Seven & i Holdings has established a policy of reducing CO₂ emissions as a countermeasure against global warming and climate change.

Rapid changes in the climate and temperature and the occurrence of disasters could have an impact on the suppliers of products for Seven & i Holdings’ operating companies, and on procurement prices. Furthermore, destruction of store facilities due to disasters may limit operating hours and result in the loss of opportunities to sell products. In this way, abnormal weather can impact every aspect of business from product development and manufacture through to distribution and the lines carried by stores. Seven & i Holdings therefore recognizes that the transformation of its business model to enable rapid adaptation to climate and temperature change will be a factor in sustaining growth.

Customers’ purchasing activities are strongly affected by the weather and climate. To provide product lineups appropriate to the weather and climate, the person ordering the products must check weather and temperature information in the weather forecasts in order to determine the type and quantity of products to be ordered. Moreover, we now develop and sell products with longer expiry dates to enable longer sales periods at stores and longer storage periods in customers’ homes. Furthermore, as a strategy to prevent customers from visiting less frequently due to inclement weather, we are conducting a campaign where we award extra points to customers when they purchase products.

To ensure stable procurement of products, we cultivate vegetables at dedicated farms called Seven Farms. We purchase all of the produce from the farms, even nonstandard items, enabling us to procure and sell vegetables stably regardless of market trends. These Seven Farms are located in 10 places throughout Japan, covering approximately 70 ha in total. We plan to increase the number of farms going forward.

We are establishing systems to prepare for disasters associated with sudden weather phenomena, such as the numerous incidents of heavy rain and landslides that have occurred recently in Japan. For example, we have distributed booklets to regular employees summarizing how to respond in an emergency, and we have been holding simulation drills using teleconferencing systems and so forth. A “Disaster Countermeasure Map System” has also been set up to facilitate rapid support for stores that are affected by disasters. The system displays the damage status and scope of impact of disasters for all Group stores on a map on a PC screen, enabling us to rapidly ascertain the status of disaster affected areas.

Measures to mitigate climate change include energy conservation and use of renewable energy at stores, forest maintenance throughout Japan, and other activities. For further details of these activities, please refer to the following sections “Energy Conservation at Stores” and “Renewable Energy,” and “Protecting the Environment Locally and Globally”.

The Group has set a CO₂ emission reduction target that represents a 10% reduction from the projected CO₂ emissions in the fiscal year ending February 28, 2018 under the same level of environmental measures set for the nine Japanese operating companies* in the fiscal year ended February 29, 2012

About 90% of CO₂ emitted by Seven & i Holdings is attributable to the use of energy for in-store lighting, store signboards, and air conditioning, which are all indispensable for the operation of its stores. Seven & i Holdings has been introducing energy-saving equipment at the time of opening new stores and refurbishing existing stores, thereby preventing its environmental impact from increasing in proportion to increases in the number and size of stores, and to reduce electricity service charges.

As part of measures to reduce CO₂ in store construction, Seven-Eleven Japan is increasing its use of prefabricated store construction, which greatly reduces the use of steel frames. The company is also opening stores constructed of wood in some areas. Wood construction has advantages over steel frames in that it creates fewer CO₂ emissions from materials procurement through to construction and less industrial waste when the store is demolished. As of the end of May 2015, 160 such stores have been built in Japan.

At some of our stores we have installed solar panels or wind turbines to generate electricity which we use in the store. Seven-Eleven Japan has installed solar panels at 7,223 stores as of May 2015. At Ito-Yokado stores, we have also installed solar panels for generating electricity as well as external lighting connected to wind and solar power generators.

To correctly assess and verify the initiatives taken to reduce environmental impact, it is crucial to obtain a proper grasp of quantitative environmental data. Seven & i Holdings has undertaken annual third-party audits of its CO₂ emissions from store operations to ensure more accurate figures and to increase the confidence of all stakeholders in this data. Sales of the companies subject to audits represented 94% of total Group sales in the fiscal year ended February 28, 2015.

