars

1,789
487

(5) Social activity costs

Donations to the National Land Afforestation Promotion
Organization and NPOs
Costs for greenery and clean-up activities

15,5117,841
0(6) Costs to counter environmental damage
4,735,766

Total[Environmental Preservation Results]

3,838,643(Tons of CO2)

Indicator of environmental preservation results
Improved CO2 volume
Target category

Details(1) Business area cost performance• Performance of resources invested in business activities

Reduction in electrical power consumption• Environmental preservation performance related toenvironmental load and waste generated by business activities

Confidential document recycling(2) Upstream and downstream cost performance• Asset and service performance generated by business activities

Reduction in emissions of substances with environmental impact (collection and disposal of fluorocarbons)

3,319
14

50,32053,653

Total[

Economic Effects of Environmental
Preservation Measures

41

Expense](Thousands of yen)

EffectValue

Energy cost reduction owing to energy conservation

132,771

Notes
1. As each franchised store operates as an independent business, a representative sample has been used for calculation purposes.
2. As investment amount during the accounting period exceeds the total ofinvestment costs, no depreciation or amortization costs have been assessed.
3. The loss recorded is because economic benefits of environmental protection
activities are computed in terms of reductions measured relative to the previous fiscal year.
4. A simplified method of accounting for transportation by purpose of trip has
been adopted.

About LAWSONLAWSON’s Organization
LAWSON maintains a robust and transparent business structure to fulfill a useful role for its business
partners and citizens of the regions in which it operates. Implementing a corporate governance system isvital to these goals.

Corporate Governance and Internal Control
Board of Directors, executive officer system

Remuneration system

As of May 26, 2006, LAWSON appoints a board of nine
directors: four in-house directors and five outside directors.
We believe that this majority of external directors ensuresfairer decision making on important business issues.
Since fiscal 2002, we have maintained an executive
officer system that separates the functions of management supervision and business execution. As of May 31,
2006, LAWSON had 18 executive directors (including
two concurrent directors).

LAWSON has introduced a performance-linked remuneration system, with a discretionary portion of approximately
30% that is determined according to each director’s roleand performance. A Remuneration Advisory Committee
meeting was held, presided over by External Director
Furukawa, and a report was compiled for the Board of
Directors relating to the determination method for remuneration for directors and executive directors and other issues.
In addition to attaining individual targets, remuneration
for management has been dependent on a multifaceted
assessment carried out simultaneously with personnel
assessments since February 2003.

Audit function
LAWSON maintains a corporate auditor system, withthree of the four members of the Board of Corporate
Auditors deriving from outside the Company. The Boardof Corporate Auditors meets, in principle, once a month,and supervises the execution of duties by directors.
LAWSON recognizes the importance of compliancewith laws and regulations and of CSR and accordingly
has established an Internal Audit Office as an independent internal auditing organ to confirm that business isconducted in a fair and appropriate manner.

Proactive and fair disclosure
LAWSON aims to treat information disclosure as proactive display rather than fulfillment of accountability. For
example, monthly business reports and details of financial
results are available on the LAWSON website and werelease video coverage of the General Meeting of
Shareholders (Japanese language only). Such initiatives
encourage exchange with all LAWSON stakeholders andpromote disclosure of information.

Environmental and Social Activities Report 200642

Internal control system
LAWSON Internal Control System

Internal control
auditsRegular meetings
Auditors

Set internal control system policy
Appoint external directors

President and CEO• Information storage• Information systems• Business clarification• Business efficiency
improvement

CCO
Compliance andRisk Management
Committee•Ordinaryprecautions•Emergency
precautions

Directors

General managers Branchof divisions
managers

Internal audit& correction
officeDepartment
managers

Close
communications

Personin charge

Managers

Training/
supportManagers

Control/monitoring

Personin charge

On March 1, 2006, LAWSON appointed
a Chief Compliance Officer (CCO), taking general responsibility for compliance promotion andrisk management. The CCO will lead the
CCO Office, which is composed of specialized staff, including compliance representatives from each division and theseven branch offices. To ensure practical resultsin compliance with laws and regulations andmanagement of risk, the Compliance and Risk
Management Committee convenes once amonth to tackle current problems and implement
systems to pre-empt problematic incidents.

