TNFD Report 2024

TNFD Report 2024

1

JFR Approach to Natural Capital
Our lives and business activities are supported by food, water, climate stability and other ecosystem services, which are provided by theinteractions among diverse living organisms. However, due to the recent deterioration of the natural environment, the diversity of animals and plants(biodiversity) is being lost at an unprecedented rate.
In recent years, companies have been required to understand the impact of their business activities on nature, stop the loss of biodiversity, andcontribute to its restoration.
As a retailer with its main business in department stores and shopping centers, the JFR Group is in contact with a wide range of stakeholders,
including business partners, customers, and local communities. We will leverage this connection to promote nature-positive initiatives through ourbusiness, such as procuring environmentally friendly products, proposing lifestyles that are conscious of coexistence with nature, and developing
stores with high environmental performance. By doing so, we will contribute to the preservation of biodiversity together with our stakeholders andpass on the irreplaceable global environment to the next generation.

Amending the Eco Vision

Participation in TNFD ForumThe Company has established an Eco Vision as our

In November 2023, the Company endorsed the philosophy of the Taskforce on Nature-related Financial Disclosurespolicy to promote efforts to solve environment-related(TNFD)*1 and joined the TNFD Forum*2 to support its activities. Based on the TNFD's disclosure framework, we will

issues and coexist with the environment. In May 2024,

scrutinize the relationship between the Group's business activities and natural capital (dependence and impact) as

we revised Eco Vision to promote company-wide efforts

well as risks and opportunities. We will also promote proactive information disclosure from the four perspectives

to address nature-related issues, adding biodiversity

recommended by the TNFD: governance, strategy, risk and impact management, and metrics and targets.

as a new priority. Going forward, we will strengthen
our response to biodiversity conservation in addition to
decarbonization and resource recycling.

*1 TNFD is an international organization with a framework for disclosing the impact of nature-related risks andopportunities on corporate finance. It aims to encourage companies and financial institutions to disclose
information on natural capital and to shift the flow of global capital from nature-negative outcomes tonature-positive outcomes.
*2 The TNFD Forum is comprised of corporations, government agencies, academic institutions, andother organizations with expertise in a wide range of sectors, providing support for the development of
disclosure frameworks and sharing information related to TNFD.

TNFD Report 2024

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Governance1 Monitoring
JFR Group Environmental Management System
Supervision

issues, including nature-related matters, and incorporating

decision-making body for business execution. Furthermore,policies on environmental issues deliberated and approvedby the Group Management Meeting are shared within the
Sustainability Committee, which meets at least twice a year.

Consultation

Cooperation

ReportReportInstruction

Consultation

Cooperation

Sustainability
Committee

Group Management
Meeting

Risk Management
Committee

ReportReportOperatingcompanies

Instruction

2 Management Structure

The Board of Directors receives reports on the deliberations

The President and Representative Executive Officer
chairs the Group Management Meeting as well as theand the Sustainability Committee, and discusses andRisk Management Committee and the Sustainability

oversees the Group's policies, target setting, and action

Committee, which are both advisory panels under hisplans for addressing environmental issues.

or her direct control. The President thus bears final

In selecting candidates for the Board of Directors, we

responsibility for management decisions related touse a skill matrix to clarify the expertise and experienceenvironmental issues, including climate-related issues.

we expect from directors, and “environment” is one of

Details of matters deliberated and approved by thethe items. By appointing directors capable of providing

Group Management Meeting and the Sustainability

appropriate supervision of specific action plans andCommittee are reported to the Board of Directors forregular reviews, and monitoring the status of initiatives for

final approval.

continual improvement of environmental plans, including
enhancing the effectiveness of our efforts to address

Major nature-related agenda item for the Sustainability
Committee

environmental issues.
*Skill Matrix.
https://www.j-front-retailing.com/english/company/governance/governance02.html● Lecture and discussion by external expert

FY2023

Sep

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
environment-related issues, as discussed by the Risk
Management Committee and Sustainability Committee, andreports to the Board of Directors for approval. Meets weekly.

