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

Sustainable Sourcing of Raw Materials

Bet365 登録方法 Group has established the Sustainable Sourcing Principles and Policies that includes traceability, conservation of biodiversity, response to climate change issues, and consideration of human rights, and we have promoted initiatives with the aim of co-existing with nature as set forth in the GREEN CHALLENGE 2050 Environmental Declaration. In addition, in the GREEN CHALLENGE 2050, it is stipulated that we make 50% of food ingredients used in our original products (including Seven Premium) sustainable by 2030, and 100% by 2050.

  • SDGs2 ZERO HUNGER
  • SDGs14 LIFE BELOW WATER

Approach to Marine Product Sourcing

Bet365 登録方法 Group is working to sell products for which sustainability is guaranteed, such as those certified by the MSC, to pass on the rich blessings of the sea to future generations. Further, to fulfill our responsibility as a retail business that connects producers and customers, we are also focusing on conveying the value of these products and the producers’ desires to customers through our stores and websites.

  • MSC:Marine Stewardship Council

    An organization that operates and manages a system for certifying sustainable and environmentally friendly fishing practices.

    https://www.msc.org/en-us/

Sales of MSC-Certified Products

Since October 2018, the Bet365 登録方法 Group has been selling MSC-certified seafood products under its private brand "Seven Premium" at various group stores. These products are wild-caught seafood that have been harvested through fisheries that consider marine resources and the marine environment. They are produced by companies that have obtained certification for their management systems in the processing and distribution stages. In October 2022, Bet365 登録方法 Holdings obtained the 'CoC Certification,' which is a certification for the distribution management of MSC-certified seafood caught through environmentally conscious fisheries. As a result, it has become possible to sell MSC-certified seafood processed in the group's supermarkets (Ito-Yokado, York-Benimaru, York) as certified products.

The ratio of MSC-certified products in Seven Premium's seafood products

FY2021 FY2022 FY2023

8.2%

8.1%

9.2%

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MSC-certified marine product

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Ocean Eco-Label : MSC-C-59602

Sales of ASC-Certified Products

At the fresh fish sections of Ito-Yokado, York-Benimaru, and York, we sell products that have obtained ASC certification, which is awarded to responsible aquaculture practices that consider the environment and society. In October 2022, Bet365 登録方法 Holdings obtained the 'CoC Certification,' a certification standard for the distribution management of ASC-certified seafood that considers the natural environment. As a result, it has become possible to sell ASC-certified seafood processed in the group's supermarkets (Ito-Yokado, York-Benimaru, York) as certified products.

  • ASC: Aquaculture Stewardship Council

    An organization that administers and maintains an international certification system related to aquaculture.

    https://www.asc-aqua.org/

The ratio of ASC-certified products in Seven Premium's marine products

FY2021 FY2022 FY2023

3.7%

3.0%

15.7%

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ASC-certified marine product

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ASC-certified label: ASC-C-03754

Sales of MEL-Certified Products

Ito-Yokado is the first major Japanese retailer to obtain MEL certification, a certification system for eco-friendly catching and cultivation of marine products. From April 2020, 4 original “Fresh Fish with Traceability” products—yellowtail, amberjack, red sea bream, and flatfish—were given the MEL mark. With the further certification given to wakame seaweed and ginzake salmon, certified products of a total of 9 varieties of fish are now being sold at 123 Ito-Yokado stores nationwide as of the end of February 2024. Further, to convey the value of these certified products to customers, some stores have installed point-of-purchase ads in fish sections that explain the certifications.

  • MEL: Marine Eco-Label Japan

    This marine product eco-label certifies fisheries and aquaculture producers that are actively managing fishery resources with consideration for their sustainable use and conservation of the environment and ecosystems, as well as businesses that process and distribute marine products from such producers.

    https://www.melj.jp/

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MEL-certified marine product

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MEL mark

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Point-of-purchase ad that explains

marine product certifications

Sales of Alaska Seafood Products

Bet365 登録方法 Group stores actively sell and convey to customers the quality of Alaska Seafood products, which are sourced through environmentally friendly fishing practices. Alaska Seafood is all-natural marine products, and strictly manages resources and fisheries in the region of product origin of Alaska, to ensure that no damage results to the ecosystems which conserve the natural marine resource.

