Seven & i Group has established the Sustainable Sourcing Principles and Policies that includes traceability, conservation of biodiversity, response to climate change issues, and consideration of human rights, and we have promoted initiatives with the aim of co-existing with nature as set forth in the GREEN CHALLENGE 2050 Environmental Declaration. In addition, in the GREEN CHALLENGE 2050, it is stipulated that we make 50% of food ingredients used in our original products (including Seven Premium) sustainable by 2030, and 100% by 2050.

Seven & i Group is working to sell products for which sustainability is guaranteed, such as those certified by the MSC*, to pass on the rich blessings of the sea to future generations. Further, to fulfill our responsibility as a retail business that connects producers and customers, we are also focusing on conveying the value of these products and the producers’ desires to customers through our stores and websites.

Since October 2018, the Seven & i Group has been selling MSC-certified seafood products under its private brand "Seven Premium" at various group stores. These products are wild-caught seafood that have been harvested through fisheries that consider marine resources and the marine environment. They are produced by companies that have obtained certification for their management systems in the processing and distribution stages. In October 2022, Seven & i Holdings obtained the 'CoC Certification,' which is a certification for the distribution management of MSC-certified seafood caught through environmentally conscious fisheries. As a result, it has become possible to sell MSC-certified seafood processed in the group's supermarkets (Ito-Yokado, York-Benimaru, York) as certified products.

At the fresh fish sections of Ito-Yokado, York-Benimaru, and York, we sell products that have obtained ASC* certification, which is awarded to responsible aquaculture practices that consider the environment and society. In October 2022, Seven & i Holdings obtained the 'CoC Certification,' a certification standard for the distribution management of ASC-certified seafood that considers the natural environment. As a result, it has become possible to sell ASC-certified seafood processed in the group's supermarkets (Ito-Yokado, York-Benimaru, York) as certified products.

Ito-Yokado is the first major Japanese retailer to obtain MEL* certification, a certification system for eco-friendly catching and cultivation of marine products. From April 2020, 4 original “Fresh Fish with Traceability” products—yellowtail, amberjack, red sea bream, and flatfish—were given the MEL mark. With the further certification given to wakame seaweed and ginzake salmon, certified products of a total of 9 varieties of fish are now being sold at 123 Ito-Yokado stores nationwide as of the end of February 2024. Further, to convey the value of these certified products to customers, some stores have installed point-of-purchase ads in fish sections that explain the certifications.

Seven & i Group stores actively sell and convey to customers the quality of Alaska Seafood products, which are sourced through environmentally friendly fishing practices. Alaska Seafood is all-natural marine products, and strictly manages resources and fisheries in the region of product origin of Alaska, to ensure that no damage results to the ecosystems which conserve the natural marine resource.

In the fiscal year ended February 29, 2024, Ito-Yokado's food sections sold Alaskan seafood products such as salted red salmon, salmon roe, kinki (rockfish), and menuke (rockfish). Additionally, since November 2022, Alaskan seafood has been used in the hand-wrapped rice balls sold at Seven-Eleven, with the logo mark displayed on the packaging.

Seven & i Group is promoting the acquisition of GAP (Good Agricultural Practice) certification for safe farm and aptitude management to promote the sourcing of sustainable agricultural products. We also procure certified ingredients, such as those produced with reduced use of pesticide and those made from organic and fair trade ingredients.

At Ito-Yokado’s Seven Farms, which are engaged in recycling-oriented agricultural operations, and under Ito-Yokado’s original Fresh Vegetables with Traceability and Fresh Fruits with Traceability products, Ito-Yokado aims to ensure safe agricultural produce, correct farm management, and so forth. Therefore, Ito-Yokado has recommended the acquisition of Good Agricultural Practice (GAP) certification.

GAP is an agricultural production management method recommended by the Ministry of Agriculture, Forestry and Fisheries of Japan. It provides a set of standards to be followed in daily farm management to increase food safety and ensure environmental conservation. The minimum necessary levels of agricultural chemicals are used as GAP includes initiatives relating to food safety and environmental conservation.

Moreover, Ito-Yokado and York-Benimaru sell original products that use fewer agrichemicals than the values regulated by law. Examples include the original Fresh Vegetables with Traceability and Fresh Fruits with Traceability products sold at Ito-Yokado. They are grown with fewer agrichemicals and assure traceability of the growing region and growing history. Sales of all foods in the Traceability series including these products in the fiscal year ended February 29, 2024 at Ito-Yokado topped ¥21.6 billion.

Furthermore, the methods and frequency of use of agricultural chemicals vary by region and crop. The Fresh Vegetables with Traceability category and certain other products comprise foods grown with the goal of applying agrichemicals with half or lower of the usual frequency of each growing area (the average number of applications for each crop stipulated by local government organizations and other public bodies).

To expand the range of GAP-certified products, we are promoting the acquisition of JGAP instructor qualifications among the group's product development staff and strengthening collaboration with our suppliers and producers.

Under Seven & i Group's Seven Premium private brand, we sell organic JAS-certified products such as bamboo shoots and other agricultural products, as well as coffee and other processed foods. Ito-Yokado also sells organic JAS-certified products as original Fresh Vegetables with Traceability products.

　While the demand for soybeans is increasing due to health-conscious trends and the development of soy meat, there are numerous challenges associated with soybean sourcing. These include deforestation and ecosystem destruction for farmland expansion, soil contamination from pesticides, and human rights issues for farm workers. Soybeans are also subject to the European Union Deforestation Regulation (EUDR). Additionally, an analysis based on the TNFD framework conducted by the Seven & i Group in the fiscal year ended February 29, 2024, identified soybeans as a critical raw material, alongside coffee beans and rice, due to their significant dependence on and impact on nature, as well as the large procurement volume within the group.

