AEON delight

Disclosure Based on TCFD Recommendations

In May 2022, the AEON delight Group expressed support for the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures), which promotes understanding and disclosure of the impact of climate change on business activities.


The AEON delight Group has adopted ESG management, which is aimed at solving social issues through business, and we have identified "climate change and global warming countermeasures" and "nature conservation and environmental impact reduction" as part of our materiality. As a member of the Aeon Group, we will also support efforts to reduce the total amount of greenhouse gas emissions from our stores to zero in accordance with the AEON Decarbonization Vision 2050.
Based on the TCFD's recommendations, the following discloses the AEON delight Group's "Governance", "Strategy", "Risk Management", and "Indicators and Targets" for climate change.
After considering both the opportunities and risks associated with climate change, we believe that the opportunities for our business activities outweigh the risks if we properly manage the risks, strengthen our crisis response capabilities against disasters, etc. that we have developed over the years, and enhance our customer decarbonization support services, including improving facility energy efficiency. We will continue to extensively analyze the risks and opportunities posed by climate change to our business, confirm the direction of our own initiatives, and reflect them in our management strategies to improve the climate change resilience of the AEON delight Group and our customers. In addition, we will proactively disclose information on our response to climate change in order to contribute to the creation of a decarbonized society and sustainable growth as a company.

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Supervision by the Board of Directors

The Board of Directors receives and monitors reports on activities and issues related to climate change in accordance with the annual agenda of the Board of Directors.
In August 2021, the Board of Directors approved and announced the ‘Basic Policies for Sustainability’. The Board of Directors will oversee the implementation of initiatives with a stronger focus on sustainability in business models, growth strategy, and business activities.

Role of the management (executive) team

The Group's Executive Committee, consisting of President & CEO and key executive officers, deliberates on social issues, including climate change and sustainability, and evaluates the status of environmental initiatives. In addition, the executive officer in charge of ESG, who is also a member of the Executive Committee, will take the lead in promoting company-wide initiatives.


Selection of scenario

The Group has selected the " less than 1.5℃/ 2℃ scenario," in which the impacts on the transitional side become apparent, and the " 4℃ scenario," in which the impacts on the physical side become apparent, as published by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA). For the time frame, we selected 2030 for the medium term and 2050 for the long term.
In conducting the scenario analysis, in order to ascertain the impact on the entire AEON delight Group, the analysis covered all domestic businesses (excluding certain support businesses), which comprise approximately 90% of the Group's sales.

Deliberation process

Deliberation process

Significant risks/opportunities and their impact

As a result of the scenario analysis, while there are various risks and opportunities, such as transition risks and physical risks assumed with climate change, we identified the following as important risks and opportunities for our Group.

Transition risk
Area of impact Risk/Opportunity Overall Evaluation Timeframe
Sourcing Risk Increase in raw material prices due to introduction of carbon tax Small Medium-term
Direct operation Risk Introduction, rise, and expansion of the scope of carbon tax Small Medium-term
Increase in electricity and fuel costs Small Medium-term
Products & Services Opportunity Capture demand for environmentally friendly products and services Medium Short-term
Reduction of cost burden for customers by providing services related to energy conservation (renewable energy, energy saving, LEDs, sensors, cooling systems, etc.) Medium Short-term
Physical risk
Area of impact Risk/Opportunity Overall Evaluation Timeframe
Sourcing Risk Increase in procurement costs due to supply chain disruptions Medium Medium-term
Direct operation Opportunity Expansion of demand for support to strengthen disaster prevention response and early recovery measures in anticipation of more severe natural disasters. Medium
to large
Risk Operational impact (reduction or shutdown of distribution center functions), inability to operate stores, inventory loss from damaged and discarded merchandise Medium Medium-term
Decrease in earnings due to work restrictions, operational impact, employee injuries and illnesses, and difficulty in recruiting human resources due to the increased number of extremely hot days Medium Medium-term
Products & Services Opportunity Expansion of demand for cleaning and disinfection services in response to increased risk of infectious diseases due to global warming Small Medium-term
  • * For transition risk, "SDS" (IEA WEO2020, less than 2℃ scenario), "NZE" (IEA Net Zero by 2050, 1.5℃ scenario), SSP1-1.9, SSP1-2.6 (IPCC AR6, less than 2℃ scenario) (equivalent to RCP2. 6 of AR5) are referenced for less than 1.5℃/ 2℃ scenarios. For physical risk, SSP2-7.0 (IPCC AR6, 4℃ scenario) (equivalent to RCP8. 5 of AR5) as 4℃ scenario. 6), and for physical risks, SSP2-7.0 (IPCC AR6, 4℃ scenario) (equivalent to RCP8.5 of AR5) and STEPS (IEA, 4℃ scenario) are referenced for 4℃ scenarios.

Introduction of carbon tax and increased costs

In order to achieve carbon neutrality by 2050, a carbon tax is expected to be introduced in Japan, the AEON delight Group's primary base of operations. Based on our calculations, we assume that even if a carbon tax is introduced, the additional cost will be limited to less than 1% of the Group's net income. We will continue our efforts to conserve energy in order to reduce the impact on our business.

