Material Issue 3 Non-Wasteful Usage of Products, Ingredients and Energy

Promoting Food Recycling

At Seven & i Holdings, food products account for a large portion of net sales. With this in mind, we have been advancing measures based on the key themes of reducing food waste and promoting recycling with a target food recycling rate of 100% by 2050*.

  • SDGs12 RESPONSIBLE CONSUMPTION AND PRODUCTION
  • SDGs13 CLIMATE ACTION
  • *
  • Covering six food-related operating companies: SEJ, IY, YB, York Mart, Seven & i Food Systems, and SHELL GARDEN.

Our Approach to Reducing Food Waste

Our priorities for reducing food waste are to curtail the generation of waste, promote the reuse of waste, convert waste into feed and fertilizer, and recover heat. The Seven & i Group is currently conducting initiatives centered on converting waste into feed and fertilizer. For example, IY has been engaged in “recycling-oriented agriculture” since 2008. Under this system, food residue generated by IY stores is composted and used by Seven Farms to grow vegetables. These vegetables are then sold at IY stores.
Looking ahead, we will continue to establish these recycling systems in each region, with a view to enhancing the recycling rate.
We are also taking steps to curtail the generation of waste, including innovating sales methods and developing products with longer-lasting freshness. Looking ahead, we will continue to advance innovative initiatives to prevent the generation of food waste, such as by developing new products and services. With regard to reuse, SEJ has been donating inventories of process foods to food banks when stores are closed or refurbished, since the fiscal year ended February 28, 2018, and began making donations to social welfare organization in the fiscal year ending February 28, 2019. Ito-Yokado has similarly been donating unexpired foods from some stores to food banks since the fiscal year ended February 28, 2018. We believe that promoting reuse is an important issue, and we will step up our measures in this area in the future.

Reducing Food Waste

In order to reduce food waste, the Seven & i Group has been innovating its sales methods, products and other aspects of business in various ways. For example, IY has introduced sales methods such as selling individual loose items and selling by weight, enabling customers to purchase products only in the amounts they need. In addition, SEJ has developed chilled boxed lunches that have longer expiry dates than conventional products, without compromising taste or quality. This has been achieved by revising ingredients, manufacturing processes, and temperature control methods. SEJ is also working to reduce food waste by developing products with longer-lasting freshness in the categories of bread and delicatessen items.
In other areas, Seven & i Food Systems has been implementing measures to reduce food leftovers at Denny’s restaurants, such as providing menus offering dishes with smaller servings that can be finished comfortably without leftovers, supplying take-home boxes for any leftovers, and holding a campaign in collaboration with municipalities to encourage people to enjoy eating everything on their plate.

Installing Systems to Treat Garbage

At IY, a “biodegradable garbage processor” system that breaks down garbage using microorganisms was introduced in October of 2011 and has been installed in 18 stores as of the end of February 2018. Through the power of microorganisms, the devices break down into water and CO2 garbage that is ill-suited to recycling (such as highly fibrous substances, etc.). This process results in reduced CO2 emissions compared to incineration processing, and it offers an effective reduction of waste volumes.

Garbage processor

Converting Food Waste into Feed and Fertilizer

SEJ has been promoting “Eco Distribution*1” since 1994 as a system for appropriate processing and recycling of waste. Under this system, we work to recycle food products that have passed their sell-by dates into feed and fertilizer. The system is operating in 27 prefectures in Japan. In the fiscal year ended February 28, 2018, the combined recycling rate for products that had passed their sell-by dates and discarded food oil was 54.3%.
Certain 7-Eleven stores in Tokyo and Saitama Prefecture have established routes within their supply chains for recycling products with expired sell-by dates discarded from stores into recyclable resources. The expired products are collected from the stores and converted into fried meal, which is used to manufacture formulated feed*2. The formulated feed is fed to chickens at designated poultry farms and the eggs produced are used as a raw material in boxed lunches.

  • *1
  • Eco Distribution: 7-Eleven’s original waste recycling system.
    A recommended waste disposal provider for franchisees in each region collects all of the waste from 7-Eleven stores for appropriate processing and recycling.
  • *2
  • The products with expired sell-by dates that are used to manufacture formulated feed are recognized as safe raw materials in Japan because they have been licensed by the Ministry of Agriculture, Forestry and Fisheries for use as feed. The feed manufacturers manufacture and sell feed that complies with the BSE Guidelines issued by the Ministry of Agriculture, Forestry and Fisheries.

Recycling-Oriented Farms (Seven Farms)

In August 2008, with the aim of enhancing recycling rates and revitalizing local agriculture, IY established “Seven Farm Tomisato” as an agricultural production corporation in Tomisato City, Chiba Prefecture, thereby becoming the first player in the retail sector to engage in “recycling-oriented agriculture.”
“Recycling-oriented agriculture” is a system for composting food residues (garbage) generated by IY stores and using it at Seven Farms. The produce that is grown at the farms is then harvested and sold at the stores from which the food residues were generated. As of February 28, 2018, Seven Farm had expanded to 13 sites nationwide, Seven Farm is actively working to acquire certification under Japan Good Agricultural Practice (JGAP), an agricultural production process management technique, and currently, eight farms have acquired JGAP certification.

Seven Farms Outline

Seven Farm

Initiatives for Material Issue 3