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Reduction of Scope 3 GHG Emissions in Collaboration with Suppliers

Initiatives to Reduce Scope 3 GHG Emissions

The Group will strive to reduce its GHG emissions to “realize decarbonized society,” which is one of its materiality issues. In addition, we will take actions with an SBTi-approved long-term target to reduce GHG emissions from the supply chain (Scope 3*).

* Scope 3: Indirect emissions from activities in the entire supply chain not included in Scope 1 or 2

Start to Approach Suppliers

As the Group is a corporate group with retail at its core, approximately 90% of its total Scope 3 GHG emissions are constituted by emissions from the production of goods and services purchased from suppliers (Category 1) and emissions from transportation and distribution (Category 4 and 9).
In light of this situation, the Group thinks that it is important to reduce Scope 3 GHG emissions not by the Group alone but in collaboration with suppliers.
Daimaru Matsuzakaya Department Stores whose Scope 3 GHG emissions account for approximately 80% of the Group’s total emissions will start to approach suppliers in fiscal year 2021 to share its GHG emission reduction targets and reduction measures with them.

Direction of the Group’s Scope 3 GHG emission reduction

Scope 3 GHG Emissions Calculation and Acquisition of Third-party Assurance

In FY2020, the Group's Scope 3 GHG emissions were 2,922,739 t−CO2, down 22.7% compared to FY2019. They also decreased by 5.0% compared to FY2017, which is the Group's SBT base year.

The Group received third-party assurance from Lloyd’s Register Quality Assurance Limited (LRQA) for its Scope 3 GHG emissions.

Emissons by category

Category

Category name

FY2020

Emissions(t-CO2)

% share

% YoY

1

Purchased goods and services

2,191,604

74.98

(14.0)

2

Capital goods

84,908

2.91

(64.0)

3

Fuel-and energy-related activities not included in Scope 1 or 2

29,252

1.00

(12.5)

4

Upstream transportation and distribution

28,949

0.99

(12.6)

5

Waste generated in operations

1,090

0.04

83.0

6

Business travel

1,132

0.04

(74.6)

7

Employee commuting

1,909

0.07

(11.8)

8

Upstream leased assets*1

9

Downstream transportation

463,510

15.86

(41.5)

10

Processing of sold products*2

11

Use of sold products

154

0.01

(31.2)

12

End-of-life treatment of sold products

37,370

1.27

(44.5)

13

Downstream leased assets

82,860

2.83

26.0

14

Franchises*2

15

Investments*2

Total

 

2,922,739

100.00

(22.7)

*1 Excluded from calculation because it is calculated in Scope 1 and 2 emissions
*2 Excluded from calculation because they are not included in the business process of the Group

Management of the Entire Supply Chain