Sustainability Management

Seven & i Holdings works toward solving social issues in its core operations through promotion and development of businesses such as products and services. At the same time, we aim for sustainable development that creates value for both companies and society.

Sustainability Promotion Structure

Seven & i Holdings seeks to promote Group-wide sustainability activities that are effective and efficient. To this end, we hold regular, twice-yearly meetings of the Sustainability Committee, which is chaired by the President and Representative Director. At these meetings, we offer guidance and make improvements based on reports received from the five subcommittees. The meetings also help to strengthen the collaboration between the holding company and operating companies.

Compliance Subcommittee

The Group employees complying with laws, regulations and social norms and practicing compliance including fair trade with customers and business partners is absolutely essential to realizing the Group's Corporate Creed "Trust and Sincerity." In addition to reinforcing thorough compliance at each Group company level, Seven & i Holdings established the Compliance Subcommittee in order for Seven & i Holdings, being the shareholding company, to support each Group company strengthen its compliance systems, as well as ensure effective supervision thereby. The Compliance Subcommittee is chaired by the Executive Officer and Head of the Corporate General Affairs & Legal Division of Seven & i Holdings. The division in charge of legal affairs at the Company manages the subcommittee to promote specific measures.

Corporate Ethics and Culture Subcommittee

The Group employees understanding the Group's Corporate Creed and rigorous implementation of the Corporate Action Guidelines are an essential and important foundation to realize the Group's Corporate Creed "Trust and Sincerity." The Corporate Ethics and Culture Subcommittee conducts initiatives based on rigorous implementation of the Corporate Action Guidelines, such as to improve Group employee awareness through education by making everyone aware of the Corporate Creed and the Corporate Action Guidelines. In addition to these initiatives, to create fulfilling workplaces, Seven & i Holdings have been conducting an Employee Engagement Survey. We are also working to improve work environments, such as by rectifying long working hours, making progress on promoting active roles for diverse human resources including women and people with disabilities, and helping employees balance work and family care responsibilities. Further, Seven & i Holdings is working to create an environment where all employees can work at ease, such as by encouraging employees to take days off on holidays and acquire leave. The Corporate Ethics and Culture Subcommittee is chaired by the Executive Officer and Chief Human Resources Officer (CHRO) and Head of the Human Resources Division of Seven & i Holdings. The division in charge of human resources at the Company manages the subcommittee to promote specific measures.

For details about the Seven & i Group Corporate Action Guidelines

Supply Chain Subcommittee

It is one of the important corporate social responsibilities for companies and also a strong demand by stakeholders to promptly respond to the United Nations' "Guiding Principles on Business and Human Rights" and "Sustainable Development Goals (SDGs)," and to build a sound supply chain with human rights and the environment in mind. To improve product quality and ensure safety at each Group company, Seven & i Holdings aims to establish and strengthen the quality levels and control systems of each Group company based on the Group's Quality Policy. Furthermore, to ensure that Seven & i Holdings meets its social responsibilities regarding products and services across the entire supply chain, Seven & i Holdings asks business partners to understand and implement the Business Partner Sustainable Action Guidelines. Seven & i Holdings regularly verifies and shares their compliance through CSR audits to promote education, enlightenment and correction. The Supply Chain Subcommittee is chaired by the Executive Officer and Chief Merchandise Officer (CMDO) of the Seven & i Holdings Group Merchandise Strategy & Planning Division. The subcommittee is managed by the division in charge of product strategies at the Group to promote specific measures.

Environment Subcommittee

The Group uses products, raw materials and energy efficiently to combat challenges such as climate change and resource depletion, and the Group is working with customers and business partners to reduce the environmental impact throughout the supply chain. Seven & i Holdings believes this is an important factor that contributes to the sustainable development of society and will result in the sustainable growth of the Group. Therefore, based on the GREEN CHALLENGE 2050 approved by the Board of Directors in April 2019 and announced in May 2019, the Environment Subcommittee is working to promote initiatives to develop a decarbonized society, a circular economy, and a society in harmony with nature. Based on recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), it is analyzing the risks and opportunities of climate change and deepening the Group’s initiatives. The Environment Subcommittee is chaired by the Executive Officer and Head of the ESG Development Division of Seven & i Holdings, and is managed by the division in charge of environmental measures of the Group to promote specific measures.

