TCFD Report 2024

In 2019, J. Front Retailing endorsed the final report (TCFD Recommendations) of the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD
Recommendations are a global, comparable climate-related disclosure framework that recommends companies to disclose information according to four categories:
governance, risk management, strategy, and metrics and targets. The Company will use the TCFD recommendations as a guideline for verifying the appropriatenessof its climate change response, and will engage in active dialogue with institutional investors and others to carry out effective information disclosure.
Four recommended disclosure items required of companies in the TCFD recommendations
Disclosure item

Specific disclosure details
Process by which the Board of Directors receives reports on climate-related issues, frequency with which these issues are placed on the（a）Governanceagenda, and monitoring of progress
Management's responsibility for climate-related issues, process for receiving reports, and monitoring methods.
（b）
Details of the process for identifying and assessing climate-related risks and opportunities（a）

Risk Management

Details of the process for managing significant climate-related risks（b）
Status of integration into the company-wide risk management framework（c）
Details of short-, medium-, and long-term risks and opportunities（a）Strategy

Nature and extent of impact of risks/opportunities on business, strategy, and financial plans（b）
Risks/opportunities and financial impact based on relevant scenarios and strategies/resilience against them（c）Metrics used to manage climate-related risks and opportunities（a）

Metrics and Targets

Greenhouse gas emissions (Scope 1, 2, and 3)（b）
Targets and results used to manage climate-related risks and opportunities（c）

Source: Climate-related Financial Disclosure Task Force, “Recommendations by the Climate-related Financial Disclosure Task Force (Final version)” (2017)

TCFD Report 2024

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JFR Approach To Achieving Net Zero in 2050
Recently, climate change has progressed to an extremely serious level, endangering not only future generations but all people, including all of us alive today.
We regard addressing climate change as a key issue in our sustainability management. Recognizing that the risks and opportunities associated withclimate change will have a significant impact on the group's business strategies, the Company is taking measures to achieve net zero greenhouse gas
emissions* 1 across our entire value chain by 2050.
Direction of Efforts Toward Net Zero Emissions

Targets

To achieve net-zero emissions by 2050, the Company

The Company recognizes that setting ambitious

2030 Scope 1 and 2 GHG emissions reduction targets fromwill focus on both “Reduction of GHG emissions” andmedium-and long-term reduction targets and developing

40% to 60% (vs. base year 2017). In February 2023, we“Promotion of circular economy.”a roadmap to achieve them is a prerequisite for promoting

obtained SBT certification for net-zero emissions of Scope

Specifically, we will work to reduce Scope 1 and 2

climate change action throughout the Group. Based on

1, 2, and 3 by 2050.

GHG emissions (hereafter: Scope 1 and 2 emissions)this, we obtained certification through the Science Basedthrough extensive energy conservation and increased

Targets (SBT) initiative* in 2019 for our Scope 1, 2, and 3

use of renewable energy in our stores. Scope 3 GHG

greenhouse gas emissions reduction targets. In 2021, weemissions (hereafter: Scope 3 emissions) will be reduced

reacquired SBT certification with a "1.5°C target," raising our*1 A thorough reduction of GHG emissions, with the remaining emissions being
reduced to practically zero after subtracting the amount removed through forest
absorption, CCS (CO2 capture and storage), etc.
*2 CDP was jointly established in 2014 by CDP, the UN Global Compact, theWorld Resources Institute (WRI), and the World Wide Fund for Nature (WWF)to enable companies to set ambitious emission reduction targets in line withthe latest climate science.

2

by collaborating with our suppliers and customers as wellas promoting resource recycling through the enhancementof 3Rs and expansion of circular business.
Reduction of GHG Emissions

Recycling Resources

Realization of
decarbonizedsociety

Promotion of
circulareconomyScope 1 & 2 reduction
by expanding renewable energy
Scope 3 reduction in collaboration
with suppliers

Waste reduction, Recycling,
Expansion of circularbusiness model

Net Zero by FY2050

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Governance

The Board of Directors receives reports on the deliberations
and approvals made by the Group Management Meeting and theSustainability Committee, and discusses and monitors the Group's
policies, targets, and action plans for addressing environmental issues.

