Material Issue 3 Realize decarbonization, circular economy, and society in harmony with nature, through environmental efforts

Supply Chain Management (Environment)

Seven & i Group is making efforts to reduce its own environmental impact as well as working together with its business partners to reduce environmental impact across the entire supply chain. Besides requesting that our contractors that are manufacturing original products to comply with the Business Partner Sustainable Action Guidelines, we are also working to save energy at factories and introduce eco-friendly vehicles.

  • SDGs7 AFFORDABLE AND CLEAN ENERGY
  • SDGs12 RESPONSIBLE CONSUMPTION AND PRODUCTION
  • SDGs13 CLIMATE ACTION

Applying the Business Partner Sustainable Action Guidelines

To ensure that it meets its social responsibilities on matters such as reducing its impact on the environment, Seven & i Holdings formulated the Business Partner Action Guidelines in 2007 and asks business partners to comply with them. In December 2019, to clarify our intention to build a sustainable society together with our business partners, we enhanced items related to human rights and labor issues. Thus we changed the name of the guidelines to “Seven & i Group Business Partner Sustainable Action Guidelines.”

“8. Global Environmental Conservation” in the Seven & i Group Business Partner Sustainable Action Guidelines defines items such as compliance with environmental laws and regulations, appropriate handling of wastewater and waste, consideration of biodiversity, and proactive use of energy-efficient equipment and eco-friendly technologies, as well as items related to the “GREEN CHALLENGE 2050” environmental declaration.

For our business partners to understand these guidelines for sustainable behavior and take effective action, we are carrying out the following activities, which are primarily aimed at the original products manufactured by the Group companies. In particular, we have been conducting training for our business partners since fiscal year ending February 28, 2019 to support the promotion of their efforts. In 2019, we held local briefings on the Business Partner Sustainable Action Guidelines and related policies for our business partners at four venues in China and five venues in Southeast Asia in March and April. A total of 287 factories (94.4% participation rate※1) and 482 business partners took part.

In fiscal year ending February 28, 2021, these in-person briefings were suspended accompanying the global spread of COVID-19, and we began to distribute briefings and practicals on the Business Partner Sustainable Action Guidelines under the title “Aiming for Sustainable Development Alongside Our Business Partners” in an on-demand format to our business partners with manufacturing bases overseas (274 participants from 178 companies※2) from June 2020. From August 2020, it was possible to view these resources in five languages, including Chinese and four other Asian languages, while in October instructional video streams for CSR audits with Chinese narration were also distributed to business partners within China (79 participants from 66 companies).


 ◆Awareness and spread: Organizing of briefings

 ◆Confirmation of implementation: Administering of self-check sheet

 ◆Support for implementation: Organizing of compliance training

 ◆Validation of implementation: Conduct of CSR audits and encouraging the taking of corrective action

  • 1 Percentage of factories participating in briefing sessions among those subject to CSR audits in fiscal year ending February 29, 2020 (overseas)
  • 2 Reference values taken from access logs for fiscal year ending February 28, 2021 online briefing sessions

CSR Audits and Corrective Measures

Since the fiscal year ended February 28, 2013, the Seven & i Group has had CSR audits conducted by third-party inspections organizations at the manufacturing factories of our private brand suppliers in developing countries. The CSR audits include everything from items related to human rights and labor issues to inspections of environmental aspects, such as compliance with environmental laws and regulations, management of effluent and chemical substances, and promotion of energy-saving and environmental protection activities.

If the business partner is found to be in conformance upon completion of the audit, we issue a Certificate of Conformity. However, if items not in conformance with the audit items (nonconforming items) are found, the third-party auditing organization will indicate the nonconforming items to the business partner in question. If the audit finds items that do not comply with the audit program (unacceptable items), the external audit organization provides guidance to the business partner concerned. The business partners must submit a corrective action plan (CAP) to the auditing organization within 10 days of the audit being completed, and must take immediate action to improve the items. After receiving a report on the completion of improvements for the relevant items, the completion of improvements is confirmed based on the submission of photos showing the improvements, guarantee documents (evidence) and other materials. However, for factories that exceed certain standards, such as when numerous serious unacceptable items are found, the resolution of issues is confirmed through another visit to perform a re-audit. When correction of the non-compliant items is completed or the third-party auditing organization and Seven & i Holdings judge that the plan contained in the CAP is valid, a Certificate of Conformity is issued to the relevant business partner.

