As supply chains become increasingly globalized, environmental issues such as climate change, depletion of limited natural resources and loss of biodiversity, as well as human rights and social issues such as child labor and forced labor, are emerging in relation to raw material and goods sourcing. The Seven & i Group, which sources many raw materials and goods from around the world, takes the issues surrounding sourcing seriously. In accordance with the following policy, we will work together with producers, suppliers and customers to promote sustainable sourcing with respect for human rights and environmental conservation. We will disclose the progress of our initiatives and ensure a high level of transparency.

Principle 1: Compliance and respect for international standards

Principle 2: Respect for human rights

Principle 3: Conserving the environment and biodiversity and addressing challenges

Principle 4: Contribute to solving social issues

Principle 5: Dialogue and collaboration with stakeholders

Principle 6: Utilization of new technologies

1. Compliance and Respect for International Standards

i) As a signatory to the United Nations Global Compact, a worldwide initiative proposed by the United Nations, we support the ten principles in four areas (human rights, labor, environment, and anti-corruption).

ii) In addition to compliance with laws and regulations, we respect international standards regarding sustainability.

2. Respect for Human Rights

i) Based on the "Seven & i Group Human Rights Policy," we will promote sourcing activities that respect the human rights of all people in the value chain.

ii) We will focus on the following nine items.　 　　

(a) Prohibition of inhumane treatment 　　

(b) Prohibition of forced labor 　　

(c) Prohibition of child labor 　　

(d) Prohibition of discrimination 　　

(e) Provide a safe, hygienic and healthy working environment 　　

(f) Appropriate control of working hours 　　

(g) Ensure adequate wages 　　

(h) Respect for the rights of children 　　

(i) Provision of safe products and services and responsible marketing and advertising activities

3. Environmental and Biodiversity Conservation, and Addressing Issues

i) The products sourced by the Seven & i Group come from many blessings of nature. We strive to conserve biodiversity, prevent the depletion of natural resources, and realize a society in harmony with nature where natural capital is effectively utilized within the context of natural resilience, and where people and the natural environment coexist in harmony.

ii) We will identify risks and impacts on the environment, such as depletion of natural resources and water and soil pollution caused by raw material sourcing, and work to reduce their negative impacts.

iii) We will promote sourcing activities that lead to "mitigation and adaptation" to global environmental issues such as climate change, depletion of water resources, and loss of biodiversity.

iv) We will improve transparency in our supply chain and ensure traceability to prevent sourcing of raw materials that have been illegally traded, logged, fished, or hunted.

v) We will promote raw material sourcing that leads to effective use of resources and resource recycling.

vi) We will expand our raw material sourcing that have received third-party certification for environmental friendliness or that demonstrate environmental friendliness equivalent or superior to that of the raw materials we procure.

4. Contribute to Solving Social Issues

i) We will promote sourcing activities that help solve social issues faced by stakeholders in the value chain. We will also improve transparency in our supply chain and strive to ensure traceability to the production sites.

ii) We will adopt initiatives to support sustainable production activities of producers.

iii) We will promote activities that lead to regional development, such as sourcing of local products.

5. Dialogue and Collaboration with Stakeholders

i) Improve dialogue and collaboration with stakeholders to evolve into more sustainable initiatives.

ii) We will support producers, processors, and others in their sustainability-oriented production activities to resolve environmental and social issues, including natural environment and human rights issues.

iii) We will ask our suppliers to comply with the "SEVEN & i Group Business Partner Sustainable Action Guidelines" and cooperate with them to improve the sustainability of the entire supply chain; includes producers/suppliers in upstream of the supply chain.

iv)We will strive to understand and resolve supply chain issues through dialogue not only with producers and suppliers, but also with NGOs, experts, government agencies, and other people and organizations in various capacities.

v) We will communicate information on sustainable sourcing and sustainably sourced products to our customers.

vi)We will promote sustainable and ethical consumption that respects the needs of our customers.

6. Utilization of New Technologies

i) We will work to develop and market products that employ new technologies that help solve environmental and social issues.

ii) We will support the introduction of technologies to sustainably improve the productivity of producers.

iii) We will promote the introduction of new technologies that improve our products’ traceability and supply chain monitoring.

1. Agricultural Products

We will further advance the responsible sourcing of agricultural products where sustainability is ensured, placing emphasis on harmony with nature and ecosystems, and be respectful and considerate to producers and local communities.

i) We will strive to ensure the traceability of ingredients and where they come from.

ii) We will identify agricultural products that are at high risk of serious human rights violations and environmental issues and give priority to resolving these issues.

iii) We will expand sourcing of agricultural products that reduce environmental impact by properly managing water resources including water withdrawal, water conservation, and wastewater treatment, and by limiting the use of chemical fertilizers and pesticides.

iv)We will strive to sourcing agricultural products that ensure the safety and security of producers and the maintenance and improvement of their livelihood.

v) We will expand sourcing of agricultural products from the regions/local communities in which we conduct our business, thereby contributing to the reduction of food mileage and the development of local agriculture and economies.

vi)We will promote sourcing of organically grown, specially cultivated, and ensuring accountability and traceability products that maintain healthy soil and reduce the use of chemical fertilizers and pesticides.

vii) We will promote safe farm operations and proper management through the use of G.A.P. (Good Agricultural Practice) and other internationally recognized standards.

viii) Promote sourcing of sustainable agricultural products utilizing Organic, Fairtrade, and other internationally recognized third-party certifications.

