Message from the Chief Officer of Sustainability

AEON aims to prosper the region and enrich the lives of its customers, and continues to work toward solving CSR issues through its business activities under the "AEON Sustainability Basic Policy." In particular, when it comes to responding to environmental issues, we are now in an "urgent" phase where the impact and risks on the business continuity of companies, such as the climate crisis and food issues, are becoming apparent, and I feel that companies that cannot respond to environmental issues will not be recognized by stakeholders, and that we are reaching a situation where we cannot survive with just striving goals.
In this environment, AEON is once again strategically promoting GX, viewing actions aimed at resolving environmental issues as an "attack" aimed at transforming and differentiating its business, and aiming to deploy them in a manner that is directly linked to the business.
Our mid-term business plan aims to achieve "five transformations" by 2025, and we consider GX to be essential for all of these growth strategies. Therefore, it is essential that we incorporate responses to environmental issues into our business strategies.
AEON operates over 17,000 stores and locations in Japan and Asia, with a total of 4 billion customers visiting the stores annually. If we think of the stores as a point of contact with customers, they also have the aspect of being a platform that connects customers with environmental issues. We provide a place where customers can take action toward environmental conservation in various ways, such as not only participating in tree planting activities, but also purchasing environmentally friendly products, recycling resources such as PET bottles and food trays, and using the EV charging station function. Taking this a step further, we feel that the essence of AEON 's GX efforts is to create a society in which daily life itself naturally switches to a sustainable one through the shopping experience at AEON.

AEON's GX is currently in the process of verifying its specific action plans. As a prerequisite, the company wants to achieve the goals it has set up so far more quickly. For example, in its carbon-neutral vision, the company aims to reduce the total amount of CO2 and other emissions from its stores in Japan to zero by 2040, and in terms of plastic usage, it aims to halve the amount of disposable plastic used by 2030 compared to 2018. To ensure this, the company is checking the progress of action plans and KPIs with partners who are promoting each of these activities, and is also beginning to adjust the settings as necessary.
For example, reducing the environmental impact of products is impossible without the cooperation of suppliers, as Scope 3 (other companies' greenhouse gas emissions related to business activities) is also a major issue. We have begun discussions with partner companies, taking such things into account. AEON serves as a platform that connects producers and consumers, so by taking advantage of its strong relationship with both, it may be possible to actively approach and cooperate with suppliers and customers to realize a green revolution in distribution. We aim to build a system that can involve stakeholders and further deepen and visualize our efforts.
Environmental issues surrounding food are also related to local issues, particularly those affecting children. We also run a food drive to collect food donations from customers, and deliver food waste generated during our business processes to children's cafeterias and other facilities to utilize it. In addition, with the aim of cultivating children's interest and concern for the environment and their ability to think, we provide opportunities for environmental learning and experience-based activities at AEON stores nationwide through AEON Cheers Club. We will continue to engage in these kinds of local activities with our feet firmly on the ground.

Previously, environmental activities have been thought of as something that companies can contribute to society apart from their business, but if people understand the true nature of GX initiatives, this way of thinking will change. AEON must clearly communicate the significance of GX to not only its employees, but also its many stakeholders, including customers and suppliers, in order to encourage them to take a more proactive approach to environmental activities.
Customers have also witnessed the recent rise in temperatures due to global warming and many of them feel that they "have to do something," but do not know what action to take or have no opportunity to do so. In the future, environmentally conscious Generation Z will be the center of consumption and labor. In order to be a company chosen by Generation Z, it is urgent to respond to environmental issues, and it is a prerequisite for companies to strategically introduce GX. AEON employees will work together to build a sustainable future together with our customers.

Aeon Sustainability Principle