RiskManagement
Committee

Deliberates on the identification, evaluation, and response tocomprehensive risks and opportunities, and monitors the risk
responses of operating companies. Climate-related risks andopportunities are also integrated into the company-wide risk
management framework and managed together with other 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 progressof each operating company based on the Group's long-termplan and KGI/KPI, taking into account risks and opportunities.
Dialogue also held with experts in climate-related 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 climate-related risks andopportunities, and promoting group-wide initiatives to resolve
environment-related issues.

OperatingCompanies

Each operating company plans and implements specific measures
to address environment-related issues based on the items
approved by the Group Management Meeting and the deliberationsof the Risk Management Committee and Sustainability Committee,
and reports on the progress to the JFR Group's Risk Management
Committee and Sustainability Committee.

Sustainability
Promotion
Division

Formulates and proposes Group policies and other measures
to promote sustainability management. The division collects
climate-related information on risks and opportunities,
formulates the direction of medium- and long-term initiatives,
and reports to the Group Management Meeting and theSustainability Committee.

Cooperation

and approvals made by the Group Management Meetingthe setting of medium- to long-term targets, we are

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

Instruction

Sustainability Promotion Divisionon the topic “Overview and Necessity ofBiodiversity Response”

Role

Board ofDirectors
Instruction

The Committee formulates action plans for the Group's
environmental issues and monitors the progress.

Meeting body andsystemReportReportsolutions to these issues. These are then deliberated andapproved by the Group Management Meeting, the highest

ReportPresident and Representative Executive Officer

Meeting bodyJFR Group, the Company is responding to environmental
into our business strategy initiatives that will lead to

Meeting bodies and their rolesin the environmental management system

Board of Directors

Executing entity

To promote sustainability management across the entire

TNFD Report 2024

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Risk Management
1 Process for identifying and assessing

nature-related risks and opportunities

2 Management system for nature-related

and other environmental risks

3 Integration into the company-widerisk management framework

The Company considers risk to be the starting point of

The Company is working to share environmental-related

The Group has established a Risk Management Committee

strategy. We have defined risk as “uncertainty, both positive andrisks, including nature-related risks, with each of its operating

to manage various risks, including climate-related risks, in an

negative, that affects the achievement of corporate managementcompanies by examining them in greater detail within

integrated company-wide manner, based on the recognition that

goals.” We believe that the appropriate handling of risk leads

the Sustainability Committee. Each operating company

risk management is extremely important for management. The Risk

companies to sustainable growth.

incorporates nature-related initiatives into their action plan

Management Committee deliberates on important matters such as

With the recognition that nature-related risks and opportunities

and confirms the progress through discussions in meetings

the identification and assessment of risks and the determination ofhave a great impact on our business strategies, the Group identified

headed by the president of each operating company. Progressrisks to be reflected in strategies, and utilizes this information forand assessed both positive and negative aspects of climate-related

is monitored by the Group Management Meeting, the Risk

management decision-making. The Committee also positions risk

risks and opportunities through the process shown below.

Management Committee, and the Sustainability Committee,

as the starting point for strategy and strives to link risk and strategy

and is finally reported to the Board of Directors.

to enhance corporate value through risk management.

JFR Group risk management systemover the medium term are positioned as “critical risks” and serve as theFirst, the Group extracted a comprehensive set of climate-relatedrisks and opportunities exhaustively for each activity of the supply
chain process: “product procurement,” “transportation and customer
movement,” “in-stores sales,” “use of products and services,”and “disposal.” Next, we assessed them based on two criteria:“importance to the Group” and “importance to stakeholders.”*See Strategy for details.

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
analysisRisks that are extremely important to the Group's management
starting point for our Medium-term Business Plan. We have incorporated

Riskmanagement
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)

to address them to clarify the risks we will respond to each fiscal year.

Response torisks●Operating companies

Sustainability Committee.