Social Value Creation Subcommittee

Based on an awareness that efforts to solve social issues will lead to new business opportunities as the Group expands its business domains and related social problems become increasingly varied, the Social Value Creation Subcommittee takes action to create business that generates social and economic value (creating shared value; CSV). Aiming to realize a sustainable society, the Seven & i Group has identified seven material issues that it must address through engagement with various stakeholders. In response, the Social Value Creation Subcommittee is working to plan and execute new businesses originating from social issues to be addressed through core businesses by leveraging business characteristics and management resources, including the Group's business infrastructure and expertise cultivated to date. Apart from this, the subcommittee will strive to deepen initiatives with a view to fostering external collaboration with business partners, social entrepreneurs, NPOs, and other partners. The Social Value Creation Subcommittee is chaired by the Director & Executive Officer and Head of the Corporate Planning Division of Seven & i Holdings, and is managed by the division in charge of management planning to promote specific measures.

Targets and Progress by Each Subcommittee

○: Achieved, △: Almost achieved, ×: Far from achieved

Major Plans for FY2023	Results for FY2023	Evaluation	Major Plans for FY2024
Compliance Subcommittee
1Establishing fair business practices
Confirm the status of compliance with the Antimonopoly Act, the Subcontract Act, the Act against Unjustifiable Premiums, and take remedial measures as necessary FT project conference: held twice a year Conduct FT training (e-learning) June: General labeling training (including food labels), 6,000 people underwent training November: Fair trade (abuse of superior bargaining position, Subcontracting Act), 6,000 people underwent training Group education (including online) First half: 15 times, 600 people underwent training Second half: 15 times, 600 people underwent training Conduct business partner questionnaires	Information sharing at FT project conferences First half (May): 52 participants from 23 Group companies Second half (November): 38 participants from 15 Group companies Conducted FT training (e-learning) June: Labeling training (including food labels), 6,362 people in total underwent training November: Fair trade (abuse of superior bargaining position, Subcontracting Act), 3,345 people in total underwent training Group education (including online) First half: 17 times, 1,627 people in total underwent training Second half: 14 times, 2,144 people in total underwent training Business partner questionnaires Number of implementing companies: 31 Approximately 10,900 responses	〇	Confirm the status of compliance with the Antimonopoly Act, the Subcontract Act, the Act against Unjustifiable Premiums, and take remedial measures FT project conference: held twice a year Conduct FT training (e-learning) June: General labeling training (including food labels), 6,500 people underwent training November: Fair trade (abuse of superior bargaining position, Subcontracting Act), 5,000 people underwent training Group education (including online) First half: 15 times, 800 people underwent training Second half: 15 times, 800 people underwent training Business partner questionnaires Number of implementing companies: Approx. 30
2Enforcement of compliance
Interview on compliance issues and response status Conduct compliance e-learning	Implemented interviews and confirmed the occurrence of compliance issues, the status of responses, and improvements at operating companies (20 companies) Compliance e-learning Number of course takers: 12,511 Number of courses: 7	〇	Interview operating companies on compliance issues and response status (19 companies) Conduct compliance e-learning Planned number of courses: 9
3Enhancement of preventive legal functions
Interview on compliance issues and response status	Implemented interviews and confirmed compliance system issues and countermeasures including preventive measures at operating companies (20 companies)	〇	Implement interviews on compliance issues and risk response status (19 companies)
4Strengthen the internal reporting system
Establish a system as necessary in accordance with the amended Whistleblower Protection Act Conduct training using an outside instructor for Group company internal whistleblowing system staff (at least once a year)	New operating company established operating rules and detailed rules and began operation of internal whistleblowing system in November ( Peace Deli Co., Ltd.) Conducted training using an outside instructor for Group company internal whistleblowing system staff: 111 people in June, 128 people in November	〇	Establish a system as necessary Conduct training using an outside instructor for Group company internal whistleblowing system staff (at least once a year)
