Message from the Chief Officer of Sustainability

Aeon aims to create prosperity for local communities and enrich the daily lives of customers, and based on the Aeon Sustainability Principle, we have continued to tackle initiatives aimed at solving environmental and social issues through our business activities. Particularly in relation to action on environment issues, we have now entered a nowor-never phase in which climate change, food issues and other impacts and risks to corporate business continuity are materializing. Companies that cannot marshal a response to environmental issues will lose the support of stakeholders, and I feel we are getting to the point where we cannot stand by simply making goals to strive for. With these situations in mind, Aeon has pivoted to the strategic promotion of green transformation (GX), viewing actions aimed at solving environmental issues as offensive tactics for business transformation and differentiation, with the aim of implementing GX in a manner that is directly connected to business.
In our Medium-term Management Plan, we aim to achieve the Five Reforms by 2025, and I view GX as essential to all these growth strategies. I therefore recognize as I have a responsibility to incorporate action on environmental issues into business strategy itself.
Aeon operates more than 17,000 stores and locations in Japan and across Asia, where it welcomes some four billion customers annually. If you think of stores as points of contact with customers Aeon also maintains the aspects of a platform for connecting customers with environmental issues. This goes beyond having customers take part in our tree planting activities; we provide opportunities for customers to initiate actions on environmental conservation in a variety of ways, such as the purchase of products made in eco-friendly ways, the collection of recyclables such as PET bottles and food trays, and the use of electric vehicle (EV) charging station functions.
Under the GX strategy we will further pursue those aspects, shaping a society in which people’s daily lives make a seamless switch sustainability in their own right through shopping experiences at Aeon. I think in that lies the essence of tackling GX for Aeon.
​

Aeon’s GX efforts are currently at the stage of verifying plans toward the formulation of a specific action policy. The premise behind this policy will be to achieve the goals we have set to date in a speedier fashion. For example, under the Aeon Decarbonization Vision, we intend to steadily achieve the goals of switching 50% of the electricity used at our stores in Japan to renewable energy and halving the amount of disposable plastics compared to 2018 by the year 2030. For that reason, for each of these activities we have begun the process of checking the progress of promotional partners, action plans and KPIs, while making adjustments to the specifics as needed.
We recognize that we cannot reduce the environmental impact of our products without the cooperation of suppliers, given how significant an issue of Scope 3 emissions (greenhouse gas emissions by other companies related to business activities) are, and we have begun discussions with partner companies with this in mind. Since Aeon plays the role of a platform that connects producers with consumers, by proactively motivating and gaining the cooperation of suppliers and customers by leveraging the characteristically deep relationships we maintain with each, we think it will be possible to achieve a green revolution in distribution. We aim to involve stakeholders and build mechanisms that will further deepen and visualize GX efforts.
Environmental issues surrounding food are also related to issues in local communities centered around children. We implement food drives in which food is donated by customers, and also run initiatives to deliver food to children’s cafeteria and similar establishments as an opportunity to make use of food loss generated in the process of business. Additionally, through the Aeon Cheers Club, which is designed to foster interest in and the ability to think about the environment among children, we provide Aeon store locations around Japan as a place to conduct environmental learning and hands-on experience activities. We will continue to conduct these activities in local communities with our feet firmly planted on the ground.

Traditionally, environmental activities tend to be thought of as corporate social contribution activities that are separate from business, but if people understand the essence of GX initiatives, that mindset will surely change. To get not only employees but many more stakeholders including customers and suppliers to tackle these initiatives more actively, we have to properly convey the significance of GX.
Previously in my career I hadn’t had any opportunities to directly address environmental issues. Now having heard a lot in my capacity as Chief Sustainability Officer, I have gained a keen sense that environmental issues affect all mankind and there is not a moment to lose in addressing them. However, I do understand the position of those who have their work in front of them and have no opportunities to face environmental issues head-on.
The first step towards sustainable management is having employees and suppliers who have the same position I did in the past strike a balance between action on environmental issues and business. To this end, I will do my utmost to promote understanding among all stakeholders and ensure that our GX efforts yield meaningful results.
Our customers have also seen recent temperature rises due to global warming play out before their eyes. While they may potential feel that “I have to do something about it,” I suspect that many are unsure of what action they should take and lack opportunities to get involved. In the future, customers of Gen Z who have a higher environmental awareness will be the main constituents of consumption and labor. To be a company that is the choice of Gen Z, action on environmental issues is a pressing matter, and strategically adopting GX as a company is a prerequisite for doing so. United with employees, Aeon will build a sustainable future together with customers.

Aeon Sustainability Principle