Board of Directors
Supervision
ReportPresident and Representative Executive Officer
Consultation

Cooperation

ReportCooperation

Sustainability
Committee

Group Management
Meeting

ReportInstruction

Consultation

Risk Management
Committee

ReportInstruction
ReportOperatingcompaniesb Management's responsibility for climaterelated issues, process for receiving reports,
and monitoring methods.
The President and Representative Executive Officer chairs the GroupManagement Meeting as well as the Risk Management Committee
and the Sustainability Committee, which are both advisory panels
for management decisions related to environmental issues, including
climate-related issues. Details of matters deliberated and approved by
the Group Management Meeting and the Sustainability Committee

April

FY2 0 2 3
FY2 0 2 4

April
September
April

Group
Management
Meeting

Deliberates and approves policies and measures related tocompany-wide management as the highest decision-making
body for business execution. Deliberates and approvescompany-wide management policies and other mattersrelated to comprehensive risks and opportunities, including
e n v i ro n m e n t - re l a t e d i s s u e s , a s d i s c u s s e d b y t h e R i s k
Management Committee and Sustainability Committee, andreports to the Board of Directors for approval. Meets weekly.

RiskManagement
Committee

Deliberates on the identification, evaluation, and response
to comprehensive risks and opportunities, and monitors therisk responses of operating companies. Climate-related risks
and opportunities are also integrated into the company-widerisk management framework and managed together withother risks. Deliberations by the Committee are reported to
the Board of Directors. Held three times a year.

Sustainability
Committee

Discusses specific measures to address more detailed
issues related to sustainability, including environment-related
issues deliberated and approved by the Group Management
Meeting. Concerning climate-related issues, it monitors the
progress of each operating company based on the Group's
long-term plan and KGI/KPI, taking into account risks andopportunities. Dialogue also held with experts in climaterelated issues. The contents of the discussions are reported
to the Board of Directors. Held at least twice a year.

President andRepresentative
Executive
Officer

Chairs the Group Management Meeting, and also the
Risk Management Committee and the Sustainability
Committee. Assumes the ultimate responsible for making
management decisions on environment-related issues,
including identifying, assessing, and responding to climaterelated risks and opportunities, and promoting group-wide
initiatives to resolve environment-related issues.

OperatingCompanies

Each operating company plans and implements specificmeasures to address environment-related issues basedon the items approved by the Group Management
Meeting and the deliberations of the Risk Management
Committee and Sustainability Committee, and reportson the progress to the JFR Group's Risk Management
Committee and Sustainability Committee.

Sustainability
Promotion
Division

Formulates and proposes Group policies and othermeasures to promote sustainability management. The
division collects climate-related information on risks
and opportunities, formulates the direction of mediumand long-term initiatives, and reports to the GroupManagement Meeting and the Sustainability Committee.

Executive remuneration system incorporating non-financial measures

Major climate-change related agenda items in the Sustainability Committee Meetings

SeptemberSupervises the progress of environment-related initiatives deliberated
and approved by those who execute business. Meets monthly.

are reported to the Board of Directors for final approval.

Since FY2021, we have set reduction of Scope 1 and 2 emissions
as one of the non-financial indicators for determining performancelinked compensation in officer remuneration. These are linked to the
KPIs in the Medium-term Business Plan to clarify the responsibility● Lecture on “ESG/sustainability management” by an external instructor● Action Plan for FY2022● Report on results of FY2021 supplier assessment (including environment)● Group-wide KPI progress for FY2021●Group-wide KPI progress for first half of FY2022●Action Plan for FY2023●Second supplier assessment●Group-wide KPI progress for FY2022●Group-wide KPI progress for first half of FY2023●Lecture on “Relationship between medium- to long-term corporate value enhancement and non-financial activities” byan external instructor●2024-2026 Medium-term Sustainability Plan

●Group-wide KPI progress for FY2023

Role

Board ofDirectors

Cooperation

Sustainability Promotion Division

In selecting candidates for the Board of Directors, we use askill matrix to clarify the expertise and experience we expect fromdirectors, and “environment” is one of the items. By appointing
directors capable of providing appropriate supervision of specificaction plans and regular reviews, and monitoring the status ofinitiatives for continual improvement of environmental plans, including
the setting of medium- to long-term targets, we are enhancing theeffectiveness of our efforts to address environmental issues.

FY2 0 2 2

Meeting body andsystemInstruction

under his direct control. The President thus bears final responsibility

https://www.j-front-retailing.com/english/company/governance/governance02.html

Meeting bodies and their roles in the environmental management system

Instruction

Board of Directors skill matrix*Skill Matrix.

*Officer Remuneration System
https://www.j-front-retailing.com/english/company/governance/governance05.html

ReportReportof executive officers to achieve the targets for climate-related issues
and to function as an incentive to realize and promote sustainability
management.

