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 the interactions among diverse living organisms. Due to the recent deterioration of the natural environment, however, the diversity of animals and plants (biodiversity) is being lost at an unprecedented rate. In recent years, companies have been asked to understand the impact of their business activities on nature, to stop the loss of biodiversity, and to contribute to its recovery.

TCFD/TNFD Integrated Disclosure

Certification as a Nature-Friendly Site

The Ministry of the Environment has designated "Yamaga Waguri no Sato," a project jointly undertaken by Hakata Daimaru's Kyushu Tenkentai and a group of Japanese chest-nut producers, as a "Nature Symbiosis Site" under its certification program for areas where biodiversity conservation is being promoted through private-sector initiatives. The designation was granted in March 2025. Yamaga Waguri no Sato is located in Yamaga City, Kumamoto Prefecture, and features chestnut orchards in mountainous valleys that retain their natural terrain. Unlike flatland chestnut orchards, these valley orchards support a rich variety of herbaceous plants and the organisms that inhabit them. During the chestnut flowering season from May to June, numerous insects, including Japanese honeybees, visit the orchards, contributing to pollination. Additionally, the site includes streams, where many wild birds, such as kingfishers, have been observed.
Going forward, we aim to expand the circle of biodiversity conservation through the development of new specialty products using Yamaga chestnuts and the creation of ecotourism initiatives.

Raising Customer Awareness Through Holiday Decorations

Since 2022, Hakata Daimaru has incorporated environmental themes into its Christmas holiday decorations. In 2025, in collaboration with businesses and students from across Kyushu, the company created a Christmas tree and ornaments using thinned wood sourced from local forests, which were displayed in the plaza in front of the store. In addition, exhibits highlighting the activities of organizations certified as Kyushu-Okinawa Nature Positive Sites^* were presented, helping to raise awareness among visitors about the importance of biodiversity and regional environmental conservation initiatives. Going forward, Hakata Daimaru will continue to leverage the festive holiday season, when the city attracts large numbers of visitors, as an opportunity to deepen customers’ understanding of environmental issues and sustainability.

* A certification system administered by Japan’s Ministry of the Environment to recognize areas where biodiversity conservation is being promoted through private-sector initiatives and other efforts.

Promoting Store Greening

Daimaru Shinsaibashi's 7th floor terrace (110㎡) in the main building is a "garden" filled with Japanese ash trees, olive trees, and other plants, where visitors can walk around. On the rooftop is also a 900㎡ "green space". In addition, a green wall with elaborate stripes of greenery has been adopted on Taihoji-dori, the street that runs between the main building and Shinsaibashi PARCO. The greening initiatives are part of our proactive efforts to reduce CO₂ emissions.

Rooftop Urban Beekeeping

In 2019, we launched the Shinsaibashi Honey Project. Beehives were installed on the roof top, which is approximately 900㎡ large and 60m above ground, for urban beekeeping. Approximately 200,000 bees fly out and collect nectar from flowers with-in a 3km radius. The bees' presence in the city contributes to maintaining the rich local ecosystem and to the revitalization of the pollination of crops and plants. Honey produced on the rooftop is sold as "Shin-saibashi Honey."
In addition, we hold events such as "honey extraction" in our store to provide opportunities for customers to think about the environment.

Composting - Reduction of Food Waste -

As part of Hakata Daimaru's "Compost Project," which began in 2022, we created a compost garden in front of the store (Pas-sage Square) in October 2024. The compost garden features baby greens, celery, stick broccoli, carrots, and other vegetables. In April 2025, we also held Spring Harvest Festival, where participants enjoyed sandwiches made with vegetables harvested from the garden. The soil in the planters is made from composted food waste collected from the employee cafeteria at Hakata Daimaru, contributing to efforts to reduce food waste.

Implementation of Biodiversity Survey

In February 2026, Daimaru Matsuzakaya Department Stores conducted a survey of approximately 200 business partners to assess their progress in calculating GHG emissions and their biodiversity-related initiatives.
The survey found that 30 respondents offer products that incorporate environmental considerations, including biodiversity conservation. Going forward, the Company will enhance the effectiveness of its nature-positive initiatives and promote biodiversity conservation through proactive communication with our business partners.

Use of Environmentally Friendly Packaging Materials

In September 2019, Daimaru Matsuzakaya Department Stores switched to environmentally friendly packaging materials. Paper shopping bags, including those for food, and paper used for sales promotions have been replaced with paper sourced from responsibly managed forests, contributing to forest conservation.
In March 2026, we took this initiative a step further by introducing a fee for paper shopping bags as part of our efforts to reduce overall resource consumption. A portion of the proceeds from these bag purchases is used to support local environmental conservation activities.

Acquisition of FSC®-CoC Certification

J. Front Prime Space specializes in manufacturing custom furniture and store fixtures to meet the needs of its customers, mainly hotels, commercial facilities, and offices.In October 2023, the company acquired FSC®-Chain of Custody (CoC) certification^*, which serves as proof that it properly manages and processes products made of wood from forests certified under Forest Management (FM certification) standards or other low-risk wood. This certification applies to their Osaka factory and their sales department, which acts as the customer interface for their products.

* Chain of Custody (CoC) certification guarantees the processing and distribution process of products made from FSC-certified wood until they reach the hands of consumers.

Use of Domestic Lumber

Effective use of domestic lumber is very important in maintaining the multifunc-tional nature of forests. J. Front Prime Space, which specializes in inte-rior design for hotels and offices, has actively promoted the use of underutilized domestic timber in redevelopment projects for office buildings. With the support and understanding of clients, this timber has been proposed and adopted for use as interior finishing materials and large planters.

Adoption of Temporary System Panels for Demolition Work

In the past, temporary partitions used in department store renovation projects to section off construction areas were disposed of once the work was completed, with most of the materials put to good use as recyclable resources. In collaboration with Daimaru Matsuzakaya Department Stores, J. Front Prime Space has taken this concept a step further by switching to a system panel construction method that does not generate waste.

Use of Scrap Wood

At J. Front Prime Space, scrap materials, such as wood offcuts and unusable film, are generated during interior construction, fixture fabrication, and film mirror production processes. To promote the effective use of these resources, the Company launched the “Breathing New Life into Scrap Wood” project in 2022 in collaboration with Osaka University of Arts and expanded the initiative in 2024 to include Osaka Institute of Technology. With the support of business partners, the range of materials utilized has gone beyond metal and stone to materials such as tiles, paper tubes, and coated paper. In 2025, the project further expanded to include architectural textiles and automotive components. Drawing on their rich imagination and flexible design skills, the students created unique works while engaging with the irregular yet intriguing nature of these scrap materials.

Water storage tank - Appropriate use of water

At the Daimru Shinsaibashi Store, a water storage tank measuring 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 tank can hold the equivalent of water for 600 bathtubs, and the water can be supplied 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 before being discharged into the sewage system, thereby contributing to preservation of marine and river environments.

GINZA SIX was certified as an “Urban Oasis” under SEGES

In 2017, the GINZA SIX Garden, a rooftop garden of GINZA SIX, 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 SIX Garden, an about 4,000-square-meter rooftop 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

Creating a society that co-exists with the environment

• Aiming to Achieve Net Zero by 2050

• Environment Management System

• TCFD/TNFD Integrated Disclosure

• The Circular Economy the Group aims to create

• Proposal for Environment-Friendly Lifestyles

• Reduction of Wastes and Water Usage

• Biodiversity Initiatives

• Environmental Data

• Acquisition of Third-Party Assurance