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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

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.

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

Management of the Entire Supply Chain