Meeting body

To promote sustainability management across the entire
group, the Company is responding to climate-related issues andincorporating initiatives in our business strategy that will leadto solutions. These actions are then deliberated and approvedby the Group Management Meeting, the highest decision-making
body for business execution. Furthermore, the Sustainability
Committee, which meets at least twice a year, shares the policies
on environmental issues deliberated and approved by the GroupManagement Meeting, formulates action plans for the Group's
environmental issues, and monitors the progress.

JFR Group Environmental Management System

Executing entity

a Process by which the Board of Directors receives reports on
climate-related issues, frequency with which these issues areplaced on the agenda, and monitoring of progress

TCFD Report 2024

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Risk Managementa Details of the process for identifying andassessing climate-related risks and opportunitiesb Details of the process for managing
significant climate-related risks

c Status of integration into the company-widerisk management framework

The Company considers risk to be the starting point ofstrategy. We have defined risk as “uncertainty, both positive andnegative, that affects the achievement of corporate management
goals.” We believe that the appropriate handling of risk leads
companies to sustainable growth.
With the recognition that climate-related risks and opportunities
have a great impact on our business strategies, the Group identified
and assessed both positive and negative aspects of climate-relatedrisks and opportunities through the process shown below.
First, the Group extracted a comprehensive set of climaterelated risks and opportunities exhaustively for each activity
o f t h e s u p p l y c h a i n p ro c e s s : “ p ro d u c t p ro c u re m e n t , ”“transportation and customer movement,” “in-stores sales,” “useof products and services,” and “disposal.” Next, we assessed
them based on two criteria: “importance to the Group (degreeof impact × urgency)” and “importance to stakeholders.”

The Company is working to share environmental-related risks
with each operating company through a more detailed study ofthese risks within the Sustainability Committee. Each operatingcompany incorporates climate change initiatives into theiraction plan and confirms the progress through discussions inmeetings headed by the president of each operating company.
Progress is monitored by the Group Management Meeting,
the Risk Management Committee, and the Sustainability
Committee, and is finally reported to the Board of Directors.

The Group has established a Risk Management Committee
to manage various risks, including climate-related risks, in an
integrated company-wide manner, based on the recognition thatrisk management is an extremely important management issue. The
Risk Management Committee deliberates on important matters suchas the identification and assessment of risks and the determinationof risks to be reflected in strategies, and utilizes this information for
management decision-making. The Committee also positions risk as
the starting point for strategy and strives to link risk and strategy toenhance corporate value through risk management.
Risks that are extremely important to the Group's management
over the medium term are positioned as “critical risks” and serveas the starting point for our Medium-term Business Plan. We haveincorporated important risks into “annual risks” and prioritize andimplement measures to address them to clarify the risks we will
respond to each fiscal year.
The deliberations of the Risk Management Committee arereported to the Group Management Meeting and shared with the
Sustainability Committee.
The deliberations of the Risk Management Committee andSustainability Committee in the above process, as well as matters
approved by the Group Management Meeting, are reported to
the Board of Directors in a timely manner and are reflected andaddressed in Group’s strategies under the supervision of the Boardof Directors.

*See Strategy on page 4 for details.

JFR Group risk management system
Risk management
process

Responsible meeting bodies andexecuting entities

Identification/assessment ofrisks●Board of Directors●Group Management Meeting●Risk Management Committee(Overall management risk)●Sustainability Committee(Environmental risks)

Response to risks●Operating companies

Monitoring/reporting●Board of Directors●Group Management Meeting●Risk Management Committee(Overall management risk)●Sustainability Committee(Environmental risks)

JFR Group risk management process

Internal
environment
analysisInterview
withmanagement

Identification/assessment of risks

Response to risks

Monitoring/reporting

Sustainability Committee (environmental risks)

Risk Management Committee (overall risk)

External
environment
analysisGroup-wide risk management process (PDCA )
Plan

P

Do

D

Identification of risks

External
environment analysis

Critical risks (medium-term perspective)