Corporate Ethics and Culture Subcommittee
1Thoroughly ensure compliance with Corporate Action Guidelines
Focus on awareness and permeation of the Corporate Creed and Corporate Action Guidelines when educating employees In the Employee Culture & Engagement Survey, regularly monitor status of compliance with the Corporate Action Guidelines	Confirmed status of compliance with the Corporate Creed and Corporate Action Guidelines when conducting Employee Culture & Engagement Surveys Compliance with the Corporate Action Guidelines: 91% (down 1% from the previous year) (Fulltime employees)	△	Focus on awareness and permeation of the Corporate Creed and Corporate Action Guidelines when educating employees In the Employee Culture & Engagement Survey, regularly monitor status of compliance with the Corporate Action Guidelines
2Create fulfilling workplaces
Continue sharing information on examples of best practices to enhance engagement at Group companies Conduct ongoing dialogue with employees to promote activities while repeatedly investigating, proposing, implementing, and verifying measures to enhance meaningful work and ease of work Conduct Employee Culture & Engagement Survey (November)	Diversified participants in opportunities for Group companies to meet at the same time, shared information on case studies, and encouraged and developed measures for improvement Establishment of opportunities for dialogue with employees at Group companies and proposal and implementation of measures to enhance meaningful work and ease of work Implemented the Employee Culture & Engagement Survey again in November of FY2023 with seven additional questions (including integrity, respect of autonomy, encouragement of taking on challenges, and cultural openness) to measure the status of culture at each worksite in addition to engagement at all companies (conducted annually in November) Target: 26 Group companies, about 67,000 people Engagement score: 50% (down 1 point from the previous year) * Scores are figures for monthly salary employees	△	Continue sharing information on examples of best practices to enhance engagement at Group companies Conduct ongoing and multi-layered dialogue with employees to promote activities while repeatedly investigating, proposing, implementing, and verifying measures to enhance meaningful work and ease of work Conduct Employee Culture & Engagement Survey (November)
Promoting employment of people with disabilities Promote support for recruitment activities and retention for operating companies that have not achieved statutory employment rate (support for individual interviews and consultations)	Accepted workplace trainees from special support schools and employment transition support agencies mainly at Ito-Yokado (including York) and THE LOFT Number of trainees accepted: Total of 42	〇	Promoting employment of people with disabilities Promote support for recruitment activities and retention for operating companies that have not achieved statutory employment rate (support for individual interviews and consultations)
Maintain and improve the statutory employment rate Maintain and improve the statutory employment rate for people with disabilities at the five applicable Group companies	Maintained a 3.16% actual employment rate at the five applicable Group companies^* (June 1, 2023) *Seven & i Holdings, Seven-Eleven Japan, Ito-Yokado, Seven & i Food Systems, Terube	〇	Maintain and improve the statutory employment rate Maintain and improve the statutory employment rate for people with disabilities at the five applicable Group companies
Reinforce educational activities for Group companies and implement rank-based human rights training, hands-on normalization training, and other measures Reinforce internal and external dissemination of information on normalization measures at Group companies	Conducted human rights awareness training at Group companies (21 times with 584 participants) Conducted hands-on normalization training (two times with 86 participants) Conducted human rights e-learning (fundamentals and case study versions) Number of course takers: Approx. 39,000 Held normalization events at stores that conducted Group sign language courses	△	Reinforce educational activities for Group companies and implement human rights e-learning and human rights awareness training Conduct hands-on normalization training and other events Reinforce normalization promotion measures at Group companies and disseminate information internally and externally * Conduct sign language courses and normalization events
3Diversity & Inclusion Promotion Project
