In China, companies are required by society to promote CSR, for example, by formulating CSR initiative policies and evaluation indicators in line with Chinese government policy, and by publishing CSR evaluation rankings.

Ito-Yokado (China) Investment Co., Ltd. established a Corporate Ethics and Culture Committee in the latter half of 2021 and has begun building a structure for a cross-sectoral activity system for its China operations in cooperation with the CSR promotion system committees of each China operating company. The Corporate Ethics and Culture Committee consists of three subcommittees: the Corporate Ethics and Culture Subcommittee, the Environmental Subcommittee, and the Consumer Affairs and Qualigy Control Subcommittee. The Corporate Ethics and Culture Subcommittee goes back to the starting point of the company's establishment and ensures that employees are fully aware of the company's policies and corporate creed. The Environment Subcommittee promotes specific reduction targets for electricity and water conservation and energy-saving store operations. The Consumer Affairs and Quality Control Subcommittee works to provide safe and secure products and services, leading to better products and services. Chengdu Ito-Yokado and Hua Tang Yokado Commercial have begun working together with the Corporate Action Committee of Ito-Yokado (China) Investment Co., Ltd. to promote CSR more comprehensively. In addition, the Corporate Action Committee of Chengdu Ito-Yokado shares the Seven & i Group Materila Issues through online and offline communication meetings, and formulates plans to resolve these issues. The committee also holds network-based online training sessions to establish a curriculum that enables employees to learn business and skills knowledge and correctly conduct corporate activities.

Chengdu Ito-Yokado has published a report annually since its first CSR Report, which summarizes its social and environmental initiatives, in July 2016. In preparing the report, we refer to the Global Reporting Initiative (GRI), SDGs, and ESG, and also include a comparison table with the three at the end of the report. The CSR Report for FY2021, published in August 2022, was distributed to attendees of the Sichuan CSR Report Presentation and conferences for the private sector, and was also provided to the Ministry of Industry and Credit, the State Resources Commission, and other government agencies through the China Federation of Industry and Economy for their use.

Chengdu Ito-Yokado distributes a "Standard Operating Procedures Manual" to each employee to unify production and processing standards and improve quality, and headquarters personnel regularly visit stores to confirm that products meet the standards. We also screen, evaluate, and track contracts with suppliers of products, and work to realize a total quality management system for the supply chain from the farms to the dining tables.

Hua Tang Yokado Commercial holds quality control training for employees handling food products four times each year and strictly adheres to quality control standards. In addition, the company conducts regular inspections of the sanitary environment, including equipment, sanitation and process systems, and employees, on the sales floor and backrooms. In addition, to prevent the spread of COVID-19, employees in the food sales floor conduct PCR tests daily, and employees in the backroom conduct PCR tests every 48 to 72 hours in response to administrative requirements. The sales floor and backroom are regularly sanitized to provide customers with a safe and secure shopping environment.

Since 2013, Chengdu Ito-Yokado has established a food traceability system in cooperation with producers to disclose product information to customers. Chengdu Ito-Yokado independently developed "看得見的放心" and manages the quality of its products. 看得見的放心 has the same concept as "Traceable Fresh Food with Producers' Faces" sold at Ito-Yokado in Japan and it has earned the trust of its customers as safe and secure products.

看得見的放心 Muscat: In 2020, we established a new production site in Yunnan in addition to the production site in Dujiangyan. The Yunnan production site is located in Jianshui County, Honghe Province, Yunnan Province, with an elevation of 1,700 meters above sea level, an average annual temperature of 18.5℃, an average annual sunshine duration of 2,750 hours, and a large temperature difference between day and night, making it the fastest maturing area for muscats in China.

看得見的放心 Melons: The production center for Xizhou melons is located in Lhedong Li Autonomous Prefecture, Hainan Province, at a latitude of 18 degrees north. Because of its tropical region, the area is known as a "Great Natural Greenhouse," with an average annual temperature of 22°C to 27°C, 2,650 hours of sunshine per year, and abundant rainfall. Therefore, the conditions for a favorable environment for growing melons with high sugar content, good quality, and a strong aroma are available.

