JFR Group 2050 Net Zero Transition Plan

The Group believes that it is necessary to strengthen its strategic resilience from a medium- to long-term perspective under both the 1.5°C/less than 2°C scenario and the 4°C scenario to achieve net-zero emissions in 2050.
To this end, we have formulated a transition plan that identifies specific initiatives from short-, medium-, and long-term perspectives to capture new growth opportunities such as proactively respond ing to market changes in response to positive opportunities while developing appropriate measures to avoid negative risks in our business strategy.

JFR Group 2050 Net Zero Transition Plan

FY2022 Scope 1 and 2 GHG Emission Results

In fiscal year 2022, the Group’s GHG emissions were 109,785 t-CO₂, down 10.6% compared to fiscal year 2021.
The Group’s GHG emissions also decreased by 43.5% compared to fiscal year 2017, which is its SBT base year. Thus we are making good progress toward the achievement of SBT.

FY2022 Scope 1 and 2 GHG emission results

Expanding use of renewable power for sustainable stores

The Group, whose main operating companies are the retailers Daimaru Matsuzakaya Department Store and PARCO, generates more than 90% of its Scope 1 and 2 emissions from those stores, and approximately 80% of these emissions are associated with the use of electricity. Therefore, we recognize the need to save energy, improve energy efficiency, and switch to renewable energy sources for the electricity used in our stores.
Stores in the Kansai and Kanto regions are gradually switching to renewable energy. This began with Daimaru Shinsaibashi, which opened in 2019 and operates on 100% renewable energy. As a result, the ratio of renewable energy in FY2022 was 33.6%, and Scope 1 and 2 emissions were 43.5% lower than in FY2017, the base year.
In April 2023, we switched over to large-scale stores in the Chubu region, including Matsuzakaya Nagoya (excl. the North Bldg.) and Nagoya PARCO, in an effort to further improve the re-energy rate.
We believe that stores operated with renewable electricity will improve the environmental value of the buildings and win the support of our suppliers and customers who are highly conscious of environmental issues. Therefore, we will continue our efforts to switch to renewable power going forward.

*Global initiative that aims to source 100% renewable energy to power business activities

Contributing to the spread of renewable energy

Solar panels have been installed on the rooftops of Shibuya PARCO and Kyoto Zero Gate to generate their own electricity. In the future, we will work to introduce additional^* renewable power procurement and improve energy resilience by diversifying our procurement sources.

*Contribute to the spread and expansion of new renewable power sources and be effective in reducing CO₂ emissions

Expansion of electric vehicle (EV) charging stations

Angel Park, a Group company involved in the operation of parking facilities, has installed EV charging stations that customers can use free of charge. More stations were added in FY2022, bringing the total to 10. From April 2023, Angel Park will switch to 100% renewable energy for electricity throughout the building, which will not only improve convenience for customers using electric vehicles, but will also contribute to the decarbonization of society.

Initiatives to energy-saving

New Shibuya Parco―environmentally friendly next generation building

Shibuya Parco which opened on November 22, 2019, as a “Leading project for sustainable building initiative (CO₂ reduction initiative)” for the following features: (1) Attractive outdoor space including roof top square and multi-level pathways; (2) Proactive installation of high-efficiency energy system including a cogeneration system (CGS)^※; and (3) Use of digital communication technology to promote efficient energy use. In addition to installing the latest equipment and fixtures, we also “visualized” energy efficiency for energy management systems so as to make it a multi-purpose commercial space showcasing efficient energy use with lower CO₂ emissions.

※ Cogeneration system (CGS): System that simultaneously produces and supplies electricity and heat from a single energy source

Promoting the installation of high energy efficient equipments and LED lightning

The Group adopts various energy saving measures to reduce CO₂ emissions and prevent global warming. High energy efficient equipments are installed on the occasions of facility replacement, store renovation and new store opening.

Daimaru Matsuzakaya Department Stores and RARCO strives to reduce electricity consumption and CO₂ emissions by replacing existing lighting with LED units. Approximately 167,000 lighting units ,which account for approximately 70.9% of the total, were switched to LED lighting during tha period from fiscal year 2010 to fiscal year 2022.

Electrifying the corporate fleet​

In FY2022, Daimaru Matsuzakaya Department Store switched 11 of its vehicles to EVs, bringing the total number of EVs in operation to 156 (41.7% of total). We will continue to promote the conversion of company vehicles to EVs to reduce CO₂ emissions.

Since 2011, Daimaru-Matsuzakaya has adopted "telematics" (a mobile communication system) for its fleet of independently operated vehicles. Telematics" is a system that collects data on how employees operate the vehicles, such as excessive speed, sudden acceleration/deceleration, and fuel consumption.The Safety Operation Committee meets every three months and uses the Telematics data to improve fuel efficiency and to implement eco-driving and safe driving with low CO₂ emissions.

Reduction of Scope 3 Emissions in Collaboration with Suppliers

The Group’s Scope 3 emissions account for approximately 95% of the emissions from the entire supply chain. In light of this situation, the Group considers the reduction of Scope 3 emissions as well as the reduction of Scope 1 and 2 emissions as its important task and thinks it needs to work on that in collaboration with suppliers.

FY2022 Scope 3 Emission Results

In fiscal 2022, Scope 3 emissions were 2,761,669 t-CO₂, up 14.1% compared to fiscal 2021. It was because Category 1 (purchased goods and services) increased from the previous fiscal year due to business recovery resulting from mitigation of the impact of COVID-19. The reduction compared to the SBT base year of fiscal 2017 was 5.7%

Explanatory Meeting for Suppliers

Daimaru Matsuzakaya Department Stores has strived to reduce Scope 1 and 2 emissions by switching to renewable energy-sourced electricity and LED lighting and electrifying corporate fleet in its stores and head office. On the other hand, its Scope 1 and 2 emissions are only approximately 5% of the total supply chain emissions due to the nature of the retail business, and Scope 3 emissions account for the remaining approximately 95%.
In light of this, Daimaru Matsuzakaya Department Stores held an “explanatory meeting concerning its initiatives to realize a decarbonized society” for suppliers in April 2022 (attended by 300 people from 253 companies). We showed the Group’s determination by sharing the company’s initiatives to realize a decarbonized society and explained that it is essential to collaborate with suppliers to reduce Scope 3 emissions and that visualization of emissions by each supplier will be the first step for reduction.
Going forward, we will contribute to realizing a decarbonized society by the entire supply chain by considering and implementing concrete measures to reduce Scope 3 emissions in collaboration with suppliers to achieve net zero by fiscal 2050

Ginza Six was certified as an “Urban Oasis” under SEGES

In October 2017, the rooftop garden of Ginza Six “Ginza Six Garden” was certified as an “Urban Oasis” under the “SEGES (Social and Environmental Green Evaluation System)*” (administered by the Organization for Landscape and Urban Green Infrastructure), which recognizes comfortable and attractive urban green areas.

The Ginza’s largest about 4,000-square-meter rooftop garden “Ginza Six Garden” is located on the roof of the about 56-meter-high building with 13 floors above ground. A green area of approximately 2,200 square meters, which accounts for about 56% of the rooftop garden, was newly created. Our large-scale greening efforts in the prime downtown location were highly recognized and we obtained such certification.

*SEGES:(Social and Environmental Green Evaluation System) A system to recognize and certify outstanding green areas of the companies that contribute to society and the environment through greening activities

Realization of Decarbonized Society

• Aiming to Achieve Net Zero by 2050

• Environment Management System

• Information Disclosure in Line with TCFD Recommendations

• Environmental Data

• Acquisition of Third-Party Assurance