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        Fundamental Polices Relating to Measures to Contribute to the Prevention of Global Warming

        Fundamental Polices Relating to Measures to Contribute to the Prevention of Global Warming(Formulated in June 5,2008)

        Seven & i Holdings and its operating companies comply with environment-related laws and regulations. We are fully aware that our business activities are connected to global resource and global warming issues. Based on this recognition, we will evaluate the environmental impact of and strive to reduce CO2 emission from each process of our operations, covering the entire supply chain from product development to production and distribution, as well as sales and consumption.

        I. Measuring CO2 emissions and evaluating progress

        • Each operating company should accurately measure CO2 emissions associated with its business activities. It also should evaluate its environmental performance against appropriate goals, such as industry association targets (often expressed as per unit energy consumption: total energy use ÷ [floor areas x operating hours]).
        • We will start to measure CO2 emissions from each process—manufacturing, distribution, sales and disposal—of our private brand Seven Premium products.
        • From fiscal year 2007, business partners that manufacture proprietary products of our Group are subject to the Seven & i Holdings Business Partner Action Guidelines. Internal and external audits to inspect the adherence to the guidelines will be introduced in fiscal year 2008.

        II. Reducing CO2 emissions

        Each operating company should take actions to reduce CO2 emissions as according to its business nature, toward the following goals:

        II-1. Reducing CO2 emissions from product development and manufacturing activities

        • We will consider the sustainability of resources and the environment in our product development and manufacturing.
        • We will maximize our environmental efficiency throughout our activities including product development, manufacturing, and shipping.
        • We will make our product packaging and containers lighter and thinner while introducing new materials with a lower environmental impact.
        • We will aggressively introduce local products from the perspectives of food safety and reliability, coexistence with local communities, and food mileage.

        II-2. Reducing CO2 emissions by increasing distribution efficiency

        • We will minimize the environmental impact of our logistics process through joint deliveries with our business partners.
        • For our delivery vehicles, we will aggressively introduce more environment-friendly models such as CNG (compressed natural gas) vehicles and launch research into new fuels such as BDF (biodiesel fuel).
        • We will promote more detailed operational control of delivery vehicles using in-vehicle terminals to improve fuel consumption and use less fuel.
        • We will utilize resources more effectively with reusable boxes for delivering products to stores.

        II-3. Reducing CO2 emissions from sales and marketing activities

        Store equipment and fixtures

        • We will conduct thorough environmental management to reduce the energy used at stores and offices.
        • We aim to achieve environment-friendly stores by bringing in the following initiatives at new stores.
        • We will introduce new energies such as fuel cells, and renewable forms of energy such as solar, wind, and biomass power generation.
        • We will introduce highly energy-efficient equipment and systems such as heat pumps and heat storage systems.
        • We will replace store equipment such as lighting and refrigeration cases with more energy-saving models.

        Sales

        • We will contribute to the reduction of greenhouse gases by supplying products and services that help to conserve energy.
        • We will work on services and sales methods with a high level of environmental satisfaction to give customers a real sense of our concern for reducing environmental impact.
        • We see charging for containers and packaging materials that are currently provided for free as one effective way of reducing the quantity used and, based on the business characteristics of each operating company and with the understanding and cooperation of customers, governments and other stakeholders, will think of efficient steps to bring in.
        • We will actively recycle food waste from stores by, for example, converting it into livestock feed or composting it as a recyclable resource rather than incinerating it. We will make further efforts to create a recycling-oriented society by turning such waste into agricultural and livestock products and selling them through various Group companies.

        II-4. Reducing CO2 emissions from employees

        • We will raise awareness among all Group employees through environmental education so that they actively reduce CO2 emissions.
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