Building a Sustainable Supply Chain Together with our Business Partners

Since its establishment, Seven & i Holdings has always been committed to being a sincere company that is trusted by the various stakeholders who support our corporate activities, including customers, business partners, shareholders, local communities, and employees, as stated in our corporate creed.

Today, the world is facing a variety of issues related to human rights. Companies are strongly required to fulfill their social responsibilities, such as respecting and protecting human rights throughout the supply chain of the products and services they handle, complying with laws and regulations, protecting the environment, and giving consideration to working conditions. The Seven & i Group places the highest priority on respecting and protecting human rights, and we ask our business partners to understand and implement the Seven & i Group Business Partner Sustainability Action Guidelines. We believe that we can provide safe and secure products to our customers by working together with our suppliers to implement the Seven & i Group Business Partner Sustainable Action Guidelines and build the supply chain that can develop sustainably.

  • SDGs7 AFFORDABLE AND CLEAN ENERGY
  • SDGs8 DECENT WORK AND ECONOMIC GROWTH
  • SDGs10 REDUCED INEQUALITIES
  • SDGs12 RESPONSIBLE CONSUMPTION AND PRODUCTION
  • SDGs13 CLIMATE ACTION
  • SDGs15 LIFE ON LAND
  • SDGs16 PEACE, JUSTICE AND STRONG INSTITUTIONS

Strengthen Operation of the Seven & i Group Business Partner Sustainable Action Guidelines

Seven & i Holdings is strengthening the operation of the Business Partner Sustainable Action Guidelines in order to provide safe and reliable products to customers and to fulfill our social responsibilities in areas such as human rights, labor, and the environment in cooperation with our suppliers. We also request our suppliers to conduct and promote human rights due diligence.

Thorough Implementation of the Seven & i Group Business Partner Sustainable Action Guidelines

In April 2017, Seven & i Holdings revised the "Seven & i Holdings Business Partner Action Guidelines" formulated in 2007 as the "Seven & i Group Business Partner Action Guidelines," and we have asked our business partners to understand and comply with these guidelines. In December 2019, we further revised these guidelines as the "Seven & i Group Business Partner Sustainability Action Guidelines" (hereafter, the Guidelines). The purpose of the Guidelines is not only to ensure the safety and quality of products and services handled by the Group, but also to fulfill our social responsibilities together with our suppliers by promoting the protection and respect of human rights, compliance with laws and regulations, global environmental conservation, and consideration for the working environment throughout the supply chain. These guidelines are disseminated to all Group companies through various meetings with suppliers.

Seven & i Group Business Partner Sustainable Action Guidelines (Excerpt)

  1. Respect and Protection of Human Rights
  2. Legal Compliance
  3. No Child labour and Protection for Young Workers
  4. No Forced Labour
  5. Payment of Living Wages
  6. Elimination of Abuse, Harassment, Discrimination and Punishment
  7. Employment and Protection of Workers
  8. Preservation of Global Environment
  9. Prevention of Confidential Information Leakage and Information Management
  10. Management of Personal Information
  11. Quality Control and Ethical Response
  12. Relationship with Local and International Communities
  13. Anti-corruption and Fair Business Practices
  14. Protection of Intellectual Property
  15. Export and Import Management
  16. Development of Internal Reporting Systems
  17. Disaster Preparedness
  18. Development into Supply Chain
  19. Monitoring

Establishment of a Human Rights Due Diligence System

The Seven & i Group's management philosophy is to be a sincere company that is trusted by various stakeholders, as stated in its corporate creed. In particular, we recognize that "respect for human rights" is the most important factor in conducting sustainable business activities and remaining a trustworthy and honest company.

In order to respect and protect human rights in the supply chain, the Seven & i Group Business Partner Sustainable Action Guidelines express the Group's stance on respect for human rights and request that suppliers comply with the guidelines.