The issuance of a “Certificate of Conformity” is a prerequisite for a business relationship to continue. In addition, when a new transaction is requested, we ask that you understand and comply with the “Seven & i Group Business Partner Sustainable Action Guidelines” and begin the transaction after a “Certificate of Conformity” has been issued through a CSR audit.

Promoting Environmental Information Management at Manufacturing Factories

Seven-Eleven Japan has its original daily products manufactured by several contract manufacturers. These manufacturers have organized the Nihon Delica Foods Association, which reports on the CO2 emissions, waste emissions, and the food recycle rate. We work to ascertain the environmental information of our contract manufacturers and hold study seminars through the “Environment Subcommittee” under the CSR Promotion Committee of the Nihon Delica Foods Association, where we share and spread examples from each manufacturer and work to address environmental issues. Further, Seven-Eleven Japan declared that it will utilize Eco Action 21 established by the Ministry of the Environment. Seven-Eleven Japan is taking action such as holding briefings and acquired certification at 93 factories of 25 companies that produce daily products (as of the end of February 2021).

In addition, 221 factories in Japan that are tasked with manufacturing the Group's “Seven Premium” private brand products have acquired ISO 14001 certification for their environmental management systems.

Scope 3※1 Calculation

Seven & i Holdings is working to reduce CO2 emissions and evaluate its environmental impact at every stage from the supply chain through to sales and consumption, as stated in its Fundamental Policies Relating to Measures to Contribute to the Prevention of Global Warming. To this end, the Group has calculated the CO2 emissions (“Scope 3”) throughout the entire supply chain following the “Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain Ver. 2.1.” of the Ministry of the Environment. For the fiscal year ending February 28, 2021 we calculated emissions for 10 major Group companies.※2 The results showed that Scope 3 emissions accounted for almost 90% of the Group’s overall emissions, and of these, around 80% originated in the raw materials procurement process. We will analyze this calculation result and use it to achieve further reductions of CO2 emissions across the entire supply chain.

  • 1. “Scope 3”: CO2 emissions other than those from the company, emitted from its procurement of raw materials and products, transportation, and product use, together with CO2 emissions from waste disposal processes
  • 2. The following 10 companies: Seven-Eleven Japan, Ito-Yokado, York-Benimaru, York, SHELL GARDEN, Sogo & Seibu, Akachan Honpo, THE LOFT, Seven & i Food Systems, and Seven Bank

Breakdown of Greenhouse Gas Emissions throughout the Supply Chain in the Fiscal Year Ending February 28, 2021 (Totals for 10 companies)

Categories

Amount of emissions

(t-CO2)

Composition ratio

(%)

Category 1 (Purchased goods and services) 15,142,563 85.4%
Category 2 (Capital goods) 659,993 3.7%
Category 3 (Fuel- and-energy-related activities not included in Scope 1 or 2) 319,433 1.8%
Category 4 (Upstream transportation and distribution) 279,026 1.6%
Category 5 (Waste generated in operations) 70,323 0.4%
Category 6 (Business travel) 5,133 0.0%
Category 7 (Employee commuting) 38,998 0.2%
Category 8 (Upstream leased assets) - -
Category 9 (Downstream transportation and distribution) 28,336 0.2%
Category 10 (Processing of sold products) - -
Category 11 (Use of sold products) 57,767 0.3%
Category 12 (End of life treatment of sold products) 996,232 5.6%
Category 13 (Downstream leased assets) 120,642 0.7%
Category 14 (Franchises) - -
Category 15 (Investments) - -
Other 15,443 0.1%
Total of Scopes 1, 2 and 3 17,733,890 100.0%

Reducing CO2 Emissions from Deliveries

Seven & i Holdings is asking its partners who deliver products to stores to cooperate with efforts to introduce eco-friendly vehicles, improve fuel efficiency, and reduce store delivery frequencies. Furthermore, progress is also being made in fitting trucks with drive-data terminals that record driving status. Data collected from the terminals is used to provide driver instruction and eco-driving seminars.

