Sustainability

President’s Message

ARCS Group creates social and environmental value based on the relationships of trust we have cultivated with stakeholders over many years of doing food supermarket business in each region, and helps their daily lives of our customers sustainable as a lifeline for each region.
We believe that this is the source of our sustainable development. At the same time, we are also required to continue playing our role as public listed company in Prime Market. In order to enhance our function to be a regional lifeline, we will make appropriate investments while continuing to reduce costs and improve productivity in accordance with ESG policy. We aim to become a corporate entity that achieve financial value as well as environmental and social value. In the midst of major changes of external environment, we must take closer position and do more helpful to our customers than ever before, and we will explain and disclose to our customers what we are putting into practice in corporate management. We recognize it will be more important to continue this action. We hope that this page will help you promote better understanding of our group's activities on sustainability field. We would like to ask shareholders to expect the further growth of ARCS Group and appreciate your warm and continuing support.

Sustainability Policy and Structure

The ARCS Group believes that fulfilling our role as a lifeline for each community through the food supermarket business contributes to a sustainable society. Guided by our Sustainability Promotion Policy, we have set four key material issues and reflected them in the action plans of each group company, creating a framework that incorporates sustainability into daily operations.

ARCS Group’s Sustainability Initiatives

We have established a group-wide Sustainability Promotion Policy and identified four key material issues: (1) Living in harmony with communities, (2) consideration for the environment, (3) contribution to customers’ enriched lives, and (4) promoting diversity and inclusion. Based on these, we are advancing initiatives such as improving food recycling rates, reducing plastic waste, increasing the share of women in management, introducing energy-saving equipment, and signing disaster prevention agreements with local governments.

Our Approach to Sustainability

Sustainability Promotion Policy

The following policies have been established to deepen our activities to realize a sustainable society.

Based on the ARCS Group philosophy of “contributing to enriched lives by providing valuable merchandise and services at low prices as a lifeline for each community,” we aim for a sustainable society and grow as a group with our stakeholders through our business activities, and play a social role as a linking bridge to the future for the community.

Sustainability Promotion System

The Sustainability Promotion Committee, chaired by the President, COO, convenes members from each group company and meets approximately once a quarter. The progress of activities and decisions is shared with the Compliance and Risk Management Committee and reported to the Board of Directors as appropriate.

Materiality on Sustainability (key issues)

Material Issue

Risks / Opportunities

Strategy

Living in harmony with communities

Risks

・Declining customer numbers due to population decline/aging demographics

・Fewer opportunities for new store openings

Opportunities

・Enhancing brand value as regional infrastructure provider

・Enhancing brand value as regional infrastructure provider

・Cooperate and support community events

・Donate proceeds from plastic bags

・Sign a partnership agreement with the local government/ organization

・Establish BCP for disaster

Consideration for the environment

Risks

・Rising costs from CO2emissions

・Disaster risks from climate change

Opportunities

・Lower processing costs through waste reduction

・Reduced losses through more precise ordering/production planning

・Reduce food waste

・Reduce plastic packaging

・Energy and CO2measures

・Respond to TCFD recommendations

Contribution to customers’ enriched lives/

Risks

・Increase in facilities/ IT investment

・Difficulty in securing specialized personnel

Opportunities

・Development of new customers

・Increase in repeat customers

・Propose community-based food

・Online store initiatives

・Strengthen mid-career recruitment and enhance training/education levels

・ Enhance ARCS RARA card function and promote cashless transactions

Promoting diversity and inclusion

Risks

・Greater management complexity

・Risk of delays in consensus building

Opportunities

・Expansion of employment capacity

・Innovation creation from diverse perspectives

・Improved employee retention and motivation

・Raise awareness through diversity promotion projects

・Implement bottom-up system reforms at each operating company

・Set KPIs and incorporate them into management targets

ESG initiatives

Customer harassment policy

Click here for related links
  1. Sustainability
    1. Materiality Formulation Process
    2. Consideration for the Environment
    3. Living in Harmony with Communities
    4. Contribution to Customers’ Enriched Lives
    5. Promotion of Diversity and Inclusion
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