Internal
environment analysis

Breakdown and detail each risk

Interviews withmanagement and experts

Annual risks (updated every year)
ActionA

Response to risks

Formulation of countermeasures

Group Medium-term Business Plan

Annual action pan
Check

C

Assessment of risks

TCFD Report 2024

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Strategya Details of short-, medium-, and long-term risks and opportunities
The Company considers it important to examine climate-related risks and opportunities
at the appropriate milestone occasions because of the potential impact on its businessactivities over the long term. Accordingly, the Company has positioned the implementation
period of the Medium-term Business Plan up to FY2026 as the short term; the period up
to FY2030, which is the short-term target year set by SBTi, as the medium term; and theperiod to FY2050, which is the SBTi net zero target year, as the long term.
The Company has formulated the group strategy for climate-related risks andopportunities by backcasting from fiscal 2050, the target year for realizing net zero, and isDefinition of the periods for considering climate-related risks and opportunities in the JFR Group
Periods for considering climaterelated risks and opportunities

JFR Group’s definition

Short
term

Until FY2026

Execution period of the Medium-term
Business Plan

Mediumterm

Until FY2030

Period until the SBT target year for
Scope 1, 2, and 3 emissions

Long
term

Until FY2050

Period until the SBT net-zero target
year for Scope 1, 2, and 3 emissions

working to implement the strategy.

b Nature and extent of impact of risks/opportunities on business, strategy,
and financial plans
The Company conducts scenario analysis to understand the risks, opportunities,
and impact of climate change on the group, and to examine the resilience of the its
strategies and the necessity of further measures by envisioning the world in fiscal 2030.
In the analysis, we referenced multiple existing scenarios announced by theInternational Energy Agency (IEA) and the Intergovernmental Panel on Climate Change

Existing scenarios referenced
Possible world

Below 1.5˚C/2˚C
scenario(IPCC), then considered two world scenarios: the below 1.5˚C/2˚C scenario thatenvisages the goal of the Paris Agreement of striving to limit the increase in the global
average temperature to below 2˚C above pre-industrial levels; and the 4˚C scenario thatenvisages the GHG emissions on the present basis.
Based on these two scenarios, the Company, which is mainly engaged in the retailbusiness such as department stores and shopping centers, extracted climate-relatedrisks and opportunities according to the TCFD recommendations for each activity inits value chain process. In addition, we defined the transition risks (regulation policy,
technology, market, reputation) and physical risks (acute, chronic) arising from climatechange, as well as the opportunities (resource efficiency, energy sources, products andservices, markets, and resilience) arising from responding appropriately to them.

4˚C
scenario

Existing scenarios“Net-Zero Emissions by 2050 Scenario (NZE)”( IEA, 2023 )“Representative Concentration Pathways (RCP2.6)”( IPCC, 2 0 1 4 )“Stated Policy Scenario (STEPS)” IEA、2022）“Representative Concentration Pathways (RCP6.0, 8.5)”（IPCC, 2014）

TCFD Report 2024

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c Risks/opportunities and financial impacts based on relevant scenarios and strategies/resilience against them
The Company assessed the importance of the identified climate-related risks and opportunities based on two criteria: the “importance to the Group (degree of impact × urgency)” and“importance to stakeholders.” For items that were evaluated to be of particular importance, we assessed the financial impact of two scenarios, a 1.5°C/less than 2°C scenario and a 4°C
scenario, from both quantitative and qualitative perspectives for FY2030, and developed countermeasures for each scenario. Risks and opportunities for which it is difficult to obtain
information to quantitatively assess the financial impact have been evaluated qualitatively, and the results are indicated in three levels according to the slope of the arrow.
Climate change risks and opportunities of particular importance to the JFR Group and their financial impacts in FY2030
Impact on JFR Group’s business and finances expected to be very large

Opportunities

Climate-related risks and opportunities of particularimportance to the JFR Group

Financial impact
Measures

⃝

⃝

⃝

⃝

⃝

・Increase in costs associated with the development of properties with●Financing through Green Bonds, etc.
●Introduction of cost-effective equipment

⃝

⃝

⃝

・Increase in investment for introduction of high-efficiency energy-●Introduction of internal carbon pricing●Cost-effective and well-planned investment considerations⃝⃝

・Increase in renewable energy procurement costs due to increased

Approx.
¥700 million*2

Approx.
¥300 million*2●Introduction of internal carbon pricing●Reduction of renewable energy procurement risk and mid- to long-term costs through diversification of renewable energy procurement methods●Improvement of energy self-sufficiency through installation of renewable energy equipment in the company’s facilities, etc.