2021_en_CO2EmissionsDeliveryTrucks.jpg

Introduction of Eco-Friendly Vehicles

For its delivery vehicles that convey products to stores, Seven-Eleven Japan is introducing clean diesel engines, compressed natural gas (CNG), hybrid vehicles, and fuel cell trucks such as EVs and hydrogen-powered trucks that do not emit CO2, with the goal of reducing CO2 emissions to achieve a decarbonized society. Of the total of 6,244 delivery vehicles, 3,926 are eco-friendly vehicles (as of the end of February 2021).

Since March 2018, we have been cooperating with a project being conducted by Ehime Prefecture to encourage the use of biodiesel fuel produced from used frying oil. Seven-Eleven Japan has been refining bio diesel fuel from oil collected from households, fryers in 7-Eleven stores, and production of fried foods at specialized factories in Ehime Prefecture. Seven-Eleven Japan projects that approximately 25 kiloliters of bio diesel fuel will be used each month and that emissions from deliveries will be reduced by about 2,590 kg- CO2 per month.

Additionally, in April 2019, we introduced two light fuel cell trucks developed by Toyota Motor Corporation. These trucks run on a fuel cell (FC unit) that uses hydrogen to generate electricity, has a maximum loading capacity of three tons, a cruising range of approximately 200 kilometers, and does not emit environmentally hazardous substances during operation. Also, the electricity generated by the FC unit is used to power the refrigeration unit. In April 2020, a new test was begun at Japan’s first center with incorporated hydrogen station, and verification experiments are being carried out toward expanded introduction from the summer of 2021.

From July 2019, we introduced two EV trucks, which are demonstration vehicles developed by Isuzu Motors Ltd., and are making efforts to further reduce our CO2 emissions.

supply-chain_2018_3.jpg

A delivery vehicle which runs on biodiesel fuel

supply-chain_2018_2.jpg

A small fuel cell truck

EVトラック①.jpg

EV truck

EVトラック②.jpg

EV truck

Promoting Introduction of Eco-Friendly Tires

Seven-Eleven Japan is promoting the introduction of eco-friendly tires with low rolling resistance for delivery vehicles. As of the end of February 2021, we have installed ecofriendly tires on 6,244 delivery vehicles, representing approximately 99% of the total fleet.

Moreover, Seven-Eleven Japan has also introduced retread tires to 850 vehicles, as of the end of February 2021. These tires are made from tires that have finished their service life, by removing a certain amount of the rubber surface that makes contact with the road and applying new rubber and tread. In this way, they can be re-used as rear tires for delivery vehicles. Seven-Eleven Japan will promote the use of retread tires to contribute to resource conservation and waste reduction by reusing them.

XX_追加修正分.jpg

Retread tires

Introduction of Energy-Saving Equipment at Distribution Centers

Seven-Eleven Japan is promoting efforts to reduce wasteful power usage at its distribution centers by introducing “demand controllers” that monitor the electricity usage of each unit of equipment and apply controls to the equipment in use to ensure that the usage does not exceed a certain range at 65 of 163 distribution centers (as of the end of February 2021).

Participation in Initiatives and Collaboration with External Organizations

Seven & i Holdings is actively supporting and participating in external organizations/initiatives both domestically and internationally such as the industry-government-academia collaborations and consortiums. We actively collect information on advanced technologies and know-hows on sustainability through initiatives, participate in regular/irregular seminars and study groups, as well as dispatch our information by discussions and presentations at symposiums/seminars/gatherings. By working to further reduce the environmental impact of the Group through collaborative and cooperative activities with suppliers and other stakeholders, we advance our efforts to realize our prosperous and sustainable society together.

Working together with our suppliers to reduce the environmental impact

Name Status of Participation
Science Based Targets (SBT) LINK

Collaboration and joint research

Name Status of Participation
Kyoto Beyond SDGs consortiums, Kyoto University

Member(LINK: Japanese)

Japan Clean Ocean Material Alliance (CLOMA)

Member(LINK)

Japan Hydrogen Association (JH2A) 

Member(LINK)

Sustainable Future Society Creation Platform,

Tokyo University 

Member(LINK: Japanese)

Japan Climate Leaders Partnership  (JCLP)

Member(LINK)

Initiatives for Material Issue 3