- Home
- Sustainability
- Materiality Issues (Important Issues)
Materiality Issues (Important Issues)
- Seven Priority Materiality Issues to be Addressed by J. Front Retailing
- Sustainability Road Map
- Materiality Commitment and KPIs for 2030
- List of Actions for Each of 5 Materiality Issues FY 2018 to FY2020
- Identification and Review of Materiality Issues
- Linkage to Officer Remuneration
- Materiality Initiatives
Seven Priority Materiality Issues to be Addressed by J. Front Retailing
We reviewed materiality issues to promote sustainability management and realize Well-Being Life, which is the goal of the Group Vision.
As a result of considering environmental issues, changes in the external environment partly due to COVID-19, the balance between existing materiality issues, and furthermore, contribution to SDGs, we newly added "promotion of circular economy” and "realization of customers’ healthy/safe/secure life."
With regard to existing materiality issues, in response to the growing awareness of decarbonization in Japan and abroad, we revised “contribution to a low-carbon society” to “realization of decarbonized society.” In addition, in consideration of the social background, we also revised “promotion of diversity” to “promotion of diversity & inclusion” and “realization of work-life balance” to “realization of work-life integration.”
Going forward, by clarifying both risks and opportunities with respect to the seven materiality issues, we will create business opportunities in each materiality issue and aim to realize social and economic value simultaneously based on the concept of CSV (Creating Common Value), while responding to risks.
SDGs (Sustainable Development Goals)
Global goals for the period from 2016 to 2030, which are included in the “2030 Agenda for Sustainable Development” adopted at the United Nations summit in September 2015. They contain 17 goals with 169 targets including “climate action,” “good health and well-being,” “gender equality” and “decent work and economic growth” and pledge to leave no one behind.
Sustainability Road Map
Aiming at the sustainable enhancement of corporate value, we have set our goals for 2030 and 2050 and try to implement “discontinuous initiatives” by backcasting.
Materiality Commitment and Targets/KPIs for 2030
We set medium- to long-term goals for each of seven materiality issues and take specific actions. We believe we can contribute to the SDGs (Sustainable Development Goals) proposed by the United Nations by implementing each action.
| Materiality issue | Commitment to realizing a sustainable society | |
|---|---|---|
| Top priority issue | Realization of decarbonized society
|
●Leading a carbon-free society and creating a global climate for the next generation 【KPIs for 2030】 ・60% reduction of Scope 1 and 2 GHG emissions (vs. FY2017) ・Share of renewable energy in total energy consumption: 60% ・Expansion of in-house renewable energy generation and consumption |
| With people | Realization of customers’ healthy/safe/secure life
|
●Realizing a future-oriented Well-Being Life that satisfies the mind and body of customers ●Creating safe, secure, and resilient stores with an eye on the future 【KPIs for 2030】 ・Customer awareness and empathy of JFR sustainability activities: 80% ・Expansion of offerings for ethical consumption in all lifestyles ・Adding color to lifestyles by expanding entertainment business and wellness business ・Creating resilient stores by adopting the latest technologies to prevent disasters and epidemics and providing comfortable spaces with consideration of health |
Promotion of diversity & inclusion
|
●Realizing a highly diversified society where everyone recognizes each other’s diversity and flexibly demonstrates his/her individuality 【KPIs for 2030】 ・Aiming for ratio of women in management positions of 50% (consolidated) ・Aiming for retirement at 70 ・Employment ratio of the disabled: 3.0% ・Realization of business growth by use of diverse abilities |
|
Realization of work-life integration
|
●Realizing Well-Being for the employees and their families through new work styles for the future to realize diversity and flexibility 【KPIs for 2030】 ・Turnover rate due to childcare and nursing care: 0% ・Childcare leave usage rate: 100% ・Surveyed employee satisfaction: 80% ・Improvement of productivity by creating organization where employees can work anytime and anywhere |
|
| With local communities | Coexistence with local communities
|
●Together with local communities, creating prosperous future-oriented communities where people gather, centered on our stores 【KPIs for 2030】 ・Enhancement of appeal of area leveraging local uniqueness, development that contributes to attracting crowds to the area ・Horizontal development of store CSV ・Local revitalization by all stores through cooperation with local communities |
Management of the entire supply chain
|
●Realizing sustainable supply chain created along with suppliers ●Realizing decarbonization throughout the entire supply chain created along with suppliers ●Realizing Well-Being in which we, along with suppliers, protect the human rights and health of the people working along the supply chain 【KPIs for 2030】 ・Assessment of Principles of Action for Suppliers and collection rate of questionnaires: 95% ・Aiming for 40% reduction of Scope 3 GHG emissions (vs. FY2017) ・Establishment of business activities in which the human rights of suppliers and employees are respected |