The Seven & i Group Business Partner Sustainable Action Guidelines have been formulated as action guidelines that focus on respect for human rights in accordance with international labour standards such as the United Nations Guiding Principles on Business and Human Rights, the ILO Basic Labour Conventions, and the OECD Guidelines for Multinational Enterprises. We are working to strengthen our human rights due diligence system by implementing a human rights due diligence process that includes the identification and assessment of human rights risks, the implementation of actions to mitigate human rights risks, the monitoring of corrective actions, and the disclosure of information, as well as developing a grievance mechanism and promoting dialogue with stakeholders.

Human Rights Due Diligence Diagram

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Human Rights Due Diligence System for the Business Partner Sustainable Action Guidelines

The Seven & i Group assesses the potential negative human rights impacts of its business activities on the supply chain, and based on the results of the assessment, prevents and mitigates the identified negative human rights impacts, requests cooperation from suppliers in preventing and addressing such impacts, and takes remedial and corrective actions in the event of human rights violations. We have an ongoing process of conducting follow-up evaluations and disclosing the results on our website.


Assess, Identify, and Analyze negative impacts on Human Rights:

Grasping the production factories of private brand products, conducting self-checks by suppliers, and conducting CSR audits by a third-party auditing organization

Actions:

Education and awareness-raising activities aimed at reducing human rights risks, memorandum on CSR with suppliers commissioned to manufacture PB products, start of business transactions based on the premise of obtaining CSR audit certification at PB product manufacturing factories in China and Southeast Asia

Follow-up Evaluation:

Issue remediation and corrective action support

Information Disclosure:

Report the results to the Board of Directors and publish the results on the web

Relief Measures:

Establishment and operation of a dedicated supplier helpline as a grievance mechanism

Human Rights Due Diligence System for the Business Partner Sustainable Action Guidelines

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The Seven & i Group classifies supplier risks into five levels (R1 to R5) by region from the perspectives of human rights, labor environment, and global environmental conservation, and designates the region with the highest risk as R1, with "emerging regions in China and Southeast Asia" as R1 for priority response.

Operation of a Dedicated Helpline for Business Partners as a Grievance Mechanism

In order to provide safe and reliable products and services to our customers, Seven & i Holdings has established the Seven & i Holdings Business Partner Helpline. It is operated by IntegreX Inc. - a third-party organization as a safe contact point, with consultation and reporting transaction service for early detection and prevention of problems in the supply chain. With the swift reporting from IntegreX Inc. to Seven & i Holdings and its group companies, we strive to ensure fair transactions/problem-solving by promptly making improvements.

Operation of the Seven & i Group Business Partner Sustainable Action Guidelines

Seven & i Holdings has asked factories that manufacture our private brand products (Seven Premium) and private brand products of Group companies to cooperate in CSR audits if they are located in areas of high risk for human rights protection and legal compliance. In addition, the Seven & i Group has been conducting CSR audits of factories that manufacture private brand products in general. We also share the status of promotion of the Seven & i Group Business Partner Sustainable Action Guidelines with our suppliers and support corrective measures for problems.

We ask potential suppliers to understand and comply with the Seven & i Group Guidelines for Sustainable Business Conduct before starting business with us. If the supplier is found to be in compliance based on the results of the CSR audit and the status of corrective measures, a "Certificate of Compliance" is issued. The acquisition of a Certificate of Conformity is a prerequisite for continuing business with us.

Flow of CSR Audit and Certification System for PB Manufacturing Factories in China and Southeast Asia

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Agree to the Memorandum on CSR

The Seven & i Group, together with its suppliers, aims to realize the goals of Goal 8 of the SDGs, which are "human-oriented employment with job satisfaction," "eradication of forced labor," and "prohibition and elimination of child labor. In addition, we will actively work to maintain and improve the appropriate working environment of our suppliers, such as by "ensuring appropriate labor practices in the supply chain. We ask our suppliers to agree to a memorandum on CSR as a condition of starting/continuing business with us when we outsource the manufacturing of our private brands.

In order to fulfill our responsibility to respect corporate social responsibility (CSR) and human rights, and to contribute to the realization of a sustainable society, we confirm that we will comply with the Corporate Action Guidelines and that we will continue to work together to promote CSR and human rights considerations throughout the supply chain. The purpose of this report is to confirm that we will continue to work together to promote CSR and respect human rights throughout the supply chain in light of the demands of society.