Physical
risks

⃝

⃝

・Decrease in revenue due to store closures caused by natural disasters

Approx.
¥5,200 million*3

Approx.
¥10,300 million*3●Increased resilience of stores and business sites through BCP preparation●Improvement of disaster prevention performance of stores

Energysources⃝⃝

Transition
risks

Products
andservices

⃝

⃝

⃝

⃝

Markets

Longterm

Mediumterm

Timing of
emergence

Impact on JFR Group’s business and finances expected to be negligible

Shortterm

Risks

Type of climaterelated risks andopportunities

Impact on JFR Group’s business and finances expected to be somewhat large

・Increase in costs associated with introduction of carbon tax, etc.

4˚C scenario

Approx.
¥1,500 million*1

Approx.
¥1,300 million*1

high environmental performance and the installation of equipment
saving equipment

demand for electricity derived from renewable energy⃝

Below 1.5˚C/2˚C
scenario・Decrease in energy procurement cost due to introduction of highefficiency energy-saving equipment

Approx. ¥400 million*4⃝

earnings by responding to increased demand for environmentallyfriendly products and services

・Expansion of new growth opportunities through new entry into

●Expansion of circular businesses such as sharing and upcycling, including the fashion subscription business“Another ADdress”●Launch of circular businesses through effective use of M&A and CVC* investments

the circular businesses⃝ ・Expansion of profits through acquisition of new customers by⃝

・ Expansion of profits due to increased opportunities to acquire new
tenants through conversion to stores with high environmental value●Replacement with high-efficiency energy-saving equipment at the appropriate time
●Expansion of environmentally friendly products and services handled●Recycling of waste cooking oil as domestically produced SAF●Collaboration with suppliers to reduce food waste through the use of AI demand forecasting systems, etc.
●Dialogue with suppliers toward decarbonization, including encouraging suppliers to calculate GHG
emissions and holding briefing sessions to link Scope 3 emissions data

・Decarbonization of the entire supply chain and expansion of

proposing sustainable lifestyles⃝●Reduction of GHG emissions through aggressive energy conservation measures in stores and expansionof renewable energy switching to achieve the 2050 net-zero target

Approx.
¥2,500 million*5―●Acquisition of environmental certifications for newly developed properties (ZEB, CASBEE, etc.)●Promotion of energy conservation in stores toward realization of RE100*CVC (Corporate Venture Capital): A mechanism to efficiently and effectively promote business co-creation through investment in promising start-ups. In FY2022, the Company established the “JFR MIRAI CREATORS Fund” to promote open innovation.
(Basis for calculation of quantitative financial impacts in FY2030)*1 Calculated by multiplying JFR Group Scope 1 and 2 GHG emissions as of FY2030 by the carbon price per t- CO 2 (parameters: 1.5°C scenario 140$/t-CO 2, 4°C scenario 120$/t-CO 2)*2 Calculated by multiplying the JFR Group's electricity consumption in FY2030 by the price per kWh of electricity derived from renewable energy compared to the regular electricity rate.
*3 Calculated by multiplying the amount of lost sales due to store closures caused by past natural disasters by the frequency of future flooding (Source: “Representative Concentration Pathways (RCP2.6)(RCP8.5)” ( IPCC, 2014)).
*4 Calculated by multiplying energy procurement costs by the amount of energy saved by the JFR Group as of FY2030.
*5 Calculated by multiplying the JFR Group's real estate revenues as of FY2030 by the rate of change in new contract conclusion fees for buildings with environmental certification.

Based on the above scenarios, we have analyzed the impact of climate change and examined our countermeasures, confirming that the measures the Group has already
implemented and planned are effective and flexible enough to reduce risks and contribute to the realization of opportunities under any of the scenarios. We will continue to work toenhance the resilience of our management.

TCFD Report 2024

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JFR Group FY2050 Net Zero Transition Plan
The Company believes that it is necessary to

JFR Group FY2050 Net Zero Transition Plan

strengthen its strategic resilience from a medium- to

2050. The plan identifies specific initiatives from short-,
medium-, and long-term perspectives to capture new
growth opportunities, such as proactively responding tomarket changes in response to positive opportunities,

400(10,000 t-CO 2 )a transition plan to achieve net zero emissions by

GHG emissions

long-term perspective. To this end, we have formulated

February 2024. By converting internal CO 2 emissions
the effect of reductions on CO 2 and the cost of
reductions to foster awareness of decarbonization, and

0

Phase
Results andreduction targets
for GHG emissions( vs. FY2017 )entire value chain to work together to reduce emissions.
We will encourage our suppliers to calculate their GHG

FY2017

FY2022

Results (FY2017 to FY2023)

FY2026

FY2030FY2040FY2050

Short term (to FY2026) Medium term (to FY2030)

Long term (to FY2050)