|
| With environment | Promotion of circular economy
|
●Realizing a sustainable global environment for the future and growth as a company through the promotion of circular economy 【KPIs for 2030】 ・50% reduction of waste (including food) (vs. FY2019) ・Amount to be collected via ECOFF for recycling: 3,000 t in total ・Entry into and expansion of businesses such as sharing and upcycling ・Expansion of recycling and remanufacturing of used products |
List of Actions for Each of 5 Materiality Issues FY 2018 to FY2020
| Long-term targets | Actions 2018 to 2020 | |
|---|---|---|
Contribution to a low-carbon society 7. AFFORDABLE AND CLEAN ENERGY 13. CLIMATE ACTION |
●2030 ●2050 *Scope 1: Direct GHG emissions from the company (fuel combustion) *Scope 2: Indirect GHG emissions from use of electricity and heat supplied by other companies |
●Participated in Japan Climate Initiative (September 2018) ●Expressed support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) (May 2019) ●The Group's medium- to long-term GHG emissions reduction targets were approved by the Science Based Targets initiative (SBTi) ●Joined Renewable Energy 100 (RE100) (October 2020) ●Switched to renewable energy ・Daimaru Matsuzakaya Department Stores head office building, Daimaru Shinsaibashi store, Ikebukuro PARCO (P'PARCO), Chofu PARCO ●Transition of the company fleet (vehicles used for sales activities by Out-of-Store Sales Division of Daimaru Matsuzakaya Department Stores) to EVs (began in October 2019) ●Rated A by the Carbon Disclosure Project (CDP) (December 2020) ●Switched to LED lighting ●Installed energy-efficient equipment at the time of the replacement of electrical equipment, renovation and new store opening ●Disclosed information in accordance with the TCFD recommendations in the Securities Report (May 2020) ●Reduced GHG emissions (Scope 1 and 2) by 16.3% in FY2019 compared to FY2017 |
| Management of the entire supply chain 7. AFFORDABLE AND CLEAN ENERGY 13. CLIMATE ACTION |
●2030 ●2030 *Scope 3: Indirect emissions not included in Scope 2 (emissions in the entire supply chain) |
●Formulated the Principles of Action for Suppliers (June 2019) ●Efforts to share the Principles of Action for Suppliers ・Sent from each operating company to the representatives of suppliers (sent to 9,444 companies as of February 2020) ・Daimaru Matsuzakaya Department Stores held briefing sessions on the Principles of Action for Suppliers. ●Received third-party assurance for Scope 3 GHG emissions in FY2019 (July 2020) ●Switched to environmentally friendly packaging materials ・Paper bags made from FSC-certified materials and plastic bags for food products containing 30% biomass (September 2019) ●ECOFF, one of Think GREEN initiatives to create a circular society ●Efforts to go paperless |
Coexistence with local communities 11. SUSTAINABLE CITIES AND COMMUNITIES 17. PARTNERSHIPS FOR THE GOALS |
●2050 |
●Promoted urban development ●Expanded local production for local consumption (chisan-chisho) ●Regional revitalization through crowdfunding ●Created safe and secure store environment |
Promotion of diversity 5. GENDER EQUALITY 8. DECENT WORK AND ECONOMIC GROWTH |
●Ratio of women in management positions ●2030 |
●Signed the Women’s Empowerment Principles (the principles of action for companies that are proactively working to promote women's empowerment) (October 2018) ●Initiatives for women's empowerment ・Ratio of women in management positions (19.9% in FY2020) ●Promoted senior empowerment ・Extended the retirement age to 65 in March 2020 (J. Front Retailing, Daimaru Matsuzakaya Department Stores, JFR Card, Daimaru Kogyo, JFR Information Center) ●Efforts to employ disabled people ・Ratio of employees with disabilities as of June 2020: 2.21% ●Revised the Human Rights Policy ●Initiatives for lesbian, gay, bisexual and transgender (LGBT) issues |
Realization of work-life balance 3. GOOD HEALTH AND WELL-BEING 8. DECENT WORK AND ECONOMIC GROWTH |
●2030 ●2025 |
●Efforts to improve productivity ●Promoted the participation of men in childcare ・18 male employees of Daimaru Matsuzakaya Department Stores took childcare leave in FY2019 ●Prevented employees from leaving due to childcare and family care ・Ratio of return from childcare leave In FY2019 (Daimaru Matsuzakaya Department Stores): 89.5% ●Use of technologies ●Promoted health management |
【Group promotion system】
Established the Sustainability Committee (2019), managed the progress of ESG Initiatives at each operating company
【Establishment of various policies】
Formulated the Sustainability Policy, Eco Vision, Social Vision (2018)
【Support for initiatives】
Signed the United Nations Global Compact (2018)
【Internal and external communication】
Started ESG presentation for institutional investors (2018)
Issued the Sustainability Report (2019), opened the ESG Site as an internal penetration tool (2019)
Identification and Review of Materiality Issues
We strive to build a relationship of trust with all stakeholders (customers, shareholders, business partners, employees, local communities, etc.) through business activities and actively address sustainability issues including environmental and social issues based on the spirit of the Corporate Credo, the Basic Mission Statement and the Group Vision in order to achieve the Group’s sustainable growth and medium- to long-term enhancement of corporate value.