Memorandum on CSR

  • Article 1 (Purpose)
  • Article 2 (Compliance with the Seven & i Group Business Partner Sustainable Action Guidelines)
  • Article 3 (Implementation of Internal Control over the Business Partner Sustainable Action Guidelines)
  • Article 4 (Explanation of the Business Partner Sustainable Action Guidelines, etc.)
  • Article 5 (Obligation to Report the Status of Compliance with the Business Partner Sustainable Action Guidelines, etc.)
  • Article 6 (Duty to report)
  • Article 7 (Right of A to investigate and audit)
  • Article 8 (Demand for correction in case of violation)
  • Article 9 (Right of cancellation in case of non-compliance with demand for correction)
  • Article 10 (Indemnification for damages)
  • Article 11 (Revision of the Business Partner Sustainable Action Guidelines)
  • Article 12 (Effective Period)
  • Article 13 (Governing Law and Jurisdiction)
  • Article 14 (Matters to be discussed)

*This document has been prepared with reference to the materials of the Japan Federation of Bar Associations.

Conducting Self-Checks

The Seven & i Group operates a self-check sheet for suppliers to check the status of their promotion of the Business Partner Sustainable Action Guidelines and to support corrective actions as necessary. This checklist was created with reference to ISO 26000, the Keidanren Charter of Corporate Behavior, the OECD Guidelines for Multinational Enterprises, and the ILO International Labour Standards. Since November 2018, we have been implementing the program for 61 items, including human rights and labor environment, global environmental protection, and information management, for private brand product manufacturing contractors of Seven & i Group companies.

Items on the Self-Check Sheet (Excerpt)

  1. Legal Compliance
  2. Respect for Human Rights and Dignity
  3. Human Resources and Workplace Environment
  4. Preservation of Global Environment
  5. Relationship with Local and International Communities
  6. Information Management
  7. Product Safety Assurance
  8. Fair Business Practices
  9. Monitoring

State of Self-Check Replies


FY

No.of Suppliers Targeted

No. of Suppliers who Replied

(No. of Factories who Replied)

(No. of Overseas/Domestic Factories)

Reply Rate

FY2020

1,133 companies

       854 companies

(1,267 factories)

(854 domestic /413 overseas factories)

   75.4

FY2019

1,437 companies         1,050 companies

(1,902 factories)

(1,468 domestic /434 overseas factories)

   73.1%

Seven & i Group CSR Audit

In order to ensure the safety and security of products and to realize a sustainable society together with our suppliers, the Seven & i Group has conducted third-party organization audits to the manufacturing factories of our suppliers in accordance with our own audit items (16 major categories and 117 check items). The audit items comply with international conventions such as the International Labour Organization (ILO) Convention, which is a global standard, and ISO 26000, and consist of the Seven & i Group Business Partner Sustainable Action Guidelines, protection of human rights, compliance with laws and regulations, occupational health and safety, and environmental protection.

CSR Audit 16 Major Categories and 117 Items (Excerpt)

1. Implementation of Management System and Rules

  • Organizations must implement and maintain a system in compliance with all items of the Seven & i Group Business Partner Sustainable Action Guidelines
  • To the extent feasible, organizations should extend the Guidelines to their own supply chains.
  • Organizations must monitor and comply with the relevant laws and regulations, as well as international treaties and so forth.

2. Forced Labor

  • There must be no forced, bonded or coerced prison labor.
  • Employers must not force workers to make a financial deposit or submit their identification documents, such as a passport, and freedom of movement must be assured.
  • Workers may resign freely as they wish, after giving adequate notice.
  • National and regional laws pertaining to forced labor are recognized.

3. Freedom of Association

  • Workers have the right to establish or join labor unions of their own choosing without being subject to discrimination, and hold the right to collective bargaining.
  • Local laws and workers’ rights concerning freedom of association are recognized.

4. Health and Safety

  • Safety protection measures must be applied to equipment and machinery and preventive maintenance must be undertaken.
  • Chemicals must be handled and stored appropriately.
  • All necessary protective equipment must be purchased and regularly replaced.