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

important risks into “annual risks” and prioritize and implement measures
The deliberations of the Risk Management Committee arereported to the Group Management Meeting and shared with the
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 theBoard of Directors in a timely manner and reflected and addressed inGroup’s strategies under the supervision of the Board of Directors.

Group-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

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Strategy
2 Taking into account the LEAP*3 approach in assessments of nature-related issues

1 Dependency and impact on nature

Our Group is dependent on the many blessings of nature (ecosystem services),such as soil, forests, and a climate with four seasons, in addition to agricultural
products, livestock products, marine products, wood, water and other resources.
On the other hand, our business activities impact the natural environment invarious ways, such as GHG emissions, waste emissions, and water discharge.
The Company recognizes the importance of understanding and responding to
the relationship between our business activities and the natural environment,

The LEAP Approach is an integrated process recommended by TNFD for
assessing nature-related issues, including locating the interface with nature,evaluating dependencies and impacts on nature, and assessing risks/opportunities.
In FY2023, Daimaru Matsuzakaya Department Store, one of the Group's main
operating companies, identified and assessed nature-related issues (dependencies/
impacts, risks/opportunities) based on the LEAP approach for its 15 department
stores located throughout Japan.
*3 LEAP: stands for the four-step process of Locate, Evaluate, Assess, and Prepare

specifically the “dependency” and “impact” of both.
①Appearance of dependencies and impacts

The dependencies and impacts of the entire value chain in the department store business andthe degree of dependencies/impacts on natural capital in direct operations (store operations
and store development) and upstream value chain (procurement) were determined based on
ENCORE, a tool recommended by TNFD to identify dependencies/impacts on nature. Heatmaps
were created to determine the degree of dependence/impact on natural capital in the direct
operations (store operations and store development) and upstream value chain (procurement).

Relationship between businessactivities and ecosystem services

Natural Environment
Ecosystem Services
Cultural services

Dependency Heatmap

water, and other resources

Impact● Land use

JFR Group Business Activities● Wastewater and waste

Apparel

VH

M

L

M

M

M

L

VL

L

Control spread of
pests

VH

Landform stabilizationand erosion control

M

L

M

Household goods

VL

M

L

M

VL

Agricultural products

M

H

VH

H

H

H

H

H

H

H

VH

VH

Livestock products

VH

VH

VH

VL

H

M

M

L

M

M

M

L

L

Marine products

VH

M

VL

VL

H

H

M

H

M

H

H

M

Paper products

M

VH

VH

H

M

VL

L

Store development
VH

H

Flood and storm
control● Resource intake ● Climate changeStore operations
Directoperations Store development

Controlling spreadof disease

etc.

Water quantity
regulation● Traditional culture

Soil quality

etc.

Pollination
mediation● WoodGroundwater● Agricultural products, wood,etc.

natural landscapes● Recreation

Textiles and othermaterials● Water purification● Preservation of

Sector● FuelRegulating services

Surface water

Dependencyetc.

● Food● Pollination

Upstream(procurement)● Water cycle● Climate control

Business

photosynthesis● SoilDepartment store operations● Oxygen production by

Value chain

Provisioning
services

Climateregulation

Provisioning services

Mass flow
mitigation

Regulating services

Water quality

Fundamental services

LocateVery High

H

High

M

Medium

M

L

VL

Low

VL

Very Low

H

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② Identification of stores to evaluate for risks/opportunities

Impact Heatmap

VH

Water usage

H

M

H

M

M

M

H

Apparel

H

H

M

M

M

M

H

H

H

H

H

VH

M

M

VH

H

H

M

H

H

M

M

M

Household goods
Agricultural products

VH

Livestock products

VH

Marine products

VH

VH

H

Paper products
Store development

Very High

H

VH

High

Air pollution

SectorStore operations

Soil pollution
H

VH

Use of marine
ecosystem

M

Store development

Use of terrestrial
ecosystem

Waste

Pollution/depollution

M

MediumLLow

GHG emissions

Resource Climate
usage change

Water pollution

Use of freshwater
ecosystem

Value chain
Directoperations

Upstream(procurement)

