Message from the CSuO

picture: Junro ItoVice President, Representative Director Supervising Officer of Superstore Operations Chief Sustainability Officer (CSuO) Chief Administrative Officer (CAO)

Advancing our sustainability strategy globally through key action plans

Junro ItoVice President, Representative Director Supervising Officer of Superstore Operations Chief Sustainability Officer (CSuO) Chief Administrative Officer (CAO)

Boosting the Group’s business sustainability while upholding a commitment to principles, social impact, and innovation

The Seven & i Group is dedicated to significantly transforming its business structure, as demonstrated by the action plans announced in April 2024, which emphasize the goal of transitioning to an optimal group structure. Amid these changes, we need to consider how the Group will approach the evolving society, what value we will provide to our customers, and how we will drive positive changes in the environment and society. This involves redefining the core values that underpin our sustainability strategy. To achieve this, I believe it is crucial to focus on three key areas.

The first is the principles that serve as the foundation for our efforts. Our Corporate Creed of being a sincere company that our stakeholders trust is an unwavering core value of the Group. To implement this effectively, it is crucial to engage in ongoing dialogue with diverse stakeholders and to continually refine our approach through trial and error.

The second refers to social impact. The structural reforms we are currently pursuing are driven by the need to address the social impact of SST operations. To transition to a growth strategy, it is essential to thoroughly discuss what value SST operations create.

The third concerns innovation to elevate the presence of our business. Since starting operations in 1974, we have elevated 7-Eleven’s adaptability through innovations such as 24-hour service, shared delivery systems, item-by-item management, utility bill payment services, banking services, and the private brand, Seven Premium. These advancements have cemented its position as an essential part of daily life.

I believe that businesses prioritizing principles, social impact, and innovation will generate healthy profits and be able to share prosperity with stakeholders through growth investments. Keeping this in mind, we will continue to advance the Group’s structural reforms.

Addressing international human rights and environmental issues while expanding the food value chain globally

In addition to pursuing the Group’s sustainability, a key part of my role is to enhance the sustainability strategy of our retail operations on a global scale. In this regard, I see the dialogues with diverse stakeholders that emerge during our journey to becoming a world-class retail group as valuable opportunities, and I aim to incorporate these insights into our initiatives.

Two of our most important themes are human rights and the environment. As a retailer, we are closest to consumers, and 7-Eleven has extended its value chain globally through food sourcing, production, and logistics. This expansion can have both positive and negative impacts. To address this, we established the Seven & i Group Business Partner Sustainable Action Guidelines, requesting our business partners to understand, adhere to, and implement principles such as respect for human rights and environmental conservation. Furthermore, we continuously conduct CSR audits for manufacturers of our proprietary merchandise and are strengthening our human rights due diligence system.

In terms of the environment, we disclose information based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations under our environmental declaration, GREEN CHALLENGE 2050, and are progressing in our response to Taskforce on Nature-related Financial Disclosures (TNFD) recommendations (see p. 60). While capital market demands regarding decarbonization have eased somewhat due to international energy supply constraints, we are committed to maintaining a strong focus on this issue. Enhancing the sustainability of our 24-hour convenience store operations, which heavily rely on refrigeration equipment, remains a priority. To tackle environmental and food security issues, we are promoting the use of sustainably sourced raw food ingredients and the sale of certified marine products. However, given the limited variety currently available, it is crucial to persistently encourage our business partners to increase their participation.

Shaping the future with employees who use their creativity to resolve challenges

As we expand our business globally, employees committed to resolving the challenges faced by local customers will be the key drivers of our success. To ensure that our customers have a fulfilling shopping experience, it is essential to provide a workplace environment where employees can work in good health and with a positive mindset, as well as to offer opportunities for skill development. This is one of important roles of our management team.

However, boosting engagement among our approximately 160,000 employees, including those at 7-Eleven franchises worldwide, is a challenging task. As such, our management team is starting by engaging in dialogue with employees to tackle each issue individually, creating various opportunities for discussion through the Engagement Improvement Committees.

The SMiLE business plan contest, focused on resolving social issues and involving Group employees and staff from partner companies, is now in its third year, with a total of approximately 1,500 participants to date. This initiative aims to create businesses that embody our principles and prioritize the social impact and innovation outlined in our seven material issues, while addressing customer challenges. We hope it will not only uncover promising business ideas but also foster an entrepreneurial mindset essential for the Group’s growth.

As we complete the Group’s structural reforms and move toward realizing the optimal group structure, we are acutely aware that our leadership’s resolve and execution will be tested. We are committed to harnessing the energy of this transformation to further advance our sustainability management efforts.