Confirm KPI and progress and implement measures at Group Companies each half to achieve the targets for the ratio of female managers Conduct female employee empowerment measures throughout the Group (training for female employees, etc.)	Confirmed progress toward achieving target values set by each Group company relating to the ratio of female managers, hiring, separation, and promotion and shared information including case studies with Group companies Conducted women encouragement seminars (third term) (approximately 70 participants from 18 Group companies; approximately 15% of the participants in the first to third sessions have achieved career enhancements) Implemented empowerment measures for female Executive Officer candidates Percentage of female managers Executive Officers: 21.2% (as of end of May 2024) Section managers: 27.3% (as of end of February 2024) Team leaders: 35.3% (as of end of February 2024)	〇	Confirm KPI and progress and implement measures at Group Companies each half to achieve the targets for the ratio of female managers Continue to conduct female employee empowerment measures throughout the Group (training for female employees, etc.)
Continue to conduct educational and awareness-raising activities on D&I targeting employees including managers of Group companies Encourage use of childcare leave among male employees	Conducted D&I seminars for executives of Group companies As a Group-wide initiative, continuously held Diversity Management Seminars to raise awareness concerning management of diverse human resources Used mechanisms to identify personnel newly eligible to take childcare leave, provided information on systems and encouraged them to take leave Posted opinions of men who took childcare leave on an internal portal site to promote understanding of the balance between childcare and work	△	Continue to conduct educational and awareness-raising activities on D&I targeting employees including managers of Group companies Encourage use of childcare leave among male employees
Disseminate information related to diversity and inclusion internally and externally	Created a page on Group websites accessible by Group employees to consolidate DEI information and continuously disseminated information	〇	Disseminate initiatives and figures related to DEI promotion internally and externally
4Promoting health management
Implement consistent measures as a Group based on the Health Declaration NEXT Continue walking events and other measures to raise employee health awareness and expand participation Implement measures for maintaining health and preventing illnesses	Conducted walking events 16,401 participants from 22 companies Conducted breast cancer screening and cervical cancer risk testing for employees who wish Number of people screened for breast cancer: 270 Provided subsidies for comprehensive medical exams and cancer screenings	△	Implement consistent measures as a Group based on the Health Declaration NEXT Continue walking events and other measures to raise employee health awareness and expand participation Implement measures for maintaining health and preventing illnesses
Establishment of comfortable working environments where people can work with healthy minds and bodies and promotion of a good work-life balance	Prevented mental illness by conducting mental health training (self-care)	△	Establishment of comfortable working environments where people can work with healthy minds and bodies and promotion of a good work-life balance
Supply Chain Subcommittee
1Improving product quality and ensuring safety
Continue sharing case studies within the QC project Intensify measures while sharing information to prevent label display errors on food products	Conducted QC project activities and held information sharing meetings conducted by quality control personnel from Group companies Created a Labeling Error Prevention Working Group, shared information on examples of measures from Group companies, expanded best practices, reflected those practices, and continuously implemented measures throughout the Company	〇	Conduct QC project activities and hold quality control manager meetings Continue sharing information on examples of improvement measures by Group companies within the Labeling Error Prevention Working Group
Continue conducting audits with a focus on consignment manufacturers of PB products	Conducted factory audits in conjunction with external organizations with a focus on manufacturing consignment factories of foods, apparel, and household goods	△	Continue conducting audits with a focus on consignment manufacturers of PB products
Continue training on quality control and product safety including on-site training	Conducted e-learning for acquisition of fundamental knowledge on quality control and product safety Subjects: Quality control and merchandise departments Training participants: 1,430 people in total Conducted supplier audit training to develop auditors at manufacturing factories Subjects: Quality control and merchandise departments Training participants: 12 × twice annually	〇	Continuously conduct e-learning for acquisition of fundamental knowledge on quality control and product safety Continuously conduct supplier audit training for newly-appointed quality control and purchasing personnel
