INFORMATION DISSEMINATION TO CONSUMERS AND THE SUSTAINABLE PRODUCT DEVELOPMENT by AEON GROUP

March 21, 2014

Seiichi Ueyama

Senior Adviser, Green Purchasing Network(Japan)

Former Managing Director in charge of environmental, AEON RETAIL Co., Ltd.

AGENDA

I. Outline of AEON GroupII. TOPVALU (AEON’ Private Brand)III. Labeling and Disclosing Product Information of TOPVALUIV. AEON Supplier Code of Conduct (since 2003 ） and acquisition

of SA8000 certificationV. MSC certification (marine eco-label) / FSC certification(since

2006)VI. Carbon Footprint initiatives (since 2008)VII. Design for the Environment （ DfE ） : 7 environmental aspectsVIII. Example of WRAP (Waste Resource Action Programme)

<Addendum> Disaster Resistant ‘Smart AEON’ – AEON Mall SC (Great East Japan Earthquake – March 2011)

Ⅰ. The 　 outline of Aeon Group

Ⅱ. TOPVALU (Private Brand of Aeon)

TOPVALU 　Ｐroduct　　

　Development

TOPVALU 　Ｐroduct　　

　Development

TOPVALU 　Ｐroduct　　

　Development

CO2 Reduction in Products & Distribution1. Reduction of CO2 emission resulting from the life cycle of products・ We will reduce emission of CO2 from products through the entire product life cycle stages including material procurement, production, distribution, use and disposal/ recycling stages.

2. Improvement of load efficiency・ Increase load efficiency and introduce “environmentally friendly” vehicles.

Products

Distribution

570,000 ton output reduction

Weight saving and thinner packaging

Reduction of transportation distance+ Increase load efficiency（ TOPVALU Box of Tissues ）

Reduction of electricity consumption（ TOPVALU light bulb)

Modal shift ＋use of recycled materials（ TOPVALU lady’s fleece ）

Use of bio fuel （ TOPVALU GreenEye organic banana)

Reduction of waste - Expansion of refillable product range（ TOPVALU bath cleaner ） 99

Example of TOPVALU products ―eco-friendly

Ⅲ. Labeling and Disclosing Product Information of TV

ⅣⅣ.-1 AEON Supplier Code of Conduct .-1 AEON Supplier Code of Conduct (since (since 2003 )2003 )

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The time has come when AEON & its suppliersThe time has come when AEON & its suppliers must be involved and be held accountable must be involved and be held accountable in all the stages of the manufacturing processin all the stages of the manufacturing process

The time has come when AEON & its suppliersThe time has come when AEON & its suppliers must be involved and be held accountable must be involved and be held accountable in all the stages of the manufacturing processin all the stages of the manufacturing process

Establishment of the AEON Supplier CoC 　

（ Code of Conduct ）

Through the AEON Supplier CoC, we, together with our suppliers guarantee that our businesses comply with global environmental and ethical standards.

AEON requires that its domestic and foreign suppliers comply with social and environmental responsibility standards.

Ⅳ Ⅳ.-2 A background of supplier CoC.-2 A background of supplier CoC

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1. Child Labour 2. Forced Labour 3. Health & Safety 4. Freedom of Association & Collective Bargaining 5. Discrimination 6. Disciplinary Practice 7. Working Hours 8. Wages & Benefits 9. Management Responsibility 10. Environment 11. Trade 12. Certificate, Audit, Monitoring and Renewal 13. Ban on Gifts

1. Child Labour 2. Forced Labour 3. Health & Safety 4. Freedom of Association & Collective Bargaining 5. Discrimination 6. Disciplinary Practice 7. Working Hours 8. Wages & Benefits 9. Management Responsibility 10. Environment 11. Trade 12. Certificate, Audit, Monitoring and Renewal 13. Ban on Gifts

Basis of AEON Supplier CoC requirements Basis of AEON Supplier CoC requirements

ⅣⅣ.-3 AEON Supplier CoC Requirements.-3 AEON Supplier CoC Requirements

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Ⅳ Ⅳ.-4 SA8000 History and Definition.-4 SA8000 History and Definition

• ・ Published in late 1997 and revised in

• 2001, the SA8000 Standard and• verification system is a credible,• comprehensive and efficient tool

for• assuring humane workplaces.　

