Seven & i Holdings is focusing on reducing its own environmental impact as well as working together with its business partners to reduce environmental impact across the entire supply chain. For example, we are promoting various initiatives such as working together with original product manufacturing plants and delivery service providers and others to save energy at factories and introduce eco-friendly vehicles.
Seven & i Holdings is working to reduce CO2 emissions and evaluate its environmental impact at every stage from the supply chain through to sales and consumption, as stated in its Fundamental Policies Relating to Measures to Contribute to the Prevention of Global Warming. To this end, we have calculated the CO2 emissions ("Scope 3") throughout the entire supply chain following the "Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain Ver. 2.1." of the Ministry of the Environment. For the fiscal year ended February 28, 2017 we calculated emissions for 10 major Group companies*2. The results showed that Scope 3 emissions accounted for almost 90% of the Group's overall emissions, and of these, around 80% originated in the raw materials procurement process. We will analyze this calculation result and use it to achieve further reductions of CO2 emissions across the entire supply chain.
Breakdown of Greenhouse Gas Emissions throughout the Supply Chain in the Fiscal Year Ended February 28, 2017 (Totals for 10 companies)
|Scope 3 Categories 1-15 (total)||88.2％||100.0%||Category 1 (Purchased goods and services)||85.1%|
|Category 2 (Capital goods)||3.5%|
|Category 3 (Fuel-and-energy-related activities not included in Scope 1 or 2)||1.0%|
|Category 4 (Upstream transportation and distribution)||1.6%|
|Category 5 (Waste generated in operations)||0.4%|
|Category 6 (Business travel)||0.1%|
|Category 7 (Employee commuting)||0.2%|
|Category 8 (Upstream leased assets)||0.01%|
|Category 9 (Downstream transportation and distribution)||0.2%|
|Category 10 (Processing of sold products)||-|
|Category 11 (Use of sold products)||0.5%|
|Category 12 (End of life treatment of sold products)||6.2%|
|Category 13 (Downstream leased assets)||1.3%|
|Category 14 (Franchises)||-|
|Category 15 (Investments)||-|
|Total of Scopes 1, 2 and 3||100.0%|
At SEJ, Operation Field Consultants, who support franchised store management, use leased vehicles to visit franchised stores. Since the fiscal year ended February 28, 2017, we have been phasing in hybrid vehicles for these leased vehicles. In the fiscal year ending February 28, 2018, we plan to replace about 1,200 of our leased vehicles with hybrid models, with an anticipated CO2 emission saving of around 1,680 tons.
Seven & i Holdings is asking its partners who deliver products to stores to cooperate with efforts to introduce eco-friendly vehicles, improve fuel efficiency, and reduce store delivery frequencies. Furthermore, progress is also being made in fitting trucks with drive-data terminals that record driving status. Data collected from the terminals is used to provide driver instruction and eco-driving seminars.
CO2 Emissions by Delivery Trucks
We are replacing delivery vehicles with hybrid trucks at SEJ. These are capable of recuperating energy generated during deceleration and then using it as secondary power to drive motors when pulling away and accelerating. Through this technology, we hope to realize fuel-efficiency improvements and reduced CO2 emissions, etc. There are 5,703 delivery vehicles in the fleet, as of May 31, 2017, and hybrid trucks account for 760 of these. We plan to replace 20% of the total fleet with eco-friendly trucks by 2020.
SEJ is promoting the introduction of eco-friendly tires with low rolling resistance for delivery vehicles. As of May 31, 2017, we have installed eco-friendly tires on 5,652 delivery vehicles, representing approximately 99% of the total fleet.
Moreover, SEJ has also introduced retread tires to 9,449 vehicles*1., as of May 31, 2017. These tires are made from tires that have finished their service life by removing a certain amount of the rubber surface that contacts the road and applying new rubber and tread. In this way, they can be re-used as rear tires for delivery vehicles. SEJ will promote the use of retread tires to contribute to resource conservation and waste reduction by reusing them.
SEJ is promoting efforts to reduce wasted power usage at its distribution centers by introducing "demand controllers" that monitor the electricity usage of each unit of equipment and apply controls to the equipment in use to ensure that the usage does not exceed a certain range. As of May 31, 2017, the controllers have been introduced at 71 of SEJ's 151 distribution centers.
SEJ has its original daily products manufactured by several contract manufacturers. These manufacturers have organized the Nihon Delica Foods Association, which reports on the CO2 emissions, waste emissions, and the food recycle rate associated with plant operations. We work to ascertain environmental information shared by our contract manufacturers and hold study seminars in conjunction with the Environment Countermeasures Committee of the Nihon Delica Foods Association, where we share environmental measures such as energy-saving with each manufacturer in an effort to reduce energy use at their plants.
To ensure that it meets its social responsibilities on matters such as human rights, labor issues and the environment, Seven & i Holdings formulated the Business Partner Action Guidelines and asks business partners to understand and implement them. The guidelines cover compliance with environmental laws and regulations, as well as consideration for climate change, biodiversity, and sustainable procurement.
Since the fiscal year ended February 28, 2013, we have had CSR audits conducted by third-party inspections organizations at the manufacturing plants of our private brand suppliers in developing countries. The CSR audits include inspections of environmental aspects, such as compliance with environmental laws and regulations, management of effluent and chemical substances, and promotion of energy-saving and environmental protection activities.