Department store operations

Business

Land/freshwater/oceanuse change

H
VH
H

H

H

LocateUsing the Risk Filter Suite (ecosystem andwater risk analysis tool) from WWF*4, Aqueduct(water risk analysis tool) from WRI*5, and othertools, we verified the state of ecosystems inareas where our stores are located. In addition,
we evaluated the importance of each store
location based on our own criteria (land andbuilding ownership, sales volume, etc.). As aresult, Daimaru Shinsaibashi was identified asa store of particular importance for biodiversity
conservation.
Daimaru Shinsaibashi

VH
H
VL

H

Very Low③Sorting out the factors behind dependencies and impacts on nature*4 WWF (World Wide Fund for Nature): An environmental conservation
organization active in more than 100 countries that works to restore the vanishing richness of biodiversity and to prevent global warming.
*5 WRI (World Resources Institute): An independent organization that conducts policy research and provides technical assistance on
global environmental and development issues.

Evaluate

Of the business activities at Daimaru Shinsaibashi, we have sorted out the factors with significant dependencies and impacts on the ecosystem services in the value chain: “Store
Development,” “Clothing and Food,” and “Packaging Materials.”Value chain upstream
Store development
Raw material production/extraction/procurement

Store
Development

Transportation of goods

Value chain downstream

Store operations

Use and disposal of goods●Procurement of raw materials for construction ●Water usage ●Fuel usage●Electricity usage●Fuel usage●Fuel usage ●Electricity usage●Water usage●Land conversion and development ●Mineral resource extraction ●Energy usage●GHG emissions ●Air pollution ●Waste emissions●Air pollution ●Energy usage●GHG emissions ●Waste emissions●Air pollution●Water pollution●GHG emissions ●Waste emissions●Fuel usage ●GHG emissions●Waste emissions

Dependencies●Use of soil, forests, and pastures for livestock feed and procurement of raw materials
such as cotton and lumber ●Use of marine areas and extraction of natural fisheries resources●Pollination by insects ●Water usage ●Fuel usage ●Electricity usage●Fuel usage●Fuel usage●Water usage●Water usage ●Fuel usage●Electricity usage

Impacts●Soil pollution due to such factors as excessive wood consumption and use of pesticides,
deforestation, reduction of pastureland, land degradation, desertification ●Depletion ofwater resources, destruction of marine ecosystems (e.g. overfishing of juvenile fish) ●Wastewater and water pollution in food processing processes ●Energy usage ●GHG
emissions ●Air pollution ●Waste emissions●Air pollution ●Energy usage●GHG emissions ●Waste emissions●Air pollution●Water pollution●GHG emissions ●Waste emissions●Procurement of raw materials for paper packaging ●Water usage ●Fuel usage●Electricity usage●Fuel usage●Fuel usage ●Electricity usage●Deforestation due to excessive logging ●Energy usage ●GHG emissions ●Air pollution●Waste emissions●Air pollution ●Energy usage●GHG emissions ●Waste emissions●Waste emissions

Dependencies
Impacts

Clothing
and Food

Packaging
Materials

Manufacture of goods

In-house

Dependencies
Impacts●Electricity usage●Paper usage●Microplastic runoff during

laundering, water pollution●Waste emissions●Fuel usage●GHG emissions
during recycling ●Waste emissions

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④Assessment and response to risks and opportunities

Assess

PrepareBased on the sorting out of dependencies and impacts on ecosystem services at Daimaru Shinsaibashi in steps ( 1) to (3 ) , we identified and evaluated nature-related risks andopportunities that could affect our business activities, and discussed activities to address them. In addition, we qualitatively evaluated the impacts to our business activities on
three levels (major, medium, minor) based on two criteria: “importance to our company” and “importance to our stakeholders.
Item

Details of risks/opportunities
Acute・Decrease in revenues due to store closures caused by extreme weather and increased

natural disasters

・Increase in energy costs due to rising temperatures

Physical
Chronic

ImpactDetails of activities

Large● Strengthening the resilience of stores and offices through BCP development● Improvement in disaster prevention performance of stores