In 2019, Chengdu Ito-Yokado began monthly quality inspections of store operational aspects by the Administration Division in order to fully enhance store management, operational, and service capabilities. The Administration Division leads the operational quality inspections, which are conducted by the Division and stores together, and include monthly on-site inspections and on-site evaluations for matters such as basic customer service on the sales floor, sales floor and backroom management, and fire safety. For any problems discovered, the causes and countermeasures are shared with all employees to improve the management awareness and level of store managers and to ensure a safe and secure store environment.

From 2021, we are updating our management requirements to meet the changing shopping needs of our customers, subdividing our inspection criteria and spending more time communicating with our stores. We newly added 11 major and 145 minor operational quality inspection items to improve customer satisfaction.

Chengdu Ito-Yokado has established a "Citizen Quality Supervisor" system since 2008, inviting public participation from customers, to improve products and stores based on customer standards. In 2021, we received numerous comments from 95 Citizen Quality Supervisors and customers at each of our stores regarding our products and services, such as expanding the range of Japanese products, increasing the number of products for women that can be redeemed with member points, and the "伊藤到家" (online supermarket) portal site, and improved our products and services.

Chengdu Ito-Yokado supports education and assists needy families. For example, since 2007, we have selected four elementary schools and donated necessary equipment to improve school facilities and equipment. We actually visited those four schools and donated stationery, teaching materials, and sports equipment to economically disadvantaged children in response to the schools' requests. In addition, we also visit local families in need, people with disabilities, and elderly people living alone at each seasonal milestone to donate daily necessities. We also continue to donate to Sichuan University every year, and 2021 was our 24th donation.

In 2021, on Children's Day, June 1, Chairman Tsugumi Ko delivered the donated items as a representative of the company and visited Pengzhou Tongji Lantian Elementary School to participate in the "Mobile Children's Palace" class. The "Mobile Children's Palace" project is a collaboration between Chengdu Ito-Yokado and the Chengdu Next Generation Foundation. The goal of the project is to introduce the know-how of the "Chengdu Youth Palace" to rural schools in the suburbs of Chengdu, where there is a high concentration of out-of-school children*1 and children in flux*2, so that the children can receive the same level of education as in urban areas. By 2021, the "Mobile Children's Palace" project has been implemented in two Friendship Elementary Schools, with more than 1,000 teachers and students.

In July 2021, torrential rains in Zhengzhou, Henan Province, China, caused serious flood damage. Chengdu Ito-Yokado immediately joined forces with the Chengdu Next Generation Foundation and four other companies to donate 1 million yuan (approximately 18 million yen) to support youths in the affected areas, and also provided a total of 10,000 sanitary and household items. In November of the same year, the Chengdu Municipal Chenglong Street Office requested us to deliver relief supplies in response to the re-spread of the new coronavirus infection in Chengdu. We also donated 800,000 yuan (approximately 14 million yen) for other social contribution activities.

On the third Wednesday of every month, Chengdu Ito-Yokado employees at every store clean up the areas around the stores. On traditional Chinese holidays such as Spring Festival, Dragon Boat Festival, and Mid-Autumn Festival, the company provides comfort gifts to isolated elderly and economically disadvantaged people in the communities surrounding its stores.

At Hua Tang Yokado, employees take the initiative in beautifying the city by making clean-up activities a daily routine.

All Chengdu Ito-Yokado and Hua Tang Yokado Commercial stores have actively promoted local employees since the opening of their stores in China in order to create stores that are rooted in the local community, and Chinese staff are playing an active role in these stores. The percentage of Chinese employees (excluding directors) in management positions is 98.2% at Chengdu Ito-Yokado and 98.3% at Hua Tang Yokado Commercial, with local employees basically running the company. Chengdu Ito-Yokado's stores in local cities (Meishan/Leshan) employ a large number of local personnel, accounting for 87%.

We have also actively promoted women. The percentage of women in executive positions is 59.9% at Chengdu Ito-Yokado, and five of its 10 stores have female store managers. The percentage of female managers at Hua Sugar Yokado is 47.2% (excluding directors), and the store manager of the Asian Village store is also a woman.

