To ESG Investors and Experts
Supply Chain (Environment)
Supplier Policy
Supplier Policy Regarding the Environment
AEON is committed to providing safety and security to our customers. To this end, we believe we have social responsibilities to fulfill when dealing with suppliers. In 2003 we established the AEON Supplier Code of Conduct. Under this code, we require suppliers to comply with several rules:
- Comply with all national and local environmental laws and regulations. Give the utmost consideration to environmental protection. Ensure that the raw materials and components used comply with the laws, regulations, international treaties, and protocols of the country or region from which they are secured. Fulfill the terms of the AEON Environmental Policy.
As each organization commits to addressing these issues, we ensure the safety and security of our customers.
Real estate management policy (including tenants)
Our interior design guidelines take into account the use of high-efficiency lighting, energy-saving equipment such as kitchen equipment and refrigerators, and construction methods that reduce waste. We explain our various environmental policies and initiatives to specialty stores (tenants). These explanations include climate change, waste reduction, and biodiversity, at meetings for all specialty stores tenants and at meetings held at each mall. In this way, we engage with specialty stores to collaborate on these issues.
Policy Acceptance
Communication with suppliers
AEON MALL incorporates considerations of the global environment in our store agreements with our specialty store tenants.
In addition, we ask suppliers stationed at our malls to do sign an agreement of cooperation, committing to the following provisions:
- Understand the AEON MALL Environmental Policy
- Understand the environmental protection activities conducted at the mall
- Cooperate in achieving the environmental targets of the mall
- Comply with laws and regulations related to contracted operations
- Cooperate to prevent environmental accidents and emergencies, and help in our response should any accidents or emergencies occur
- Cooperate in other environmental conservation activities conducted by AEON MALL and AEON MALL facilities
Supplier training
We provide ISO training in facility security, cleaning, and other contracted mall operations, not only to our suppliers, but also to workers employed by mall specialty store tenants. We incorporate information related to global climate change trends and individual mall environmental measures into our training as part of our request to contractors and tenants to engage in actions that reduce CO₂ emissions.
Risk Assessment
Due Diligence on Potential New Suppliers
The AEON Group conducts information sessions on a monthly basis for suppliers with whom we are conducting business for the first time. The purpose of these sessions is to encourage respect for human rights and an understanding of the AEON Supplier Code of Conduct (CoC). In addition, we include compliance with the AEON Supplier Code of Conduct as part of our contracts with suppliers to ensure mutual growth in addressing social issues together with our business partners.
Risk Assessment of Existing Suppliers to Identify High-Risk Suppliers
To fulfill our responsibilities as an entity responsible for waste disposal, we vet waste disposal contractors. We confirm whether the contractor has received permissions to collect, transport, and dispose of waste, conduct on-site observances of work performed at our malls, and otherwise confirm that waste is disposed properly. In particular, we conduct training at least once every year for employees of mall specialty store tenants that handle oil to prevent spills into the ground or water.
Risk Management
Recommendations for environmental impact reduction and reporting
AEON Mall requires suppliers to reduce and report on environmental impact based on the AEON Supplier Code of Conduct (AEON Supplier CoC).
The AEON Supplier CoC stipulates the following requirements:
- Suppliers must not only comply with all national and local environmental laws and regulations, but also understand the impact on the environment and give the utmost consideration to environmental protection.
- Suppliers must be accountable for the use of materials in the raw materials manufacturing process as such relates to wastewater and other activities that impact the environment.
- Suppliers must acquire and maintain appropriate permissions related to harmful substances. Suppliers must take appropriate measures to prevent the risk of environmental pollution due to the release of hazardous substances and report any contamination or incidents that have occurred to the relevant authorities.
Negative environmental impact in the supply chain and measures taken
AEON MALL has established, implemented and maintains the necessary processes to prepare for and respond to potential emergencies as described below:
- Prepare responses by planning actions to prevent or mitigate adverse environmental impacts stemming from emergency situations.
- Respond to emergencies as they emerge
- Take action to prevent or mitigate the outcomes of emergencies according to magnitude potential for negative environmental impact.
- Test planned response actions regularly, when feasible
- Review and revise processes and planned response actions on a regular basis, particularly after an emergency situation or testing.
- As necessary, provide relevant information and training on emergency preparedness and response to interested parties, including persons working under organization management.
- Maintain documented information to the extent necessary to ensure confidence that processes will be executed as planned.
In the event of an emergency, AEON MALL has a defined flow chart for internal and external reporting.
In addition, each mall has a procedure manual for emergency response tailored to the particular structure and location of the facility. Malls conduct actual response training in accordance with these procedures. These trainings prepare us to prevent, reduce, or mitigate the environmental impact of possible accidents or emergency situations through a prompt response.
We have seen several incidents in which mall restaurant employees have fallen and spilled oil, but the procedures described herein have prevented oil from leaking out of the building.
Measures to prevent compliance violations
The AEON Supplier Code of Conduct (CoC) stipulates the following requirements to prevent compliance violations:
- Refrain from unethical practices in all business activities, including bribery and the falsification, alteration or concealment of records, evidence, or testimony. Properly disclose information about business activities in accordance with applicable regulations and prevailing business practices.
Initiatives
Participation in workshops and industry/topic-specific initiatives and collaborations
In December 2019, AEON joined with 21 food makers in Japan to launch the Japanese version of the 10x20x30 Food Waste Reduction Initiative , a project pursued by retailers and other companies around the world. AEON MALL also supports this initiative.