5. Child Labor and Young Underage Workers

  • Children must not be put to work.
  • Young workers under the age of 18 must not be made to work at night, or in a hazardous environment. This work includes tasks using chemical substances, work near such substances, or work where there is hazardous machinery or excessive noise. Heavy labor, night shifts, and work for long hours are also included.

6. Living Wages

  • Wages must be paid at or above the national/regional legal standards.
  • Overtime allowances must be paid at the required statutory ratio.
  • All allowances and benefits must be provided to workers as required by law.
  • Documents detailing the labor conditions of workers, such as wage slips, information of labor recruiters, and contracts must be disclosed to workers.
  • *The living wage includes food, housing cost, clothing, and other additional expenses related to health, transportation, personal care, child care, and education.
    *The base of the living wage calculation is based on the anchor calculation method of the Global Living Wage Coalition.

7. Working Time

  • Workers must not be habitually required to work over 48 hours per week. On average, workers must be given a rest period of one day every 7 days. Overtime must be voluntary and must not exceed 12 hours per week. Overtime must not be habitually requested and additional fees must always be paid.

8. Discrimination

  • Discrimination in the course of recruitment, remuneration, provision of training, pay raises, dismissal and retirement is prohibited with respect to race, class, nationality, religion, age, disability, gender, marital status, sexual orientation, union membership, or political party affiliation.

9. Regular Employment

  • To the extent possible, operations must be executed on the basis of generally accepted employment relationships based on national laws and regulations.
  • Recruitment fees for workers to get a job must be borne by employers, not by the workers ("Employer Pays Principle") unless allowed by local labor law.

10. Subcontracting Agreements, Domestic Industry, Outsourced Processing

  • Subcontracting is not permitted without the prior consent of customers.

11. Disciplinary Action

  • Physical abuse or punishment, threats of physical abuse, sexual or other forms of harassment, or verbal abuse or threats, must be prohibited.
  • Disciplinary methods must be fair and effective and must not be arbitrary.
  • Employers must show respect for the mental, emotional and physical health of workers in connection with the necessary disciplinary action.

12. Environment

  • Organizations must pursue continuous improvement in their environmental performance and, at the very least, comply with local requirements and international laws and regulations.
  • Chemical substances prohibited by international treaties, or laws and regulations, must not be used.

13. Fair Business Practices

  • Laws and regulations related to fair business practices must be understood and complied with.

14. Ensuring Product Safety

  • Products delivered to each Seven & i operating company must comply with the quality standards requested by each relevant operating company and comply with relevant legal standards established in Japan.

15. Security Management

  • Security systems must be in place to ensure protection from access with malicious intent.

16. Interests of Local Communities

  • Relationships with anti-social forces must be rejected.

Evaluation and Certification of CSR audits

16 major categories of the CSR audit are divided into three evaluation categories. The four most important categories are "forced labor," "child labor and young workers," "living wage (minimum wage)," and "disciplinary punishment. If any of these non-conformities is found, it will be classified as [Critical Non-conformity 1], and a recommendation will be made to the Group's operating companies that have contracts with the factory in question to discontinue business.

The next most important audit categories are categories of laws and regulations related to "health and safety," "working hours," "subcontracting," "environment," and "product safety." If a non-conformity is found, it is classified as a "Critical Non-conformity 2," and we notify the group companies that have contracts with the factory in question to consider whether or not to continue doing business with them. If we decide to continue our business, we will conduct a follow-up audit to confirm that the problem has been corrected before continuing our business.

16 Audit Categories and Evaluation Categories (C1, C2)

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Evaluation Standard

CSR audit results are evaluated on a five-point scale of A, B, C, D, and E. 

The "A" rating indicates that the CSR audit did not reveal any non-conformity with laws, regulations, or local ordinances, nor did it reveal any non-conformity with the Seven & i Group Business Partner Sustainable Action Guidelines.

"B" is for factories where no legal non-conformity was found but non-conformity to the Seven & i Group Business Partner Sustainable Action Guidelines was found, and "C" is for factories where no serious non-conformity was found but legal non-conformity was found.

"D" is the evaluation of a factory that has been confirmed to have Major Non-conformity Critical 2 or that has been confirmed to have 10 or more non-conformities with laws and regulations.