Leaders
Control/monitoring

Managers

Establishment of CCO Office

ExpandreportingControl/monitoring

Internal control
monitoring

Basicmanagement
policyDirectors

CCO Office• Compliance regulations• Identification of laws
and regulations• Risk management
regulations• Ethical training

Personin charge

Personin charge

Franchised stores

Affiliated companies

Mutual intent/information exchange

Reports onimportant issues

Board ofDirectors

To reinforce the LAWSON internal control system, in February 2006 the Board of Directors
established the Fiscal 2006 Internal Control
System Basic Policy, which was implemented
from March 1.
The internal control system is maintained
to ensure healthy and sustainable development,
and its application is a management priority.
By guaranteeing effectiveness, efficiency andfairness, the basic policies that LAWSON has
determined will lead to increased business merits.

LAWSON’s Compliance System

43

corrections and improvements to our compliance system.
LAWSON has also established facilities for in-houseand external inquiries and reporting and a response system for the early detection and resolution of problems
within the Company.

LAWSON Compliance and Risk Management System

Preparation and response
for emergencies
Education and training

Revision following
emergency

Policy revision
and amendment

Confirmation andmonitoring ofpolicy progress

Hotlineestablishment
Divisional
development
activities bypromoterBusiness execution
based onstandards of conduct

Corporate Philosophy/
Code of Ethics/
Standard of Conduct
Settingcompliance policy
for each division

The Company adheres to the LAWSON Code of Ethics
to ensure compliance to laws, regulations and social
standards and to ensure a robust corporate structurethat is fortified against unexpected occurrences. Basedon this code, we expect every employee to strive to act
with consideration for others. Through its compliancesystem, LAWSON maintains and enforces regulations
relating to compliance and holds periodic training
sessions. The LAWSON Code of Ethics was revised in
March 2006, reflecting the results of a consciousness
survey conducted in January 2006 targeting all
dispatched staff, crews and other employees. We havealso issued a Compliance Handbook, with commentaryon business-related laws and regulations and questions
and answers compiled by job function as part of our drive
to raise consciousness of compliance through business.
We conducted a questionnaire among our business
partners on product deliveries, store construction andother subjects to ascertain any problems or issues theymight have and to help our endeavors to conduct fairtransactions. Such feedback is in turn recycled as

Risk Management System
From the standpoint of our corporate philosophy, there
are three major risk areas: products and hygiene management, information security, and disaster and theft.
LAWSON has a system in place for swift resolution ofproblems in case of emergency.
In normal circumstances, the Compliance and Risk
Management Committee convenes once a month tominimize risk. The committee oversees an organizationthat defines potential risks, sets clear priorities andpromotes prevention measures. We have also established an emergency risk response council to contain risk
and limit its damage. A Risk Investigation and Prevention
Committee has been established to cover the eventualityof risk escalation, which conducts analysis of the causes,
ensures restoration of trust and prevents recurrence. In
this manner, LAWSON strives to raise its crisis management capabilities.

We have established a Disaster Response Office toimplement measures swiftly in times of calamity (Forinformation about regional and societal reconstruction
support in case of disasters, see pages 21 and 22.)
To prevent crime at stores, LAWSON has establisheda crime-prevention system and conducts various
activities. We have introduced and promote pigmentfilled anticrime color balls, dispatch headquarters staff tomake late-night rounds of stores, participate with local
police departments inrobbery simulation
exercises and adhere
to the “Five Principles
of Crime Prevention.”
Robbery simulation
exercises

Information Security System
In anticipation of the full enforcement of the Private
Information Protection Law in Japan, in March 2005
LAWSON created a Private Information Protection Policy.
Through this in-house directive, we enact all regulations
and standards necessary for private information protection.
This policy is reflected in store manuals to ensure it ismanifest in the understanding and actions of employees.
We have also distributed to all stores and supervisors
a compilation of hypothetical cases involving misclaims
and corresponding laws to assist them in responding
appropriately in such cases. At headquarters, staff use
the LAWSON Office Security Rules for the same functions.
We check our information management system byprocesses of self-examination and internal auditing.

