Material Issue 5 Building an Ethical Society and Improving Resource Sustainability Together with Customers and Business Partners

              Approach to Material Issues

              In the course of supplying a vast amount of products and services, Seven & i Holdings believes that the Group has an important role to play in providing socially and environmental responsible products and services, thereby helping to build an ethical* society.
              In every process from procuring raw materials for products to delivering products to customers, Seven & i Holdings believes that it must not only comply with laws and regulations, but it must also supply valuable products that show consideration for society and the environment. This will contribute to improving the sustainability of resources and is crucial to enhancing the strength of supply chains and ensuring business continuity. Moreover, awareness of ethical consumption has been increasing among customers in recent years. Addressing this awareness will also help to strengthen Seven & i Holdings’ competitiveness. For these reasons, we will advance initiatives targeting the entire supply chain, including business partners.

              • *
              • The word “ethical,” in addition to its conventional meaning, has been increasingly associated with environmental preservation and social contribution in recent years.

              Background to Material Issues

              Decline and Depletion of Fisheries Resources

              Amid increasing consumption of seafood in recent years, activities such as overfishing and environmentally destructive resource usage have taken place. As a result, sound marine resources have been steadily declining, while an increasing number of resources face the risk of depletion. Among familiar seafood items in Japan, Pacific Bluefin tuna and Japanese eel are endangered species in danger of extinction.

              [Trend in global marine resources] Proportion of over utilized aquatic resources about 30% [Source: FAO, The State of World Fisheries and Aquaculture 2016]

              Heightened Interest in the Social and Environmental Impact of Supply Chains

              Against the backdrop of a multitude of social issues around the world, an increasing number of consumers are seeking to purchase goods produced through fair trade practices. With this heightened awareness of ethical consumption, it has become crucial to build sustainable business models across the entire supply chain.

              [When you choose product or services, do you make a conscious effort to select those that will contribute to society?]64.3% of respondents answered affirmatively(Yes: 23.4% If anything, yes: 40.9%) If anything, no: 18.9% No: 14.6% Don't know: 2.3% [The FY2015 Shōhishagyōsei no suishin yoronchōsha (Opinion survey for promoting consumer administration of consumer affairs), Cabinet Office, Government of Japan]

              Promotional Framework for Material Issues

              The entire Group is working to address this material issue, with specific measures being examined and formulated by the following committees and subcommittees. The CSR Management Committee and its subordinate Consumer Affairs and Fair Business Practices Subcommittee examine the themes of “Fair and impartial business practices” and “Addressing the social and environmental impacts of the supply chain.” The Environment Subcommittee addresses themes related to product procurement and business partners, including the “Depletion of natural resources” and the “Loss of biodiversity.” These activities are supervised by the Seven and i Holdings Director Executive Officer Head of Corporate Communication Division.

              Contribution to SDGs

              By addressing this material issue, Seven & i Holdings will achieve sustainable food production and consumption patterns through the entire supply chain, and will contribute to achieving Sustainable Development Goals 2, 7, 8, 10, 12, 13, 14, 15 and 16.

              • SDGs2 ZERO HUNGER
              • SDGs13 CLIMATE ACTION
              • SDGs14 LIFE BELOW WATER
              • SDGs15 LIFE ON LAND

              Seven & i Holdings' Initiatives

              Strengthening the Business Partner Action Guidelines

              We are strengthening the implementation of the Business Partner Action Guidelines in order to provide customers with safe and reliable products and to fulfill our societal responsibilities in cooperation with our suppliers on matters such as human rights, labor issues, and the environment.

              Sustainable Environment Conservation Activities

              In cooperation with NPOs and other organizations, we undertake measures that contribute to the prevention of global warming and conservation of biodiversity.

              Sustainable Procurement of Raw Materials

              We have formulated the Basic Policy on Sustainable Procurement to ensure sustainable use of natural resources for future generations and we are taking action in collaboration with various stakeholders.