"E" is the rating for the most serious situation, where at least one [Critical 1 Major Non-conformity] corresponding to [Forced Labor], [Child Labor], [Living Wage (Minimum Wage)], or [Punishment] is identified, or where 10 or more [Critical 2 Major Non-conformities] or 20 or more non-conformities with laws and regulations are identified. All non-conformities are corrected within 90 days from the audit date, and if correction is confirmed, certification is given in accordance with the evaluation.

Certification Operational Rules (in China and Southeast Asia)

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Audit Evaluation Standard

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Flow of the Day of the CSR audit

Seven & i Holdings visits the factories to be audited with advance notice to confirm compliance with the CSR audit items by checking sites, documents, and data, and by interviewing managers and workers. The interviews with workers are conducted in a separate room with only the auditors present to prevent any instructions or retaliation from the employers. In principle, on-site audits are conducted in one day, from 9:00 a.m. to 6:00 p.m. Materials and images submitted by the factory during the audit will be properly managed and supplemented based on the confidentiality agreement, and will not be leaked to outside parties.

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Confirmation of Correction after Audit

If any non-conformity (non-conformity) is found as a result of the audit, the third-party audit organization will point out the non-conformity to the supplier. Suppliers are requested to submit a Corrective Action Plan (CAP) based on the findings to the audit organization within 10 business days after the audit, and are required to take immediate action to improve the issues identified. After receiving a report from the supplier on the completion of improvement, we will confirm the completion of the improvement by receiving photos and collateral materials (evidence) showing the improvement. However, in cases where a certain standard is exceeded, such as when a large number of serious non-conforming items occur, we visit the factory again and conduct another audit to confirm that the problem has been corrected.


 ◆Process for submitting a Corrective Action Plan (CAP)

(1) Report on the cause of non-conformity and corrective action plan: Submit to the auditor within 10 days

(2) Implementation of corrective actions: Submit evidence to auditors within 90 days.*

(3) Appropriate CAP: Accepted by auditor → Confirmed and approved by Seven & i Holdings → Certificate issued

(4) Inappropriate CAP: Refund

*If evidence of correction is not submitted within 90 days of the completion of the audit, a re-audit (follow-up audit) will be conducted.

Response to Major Non-conformities

Seven & i Holdings does not tolerate any form of human rights violation in the Group's business or supply chain. Our response to the major non-conformities is stipulated in the "Seven & i Group Business Partner Sustainable Action Guidelines", which we disseminate to all our suppliers and explain at supplier briefings.

CSR Audit Compliance Certification System

Seven & i Holdings issues a Certificate of Conformity (CAP) to suppliers when the results of CSR audits indicate conformity. If a nonconformity is found, a "Certificate of Conformity" is issued to the supplier when the nonconformity has been corrected or when the third-party auditing organization and Seven & i Holdings determine that the content of the plan described in the CAP is valid.

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Results of CSR Audits of Suppliers

CSR audits of Overseas Factories

Since fiscal 2012, Seven & i Holdings has been conducting annual CSR audits to confirm compliance with the Seven & i Group Business Partner Sustainable Action Guidelines by defining critical suppliers as those factories that are judged to be particularly important from the perspective of risk management. We conduct annual CSR audits to confirm compliance with the Seven & i Group Business Partner Sustainable Action Guidelines.

Our Definition of “Critical Suppliers”

We define “critical suppliers” as factories contracted to manufacture Seven Premium (private brand) products, and factories located in China and Southeast Asia (13 countries) contracted to manufacture private brand products of Group companies, which deals high volume, critical and non-substitutable for our private brand products.

Number of CSR Audits (Overseas Factories)

FY 2012 2013 2014 2015 2016 2017 2018

2019


2020

2021

Plan

No. of audited factories 17 28 328 226 245 215

274

304 413

approximately

500

Implementation rate*1 (%) 100.0 100.0 100.0 100.0 100.0 100.0

100.0

100.0 89.8*2

-

*1  Ratio of the number of factories audited to the planned number of factories (excluding factories that no longer need to be audited due to completion of production, cessation of business)

*2  In FY2020, audits were suspended at 47 factries to prevent the spread of novel coronavirus infection.