Medium ● Replacement with high-efficiency energy-saving equipment at the right time・Earnings instability due to a decrease in the number of agricultural and marine products

handled owing to crop failures, lower quality, and reduced harvests

・Decrease in number of customers visiting stores and changes in sales owing to rising

Medium● Discussion and strategy development for the procurement risks of criticalfood raw material

temperatures and changing rainfall patterns

Policy andregulations
Risk

・Increase in costs due to tighter regulations on GHG emissions
・Increased difficulty in store development (exterior and interior design,including additions and

Large● Expansion of environmentally friendly products such as certified products● Switchover to environmentally friendly packaging materials such as FSC certified products● Promotion of smart wrapping and simplified packaging options

・Loss of reputation due to inadequate sourcing of sustainably produced goods

Medium● Expansion of certified products● Smart delivery (reduction in the number of deliveries)

・Loss of reputation due to increased waste and lack of proper disposal● Introduction of AI demand forecasting service to reduce food waste
Medium ● Composting community activities by employees to reduce food waste● Appropriate response to the Plastic Resource Circulation Act

・Reduction in costs associated with efficient water usage

Small・Decrease in profits due to inability to meet growing consumer demand for sustainable

Reputation

Resource efficiency

・Increase in the property value of buildings due to real estate development with sustainable

Products and services

sourcing of materials and reduced energy use

・Increase in revenues due to increased handling of certified/sustainably produced goods
・Continuation and maintenance of store operations due to mitigation of storms,

Markets

typhoons, etc.

・Increase in customer traffic to real estate development and retail operations (land use)

Opportunity

stores and increased switchover to renewable energy sources● Greater use of domestically produced thinned lumber

products

Transition● Reduction of GHG emissions through aggressive energy-saving measures in

Smallrenovations) and higher construction-related costs due to a shortage of building materials

MarketMediumthat take biodiversity and landscape into consideration

Large
Large
Large

● Usage of rainwater and graywater● Usage of water-saving equipment● Promoting the development of procurement rules and acquisition of various

certifications (CASBEE, ZEB, etc.) and emphasizing them externally.

● Expansion of certified products● Raising awareness and educating customers about certified products● Establishment of environment for the enjoyment of ecosystem services(e.g., establish rules based on an understanding of location, vegetation, andclimate characteristics)

Medium ● Implementation of rooftop greening and rooftop urban beekeeping● Acquisition of environmental certification for newly developed properties● Raising of funds through green bonds, etc.

・Increase in financing capacity due to higher environmental value of buildings

Large・Improvement in reputation by providing rooftop gardens and other places for relaxation

Medium ● Rooftop greening and rooftop urban beekeeping

・Improvement in reputation by promoting recycling-oriented businessMediumEcosystem protection,
restoration, rehabilitation

・Reduction of compliance costs by improving traceability of products (especially risk commodities)

Small● Strengthening of supplier engagement by conducting assessments, etc.

Sustainable use of natural
resources

・Improvement in store brand value through reduced use of paper products and increased

Small● Switching to environmentally friendly packaging materials such as FSC certified packaging● Promotion of paperless packaging

Capital flow and financing

Reputation

use of alternative materials● Establishment of partnerships with other companies for resource recycling ofwaste plastics and food waste (e.g., POOL project, domestic SAF project, etc.)

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3 Specific examples of biodiversity initiatives (responding to risks and opportunities)

The reconstruction of Daimaru Shinsaibashi Store, which has a history of approx. 300 years, was completed in 2 0 19 and reborn as a new landmark in Shinsaibashi.
The new main building serves as a next-generation model store that incorporates advanced environmental initiatives, such as operating on 1 0 0% renewable energy.

Rooftop Greening– Landscape-Conscious Store Development –Rooftop Urban Beekeeping– Biodiversity –Composting– Reduction of Food Waste –The 7th floor’s 110 m2 terrace, created at the time of

In 2019, we launched the Shinsaibashi Honey Project.