Scope 1 & 2
FY2017
194,154 t-CO2

Scope 1 & 2
FY2023
57.4% reduction

Scope 1 & 2
FY203060% reduction

Scope 1 & 2
FY2050Net zero

Scope 3
FY20172,927,320 t-CO2

Scope 3
FY2023
1.0% reduction

Scope 3
FY2030
Aim for 40% reduction

Scope 3
FY2050Net zero

Scope 2 reduction by expanding renewable energy
・Scope 2 reduction by expanding the switching of stores and offices to renewable energy

Scope 3 reduction in collaboration with suppliers and by promoting a circular economy

from a long-term perspective, as well as opportunities

emissions by our own efforts, so it is necessary for the

Net zero

Scope 1, 2 and 3 reduction by continuing and strengthening energy-saving measures

measures to address them will lead to cost reductions

It is extremely difficult to reduce and control Scope 3

Scope 1, 2
and 3

40% reduction

・Scope 1, 2 and 3 (Category 3) reduction by expanding the switching to LED lighting in stores and introducing energy-saving, highly efficient equipment
・Scope 1 & 2 reduction by shifting to electric vehicles for company use

taxes and other incurred costs and taking proactive

are from Category 1 (procured products and services).

Scope 3(base ﬁscal year)

investments. We believe that anticipating future carbon

In addition, more than 90% of our Scope 3 emissions

FY2050100

to promote decision-making linked to decarbonization

for business creation.

Aim for

Scope 1 & 2 60% reduction

200

negative risks in our business strategy.

into monetary values, the Company aims to visualize

FY2030

Scope 3300

while developing appropriate measures to avoid
Internal carbon pricing (ICP) was established in

Scope 1・2

Priority
measures・Scope 3 (Categories 1, 4, 5 and 9) reduction through the advancement of the existing 3 Rs in collaboration with suppliers and customers
・Scope 3 (Category 1) reduction in collaboration with suppliers
・Scope 3 (Category 5) reduction by reducing amount of waste disposal and improving recycling rate

Scope 2 reduction by introducing an energy creation system

・Scope 2 reduction through renewable energy capital investments, etc. in our own facilities
・Scope 2 reduction by establishing corporate power purchase agreements (PPAs)

Utilization of latest technologies, etc. and offsets
・Use of electricity from new non-carbon energy
sources, such as hydrogen and ammonia
・Offsets through tree planting activities to absorb CO2

emissions, and with those that have already done so,
we will ask them to set reduction targets and promote
step-by-step initiatives through dialogue.

The plan is current as of the end of May 2024 and may be revised depending on future business strategies.

TCFD Report 2024

7

Metrics & Targets
b GHG emissions ( Scope 1, 2, and 3 )The Company has been calculating its total emissions

The Company has established two metrics forsince fiscal 2017. Our Scope 1 and 2 emissions in fiscal

managing climate-related risks and opportunities: Scope

2023 were 82,757 t-CO2 (57.4% reduction vs. FY2017)

1, 2 and 3 GHG emissions, and the ratio of renewable

and Scope 3 emissions were 2,898,436 t-CO2(1.0%energy to total electricity used in business activities.

reduction vs. FY2017). In addition, the ratio of renewable

Also, to clarify the responsibility of executive officers

JFR Group’s Scope 1, 2 and 3 GHG emission results*1 ( Unit: t-CO2)energy was 52.9%.

regarding the issue of climate change, Scope 1 and 2

Third-party assurance has been obtained for FY2023

GHG emission reduction targets were set as one of the

Scope 1, 2, and 3 emissions and renewable electricity

non-financial indicators for determining performance-

consumption.

FY2017

FY2022

Results

Results

194,154

109,785

82,757−57.4 %

Scope 1 emissions

16,052

13,714

14,021−12.7 %

Scope 2 emissions

178,102

96,07168,736−61.4 %

Total Scope 3
emissions*2

2,927,320

2,761,669

2,898,436−1.0 %

Ratio of renewableenergy (%)

-

33.6

52.9

Total Scope 1 and 2
emissions
B reakdo wn

a Metrics used to manage climate-relatedrisks and opportunities

FY2023Results

vs. FY2017(comparison
with base year)-

linked compensation in officer remuneration.