Number of Re-audited Factories (Overseas)

FY Total Aparel Household Goods

Foods

2018

2019

2020

2018

2019

2020

2018

2019

2020

2018

2019

2020

No. of re-audited factories 33 112*1 40*2 11 56 24

10

35 8 12 20 7

*1 Number of re-audited plants increased due to stricter re-audit standards from FY2019

*2 Introduce a certification system based on CSR audits as a condition for starting new transactions from FY2020

Response to [Major Non-conformities Critical 1] that Occurred in FY2020 (Results)

As a result of the audit in FY2020, 11 factories were found to have "Critical 1" non-conformity, and corrective actions have been taken. Non-conformities related to living wages (minimum wage) (8 cases) and young labor (3 cases) were confirmed. Among the non-conformities related to living wages (minimum wage), inadequate wage payment records were also addressed as non-conformities. Three cases of non-conformity related to young labor were identified: failure to register young workers with the local government, failure to conduct health checkups, and overtime work for minor tasks, all of which were confirmed as clear with the corrective actions. As a result of the follow-up CSR audit, no non-conformities related to forced labor, child labor under the age of 15, or punishment were identified.

CSR Audits of Domestic Factories

Seven & i Holdings started CSR audits of factories to which we outsource the manufacture of private brand products (Seven Premium) in Japan since 2018 to appropriately address issues such as employee work style reform, employment of foreign workers, and global environmental conservation. The number of audits conducted was 50 factories on a trial basis in fiscal 2018, and full-scale audits are being conducted at 327 factories in fiscal 2019, 271 factories in fiscal 2020 (about 30% of the total). As a result of the audits in fiscal 2020, some form of non-conformity was confirmed at about 83% of the factories, and corrective measures are being taken. There were no non-conformities related to discrimination against foreign workers or forced labor.

Seven-Eleven Japan commissions a third-party organization to conduct CSR audits of some of its suppliers in Japan based on the same standards as the Seven & i Group CSR audits. 27 factories was audited in fiscal 2018, 87 factories audited in fiscal 2019, and 52 factories (47 companies) was audited in fiscal 2020. We will continue to promote CSR by involving the supply chain.

Informing suppliers of the Seven & i Group Sustainability Action Guidelines

Distribution and Delivery of the Seven & i Group Business Partner Sustainable Action Guidelines

From June to October 2018, Seven & i Holdings distributed the Seven & i Group Business Partner Action Guidelines to 18,484 companies with confirmed business relationships through the product development staff of each Group company. In December 2019, we revised the guidelines to the Seven & i Group Business Partner Sustainable Action Guidelines, and by June 2020, we had distributed and distributed the guidelines to 12,385 companies. In addition, we are holding web briefings to promote understanding of the guidelines. In addition, from fiscal 2020, new suppliers who outsource the manufacture of private brand products in China and Southeast Asia will be required to submit a written pledge to comply with the guidelines, sign a memorandum on CSR, and undergo a CSR audit before commencing business. We communicate these guidelines to all suppliers, including those outside Japan, and confirm their level of understanding in an effort to ensure compliance with the guidelines.

Holding a Briefing Session on the Seven & i Group's Business Partner Sustainable Action Guidelines and Quality Policy

Seven & i Holdings holds local briefings on the Seven & i Group Business Partner Sustainable Action Guidelines and related policies for suppliers in China and Southeast Asia, where CSR risks are considered to be high, among those to whom we outsource the manufacture of private brand products.

At the briefing, a representative from the Sustainability Development Department of Seven & i Holdings provides explanations accompanied by a local language interpreter.

In April and October 2018, briefings were organized at three venues in China —Qingdao, Shanghai, and Shenzhen—as well as three venues in Southeast Asia—Thailand (Bangkok), Cambodia (Phnom Penh), and Vietnam (Ho Chi Minh City)—with 402 participants from a total of 260 factories (94.9% participation rate*1). In March and April 2019, briefings were organized at four venues in China— Dalian, Qingdao, Shanghai, and Shenzhen—as well as five venues in Southeast Asia—Myanmar (Yangon), Thailand (Bangkok), Cambodia (Phnom Penh), Vietnam (Ho Chi Minh City), and Indonesia (Jakarta)—with 482 participants from a total of 287 factories (94.4% participation rate*2).