LAWSON is striving to tighten its information security
system through various other measures, including
thorough rules for use, storage and disposal of private
information and information security training.

Collection of
hypotheticalcase studies

LAWSON
Office Security
Rules

Taking every opportunity to promote respect for regulations
LAWSON’s operations are multifaceted, so
the laws to be obeyed are numerous andthe risks diversified. Compliance with laws anddealing with risk are carried out by eachdivision, but we have established a specialized
CCO Office to cover Company-wide promotionof compliance and general risk management.
Linking the organization laterally in this way
enables the Company to move forward ina coherent direction.
We currently consider three major risk
areas: products and hygiene management,

information security, and disaster and theft. We
have a system in place for swift resolution ofproblems in case of emergency. Each division
has a specialized representative, a training
curriculum is in place, and the Complianceand Risk Management Committee holds regular meetings. Accordingly, there are many
opportunities to disseminate our policies oncompliance and further fortify our preventative
system.

Manabu Asano
Director,
Chief Compliance Officer

Environmental and Social Activities Report 2006

44

LAWSON’s History
1975

April
June

1976

April
October

1977

April

November

1978
1980

January
September

1981
1982

July
March
September

1986
1988

April
May

1989

September
March
October

1990

April
November

1991

February
September

1992

January
September

1993

April
August1994

February
March
May

1995

January

March
1996

March
April
June
July
September

1997

January
March
July
September

October
1998

45

February
March

Daiei LAWSON Co.,
Ltd. establishedFirst store opens in
Sakurazuka (Osaka)• Increased joint deliveries of chilled products
T.V.B. Sun Chain Co.,
Ltd., establishedBegan 24-hour operation
First LAWSON store• Inaugurated system forjoint delivery of milk and other daily use products
Created specialized plant to make boxed lunches andbegan supplying freshly made boxed lunches• Established the industry’s first distribution center
Installed first-generation computer system• Installed Ayumi no Hako in all stores (formerly Sun Chain
convenience store)
Business tie-up established between LAWSON and Sun
Chain
Began advance sales of movie tickets
Began accepting home delivery service orders
Began sales of oden (Japanese hotchpotch boiled in
kelp-based broth and seasoned with soy sauce)
Began sales of Kara-age Kun fried chicken nuggets
Began employing a new three-delivery system (same-day
delivery of rice and bread)Use of point-of-sale tracking system commenced
Merger with Sun Chain Corporation, creating Daiei
Convenience Systems Co., Ltd.
Began agency service to accept electricity and gas bill
payments• Started joint deliveries of processed foods, confectionery
and sundry goods• Launched ECOLOGY LIFE products, designed to protect
the natural environment
Began employing the slogan “The ‘Hot’ Station in the Neighborhood” in internal and external communications• Started using recycled paper for photocopies, internal
publications and business cards• Began using 80% recycled paper for store receipts• Opened Station Park Waseda and five other experimental
environment and welfare stores• Started collecting donations for charities working to protect the global environment (Currently called “LAWSONGreen Fund”)• Held first Tama River Clean Aid campaign• Joined volunteer rescue activities after earthquake off
the Hokkaido southwest coast• Attached “Guide Dogs Welcome” stickers to all stores• Began employing two-temperature delivery trucks withpartitioned cargo areas for chilled foods• Planted greenery using money from first LAWSON Green
Fund (Fukuoka)• Collected donations forrescue work after
Hanshin Awaji Earthquake• Started joint deliveriesof frozen products• Developed“Hot” Station Maps
Began handling salesof stamps, postcards All stores provided assistance during the Hanshin Awaji Earthquake
and revenue stamps
Initiated LAWSON
Ticket sales
Company name changed to LAWSON, INC.
Opened first LAWSON store in Shanghai, People’s
Republic of China• Started using 50% recycled paper for thermal paper
receipts• Started recycling of bottles, cans, PET bottles and cardboard boxes in the Tokyo metropolitan area
• Made donations to rescue work for an oil spillage in
the Japan Sea• Started “Every Store Can Help” campaign
Commenced operations in Okinawa, marking the Company’s
extension of operations to all 47 Japanese prefectures• Started an experiment to recycle food products in
Kanagawa Prefecture• Started using low-emission CNG delivery vehicles• Introduced plastic containers for delivery• Joined Tokyo Rule II to collect PET bottles in stores• Started campaign to encourage drivers to shut off vehicles when idling
Implemented Loppi system at all stores• Changed packaging materials for boxed lunches andside dishes to polyolefin•Environmental activities •Social contribution activities