When upgrading Seven & i Holdings store facilities, equipment that uses chlorofluorocarbons (CFCs) is replaced with equipment that uses a substitute. We conduct daily temperature checks and order periodic service inspections to prevent leakage of CFCs. Furthermore, when disposing of equipment, we request the specialist service provider to collect the CFC in accordance with the law. We confirm that the CFC has been processed appropriately by means of a transaction certificate issued by the service provider.

The CFC substitute HCFC is to be subject to a complete production ban in advanced countries by 2020. We are responding to this by switching to another type of substitute by 2020. On April 1, 2015, a law restricting emissions of CFCs was enforced in Japan. In accordance with this law we are conducting inspections and repairs of our equipment, and assessing the volume of leakage.

Natural refrigerant (non-CFC) equipment using gas that has a low greenhouse effect is used at around 80 Seven-Eleven Japan and Ito-Yokado stores as of February 28, 2015. We plan to continue actively introducing the equipment going forward.

Under our “Fundamental Polices Relating to Measures to Contribute to the Prevention of Global Warming,” we strive to evaluate and reduce CO₂ emissions throughout our supply chain. In line with this policy, we have calculated our Scope 3 emissions for six Group companies* for the fiscal years ended February 28, 2014 and 2015. In calculating the emissions for the fiscal year ended February 28, 2014, we used the “Supply Chain Emissions Accounting and Public Support” project of the Ministry of the Environment, making the calculations in accordance with the “Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain Ver. 2.1”. As a result, it was shown that Scope 3 emissions account for 90% of our overall emissions, and it was confirmed that many of these, over 80%, are generated in the raw material procurement process. Based on this calculation result, we will aim to achieve further reductions of CO₂ emissions across the entire supply chain, including outside of the Company.

Seven-Eleven Japan’s original food products are manufactured by many supplier manufacturers. The CO₂ emissions and waste volume from plant operations of supplier manufacturers, as well as the food recycling rate, are reported to the Nihon Delica Foods Association organized by supplier manufacturers that operate plants. Nihon Delica Foods Association shares the details of the reports with Seven-Eleven Japan, enabling it to ascertain the information in the reports.

Furthermore, Seven-Eleven Japan holds joint study sessions with the Environmental Countermeasures Council set up within the Nihon Delica Foods Association, where it shares information on the environment, such as strategies for saving electricity, with each manufacturer to reduce energy usage at plants.

Seven & i Holdings commissions delivery contractors to deliver its products. Most distribution centers are managed by business partners, although several centers are directly managed by Seven & i Holdings.

In addition to promoting the introduction of ecofriendly vehicles, Seven & i Holdings is working to improve fuel efficiency and reduce store delivery frequencies. Furthermore, progress is also being made in the introduction of drive-data terminals to trucks, such devices record driving conditions. Based on the collected data, drivers are instructed and eco-driving seminars carried out.

Furthermore, Seven & i Holdings is revising the location of its distribution centers that are able to perform combined deliveries to stores—i.e., deliveries of different product types and products requiring management at varying temperatures.

There are 4,856 delivery vehicles in Seven-Eleven Japan’s fleet (as of the end of February 28, 2015), 522 of which are hybrid trucks. Hybrid trucks are capable of recuperating energy generated during deceleration, and then using it as secondary power to drive motors when pulling away and accelerating. Therefore, hybrid trucks can be expected to help improve fuel economy, reduce CO₂ emissions and deliver other benefits. Seven-Eleven Japan plans to replace 20% of the total fleet with eco-friendly trucks by 2020.

We are also focusing on introducing eco-friendly tires that reduce the rolling resistance of the tires of delivery vehicles. As of the end of February 2015, we have installed eco-friendly tires on 4,707 delivery vehicles, representing approximately 95% of the total fleet. As a result, fleet-wide fuel economy improved to 6.20 km/L in the fiscal year ended February 28, 2015 after eco-friendly tire installation, up by 2.6% compared with 6.04 km/L in the fiscal year ended February 28, 2006, before the installation.