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Initiatives to Reduce Scope 3 GHG Emissions

Initiatives to Reduce Scope 3 GHG Emissions

The Group will strive to reduce its GHG emissions to “contribute to a low-carbon 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

Scope 3 calculation and reduction measures

The Group calculated Scope 3 emissions for the first time in 2018.

In FY2018, Scope 3 emissions increased by 1.6% compared to FY2017. It is partly because “investment in emissions from construction and manufacturing of the reporting company’s capital goods,” which is one of Scope 3 categories, increased by 48% from the previous year due to capital investment in the Daimaru Shinsaibashi store and Shibuya Parco.

Going forward, we will aim to acquire third-party assurance and strive to reduce GHG emissions in the entire supply chain.

Emissons by category

unit : t-CO2, unless otherwise indicated

Category

Category name

Emissions FY2017

Emissions FY2018

% change

1

Purchased goods and services

2,701,108

2,704,488

0.1%

2

Capital goods

81,883

120,929

47.7%

3

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

17,966

17,712

(1.4%)

4

Upstream transportation and distribution

7,400

9,727

31.4%

5

Waste generated in operations

845

759

(10.1%)

6

Business travel

627

627

0%

7

Employee commuting

1,158

1,173

1.3%

8

Upstream leased assets*1

9

Downstream transportation

168,727

171,229

1.5%

10

Processing of sold products*2

11

Use of sold products*3

12

End-of-life treatment of sold products

68,423

69,679

1.8%

13

Downstream leased assets

26,914

26,914

0%

14

Franchises*2

15

Investments*2

Total

3,074,960

3,123,236

1.6

*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
*3 Excluded from calculation because the product line of the retail business, which is the core business of the Group, does not include major appliances, vehicles, etc. and has almost no impact on GHG emissions of the business

Management of the Entire Supply chain