1999

2000

2001

2002

2003

2004

2005

2006

• Started using new ice cream refrigeration cases with substitute fluorocarbons
May• Opened experimental environmental action store in
Katsushima 1-chome
November • Started recovering and destroying fluorocarbons fromcooling and air conditioning equipment when discarded
Established the “LAWSON Code of Ethics”
December • Received ISO14001 certification, the environmental management system standard
January• Started providing organ donor cards at all stores
April• Published first edition of Environmental and Social Activities
Report• Created fund to support victims of an earthquake in northwestern Turkey
November • Stopped adding disposable chopsticks, spoons and forks tolunch boxes
February• Opened the second environmental action store, NumataInterchange Store
June• Commenced “Mount Fuji LAWSON Greening Program”• Guide dogs for the hearing impaired (all working dogs) welcomed at all stores• Started implementing noise-reduction measures on delivery
trucksJuly
Company’s shares listed on the first sections of the Tokyo
Stock Exchange and Osaka Securities Exchange
October
Established i-Convenience, Inc.
March
• Adopted new uniforms made from recycled PET bottles• Started cogeneration system trials
May• Established the LAWSON Flower and Greenery Day (third
Sunday in May)
Established LAWSON ATM Networks, Inc. for joint ATM
operation
July
Opened the first NATURAL LAWSON store
September • Supported the temporary homecoming of Miyakejima residents after a volcanic eruption on their island; LAWSON
provided free food and drink• Collected aid donations for victims of the September 11
terrorist attacks in the United States
January
Appointed a Corporate Ethics Officer
February
Established LAWSON CS Card, INC.
June
Introduced the LAWSON PASS card
August• Participated in the Volunteer Support Program run by
the Ministry of Land, Infrastructure and Transport
November
Launched the Onigiriya rice ballEstablished the Compliance Promotion Committee
January
Established post office counters at all stores
May
Began staged removal of artificial colorings and preservatives from products sold in the Tokyo metropolitan and Kinki
regions• Participated in the Bi-ing Kobe Citizen Movement
AugustSigned an agreement with Wakayama Prefecture on local
cooperation activities• Participated in Roadside Cleanup Stamp Rally, run by
Wakayama Prefecture and Wakayama National Highway
OfficeDecember • Launched National Waste Recycling Promotion Study GroupJune
Appointed a Compliance Promotion Officer
AugustStarted the Peek-a-boo stock brokerage service
November • Received Environment Minister’s Award 2004 for the LAWSONGreen Fund
Launched Gohantei series of boxed lunches
MarchAnnounced Personal Information Protection Policy
April• Received Green Culture Prize for the LAWSON Green FundMay
Opened the first LAWSON STORE100
June
Created new corporate philosophy to mark the 30th
anniversary of LAWSON’s founding
July
LAWSON PASS holders exceeded 2,000,000
September • Collected aid donations for victims of Typhoon No. 14
October
Signed an agreement with Japan Post on disaster measures• Collected aid donations for victims of earthquake in northern
Pakistan• Participated in Team Minus 6%
November • Began campaign to reduce use of bags at all store checkouts (November 29 to December 31)
Held award ceremony for articles and ideas submitted tomark the 30th anniversary of LAWSON’s founding
January• Formally started wasteoil recycling• Collected aid donations
for victims of heavy
snowfalls
February• Became the first convenience store operator
to receive Minister of
Economy, Trade andIndustry prize for energy-saving units
Award ceremony for the Minister of
Economy, Trade and Industry prize