In FY2020, special attention was devoted to the reduction of plastics. In order to switch to degradable plastic shopping bags, responsible personnel from Chengdu Ito-Yokado attended the 21th IE Expo China, a trade fair for environmental technology, as well as a degradable forum organized by the China Chain Store & Franchise Association, to obtain information on such issues as the domestic production of degradable plastics and degradable standards. In addition, the company produced an educational video for internal use to deepen the understanding of employees and informed customers through posters displayed in stores and in-store broadcasts. Chengdu Ito-Yokado also actively publicized its use of degradable plastics outside the company.
In November 2020, Hua Tang Yokado Commercial and Chengdu Ito-Yokado jointly switched to shopping bags, called Super-Bags, made from degradable plastic. These degradable Super-Bags are provided at 2.0 yuan per bag, 6.7 times more than the previous shopping bags, which cost 0.3 yuan per bag for the largest size. At the same time, we are putting a lot of effort into the sale of eco-bags.

In the fiscal year ended February 29, 2016, Chengdu Ito-Yokado began operating a Self-Recommendation Program as a show of respect for the autonomy of employees in order to provide an outlet for their motivation. The program is for employees who have worked for the company for at least one year and allows them to put themselves forward as candidates for the jobs they seek.
Applicants who pass assessments are assigned to their desired workplace after a training period.

Training programs have been enhanced to boost the motivation of local employees and enable them to demonstrate their abilities to the fullest.
Chengdu Ito-Yokado conducted education on improving employees' primary qualification capabilities and workplace operational skills as well as other functional curricula (form production, packaging, food processing, register operation). It uses an online remote education system to facilitate training with enhanced content including at remote sites.
Furthermore, practical skills training sessions are open for all employees to observe if they wish, even if they are not undertaking the training, so they are able to learn directly from the instructor. It also holds in-store operational skills contests and operate a program where on-site customers score employees to select winners, encouraging employees to improve through friendly competition.
In FY2020 Hua Tang Yokado Commercial implemented special education programs on such themes as the Corporate Creed and management philosophy, store assistance, and customer service on three occasions. By having everyone read together the Corporate Action Guidelines at the president’s general meetings held every Monday, the company endeavors to increase understanding of its stance. Training related to everyday customer service is implemented using the morning and afternoon assembly. Staff who receive words of praise (including not only full-time employees but also part-time workers, tenant store employees, cleaners, and security guards) are commended at weekly store morning assemblies for all staff, which serves to raise overall motivation.

In order to pass on Ito-Yokado's philosophy and develop human resources who are autonomous in the Ito-Yokado way, in 2021, we conducted 625 classroom training sessions in 15 categories under the two major themes of "passing on corporate culture" and "enhancing the quality of human resources," with a total of 9,354 employees participating.

Chengdu Ito-Yokado launched online education in 2021 as a training method that is easily accepted by a new generation of employees in order to more effectively hand down and thoroughly implement the company's basic philosophy. The content is being reviewed as needed, and new curricula are being added. The training targets all employees, including headquarters and store employees, and a total of 46,660 people have participated.

Chengdu Ito-Yokado, as the first low-carbon scene creation project in Chengdu, has been continuously working on projects such as separation of dry waste for resources, development of environmental infrastructure, and waste recycling under the environmental philosophy of "respect for nature, adaptation to nature, and protection of nature" since 2020. In 2021, it invested 5 million yuan (about 90 million yen) in environmental protection to switch to biodegradable plastic products, using biodegradable materials for plastic bags and disposable tableware. In addition, the company reviewed energy-saving technologies, reduced waste, and reduced food loss / waste, resulting in 3,350 tons of waste reduction and 435 tons of carbon emissions. In recognition of these efforts, the company received an award for being an advanced company in the construction of the "炭恵天府" mechanism in fiscal 2021.

Hua Tang Yokado Commercial manages the temperature inside the store through proper operation of the air conditioning system. It reduce gas and electricity consumption by adjusting air conditioning operation time and air conditioning operation for each area as needed in response to changes in weather and temperature. The company also ask the facility management contractor to take in-depth temperature measurements inside the store to monitor temperature changes as needed and adjust the operating pattern of the air conditioning system. In the backroom of its stores, the number of lights used has been reduced to 50%.