*1 Obtained third-party assurance from LRGA Limited*Officer Remuneration System*2 Calculated based on “Basic Guidelines on Accounting for Greenhouse Gas
Emissions Throughout the Supply Chain ver. 2.6 (March 2024, Ministry of theEnvironment and Ministry of Economy, Trade and Industry),” “Emission Unit Database
for Calculating Greenhouse Gas Emissions of Organizations through Supply Chains
Ver. 3.4 (March 2024),” IDEAv2.3 (for supply chain GHG emissions calculation)

https://www.j-front-retailing.com/english/company/governance/governance05.html

c Targets and results used to manage climate-related risks and opportunities
Since fiscal 2018 the Company has set long-term GHG emission reduction targets to achieve the global below
1.5 ˚C /2˚C target, and our reduction targets for Scope 1, 2, and 3 emissions were certified by the SBTi in fiscal 2019.
In fiscal 2021, in line with the advancement of our materialities, we raised our target for reducing 2030 Scope 1 and 2

Targets used by the JFR Group to manage climate-relatedrisks and opportunities
Metricsemissions from the previous 40% to 60% compared with FY2017(base year), and it was approved as the 1.5°C target that2050

is the new standard set by the SBTi. Moreover, in February 2023, we also obtained certification for the 2050 Net
Zero Target for Scope 1, 2, and 3 GHG emissions.
To achieve these long-term targets, the Company started procuring renewable energy-sourced electricity for its own

Targetyear

GHG
emissions2030

facilities in fiscal 2019, and in October 2020 we joined RE100*, which aims to achieve a 100% renewable energy
share for electricity used in business activities by fiscal 2050. Moreover, as an interim target, we aim to achieve a 60%
renewable energy share for electricity used in business activities by fiscal 2030.
Looking ahead, we will work to expand procurement of renewable energy-sourced electricity towards achieving
net zero by fiscal 2050.
*A global initiative with the goal of 100% renewable energy for electricity used in business activities by 2050.

Renewableenergy share

Details of targets
Net zero Scope 1, 2, and 3 emissions*1
60% reduction of Scope 1 and 2 emissions(vs. FY2017)*1
40% reduction of Scope 3 emissions(vs. FY2017)*1

2050

100% renewable energy share*2

2030

60% renewable energy share*1 Certified by SBT*2 Joined RE100 in 2020

TCFD Report 2024

8

FY2023 Results and Future Targets
Scope 1 and 2 emissions

Scope 3 emissions( t -CO2 )( 万 t -CO2 )200,000300

194,154

Category
293

60%
reduction

276（vs. 2017）

150,000

FY2023 Scope 3 Emissions by Category

290

40

%
reduction

242

122,812

176

109,785
82,45077,662100

50,0000

0FY2017（base year）

FY2022

FY2021

FY2023

FY2017

FY2030（base year）（target）

FY2021

FY2022

FY2023

FY2030（target）

Ratio of renewable energy
( %)

70
60.0%

60

40

33.6%

30
20.3%

20

0

2

Percentage ofemissions (%)

2,678,726

92.42

Capital goods

48,021

1.66

3

Energy excluding Scope
1 and 2

19,3990.67

4

Upstream transportationand distribution

3,204

0.11

5

Waste from operations

1,439

0.05

6

Business travel

3,815

0.13

7

Employee commuting

1,736

0.06

8

Upstream leased assets

-

0.00

9

Downstream transportationand distribution

38,1961.32

10Processing of products

-

0.00

11

Use of sold products

59,221

2.04

12End-of-life treatment of soldproducts

15,564

0.54

13

Downstream leased assets

29,1151.00

14

Downstream franchising

-

0.00

15

Investments

-

0.00

52.9%

50

10

Purchased goods andservices（vs. 2017）200

100,000

1

Emissions( Unit: t-CO2 %)

10.3%
4.0%
FY2019FY2020

FY2021

FY2022

FY2023

FY2030（target）*Category 8 is excluded from the calculation because it is calculated under Scope 1 and 2*Category 10, 14, and 15 are excluded from the calculation because they are notapplicable to the JFR Group's business processes

Under the supervision of the Board of Directors, the Company will continue to strengthen its governance in environmental management and promote company-wide
initiatives, including the formulation and promotion of action plans to achieve medium- and long-term goals.