In fiscal 2020, we planned to hold briefing sessions on the Seven & i Group Business Partner Sustainable Action Guidelines and CSR Audits in Asia to familiarize domestic and overseas suppliers with the Guidelines, as the Guidelines were revised for the first time in three years and the number of the audit target suppliers significantly increased.

However, due to the global spread of the new coronavirus infection (COVID-19), it was postponed, and instead, on-demand video distribution of the report titled "Aiming for Sustainable Development with Suppliers" begun in June 2020 for suppliers who have its production bases in overseas. In June 2020, we started to distribute the report. (274 people from 178 companies have viewed the video*3)

Since August 2020, materials in Chinese and five other Asian languages have been available for viewing, and in October, a CSR audit information video with Chinese narration has been distributed to suppliers in China. (79 people from 66 companies have viewed the video)

At the briefing sessions, we explain the Seven & i Group's Business Partner Sustainable Action Guidelines and Quality Policy, and introduce examples of factories with excellent quality management and CSR audit item management, so that our suppliers can understand the specific evaluation details and promote their initiatives.

We have also introduced a commendation system to support the improvement and motivation of our suppliers, and we award certificates and trophies to excellent suppliers.

*1 Percentage of factories participating in briefings among factories subject to CSR audits in fiscal 2018 (overseas)

*2 Percentage of overseas factories subject to CSR audits in fiscal 2019 that participated in briefings.

*3 FY2020 online briefings are for reference purposes only, as they were extracted from access logs.

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March 2019 at Shanghai

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April 2019 at Jakarta

Conducting Compliance Training for Suppliers

Seven & i Holdings holds compliance training for its suppliers who manufacture private brand products on consignment in China and Southeast Asia, where CSR risks are high, with the aim of raising awareness of human rights, labor environment, and global environmental conservation, as well as promoting understanding of and thorough compliance with relevant basic laws and regulations. In this training, we familiarize our suppliers with the Seven & i Business Partner Sustainable Action Guidelines, ILO International Labour Conventions, ISO 26000, occupational safety laws and regulations of various countries, equipment management, and chemical management, and hold consultations on corrective measures based on the results of CSR audits. In 2020, due to the impact of the novel coronavirus infection (COVID-19), we are holding online video training via on-demand delivery. For the management and preparation of the training, we ask TÜV Rheinland Japan Ltd., which handles CSR audits, to conduct the training.

Compliance Training for Suppliers in FY2021 (as of the end of June 2021)

*1 All events were held in a live online format with recording.

*2 The number of participants and companies are extracted from the access status of the online live webcast.

Month Country

No. of Participants

No. of Participating Companies

April 2021 China(Twice)    204    71
April 2021 Japan    423    274
May 2021 Thailand    70    44
May 2021 China(Twice)     131    110
May 2021 Vietnam    35    32
June 2021 Japan (Twice)    1,120    830
June 2021 China  123  102 
June 2021 Thailand 45  33 
June 2021 Vietnam 28  24 


Compliance Training for Suppliers in FY2020 (as of February 28, 2021)

*1 All events were held in a live online format with recording.

*2 The number of participants and companies are extracted from the access status of the online live webcast.

Month Country

No. of Participants


No. of Participating Companies

June 2020 Japan    274    178
October 2020 China    79    66
January 2021 China (Twice)    304    215
February 2021 Japan     213    145


Compliance Training for Suppliers by FY

* All events in FY2021 and FY2020 were held in a live online format with recording.

* For FY2021 and FY2020 The number of participants and companies are extracted from the access status of the online live webcast.