• ・ The SA8000 Standard is an auditable

• certification standard based on • international workplace norms of • International Labour Organisation

(ILO) • conventions, the Universal

Declaration of • Human Rights and the UN

Convention on • the Rights of the Child.

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※

※SA ＝ Social Accountability

Supplier management item of SA8000

• AEON has certified and acquired "SA8000"

Ⅳ Ⅳ.-4 The SA8000 certification acquisition.-4 The SA8000 certification acquisition

AEON Co., Ltd.Headquarter employees

security hygiene / labor circumstances

TOPVALUSupplier management

A legal compliance request / inspection monitor enforcement to domestic and foreign production trust point factories

SA8000 certification range

Supplier demands1.The observance of the requirements of SA80002. Cooperation to SA8000 inspections3. The enforcement of corrective measures

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SA8000SA8000

AEON AEON Supplier Supplier Code of Code of ConductConduct

AEON Business ProcessAEON Business Process

EconomyEconomy

SocietySociety

EnvironmentEnvironment

Customers, Community, Customers, Community, Shareholders,Shareholders,Business partners, EmployeesBusiness partners, Employees

AEON AEON Sustainability Sustainability ReportReport

Ⅳ Ⅳ.-4 Acquisition of SA8000 Certification, .-4 Acquisition of SA8000 Certification, Participation in the United Nations Global Compact Participation in the United Nations Global Compact

United Nations United Nations Global CompactGlobal Compact

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ⅤⅤ. . MSC certification(marine eco-label) MSC certification(marine eco-label) / FSC certification(since 2006) / FSC certification(since 2006)

2020

ⅥⅥ.-1 Carbon footprint initiatives (since .-1 Carbon footprint initiatives (since 2008)2008)

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　〈 Case 1 〉

Carbon footprint initiatives : Showing CO2 emissions on our products

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Production

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Transportationand　sale

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Use　and　disposal

VII. Design for the Environmental (DfE): 7 Environmental aspects

• Reduce the material input of materials (consideration of the ecological rucksack ).

• Reduce the energy input of the product.• Control the release of the toxic material.• Increase the recycling possibility of materials.• Maximize the sustainable use of the renewable

resource.• Extend the durability of the product.• Increase the service intensity (utility) of the product

(the thorough use of the product function ） .

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　　　　　　　 (WRAP ： Waste Resource Action Program) 2010

VIII. Example of WARP

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ヨプ性

We learned a necessity of tough power supply and earthquake –proof structure in Aeon Ishinomaki SC from the Great East Japan Earthquake –March 2011

Disaster　Resistant　‘Smart　Aeon ー Aeon　Mall　Osaka　Dome　City　SC　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　(May　2013　open)

<Addendum>

The sufferers took refuge from the earthquake in Aeon Isinomaki Shopping Centersin the Great East Japan Earthquake (Two weeks , maximum 2,500 people , March 2011)

Healthy　consultation　and　medicine　supply　by　pharmacist　　　　　　　　　　　(in　Aeon　Ishinomaki　　shopping　centers,　March　2011)

Handwrittenguide

Disaster Resistant ‘Smart Aeon – Aeon Mall Osaka Dome City SC

1) Aiming to be a disaster-resistant shopping centers ・　 This SC can accommodate 13,000 people and supply sufferer with water & food in case of emergency 2) Aiming for energy security in the event of a disaster　　　　 ・　 Self-sufficiency　electricity　30%

3) Aiming to reduce CO2 emissions by 40% through a wide range of energy-saving measures

　　

【 The Nikkei (newspaper) 29 May 2013 】

Thank　　you