C O N T E N T S
Top Management Message
2
30th Anniversary Special Feature
Toward the “LAWSON of the Future”
that Everyone Wants
3
2005 Activities Report
For Customers
9
Customer Input
Trends in New Business Development
Tasty Products that are Safe,
Secure and Healthy
For Owners
15
Support Structure for Owners
For Employees
17
Personnel Training, Workplace Environment
For Society
19
Social Infrastructure
Regional Social Contribution Activities
Supporting Customer
Social Contribution Activities
For the Environment
26
LAWSON Environmental Policy
Measures to Prevent Global Warming
Measures to Curtail Energy Consumption
Waste Reduction
Measures to Conserve Resources
Distribution Efforts
LAWSON Green Fundand Afforestation Activities
Structure for Promoting Environmental Activities
About LAWSON
42LAWSON’s Organization
LAWSON’s History
Company Overview

Company Overview(As of February 28, 2006)
English Company Name
Address(Stores)

10,000Tokyo Headquarters:
East Tower, Gate City Osaki, 11-2,
Osaki 1-chome, Shinagawa-ku
Tokyo 141-8643, Japan
Osaka Headquarters:
9-1, Toyotsu-cho, Suita City Osaka
564-0051, Japan

President and CEO

Takeshi Niinami

Established

April 15, 1975

Capital¥58,506,644,000

Employees

3,120Store Revenues¥1,361.7 billion

Stores8,366 (in Japan)

Store Coverage

All 47 Japanese prefectures, as well as
Shanghai, People’s Republic of China(joint venture)0

LAWSON is strengthening its resolve
to truly live up to its corporate philosophy by promoting “Happiness andHarmony in Our Community.” Thisphilosophy incorporates a sense ofcompassionate consideration fort h e environment—in the specificregions in which we operate, as well
as globally—and LAWSON’s headquarters and stores are cooperating
to undertake environmental preservation and social contribution activities
on a national scale.
This environmental report—oureighth—outlines our environmental
activities in fiscal 2005, including
the saving of energy and resources,
and reduction of waste. The report
also describes LAWSON’s social contribution activities, including our
Green Fund, as well as afforestation
and regional environmental cleaning
initiatives. Also, this report describes
the full extent of our new corporate
philosophy from the viewpoint of ourcontributions to our customers,
the owners of franchise stores, crews(part-time staff), as well as society
and the economy as a whole.
Through the cooperation of ourcustomers and residents of the regionsin which we operate, LAWSON isstriving to become “The ‘Hot’ Stationin the Neighborhood.” This report
describes exactly how.

•ScopeThis report concentrates specificallyon LAWSON as a parent company,
its member stores and some affiliatedcompanies, and includes some of
the cooperative efforts of business
partners involved in distribution, themanufacture of rice-related products,
and sales and waste management.

•Period
The primary period covered by thisreport is fiscal 2005 (the fiscal year
from March 1, 2005, throughFebruary 28, 2006), but also includes
some information from previous fiscal
years as well as activities for fiscal
2006.