Supplier Audits
Supplier audits, including on-site inspections
AEON MALL conducts on-site inspections of waste-related contractors once annually based on our own evaluation sheet. We also use our own evaluation sheet in conducting monthly inspections of mall building cleaning for existing contractors.
Real Estate Portfolio Targets
Quantitative Targets and Results for GHG Emissions, Energy Use
We aim to reduce total CO2 and other emissions in Japan to zero by 2040. With the goal of reducing energy consumption by 50% in fiscal 2020 compared to fiscal 2010, we have streamlined air conditioning operations, introduced high-efficiency and energy-saving equipment, installed solar systems on mall rooftops and walls, implemented LED lighting, and more. As a result, we have achieved a 55.1% reduction in energy consumption (per unit of floor space) over the aforementioned target period.
Unit | Scope*1 | Boundary | FY2018 | FY2019 | FY2020 (Actual) |
FY2020 (Target) |
|
---|---|---|---|---|---|---|---|
Scope 1, 2 (Japan + overseas) | t-CO₂ | ② | Common space | 288,852 | 269,143 | 257,032 | 261,069 |
Administrative and office activities (offices) | t-CO₂ | ② | Common space | — | 188 | 68 | 182 |
Shopping center operation and management activities (malls) | t-CO₂ | ② | Common space | — | 268,955 | 256,954 | 260,887 |
Targets and Results for LEED, BREEAM, and Other Certifications
Our most-recently constructed malls are designed to meet or exceed CASBEE A standards.
Unit | Scope*1 | Boundary | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | |
---|---|---|---|---|---|---|---|---|
Number of certifications | Numbers | ② | Entire structure | 1 | 1 | 1 | 1 | 1 |
Ratio of certified malls to total buildings | % | ② | Entire structure | 0.92 | 0.836 | 0.77 | 0.75 | 0.73 |
Real Estate Portfolio Performance
Green Lease Agreements
We have installed low-impact equipment in our tenant areas. In addition, interior design guidelines for equipment brought in by specialty store tenants also specify the use of equipment with a low environmental impact.
In principle, every area within our facilities has a smart meter installed.
Use of Energy Efficiency Measurement Systems
Unit | Scope*1 | Boundary | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | |
---|---|---|---|---|---|---|---|---|
Scope of building management system adoption for measuring energy efficiency (Total/Partial) | Numbers | ② | Entire structure | 11 | 35 | 47 | 50 | 53 |
Ratio of adoption to total number of properties | % | ② | Entire structure | 10.09 | 28.93 | 36.15 | 37.59 | 38.69 |
Implementation of biodiversity conservation projects
Unit | Scope*1 | Boundary | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | |
---|---|---|---|---|---|---|---|---|
Implementation of biodiversity conservation projects (total/partial) *Number of ABINC-certified malls (total) |
Numbers | ② | Entire structure | 6 | 7 | 9 | 9 | 9 |
Ratio of certified properties to total number of properties | % | ② | Entire structure | 5.50 | 5.79 | 6.92 | 6.77 | 6.57 |
Real Estate GHG Emissions Over the Past Three Years
Unit | Scope*1 | Boundary | FY2018 | FY2019 | FY2020 | |
---|---|---|---|---|---|---|
Scope 1, 2 (Japan + overseas) | t-CO2 | ① | Common space | 288,852 | 269,143 | 257,032 |
Administrative and office activities (offices): actual | t-CO2 | ① | Common space | — | 188 | 68 |
Shopping center operation and management activities (malls): actual | t-CO2 | ① | Common space | — | 268,955 | 256,954 |
Real Estate Energy Use Over the Past Three Years
Unit | Scope*1 | Boundary | FY2018 | FY2019 | FY2020 | |
---|---|---|---|---|---|---|
Energy consumption (crude oil equivalent) | kl | ① | Common space | 118,723 | 117,801 | 112,922 |
Energy consumption intensity | GJ/1,000㎡×h | ① | Common space | 0.401 | 0.379 | 0.364 |
Energy consumption intensity YoY (%) | % | ① | Common space | 97.86 | 94.43 | 95.99 |
Real Estate Water Consumption Over the Past Three Years
Unit | Scope*1 | Boundary | FY2018 | FY2019 | FY2020 | |
---|---|---|---|---|---|---|
Total water withdrawal | ㎥ | ① | Entire structure | 9,998,186 | 9,969,117 | 8,105,434 |
Total water withdrawal | ㎥ | Overseas | Entire structure | 6,476,457 | 6,806,827 | 6,443,289 |
Total water withdrawal | ㎥ | ② | Entire structure | 16,474,643 | 16,775,944 | 14,548,723 |
Percentage of LEED, BREEAM, and Other Certifications
Unit | Scope*1 | Boundary | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | |
---|---|---|---|---|---|---|---|---|
Number of certifications | Numbers | ② | Entire structure | 1 | 1 | 1 | 1 | 1 |
Ratio of certified malls to total buildings | % | ② | Entire structure | 0.92 | 0.83 | 0.77 | 0.75 | 0.73 |
WELL Health-Safety Rating Certification Targets and Results
The WELL Health-Safety Rating was established by the International WELL Building Institute (IWBI) in June 2020 based on the knowledge of experts in public health and other fields. This rating is a global standard assessment conducted by a third party, verifying that facilities are managed and operated in consideration of the health and safety of visitors and employees in the post-COVID world. In fiscal 2020, we had targeted acquisition of the WELL Health-Safety Rating for one property, and succeeded in acquiring the first such certification for a commercial facility in Japan, provided to AEON MALL Ageo (Saitama Prefecture).