FY 2018

FY 2019

FY 2020*

FY 2021*

(as of the end of June)

No. of Times 7    20    5 12 
No. of participating companies 171    485    604 1,520 
No. of participants 244    768    870 2,179 


In-house: Compliance Training

The Seven & i Group holds meetings attended by the managers and staff of the departments in charge of product development and procurement at each Group company to report on the results of CSR audits and hold study sessions on the audits. At the study sessions, we invite the head of auditing at TÜV Rheinland Japan Ltd., which conducts CSR audits, to explain the latest information and laws and regulations in the countries and regions where our contract manufacturers' factories are located, using specific examples.

Compliance Training (In-house) in FY2021 (as of the end of June 2021)

Month Contents

No. of Participants

April 2021 Seven & i Group Business Partner Sustainable Action Guidelines    305
May 2021 Operation of 7&i CSR Audit    118


Compliance Training (in-House) in FY2020 (as of February 28, 2021)

Month Contents

No. of Participants

June 2020

Study Session for Seven & i Group Business Partner Sustainable Action Guidelines/7&i CSR Audit

   138
July 2020

Study Session for Seven & i Group Business Partner Sustainable Action Guidelines/7&i CSR Audit

   89
July 2020

Supply Chain Subcommittee

(Executives of 28 Group operating companies)
 ・Outline of the results of CSR audit for the first quarter of FY2020
 ・Response plan for FY2020

   62
October 2020

Supply Chain Subcommittee

(Executives of 28 Group operating companies)
 ・Outline of the results of CSR audit for the second quarter of FY2020
 ・Response preparation for FY2020

   69
January 2021

Supply Chain Subcommittee

(Executives of 28 Group operating companies)
 ・Outline of the results of CSR audit for the third quarter of FY2020
 ・Plans for FY2021

60


Compliance Training (in-House)  by FY

FY 2019

FY 2020

FY 2021*

(as of the end of June)

No. of Times 7    5
No. of Participants 380    418 423 


Collaboration with Human Rights and Economy-related Organizations

Seven & i Holdings is making efforts to collect and disseminate information on supply chain management in cooperation with human rights and economic related organizations. We are a member of the Global Compact Network Japan (GCNJ) and the Council for Better Corporate Citizenship (CBCC), both of which are external organizations. We also participate as an advisory group company in the "JAPAN PLATFORM FOR MIGRANT WORKERS TOWARDS RESPONSIBLE AND INCLUSIVE SOCIETY", a joint secretariat of the Japan International Cooperation Agency (JICA) and The Global Alliance for Sustainable Supply Chains (ASSC). We aim to achieve a multicultural society by protecting the human rights of foreign workers, in our operation, as well as those in the supply chain, promoting the development of appropriate working and living environments, and realizing decent work for foreign workers.

  Main Activities:

・September 2019: Global Compact Network Japan
 At GCNJ's Basic Seminar, we spoke about our Business Partner Action Guidelines and CSR audits.
・November 2019: OECD Advisory Board of Japan Business Federation and Corporate Behavior/ SDGs Committee, BIAC Japan representative
We participated in and gathered information from “Toward the Realization of a Sustainable Supply Chain in Asia: Promotion of International Cooperation for Responsible Corporate Behavior,” which was jointly sponsored by the OECD, EU, Japanese government, and ILO.
・January 2020: Public interest incorporated association Council for Better Corporate Citizenship (CBCC)
We shared information at “Round-table Conference on Issues for Promoting CSR in the Supply Chain” held by CBCC.

・October 2020: our Director and Managing Executive Officer participated in a panel discussion on "Corporate Management from the Perspective of Life and People" at the GCNJ Symposium 2020 as a panelist.

Information Disclosure

Seven & i Holdings is committed to timely and appropriate information disclosure to all stakeholders, including customers, suppliers, and investors, in order to build a sound supply chain. By actively disclosing information on the results of CSR audits and issues in the supply chain, we are able to provide safer and more secure products to our customers.

Relief Measure/Remedies

Seven & i Holdings has established a reporting contact point (Helpline) for suppliers and stakeholders working in the supply chain. If human rights violations are found through CSR audits or reporting, remedial measures are taken after conducting an appropriate investigation.

Business Partner Helpline

The Business Partner Helpline is available to directors, employees, and former employees of our suppliers. The system is introduced at briefings for suppliers and leaflets are distributed to promote awareness.

Initiatives for Material Issue 5