2. Livestock Products

We will further advance the responsible sourcing of sustainable livestock products from the perspective of animal welfare, with emphasis on harmony with nature and ecosystems, and be respectful and considerate to producers and local communities.

i) We will strive to ensure traceability to the place of production.

ii) We will strive to source livestock products that reduce the use of antibiotics and other pharmaceuticals and feed additives in consideration of animal health and welfare.

iii) We will expand sourcing of livestock products from farms that properly manage the administration of medicines and feed records.

iv) We will support efforts to reduce environmental impacts, including soil and water pollution from livestock waste, impacts on climate change, and the environmental impacts of feed production.

v) We will strive to source livestock products whose livestock management is based on The Five Freedoms for Animal * and the concept of animal welfare.

*The Five Freedoms for Animal: (a) Freedom from Hunger and Thirst; (b) Freedom from Fear and Distress; (c) Freedom from Discomfort; (d) Freedom from Pain, Injury and Disease; (e) Freedom to Express Normal Behavior.

vi) Promote safe farm operations and proper management through the use of G.A.P. (Good Agricultural Practice) and other internationally recognized standards.

vii) We will promote sustainable procurement of livestock products by utilizing internationally recognized third-party certifications.

3. Marine Products

In order to pass on the bounty of the sea to future generations, we will further advance the sourcing of sustainable marine products by striving for harmony with nature and ecosystems and be respectful and considerate to producers and local communities, and prevention of depletion of natural resources.

i) We will confirm traceability and confirm that we are not handling any marine products related to illegal, unreported, and unregulated (IUU) fishing.

ii) Avoid overfishing and bycatch of natural marine products and increase sourcing from producers engaged in sustainable fishing practices.

iii) Recognize the issues surrounding farmed fish, such as the destruction of nature to build aquaculture farms, marine pollution from feed and drugs, and overfishing of wild fish for feed, and support efforts to reduce their impact.

iv) Carefully consider the handling of endangered and CITES Appendix-listed fish species.

v) We will promote the sourcing of sustainable marine products by utilizing of internationally recognized third-party certifications.

4. Palm Oil

We will further advance the sourcing of sustainable palm oil that confirms the prevention of deforestation and the conservation of ecosystems and biodiversity, and that respects and protects the human rights of producers/workers.

i) We will strive to ensure traceability to the place of production. We will work with suppliers and NGOs to resolve issues faced by producers and production areas, such as human rights abuses and environmental issues.

ii) We will expand sourcing of palm oil that respect biodiversity conservation, confirm that deforestation, peatland development, and human rights abuses against indigenous peoples are not taking place in order to expand production areas.

iii) In collaboration with stakeholders, we will support small-scale farmers to improve their livelihoods and productivity.

iv) We will promote sustainable palm oil sourcing by utilizing of internationally recognized third-party certifications

5. Paper and Pulp

We will further advance sourcing of properly managed and sustainable forest resources, and confirms the conservation of ecosystems and biodiversity.

i) We will strive to source raw materials with traceability to the site of logging.

ii) Expand the use of forest resources that conserve ecosystems and biodiversity, and that do not involve deforestation, peatland development, or human rights abuses against indigenous peoples in order to expand production areas.

iii) Expand the procurement of forest resources for which it can be confirmed that human rights are not violated and a safe environment is secured in the process of logging and processing.

iv) We will strive to recycle and effectively utilize resources, including the use of recycled paper and wood from thinning.

v) We will promote sourcing of sustainable forest resources by utilizing of internationally recognized third-party certifications

6. Fiber/Cotton

We will further advance sourcing of sustainable fibers/cotton, ensuring reduction of natural resource use, conservation of ecosystems and biodiversity, and the working environment of producers.

i) We will strive to ensure traceability to the place of production.

ii) Expand fiber/cotton sourcing that addresses ecosystem conservation during the cultivation process, efficient use and management of water resources, and reduction of pesticide and chemical fertilizer use.

iii) Expand sourcing of fibers/cotton that can be verified to have a safe working environment, free from child labor and forced labor, in the process from cultivation to product manufacturing.

iv) We will strive to reduce the environmental impact of dyes and other chemicals used in the processing process, as well as wastewater treatment.

v) We will support the improvement of producers' livelihoods, productivity, and technological development.

vi) We will also consider the use of fibers that incorporate new technologies for resource recycling, such as recycled materials.

vii) We will promote the sourcing of sustainable fibers/cotton by utilizing internationally recognized third-party certifications.