As part of Daimaru Shinsaibashi Store's

the main building's reconstruction, is a “garden” filled

B e e h i v e s w e re i n s t a l l e d o n t h e ro o f t o p , w h i c h i s“SHINSAIBASHI Green Project” launched in 2 0 2 2,with Japanese ash trees, olive trees, and other plants,

approximately 900m 2 large and 60m above ground, forwhere visitors can walk around. On the rooftop is also

a flower bed was created on the sidewalk in front

urban beekeeping. Approximately 200,000 bees fly out

a 900m 2 “greening space”. In addition, a green walland collect nectar from flowers within a 3 km radius. Theof the store (along Midosuji Avenue in Osaka) inwith elaborate stripes of greenery has been adopted

bees' presence in the city contributes to maintaining theon Taihoji-dori, the street that runs between the mainbuilding and Shinsaibashi PARCO. The greening is apart of our proactive efforts to reduce CO2 emissions.

rich ecosystem of the region and to the revitalization of
the pollination of crops and plants. Honey produced on
the rooftop is sold as “Shinsaibashi Honey.”
We also provide opportunities for children to think

November 2023, and approximately 600 flowers andother greenery were planted by employees. Compost
produced with food scraps from the Shinsaibashi
store was added to the soil.This contribute to the
reduction of food waste.

about the environment, such as by holding workshops
for local children to make honeydew candles.

Photo courtesy of Local Food Cycling Co.

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Participation in the “Fry to Fly Project” to produce Sustainable Aviation Fuel (SAF)

Water storage tank

– Recycling waste cooking oil– Appropriate use of water
A water storage tank 3.7m high × 7m wide × 5m
deep is installed on the basement floor to supply
water to the toilets and water faucets in the building.
The water tank holds enough water to fill 6 0 0

Daimaru Matsuzakaya Department Store is participating in the “Fry to Fly Project,” an initiative for recycling waste
cooking oil, aiming for the first large-scale production of sustainable aviation fuel ( SAF) in Japan.
In September 2 0 2 3, JFR signed a basic agreement with JGC Holdings Corporation, Rainbow International
Corporation, and SAFFAIRE SKY ENERGY, LCC, and began providing waste cooking oil from restaurants andcarry-out stores at Daimaru Shinsaibashi and Daimaru Ashiya stores. Matsuzakaya Ueno store joined in January
2 0 2 4, followed by Daimaru Umeda store and Daimaru Sapporo in April 2 0 2 4. These five stores generate
approximately 53 tons of waste cooking oil per year (FY2023 results), which accounts for about 34% of the total
generated by all stores. We will continue to consider expanding the number of stores that offer this service, andwill communicate the importance of resource recycling to our customers by holding events that will serve asopportunities to raise awareness and spread the use of domestically produced SAF.

Building the supply chain

Provision ofwaste cooking oil

Collection ofwaste cooking oil

Production of
SAF in JapanUse of domestically
produced SAF*Revo International will collect waste cooking oil from our stores and deliver it to SAFFAIRE SKY ENERGY for SAF manufacturing planned at Japan’s first large-scaledomestic SAF production plant under construction in Sakai City, Osaka Prefecture. Saffaire aims to start production in the second half of fiscal 2024 or early fiscal 2025.
JGC HD will establish the entire supply chain for the SAF production business using waste cooking oil as raw material.

bathtubs, and can be used to supply water to local
residents in the event of a disaster. On the B2 floor,
we have installed a “kitchen wastewater purification
system” in which wastewater is detoxified by
microorganisms and discharged into the sewages y s t e m , t h e re b y c o n t r i b u t i n g t o e n v i ro n m e n t a lpreservation of oceans and rivers.