In the fiscal year ended February 29, 2024, Ito-Yokado's food sections sold Alaskan seafood products such as salted red salmon, salmon roe, kinki (rockfish), and menuke (rockfish). Additionally, since November 2022, Alaskan seafood has been used in the hand-wrapped rice balls sold at Seven-Eleven, with the logo mark displayed on the packaging.

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Hand-wrapped rice ball made with Alaskan seafood

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Alaska Seafood logo

Approach to Agricultural Product Sourcing

Bet365 登録方法 Group is promoting the acquisition of GAP (Good Agricultural Practice) certification for safe farm and aptitude management to promote the sourcing of sustainable agricultural products. We also procure certified ingredients, such as those produced with reduced use of pesticide and those made from organic and fair trade ingredients.

Promotion of GAP Certification Acquisition/Sales of Reduced-pesticide Products

At Ito-Yokado’s Seven Farms, which are engaged in recycling-oriented agricultural operations, and under Ito-Yokado’s original Fresh Vegetables with Traceability and Fresh Fruits with Traceability products, Ito-Yokado aims to ensure safe agricultural produce, correct farm management, and so forth. Therefore, Ito-Yokado has recommended the acquisition of Good Agricultural Practice (GAP) certification.

GAP is an agricultural production management method recommended by the Ministry of Agriculture, Forestry and Fisheries of Japan. It provides a set of standards to be followed in daily farm management to increase food safety and ensure environmental conservation. The minimum necessary levels of agricultural chemicals are used as GAP includes initiatives relating to food safety and environmental conservation.

Moreover, Ito-Yokado and York-Benimaru sell original products that use fewer agrichemicals than the values regulated by law. Examples include the original Fresh Vegetables with Traceability and Fresh Fruits with Traceability products sold at Ito-Yokado. They are grown with fewer agrichemicals and assure traceability of the growing region and growing history. Sales of all foods in the Traceability series including these products in the fiscal year ended February 29, 2024 at Ito-Yokado topped ¥21.6 billion.

Furthermore, the methods and frequency of use of agricultural chemicals vary by region and crop. The Fresh Vegetables with Traceability category and certain other products comprise foods grown with the goal of applying agrichemicals with half or lower of the usual frequency of each growing area (the average number of applications for each crop stipulated by local government organizations and other public bodies).

To expand the range of GAP-certified products, we are promoting the acquisition of JGAP instructor qualifications among the group's product development staff and strengthening collaboration with our suppliers and producers.

Number of GAP-certified instructors in the Bet365 登録方法 Group

FY 2021

FY 2022

FY 2023

Number of certified instructors* 62 139 40

* Employees of Seven-Eleven Japan, Ito-Yokado, York-Benimaru, Bet365 登録方法 Food Systems, IY Foods, and Bet365 登録方法 Holdings

* Total of JGAP fruits, vegetables, and livestock

Ito-Yokado Sales of Fresh Foods with Traceability

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

Sales* (100 million yen)

228 246 243 248 216

* Approximate number

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Fresh Vegetables with Traceability (traceable fresh vegetables with a face of the producer)

Five Promises of Fresh Vegetables with Traceability and Fresh Fruits with Traceability

  1. These lines deal with only domestically grown agricultural products.
  2. Producers who properly grow vegetables on suitable land are carefully selected from all over Japan.
  3. Products are delivered to customers under the name of each individual producer.
  4. Discerning techniques and personalities are introduced on the website and on sales floors.
  5. Agrichemical reduction targets are set and continuous checks are performed on agrichemicals and radioactive materials..

GAP Initiatives (Excerpt)

Food safety (create and implement rules to maintain food safety)

  • Measures for preventing and reducing pollution caused by heavy metals and mycotoxins derived from the environment
  • Proper storage and use of pesticides, personal health and hygiene management of workers
  • Safe storage and handling of agricultural machinery, etc.
  • Prevention of foreign matter intrusion, storage methods for harvested crops, etc.

Environmental conservation (create and implement rules to protect the safety of farms and surrounding environment)

  • Prevention of environmental contamination due to pesticides
  • Appropriate soil management
  • Proper waste/wastewater treatment methods
  • Cutting down on unnecessary and inefficient energy consumption
  • Creation of measures to mitigate damage due to harmful birds and wildlife, etc.