TCFD Report 2024

9

Environmental Data
CO2 emissions

Scope 1 greenhouse gas (GHG)★

Scope 2 greenhouse gas (GHG)★

Scope 1+2 greenhouse gas (GHG)★

Scope 3 greenhouse gas (GHG)★

Scope 1 and 2 greenhouse gas emissions intensity★

Energy★

Renewable energy

★

Water

Waste*3 (including food waste)★

★

Food waste*4

6

Packaging material usage*

Boundary

Unit

2017

2018

2019

2020

2021

2022

2023

Consolidated

t-CO2

14,54813,824

13,074

11,17012,368

11,95811,459HFC emissions

Consolidated

t-CO2

1,504

2,137

2,140

813

1,636

1,756

2,562

Scope 1 emissions

Consolidated

t-CO2

16,052

15,961

15,214

11,98314,004

13,714

14,021CO2 emissions (market based)

Consolidated

t-CO2

178,102

166,605

147,294

120,123

108,808

96,07168,736(location based)

Consolidated

t-CO2

184,047

177,987

174,094

147,820

149,690

146,810

142,935

Scope 1 and 2 emissions

Consolidated

t-CO2

194,154

182,566

162,508

132,106

122,812

109,785

82,757

vs. SBT base year FY2017

Consolidated

%

-

−6.0

−16.3

−32.0

−36.7

−43.5

−57.4

Scope 3 emissions

Consolidated

t-CO2

2,927,320

3,123,238

3,782,555

2,470,411

2,420,492

2,761,669

2,898,436

vs. SBT base year FY2017

Consolidated

%

-

-

-

-

−17.3

−5.7

−1.0

Per consolidated sales

Consolidated

t-CO2/Million

0.17

0.16

0.14

0.17

0.14

0.11

0.07

Electricity usage

Consolidated

MWh333,514

328,900

327,851

288,691

305,752

305,287

297,828

City gas usage

Consolidated

MWh70,353

67,11864,09558,06464,632

63,516

61,488Gasoline, light oil, heavy oil A, kerosene, natural gas usage Consolidated

MWh

6,888

6,379

5,537

3,083

3,165

2,292

1,996

Steam, cold water, hot water usage

MWh64,75865,96968,73054,13354,50059,34460,848

Consolidated

Total energy usage

Consolidated

MWh475,513468,366

466,214403,973

428,049

430,439422,160

Usage (purchased/generated)

Consolidated

MWh

0

0

13,046

29,647

62,156102,676

157,454

Ratio of renewable energy to electricity usage

Consolidated

%

0.0

0.0

4.0

10.3

20.3

33.6

52.9

YoY change

Consolidated

%

-

-

4.0

6.3

10.0

13.3

19.3

Tap water usage

Consolidated*2

m3-

1,317,230

1,260,594

1,407,531

1,719,788

1,796,295

1,880,316

Groundwater usage

Consolidated*2

m3-

480,731452,702459,054570,760

613,303

625,066

Consolidated*

2

m3

-

136,804

125,989

198,882

158,848

151,017

140,709

Total usage

Consolidated*

2

m

3

-

1,934,765

1,839,285

2,065,467

2,449,396

2,560,615

2,646,091

Water discharge*1

Consolidated*2

m3-

1,934,765

1,839,285

2,065,467

2,449,396

2,560,615

2,646,091

Amount generated

Consolidated*2t

18,532

17,202

17,597

21,694

26,63729,85529,814

Amount recycled

Consolidated*2t

10,863

9,938

10,453

12,47912,845

15,421

16,176

Final disposal amount

Consolidated*2

t

7,669

7,264

7,144

9,216

13,792

14,434

13,638Recycling rate

Consolidated*2

%

-

-

-

57.5

48.2

51.7

54.3

Amount generated

Consolidated*5

t

4,497

4,312

4,379

2,886

4,394

4,753

4,943

Amount recycled

Consolidated*5

t

2,416

2,477

2,610

1,857

3,027

3,598

3,934

Final disposal amount

Consolidated*5

t

2,081

1,835

1,769

1,029

1,367

1,155

1,009

Recycling rate

Consolidated*5

%

-

-

-

-

68.9

75.7

79.6

Usage

Daimaru Matsuzakaya
Department Stores

t

2,370

2,236

2,030

1,075

1,129

1,200

1,221

Gray water usage★ Third-party assurance: Third-party assurance obtained from LRQA Limited (water and waste from FY2020; energy, renewable energy, and food waste from FY2021)*1 Water discharge is equal to the amount of water used.
*2 Daimaru Matsuzakaya Department Store until FY2019*3 Waste: General waste, industrial waste, and food waste*4 The calculation method for food waste was changed, and the data for FY2021 was revised.
*5 Daimaru Matsuzakaya Department Store until FY2020*6 Weight of wrapping paper, shopping bags, paper bags, plastic food bags, etc.