•Next Publication
Scheduled for July 2007

•Reference Guidelines
Ministry of the Environment “Environmental Reporting Guidelines, fiscal
2003 edition”

LAWSON ATM Networks, Inc.
Installation, operation and management of jointly operated ATMs in Lawson stores; deposits/withdrawals, transfers and related financial services via ATMs (outsourced
from partner financial institutions)
BestPractice Inc.
All activities related to conducting convenience store surveys, proposals for improving LAWSON stores
NATURAL LAWSON, Inc.
Establishment of the NATURAL LAWSON store format,
product planning and development, oversight of shop
management
VALUE LAWSON, Inc.
Establishment, product planning, development and operational guidance of shops of the LAWSON STORE100 format, which offers value products at simple prices, primarily targeting women and senior shoppers
LAWSON CS Card, INC.
Issuance of LAWSON PASS credit cards to Lawson customers; provision of card-based services through Loppi
multimedia terminals and other channels
SHANGHAI HUALIAN LAWSON Co., Ltd.
Development of Lawson store chain in Shanghai, PRC

2004/2

2005/2

2006/2

1,288

1,329

1,362

2004/2

2005/2

2006/2

246

254

268

2004/2

2005/2

2006/2(Billions of yen)

Total
1,500
Net Sales(Consolidated) 1,200
900
600
300
0

(Billions of yen)

Total Operating 300
Revenues
250(Consolidated)
200
150
100
50
0

(Billions of yen)

25

19

20

20

22

15
10

LAWSON TICKET, INC.
Sales of tickets for concerts, movies, sporting and otherevents, mainly through Loppi multimedia terminals located inside Lawson stores
i-Convenience, Inc.
Operation of the official LAWSON Mobile website formobile phone users; provision of online merchandise,services and information through this site

8,366

2,000

Primary Affiliates

Scope of Report

8,077

4,000

Net Income(Consolidated)

About this Report

7,821

8,000
6,000

LAWSON, INC.

Scope of Operation Development of LAWSON convenience
store franchise chain

Editorial Direction

1

Stores(Japan)502004/2

2005/2

2006/2LAWSON Stores (in Japan, as of February 28, 2006)
Hokkaido
Branch Office
TohokuBranch Office
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima
Niigata
Kanto
Branch Office
IbarakiTochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
Chubu
Branch Office
Yamanashi
NaganoGifu
Shizuoka
Aichi
Mie
ToyamaIshikawa
Fukui

500
861
139
171
162
131
55
97
106
2,218
107
105
68
323
287
843
485
1,109
62
136
91
151
340
80
102
73
74

Kinki
1,818
Branch Office
Shiga
118
Kyoto
181
Osaka
837
Hyogo
471
Nara
100
Wakayama
111
Chugoku / Shikoku
889
Branch Office
Tottori
71
Shimane65
Okayama114
Hiroshima
122
Yamaguchi
110
Tokushima
103
Kagawa
96
Ehime
152
Kochi
56
Kyushu971
Branch Office
Fukuoka
311
Saga
58
Nagasaki83
Kumamoto
89
Oita
113
Miyazaki
80
Kagoshima
110
Okinawa127
8,366
Nationwide Total
283
Shanghai, PRC**As of December 31, 2005

Environmental and Social Activities Report 2006

46

Environmental and Social
Activities Report 2006

LAWSON, INC.
CSR Promotion Office
1-11-2 Osaki, Shinagawa-ku, Tokyo 141-8643, Japan
Tel: +81-3-5435-1350
Fax: +81-3-5759-6944
URL: http://www.lawson.co.jp/
Published July 2006
Next publication July 2007 (scheduled)© 1997–2006 LAWSON, INC. All rights reserved.

White wood from forest thinning,approval number K0301090•This report is printed on forest-thinning paper (10% of materials from thinning domestic forests,
90% from recycled paper recovered in the marketplace).
•Printed using soybean-based inks approved by the American Soybean Association.

Printed in Japan“Happiness and Harmony
in Our Community”