Continue measures for all factories to obtain quality certification	Made requests to Seven Premium product manufacturing consignment factories to acquire certification (99.9% of factories acquired certification as of March 2024)	△	Continue measures for all factories to obtain quality certification
Continue compliance with HACCP operations manuals Conduct training by external organizations for acquisition of fundamental knowledge on HACCP to raise levels Persons eligible to participate: 30	Confirmed the operating status of each company Conducted a three-day HACCP course taught by an outside instructor, covering fundamental knowledge to practical application in factories Subjects: Quality control and merchandise departments Participants: 24	〇	Continue compliance with and confirmation of HACCP operations manuals Conduct a three-day HACCP course for newly-appointed quality control and purchasing personnel
Plan and conduct training by external organizations for the acquisition of specialized knowledge including insect and rodent prevention measures Persons eligible to participate: 30 each at two sessions	Conducted training on insect and rodent prevention in food manufacturing factories taught by a specialized organization for Seven Premium quality control personnel Participants: 16	〇	Conduct lectures for quality control, purchasing, and manufacturing department personnel to acquire knowledge on insect and rodent prevention measures, safety culture, and more from outside experts
2Thorough implementation of Business Partner Action Guidelines
Continue briefings on the Business Partner Action Guidelines and CSR audits	Live broadcast and on-demand distribution of Business Partner Action Guidelines and CSR audit briefings (for Japan and overseas business partners; approximately 400 companies participated in real-time) * Distributed on-demand through November	〇	Continue briefings on the Business Partner Action Guidelines and CSR audits Report on CSR audit results and hold study sessions on audits at meetings attended by managers of departments in charge of product development and procurement at each Group company
Continue compliance seminars Translate content into multiple languages and reinforce explanations at overseas factories	Conducted on-demand distribution of Business Partner Action Guidelines and CSR audit briefings to enable access at any time Prepared content on eight topics including occupational safety and health as well as business and human rights (total of 16,274 page views)	〇	Translate content into multiple languages and reinforce explanations at overseas factories Conduct e-learning on sustainable procurement for Group purchasing personnel
Continue CSR audits	Conducted CSR audits of those factories that manufactured Seven Premium products and private brand products of Group companies in China and Southeast Asia (13 countries) that conducted large-scale transactions and had high levels of importance Overseas: 254 factories in China and Southeast Asia Domestic: 527 factories	〇	Conduct CSR audits of those factories that manufactured Seven Premium products and private brand products of Group companies in China and Southeast Asia (13 countries) that conduct large-scale transactions and had high levels of importance Overseas: 250 factories in China and Southeast Asia Domestic: 500 factories Provide support to business partners to establish audit systems at the raw material factories
Environment Subcommittee
1Initiatives for achieving a decarbonized society
Conduct third-party verifications of CO2 emissions at 12 companies Install solar power generation panels at more than 9,000 Group stores Expand procurement of renewable energy through off-site PPA Start demonstration tests on the use of renewable energy with supply chain companies to reduce CO2 emissions	Conducted third-party verifications of CO2 emissions at 12 companies Installed solar power generation panels at more than 9,000 Group stores Expanded procurement of renewable energy through off-site PPA Started demonstration tests on the use of renewable energy with supply chain companies to reduce CO2 emissions	〇	Conduct third-party verifications of CO2 emissions at 11 companies (changed to 11 companies with the merger of IY and YO) Expand procurement of renewable energy through off-site PPA Start demonstration tests on the use of renewable energy with supply chain companies to reduce CO2 emissions
2Initiatives for achieving a circular economy
Introduce trays with environmentally-friendly designs nationwide and simultaneously conduct measures to gain the understanding of customers	Switched to containers that use less petroleum-derived inks and coloring used with Seven-Eleven boxed lunches and delicatessen items (switch completed at all stores at end of August 2024). Containers are designed to be easily recycled, and CO2 emissions in manufacturing processes were reduced by approximately 800 tons Received a 2023 Good Design Award	〇	Plan to test containers that use a mass balance method while moving forward with the switch to environmentally friendly materials, for containers and packaging used with original products
