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Seven Priority Materiality

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 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

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●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

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●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

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●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

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●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

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●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

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●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】

・Self-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

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●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. FY2020)

・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

Process to Identify Materiality

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, 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.

Concerning these materiality issues, we will set long-term goals to be achieved and formulate an action plan to contribute to resolving social issues through business activities and develop as a company.

Policy on Sustainability