With the aim of further deepening these efforts in 2018, we identified materiality that contributes to the realization of “sustainable growth of companies and society” and “sustainable society” in the process of clarifying the relationship between business activities and social issues.
Specifically, firstly, we selected 25 candidate materiality issues from the perspectives of: (i) the environmental/social issues that are meaningful for us to address and can produce results and (ii) the issues we can tackle using our core businesses. Secondly, we conducted a questionnaire survey of 4,250 stakeholders on these 25 issues to secure objectivity and diversity. And based on the results of the survey in which the GRI Standards (GRI: Global Reporting Initiative, a nonprofit organization that develops international sustainability guidelines), the assessment items of ISO 26000 and SRI (Socially Responsible Investment), SDGs (Sustainable Development Goals) and review by the President are reflected and after discussions at the Management Meetings and others within the Company, we developed a materiality map. And finally, we narrowed down the list of materiality issues to and formally determined five items at the Board of Directors meetings.
In 2020, we reviewed materiality issues from the following perspectives in order to promote sustainability management and realize Well-Being Life, which is the goal of the Group Vision.
Perspectives for review
(1) Changes in the external environment surrounding environmental issues
・Changes in the external environment surrounding environmental issues. For example, the concept of the circular economy, which is a supply chain-wide initiative to create a circular society, is expanding and becoming a new business model mainly in Europe because resource depletion and the disposal of food and clothing are becoming social issues.
・Increasing consumer interest in ethical consumption, fair trade, traceability, recycling and disposal.
(2) Changes due to COVID-19
・There is a growing need for safety, security, wellness, and healthcare with infection prevention in mind and new values and lifestyles are beginning to take root.
(3) Materiality issues of JFR
・Recognition that there is no materiality issues related to customers who are important stakeholders.
Based on the above, as a result of repeated discussions at the Management Meetings and the Board of Directors meetings, we, as the Group that considers environmental issues to be the top priority, have determined that we should address materiality issues related to resource recycling, and amid the COVID-19 pandemic, materiality issues for ensuring the safety of customers who are important stakeholders. Accordingly, we newly added two issues including “realization of customers' healthy/safe/secure life” and “promotion of circular economy.”
With regard to existing materiality issues, in response to the growing awareness of decarbonization in Japan and abroad, we revised “contribution to a low-carbon society” to “realization of decarbonized society.” In addition, in consideration of the social background, we also revised “promotion of diversity” and “realization of work-life balance” to “promotion of diversity & inclusion” and “realization of work-life integration,” respectively.
Going forward, with regard to these seven materiality issues, we will identify both risks and opportunities and create business opportunities for each materiality issue to realize social value and economic value at the same time.
Linkage to Officer Remuneration
When formulating the new Medium-term Business Plan, the Company revised its Officer Remuneration Policy and set the following two non-financial KPIs for performance-linked stock-based remuneration.
(i) Scope 1 and 2 GHG emissions reduction target: 40% (compared to fiscal 2017)
(ii) Increase the share of women in management position by 26% (at the end of fiscal 2023)
These items are also linked to KPIs for our materiality issues to be achieved by 2023, and thereby clarifying the management's responsibility for achieving the targets.
【Links】
Officer Remuneration Policy (Announced on April 13, 2021)
Corporate Governance Officer Remuneration System