Further expand installation of PET bottle collection machines to encourage resource recycling Plan demonstration tests for collection of plastic containers that are difficult to recycle with an eye toward chemical recycling	In FY2023, installed PET bottle collection machines in 4,105 stores (in an increase of 1,016 stores from the previous year) and collected and recycled the equivalent of approximately 500 million PET bottles Collaborated with R Plus Japan, which seeks to implement chemical recycling in Japan, to conduct a demonstration project in Japan to collect plastics that are difficult to recycle, such as boxed lunch boxes, natto containers, cooking oil bottles, and snack wrappers	〇	Further expand installation of PET bottle collection machines to encourage resource recycling Plan to conduct new collection demonstration projects with the aim of recycling plastics other than PET bottles
Expand Temaedori Project awareness-raising activities to 7-Eleven, Ito-Yokado, and York Benimaru stores nationwide	Conducted Temaedori Project awareness-raising activities to 7-Eleven, Ito-Yokado, and York Benimaru stores nationwide	〇	Continue to conduct Temaedori Project awareness-raising activities to 7-Eleven, Ito-Yokado, and York Benimaru stores nationwide
Form the mottECO Consortium, a collaborative initiative of local governments and multiple businesses that are overcoming competitive boundaries	Formed the mottECO Consortium and held the mottECO FESTA 2023	〇	Conduct food drives at some Group stores as an initiative intended to solve social issues in cooperation with customers
3Initiatives for developing a society in harmony with nature
Acquire CoC certification at Peace Deli food manufacturing plants that process fresh foods such as fresh meat and fish and that manufacture meal kits	Acquired CoC certification at Peace Deli food manufacturing factories	〇	Acquire MSC CoC certification
Continue to conduct training, mainly for employees newly assigned to product procurement and employees who previously did not undergo training, and increase employees with JGAP trainer qualifications	Approximately 40 employees involved in Group merchandiser and sustainability related operations acquired JGAP trainer qualifications	〇	Conduct training for Group MD on sustainable procurement in new sub-supply chains
4Raising employee environmental awareness
ー	ー	ー	Develop and operate environmental training programs and an environmental application that can share information for Group employees Increase the number of application registered employees Continuously conduct environmental e-learning for all employees
Social Value Creation Subcommittee
1Promote understanding of social issues
Hold SMiLE 2023, a social issue solving business plan contest ・Review seminar content ・Support qualitative improvement of submissions	Held SMiLE 2023, a social issue solving business plan contest Seminar participants: 498 Submissions: 174 Fostered an innovation mindset that starts with solving social issues	〇	Hold SMiLE 2024, a social issue solving business plan contest ・ Promote recognition in the Group ・ Reinforce functions for following participants
2Create new CSV businesses
Regarding business proposals emerging from social business programs, in addition to continuation of one project, consideration of commercialization of two projects selected at SMiLE 2022	In addition to one ongoing project, added two projects selected for SMiLE 2023 and commenced demonstration trials for a total of three projects Started a trial of paid service in one project	〇	In addition to the three ongoing projects, add two projects selected for SMiLE 2023 and investigate commercialization for a total of five projects

CSR Training for Employees

Seven & i Holdings provides employees with CSR training via group training when they join the company or are appointed to a new position through promotion or advancement in rank, in addition to using such means as company newsletters and the Sustainability Data Book.
Study groups, seminars, and the like are held regularly for specialized fields including compliance, diversity and inclusion, and the environment, and information about volunteering is communicated to employees through the internal portal site.
We have been conducting CSR training via e-learning for all employees at domestic Group companies. In the fiscal year ending February 29, 2024 as well, we implemented e-learning on the Antimonopoly Act (abuse of superior bargaining position), the Subcontracting Act, product labeling, and other topics for all employees who are associated with business partners. An e-learning about the Group’s environmental declaration “GREEN CHALLENGE 2050” was also conducted.

12 RESPONSIBLE CONSUMPTION AND PRODUCTION