Sale of Organic JAS-Certified Foods

Under Bet365 登録方法 Group's Seven Premium private brand, we sell organic JAS-certified products such as bamboo shoots and other agricultural products, as well as coffee and other processed foods. Ito-Yokado also sells organic JAS-certified products as original Fresh Vegetables with Traceability products.

Soybean Sourcing

 While the demand for soybeans is increasing due to health-conscious trends and the development of soy meat, there are numerous challenges associated with soybean sourcing. These include deforestation and ecosystem destruction for farmland expansion, soil contamination from pesticides, and human rights issues for farm workers. Soybeans are also subject to the European Union Deforestation Regulation (EUDR). Additionally, an analysis based on the TNFD framework conducted by the Bet365 登録方法 Group in the fiscal year ended February 29, 2024, identified soybeans as a critical raw material, alongside coffee beans and rice, due to their significant dependence on and impact on nature, as well as the large procurement volume within the group.

 Starting in 2023, the Bet365 登録方法 Group began using SSAP (Sustainability Assurance Protocol) certified materials from the U.S. Soybean Export Council (USSEC) for the "TOFU BAR" series of the group's original product line, Seven Premium. The SSAP certification sets standards from various perspectives, including traceability to producers, environmental conservation, biodiversity preservation, and consideration of workers' human rights.

 In the fiscal year ended February 29, 2024, approximately 9,000 tons of soybeans were used in Seven Premium products made primarily from soybeans. Of this amount, 13.5% were SSAP-certified soybeans.

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TOFU BAR made with SSAP-certified soybeans




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SSAP certification logo

THE U.S. SOY SUSTAINABILITY ASSURANCE PROTOCOL DIRECTIVES

1.Biodiversity and High Carbon Stock Production Control Measures and Regulations

1.1 Land Use, Sensitive Habitats & Biodiversity


2.Production Practices Control Measures and Regulations

2.1 Soil Health & Productivity

2.2 Crop Health & Agricultural Best Management Practices

2.3 Waste & Pollution

2.4 Greenhouse Gas Emissions, Fossil Fuel Use & Air Quality


3.Public and Labor Health and Welfare Control Measures and Regulations

3.1 Water Quality & Quantity

3.2 Plant Protection & Nutrient Management

3.3 Working Conditions & Labor Relations

3.4 Worker & Public Safety

3.5 Community Relations


4.. Continuous Improvement of Production Practices and Environmental Protection Control Measures and Regulations

4.1 Continuous Improvement

Cacao Sourcing

 Under Bet365 登録方法 Group's Seven Premium private brand, we sell cacao and other products that have acquired International Fair Trade Certification, a system that supports the sustainability and living of producers in developing countries.

 Furthermore, in January 2024, we joined the Platform For Sustainable Cocoa In Developing Countries, administered by the Japan International Cooperation Agency (JICA), to collaborate and cooperate with various stakeholders involved in cocoa raw materials. This initiative aims to address issues related to human rights and child labor in the supply chain, as well as challenges such as deforestation and land conversion.

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Chocolate made with internationally Fair Trade certified cocoa


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Mark of the Platform For Sustainable Cocoa In Developing Countries

Palm Oil Sourcing

Palm oil is widely used in various processed foods as well as in household goods such as detergents, but problems have been indicated, such as destruction of the environment in countries where it is produced and the use of child labor and forced labor on farms. Bet365 登録方法 Group joined the Roundtable on Sustainable Palm Oil (RSPO) in January 2020. Palm oil that is guaranteed to be sustainable is being used for some of the Group's "Seven Premium" private brand products.

Sourcing of Organic Cotton

In response to growing interest in products that are safe and secure for our customers, and environmentally friendly, Bet365 登録方法 Group has promoted the sourcing of organic cotton for underwear and bedding as part of its sustainable sourcing efforts. Starting February 2020, to convey the value of organic cotton to customers in an easy-to-understand manner, we started selling products with a common symbol displayed that satisfy certain conditions, such as being internationally certified through the American Organic Content Standard (OCS) or Global Organic Textile Standard (GOTS).

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Organic cotton symbol 1

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Organic cotton symbol 2

Sale of Organic Cotton Products

Bet365 登録方法 Group sells women’s 100% Organic Cotton Innerwear products that have cleared strict organic production standards under the Seven Premium private brand. These products are sold at 94 Ito-Yokado stores throughout Japan (as of the end of February 2024) and its online shop. Only organic cotton that meets U.S. Organic Content Standards (OCS) is used as a raw material in these products. It also sells towels made of organic cotton.

