Seven & i Holdings is taking steps to reduce CO2, the main cause of global warming, and to realize a low-carbon society with dramatically reduced CO2 emissions. We have set reduction targets for CO2 emissions and are promoting energy saving initiatives.
Seven & i Holdings is increasing store numbers as it expands business. In the fiscal year ended February 28, 2014, the Group set a CO2 emission reduction target that represents a 10% reduction from the projected CO2 emissions in the fiscal year ending February 28, 2018, under the same level of environmental measures set for the nine Japanese operating companies*1 in the fiscal year ended February 29, 2012※2.
|※1.||Included companies: SEJ, IY, Sogo & Seibu, YB, York Mart, Seven & i Food Systems, Akachan Honpo, THE LOFT, and SHELL GARDEN|
|※2.||Calculated based on emissions coefficients for the fiscal year ended March 31, 2011, provided in the Act on Promotion of Global Warming Countermeasures.|
About 90% of CO2 emitted by Seven & i Group companies is attributable to the use of energy for in-store lighting, store signboards, and air conditioning, which are all indispensable for the operation of its stores. Therefore, we aim to control our environmental impact increase proportionately to the increase in store numbers and size and the enhancement of products and services by installing energy reducing equipment such as LED illumination and solar panels when we open new stores or refurbish existing ones.
For example, at 7-Eleven stores, we are promoting environmentally friendly store creation by converting all types of lighting to LED, including store signage, sales area lighting, and sign poles. In 2014, we introduced new specification LED lighting that can further reduce electricity usage by approximately 50%. In addition, we have made progress with installing solar panels, which are now installed at 7,809 stores (as of February 28, 2017).
At IY as well, to reduce the load on the environment from store operations, LED lighting has been installed at almost all stores, and solar panels have been installed at 13 stores (as of February 28, 2017).
Main investments in environmental equipment – cost and effect (FY2017)※
|※||Totals for nine companies: SEJ, IY, Sogo & Seibu, YB, York Mart, Seven & i Food Systems, Akachan Honpo, THE LOFT, and SHELL GARDEN|
Renewable energy generated
|Renewable energy generated(Mwh)||57,433||58,014||67,054|
Some 7-Eleven stores have had smart sensors installed. A smart sensor is installed on the store’s electricity distribution board, enabling the volume of electricity used by equipment in the store to be monitored in real time. This helps to save energy by enabling staff to visualize which equipment in the store is using electricity, how much is being used, and when, so that they can identify issues with equipment use.
SEJ has signed a comprehensive agreement with Iwatani Corporation regarding the installation of hydrogen stations together with convenience stores. In March 2017, the companies opened a store with a hydrogen station in Sendai, Miyagi Prefecture, bringing the total number of hydrogen-station stores to three with the existing stores in Ikegami, Ota-ku, Tokyo Metropolis and Kariya City, Aichi Prefecture.
Looking ahead, we will install pure hydrogen fuel cells at the 7-Eleven stores with hydrogen stations and conduct a trial test on the environmental impact reduction to verify the potential for the use of fuel cells in stores. The project also aims to promote the creation of "close-by, convenient stores" that are closely tied to local communities, while creating sites that can serve as social infrastructure able to provide products, services, and clean energy at a single point.
Seven & i Holdings and NEC Corporation have installed 2,500 chargers for electric vehicles (EVs) and plug-in hybrid vehicles (PHVs) as of February 28, 2017 in parking lots at 48 stores in Japan, including IY, Ario, and Sogo & Seibu department stores to provide a fee-based charging service.Payment for the service is made with a charging card issued by Nippon Charge Service LLC, a joint venture established by four Japanese automakers, as well as credit cards.
This project is the largest scale introduction of EV and PHV chargers ever attempted in Japan. The initiative aims to increase the convenience of the commercial facilities and establish a pattern for using EVs and PHVs of charging them while shopping. It also aims to contribute to the realization of a low-carbon society by promoting the spread of environmentally friendly, next-generation cars.
Seven & i Holdings is affected by various risks related to climate change. These include regulatory risk from tighter regulations in Japan and overseas, physical risk from the occurrence of major disasters, and judgment risk, in which changes in consumer purchasing behavior due to the climate and response to weather fluctuations become the standards for evaluating companies. In particular, the impact from changes in temperature and the occurrence of major natural disasters extends beyond damage to store equipment and distribution networks, restrictions or halts to trading, and sales opportunity loss; it can also affect Group companies’ product suppliers and raw material prices. Climate change is therefore a risk factor for all aspects of operations, from product development and production to distribution, store operations, and product lineups. Seven & i Holdings therefore recognizes that quickly building and implementing a business model that can cope with weather and climate change is important for maintaining growth.
Seven & i Holdings, in accordance with the "basic rules for risk management," establishes, maintains, and utilizes comprehensive risk management systems, centered on the Risk Management Committee, in order to properly analyze and evaluate and appropriately respond to risks associated with each business, with consideration for changes in the management environment and risk factors relevant to the Company and its Group companies. Risks associated with climate change are also managed under these systems.
Each Group company conducts a risk identification exercise once a year based on a catalogue of common risks for the entire Group provided by the Risk Management Department, which serves as the secretariat for the Risk Management Committee. The companies quantify the risk assessment based on the impact and likelihood of occurrence for the risks and summarize countermeasures for each risk in a risk survey form that is submitted to the Risk Management Department. The risk survey form includes CO2 emissions regulations, physical risks due to climate change (major disasters) and reputational risk due to delays in climate change countermeasures, among others.
Risk Management Committee meetings are held twice a year and attended by the president of Seven & i Holdings. The committee comprehensively ascertains the risk status of the Group based on assessments and countermeasures submitted by the Group companies, and monitors risk management and improvement initiatives undertaken by each company from a perspective of the seriousness of the risks and the urgency of improvements.
The status of risk management is reported by the director responsible for the Risk Management Committee to the Board of Directors of Seven & i Holdings at least once a year.
Our enduring concern around weather and temperature change is reflected in our daily ordering activities and sales floor formation. In product development and lineups as well, we strive to provide products that meet customers’ needs by establishing a hypothesis based on weather changes over several months. At the same time, we will respond carefully to changes in customers’ purchasing behavior driven by abnormal weather and temperature changes driven by climate change.
Furthermore, since IY purchases all harvested produce, even non-standard items, from Seven Farms, its environmental initiative based on recycling-oriented agriculture, it is unaffected by market trends when purchasing and selling vegetables. In this way, it is also addressing the aspect of stable product procurement. Seven Farms are located in 13 places throughout Japan, covering approximately 200 ha in total. (As of February 28, 2018)
In addition, Seven & i Holdings is establishing systems to prepare for disasters associated with sudden weather phenomena, such as the numerous incidents of heavy rain and landslides that have occurred recently in Japan. For example, we have distributed booklets to regular employees summarizing how to respond in an emergency, and we have also been holding regular simulation drills using teleconferencing systems and so forth. Furthermore, Seven & i Holdings is constructing 7VIEW (Seven Visual Information Emergency Web), a system that enables provision, sharing, and joint use of disaster information. The system gathers together information from within the Group and through cooperation with business partners.
Measures to mitigate climate change include various initiatives related to reducing our environmental impact, such as energy conservation and use of renewable energy at stores, along with forest maintenance and related activities throughout Japan.