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Aiming to Achieve Net Zero by 2050

The JFR Group aims to achieve net-zero greenhouse gas emissions*1 throughout its entire value chain by 2050 through both the “reduction of greenhouse gas emissions” and “promotion of circular economy.”

Towards Net Zero in 2050

Recently, climate change has progressed to a much more serious level, endangering not only future generations but all people, including the present generation. The Group has positioned climate change as an important issue in sustainability management and is taking countermeasures to address the risks and opportunities associated with climate change, based on the recognition that these risks and opportunities will have a significant impact on our business strategies.

Targets

The Company recognizes that setting ambitious medium and long-term reduction targets and developing a roadmap to achieve them is a prerequisite for promoting climate change action throughout the Group. Based on this, we obtained certification through the Science Based Targets (SBT) initiative*2 in 2019 for our Scope 1, 2, and 3 greenhouse gas emissions reduction targets. In 2021, we reacquired SBT certification with a "1.5°C target," raising our 2030 Scope 1 and 2 GHG emissions reduction target from 40% to 60%

Target year

Targets with SBT certification

FY2050

●Scope 1, 2, and 3 GHG emissions reach Net Zero

FY2030

●60% reduction of Scope 1 & 2 GHG emissions (vs. FY2017)
●Target 40% reduction of Scope 3 GHG emissions (vs. FY2017)

(compared to base year 2017).

Direction of Efforts Toward Net Zero Emissions

To achieve net-zero emissions by 2050, the Group will focus on “Reduction of GHG emissions" and “Resource recycling.”
Specifically, we will work to reduce Scope 1 and 2 GHG emissions through extensive energy conservation and increased use of renewable energy in our stores. Scope 3 GHG emissions will be reduced through collaboration with our suppliers and customers, while strengthening 3Rs*3 and expanding circular business.

*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. The CDP was jointly established in 2014 by CDP, the UN Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF) to enable companies to set ambitious emission reduction targets in line with the latest climate science.
*3. Reduce, reuse, and recycle are collectively called the three R’s.

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

FY2017

FY2021

Forecast in FY2022

Results

Results

Forecast

Compared with FY2017 (compared with base fiscal year)

Total Scope 1 and 2 emissions

194,154

122,812

109,785

-43.5 %

Breakdown

Scope 1 emissions

16,052

14,004

13,714

-14.6 %

Scope 2 emissions

178,102

108,808

96,071

-46.1 %

※ Obtained third-party assurance from LRGA Limited.

Expanding use of renewable power for sustainable stores

Roadmap to achieve RE100
(share of renewable energy)

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

Solar panels installed on the roof of Shibuya PARCO

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.

EV charging station in Angel Park parking lot

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

New Shibuya Parco,
an environmentally friendly
next generation building

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.

Installed LED lighting on the ceiling when the store was renovated (Daimaru Tokyo store)
LED lighting that can simultaneously control brightness and color was installed
(“Table Plus,” food floor of Matsuzakaya
Nagoya store)

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

Explanatory meeting for suppliers

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

Ginza Six Garden

Realization of Decarbonized Society