　Starting in 2023, the Seven & i Group began using SSAP (Sustainability Assurance Protocol) certified materials from the U.S. Soybean Export Council (USSEC) for the "TOFU BAR" series of the group's original product line, Seven Premium. The SSAP certification sets standards from various perspectives, including traceability to producers, environmental conservation, biodiversity preservation, and consideration of workers' human rights.

　In the fiscal year ended February 29, 2024, approximately 9,000 tons of soybeans were used in Seven Premium products made primarily from soybeans. Of this amount, 13.5% were SSAP-certified soybeans.

Under Seven & i Group's Seven Premium private brand, we sell cacao and other products that have acquired International Fair Trade Certification, a system that supports the sustainability and living of producers in developing countries.

Furthermore, in January 2024, we joined the Platform For Sustainable Cocoa In Developing Countries, administered by the Japan International Cooperation Agency (JICA), to collaborate and cooperate with various stakeholders involved in cocoa raw materials. This initiative aims to address issues related to human rights and child labor in the supply chain, as well as challenges such as deforestation and land conversion.

In the Seven & i Group, coffee beans are used in a wide range of product categories, from counter coffee in convenience store operations to coffee-related products under the Seven Premium brand. On the other hand, like soybeans and palm oil, coffee beans are considered "forest risk commodities" under the European Union Deforestation Regulation (EUDR), due to the high risk of deforestation and land-use change associated with them. Therefore, in accordance with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), the Seven & i Group has selected 14 key raw materials through scoping, evaluated their dependence and impact on nature, and conducted a LEAP approach analysis for coffee bean sourcing, disclosing LOCATE and EVALUATE.

Palm oil is widely used in various processed foods as well as in household goods such as detergents, but problems have been indicated, such as destruction of the environment in countries where it is produced and the use of child labor and forced labor on farms. Seven & i Group joined the Roundtable on Sustainable Palm Oil (RSPO) in January 2020. Palm oil that is guaranteed to be sustainable is being used for some of the Group's "Seven Premium" private brand products.

In response to growing interest in products that are safe and secure for our customers, and environmentally friendly, Seven & i Group has promoted the sourcing of organic cotton for underwear and bedding as part of its sustainable sourcing efforts. Starting February 2020, to convey the value of organic cotton to customers in an easy-to-understand manner, we started selling products with a common symbol displayed that satisfy certain conditions, such as being internationally certified through the American Organic Content Standard (OCS) or Global Organic Textile Standard (GOTS).

Seven & i Group sells women’s 100% Organic Cotton Innerwear products that have cleared strict organic production standards under the Seven Premium private brand. These products are sold at 94 Ito-Yokado stores throughout Japan (as of the end of February 2024) and its online shop. Only organic cotton that meets U.S. Organic Content Standards (OCS) is used as a raw material in these products. It also sells towels made of organic cotton.

Ito-Yokado's original product "Fresh Meat with Traceability" is designed to deliver safe and reliable products to customers. In cooperation with the producers, Ito-Yokado is committed to providing quality rearing environments, environmentally-friendly feeding, minimizing the use of antibiotics, hormones, and other pharmaceuticals; keeping all the administration record is mandatory.

For the product, our procurement officers/merchandisers check with producers at the production sites to ensure that they are applying appropriate feeding and rearing management. Before the products are sold, various tests are conducted, including agricultural chemical residue tests, as well as soil, feed, and water quality tests, and third-party certification is obtained.

Ito-Yokado also promotes the acquisition of JGAP (livestock) certification in the production area of "Fresh Meat with Traceability." JGAP (Livestock) audit standard consists of 113 items that are important for sustainable farm management, including food safety, considerations for the health of animals (animal hygiene) and a comfortable environment for raising the animals (animal welfare), measures for ensuring the safety of workers, and environmental protection.

*Animal welfare: Rearing of an animal in consideration of its comfort

（Source: Control Points and Compliance Criteria (for Farms) Livestock and Livestock Products 2017)

One of the criteria for JGAP certification is to take measures based on the "Guidelines for Animal Feeding Management Based on the Concept of Animal Welfare."

The "Guidelines for Animal Feeding Management Based on the Concept of Animal Welfare" states that it is important to conduct livestock feeding management with consideration for comfort, comprehensively taking into account the "five freedoms" (i.e. (1) freedom from hunger, thirst and malnutrition, (2) freedom from fear and distress, (3) freedom from physical and thermal discomfort, (4) freedom from pain, injury and disease, and (5) freedom to express normal behavioral patterns) mentioned in the introduction of the OIE (The World Organisation for Animal Health).

An increasing number of customers are concerned about the environment in which animals are raised. In our "Seven Premium Fresh" line, we are mindful of the environment in which chickens are raised. We sell "Traditional Cage-Free Eggs" sourced from hens raised in a free-range environment where they can move around freely. As of the end of February 2024, these eggs are available at all our supermarket stores.

Seven & i Group is making efforts to use wood and paper products produced from properly managed forests.

Seven & i Holdings is promoting use of paper with FSC® certification and PEFC certification, which leads to forest preservation. In March 2017, we started using FSC®-certified paper for paper board boxes in our Seven Premium private brand. As of February 29, 2024, FSC®-certified paper is used for 433 items including ice cream containers, and PEFC-certified paper is used 31 items.

Furthermore, we use FSC®-certified paper for the cash envelopes available at Seven Bank ATMs, all manner of leaflets, the Bonolon, Warrior of the Forest magazine, and Denny's mottECO containers. At Seven & i Food Systems, as a food services company we have been promoting the mottECO initiative to both encourage customers to eat everything they have ordered and to also make them feel free to take home any leftovers. We use FSC®-certified paper containers at our Denny's locations specifically for taking home leftovers.