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Seven Premium Lifestyle 100% Organic Cotton Innerwear

Animal Products Sourcing

Ito-Yokado's original product "Fresh Meat with Traceability" is designed to deliver safe and reliable products to customers. In cooperation with the producers, Ito-Yokado is committed to providing quality rearing environments, environmentally-friendly feeding, minimizing the use of antibiotics, hormones, and other pharmaceuticals; keeping all the administration record is mandatory.

For the product, our procurement officers/merchandisers check with producers at the production sites to ensure that they are applying appropriate feeding and rearing management. Before the products are sold, various tests are conducted, including agricultural chemical residue tests, as well as soil, feed, and water quality tests, and third-party certification is obtained.

Ito-Yokado also promotes the acquisition of JGAP (livestock) certification in the production area of "Fresh Meat with Traceability." JGAP (Livestock) audit standard consists of 113 items that are important for sustainable farm management, including food safety, considerations for the health of animals (animal hygiene) and a comfortable environment for raising the animals (animal welfare), measures for ensuring the safety of workers, and environmental protection.

Five Promises of Fresh Meat with Traceability

  • These lines deal with only domestically grown animal products.
  • Producers who focus on quality feed and rearing environments are carefully selected from all over Japan.
  • Products are delivered to customers under the name of each individual producer.
  • Discerning techniques and personalities are introduced on the website and on sales floors.
  • Antibiotics are used as little as possible, and substances and radioactive materials are checked continuously.

Seven initiatives for the Sustainability of Agriculture (GAP)

  • Trustworthy Farm Management
  • Securing Food Safety
  • Ensuring Environmental Protection
  • Securing Worker Safety
  • Workers’ Human Rights and Welfare
  • Ensuring Animal Hygiene
  • Animal Welfare considerations

*Animal welfare: Rearing of an animal in consideration of its comfort

(Source: Control Points and Compliance Criteria (for Farms) Livestock and Livestock Products 2017)

One of the criteria for JGAP certification is to take measures based on the "Guidelines for Animal Feeding Management Based on the Concept of Animal Welfare."

The "Guidelines for Animal Feeding Management Based on the Concept of Animal Welfare" states that it is important to conduct livestock feeding management with consideration for comfort, comprehensively taking into account the "five freedoms" (i.e. (1) freedom from hunger, thirst and malnutrition, (2) freedom from fear and distress, (3) freedom from physical and thermal discomfort, (4) freedom from pain, injury and disease, and (5) freedom to express normal behavioral patterns) mentioned in the introduction of the OIE (The World Organisation for Animal Health).

Sale of Cage-Free Eggs

An increasing number of customers are concerned about the environment in which animals are raised. In our "Seven Premium Fresh" line, we are mindful of the environment in which chickens are raised. We sell "Traditional Cage-Free Eggs" sourced from hens raised in a free-range environment where they can move around freely. As of the end of February 2024, these eggs are available at all our supermarket stores.

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Seven Premium Fresh "Traditional Cage-Free Eggs"

Approach to Usage of Forest Resources

Bet365 登録方法 Group is making efforts to use wood and paper products produced from properly managed forests.

Use of FSC®-Certified Paper and PEFC-Certified Paper

Bet365 登録方法 Holdings is promoting use of paper with FSC® certification and PEFC certification, which leads to forest preservation. In March 2017, we started using FSC®-certified paper for paper board boxes in our Seven Premium private brand. As of February 29, 2024, FSC®-certified paper is used for 433 items including ice cream containers, and PEFC-certified paper is used 31 items.

Furthermore, we use FSC®-certified paper for the cash envelopes available at Seven Bank ATMs, all manner of leaflets, the Bonolon, Warrior of the Forest magazine, and Denny's mottECO containers. At Bet365 登録方法 Food Systems, as a food services company we have been promoting the mottECO initiative to both encourage customers to eat everything they have ordered and to also make them feel free to take home any leftovers. We use FSC®-certified paper containers at our Denny's locations specifically for taking home leftovers.

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  • FSC®N002571
  • FSC® certification is an international certification system for certifying the proper processing and distribution of wood harvested from forests which are certified to be properly managed.

Initiatives for Material Issue 3