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Metrics and Targets
The Company recognizes that biodiversity loss and climate change are inseparable issues, and has established metrics and targets to comprehensively resolve both issues
and promote efforts to achieve them.
Metrics and targets used to manage nature-related risks and opportunities for the JFR Group
TargetYear

Details

2050

Scope 1, 2, 3 Net zero GHG emissions* 1

2030

60% reduction of Scope 1, 2 GHG emissions (vs. FY2017) *1
Aim for 40% reduction of Scope 3 GHG emissions ( vs. FY2017 ) * 1

2050

100% of energy used in business activities from renewable electricity* 2

2030

60% of energy used in business activities from renewable electricity

Food recycling rate

2030

Food recycling rate of 85%

Development of environmentally friendly
products

2030

Expand transaction volume of environmentally-friendly products, including
certified products

2030

100% acquisition rate of environmental certification for newly developed
properties

GHG emissions

Ratio of renewable energy

Percentage of newly developed properties
with environmental certification*1 Obtained SBT certification*2 Joined RE100 in 2020

Toward the future
Going forward, the Company will continue to improve the effectiveness of our nature positive initiatives by prioritizing and expanding the scope of our efforts, andthrough active communication, such as by conducting biodiversity assessments of major business partners. We will also work to raise customer awareness by
expanding our lineup of certified products.

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Other Biodiversity Initiatives
Switchover to environmentally friendly packaging
materials
Packaging materials used at Daimaru Matsuzakaya

Use of Domestic Lumber
Effective use of domestic lumber is very important

From Waste Gypsum Board to Soil Improvement
Material

in maintaining the multifunctional nature of forests.

J. Front Design & Construction has been properly

Department Stores were switched to environmentally

J. Front Design & Construction, a hotel and officedisposing of gypsum board removed from demolition

friendly materials in September 2 0 1 9. Paper shopping

i n t e r i o r d e s i g n c o m p a n y, p a r t i c i p a t e d i n t h ework at construction sites and recycling much of it as abags, including bags used for food products, and paper

redevelopment of an office building, and with theresource. Taking this a step further, we have focused on

used for sales promotions have been switched to paper

understanding of the client proposed and adopted

a system to utilize calcium sulfate, the main component

p ro d u c e d f ro m p ro p e r l y

the use of domestic lumber, which had not beenof gypsum board, as a soil conditioner. Although it

managed FSC® certified

effectively utilized,

takes time and effort

forests and other controlled

as materials forto sort the waste

sources, leading to forest

interior design andonsite, we are utilizing

conservation.

large planters.

gypsum board as a soil
conditioner through aprocessing company.

Launched in FY2016, ECOFF is a sustainable initiative to

Adoption of Temporary Fencing System Panels for
Demolition Work

collect unwanted clothing, shoes, bags, and other items fromIn the past, temporary enclosures used inof wood, unusable film, and other materials in the process

customers at department stores and recycle and reuse thedepartment store renovation projects wereof interior construction and the production of film mirrors

collected items into new materials and products.

disposed of once construction was completed, withand fixtures. In order to make use of these materials, we

The program has continued to grow every year thanks tomost of it put to good use as recycled material.

have teamed up with Osaka University of Arts to hold thethe increasing environmental awareness of customers andIn collaboration with Daimaru Matsuzakaya“Breathing Life into Scrap Wood” project every year since 2022.

their active participation, with the amount collected in FY2023

Department Store, J. Front Design & Construction

reaching 377t (total amount collected since FY2016: 1,845t),

has taken this concept a step further by switching toand the number of participants reached a record high.

a system panel construction method that does not

Recycling of Unwanted Clothing—ECOFF

In October 2023, we simultaneously held a fund-raising

generate waste.

Use of scrap wood
J. Front Design & Construction had been generating scraps

In 2023, the range of materials used was expandedwith the help of suppliers to include stone and metal.
The students used their rich imagination and flexible
design skills to confront the

campaign where customers donated Daimaru Matsuzakayainteresting irregularities ofpoints. The points were used as

scrap wood to create uniquea “Green Fund” for greening andworks, and the winning entries

environmental education projects

in the design competitionat schools and kindergartens inwere exhibited at the Daimaru

Osaka Prefecture.

Shinsaibashi store.

Exhibition Work: Breathing Life into Scrap
Wood 2023