Increase in renewable energy procurement costs

In order to achieve the AEON Decarbonization Vision 2050, the AEON delight Group may switch the procuring electricity to renewable energy sources. Even if we replace 100% of our electricity with renewable energy, the additional cost is expected to be limited to less than 1% of our Group's net income.

Growing demand for decarbonization and services for energy saving

The AEON delight Group provides a variety of services that help combat global warming, including installation of energy-saving equipment, energy-saving operations of various facilities, fluorocarbon management services based on the Fluorocarbons Emission Control Law, and proposing environmentally friendly materials.
Going forward, we will provide solutions to fully support our customers' decarbonization efforts by adding renewable energy procurement support and other services to these solutions.

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Occurrence of major disasters caused by climate change

Following the occurrence of a major or wide-area disaster, including natural disasters caused by climate change, the AEON delight Group has supported its customers' crisis management by setting up a disaster response headquarters immediately after the disaster, utilizing its nationwide network of service bases and its own internal and external networks to restore damaged facilities, dispatch support personnel, coordinate with relevant government agencies (fire departments, police departments, water authorities, etc.), and procure disaster response materials, equipment, and supplies. The AD Solution Center (Osaka City, Osaka Prefecture and Komaki City, Aichi Prefecture), a disaster prevention center that plays a central role in responding to disasters, constantly collects and analyzes disaster information and remotely monitors managed facilities for abnormalities in order to prepare for risks caused by disasters. From August 2021, we further strengthened our disaster resilience by assigning our head office in Chiyoda-ku, Tokyo with backup functions for the AD Solution Center. The AEON delight Group is working to develop a disaster prevention and mitigation system that includes not only its own BCP (Business Continuity Plan), but also those of its customers.

Past supports

  • 2021 Fukushima earthquake
  • 2018 Hokkaido Eastern Iburi earthquake
  • 2018 West Japan Torrential Rain

Operational Impact

The AEON delight Group has distribution centers located across Japan. Although the risk of river flooding may increase due to more severe extreme weather events in the future, which may cause flooding risk to some distribution centers, we estimate that the amount of damage, such as inventory losses, will be minor. In addition, measures are in place to deliver replacement goods from other distribution centers in the event that a distribution center is shut down due to a power outage or disaster.

Advancement of scenario analysis going forward

Through scenario analysis, we have reaffirmed the magnitude of the risks and opportunities that climate change presents to our business. The risks are not necessarily enormous, and we confirmed that we have already taken measures to address certain key risks.
At the same time, we have confirmed that the AEON delight Group's climate change countermeasures and crisis management contribute to risk avoidance and to improving climate change risk resilience not only for ourselves but for our customers as well. We will continue to strengthen our decarbonization services and crisis management to help reduce climate change risks in society.

Risk management

We established the "AEON delight Group Basic Rules for Risk Management" and have the following systems in place to make necessary decisions and take actions against various risks that may arise in the course of our business activities.

  1. For risk management under normal circumstances, the department in charge of risk, which is designated by risk category*, will manage risks to prevent the occurrence of risk events and reduce losses.
    *Established 83 risk items in 13 areas.
  2. The Risk Management Committee, with the Group Compliance Department serving as its secretariat, shall oversee the evaluation and analysis of risks and proposed countermeasures implemented by each department in charge of risk, examine risk scenarios for each Group company, and periodically report the results of these examinations to the Board of Directors. In the event that a risk materializes and serious damage is anticipated, the executive officer in charge shall promptly report the risk to the President & CEO, and the President & CEO shall promptly report the risk to the Full-Time Auditor.
  3. In the event of a major crisis, a disaster response headquarters headed by the President & CEO will be established to enable more rapid decision-making and execution than under normal circumstances. In addition, we will develop rules and manuals, including basic rules for business continuity in times of crisis (Basic Rules for BCP), detailed rules for basic rules for BCP, and a handbook for disaster recovery response, and periodically revise the rules and manuals, as well as systematically conduct disaster prevention drills.
  4. The department in charge of risk management shall prepare risk scenarios for each of the business risks set by the Risk Management Managers' Meeting, and the Group Corporate Audit Department shall evaluate the effectiveness of risk management through audits and other measures.

The Risk Management Committee reviews each risk scenario by overseeing the risk assessment, analysis, and proposed countermeasures carried out by departments in charge of each risk category. Going forward, we plan to integrate climate change risk into our enterprise-wide risk management process.

Indicators and targets

AEON Decarbonization Vision 2050

Based on the AEON Decarbonization Vision 2050, the AEON Group is promoting initiatives to reduce the total amount of greenhouse gas emissions from its stores to zero by conserving and creating energy, using a three-pronged approach from the perspective of “stores”, "products and logistics," and “hand in hand with customers". The AEON delight Group will also contribute to the decarbonization of society by promoting energy conservation at customer facilities and other measures to combat global warming, as well as through selling environmentally friendly products.

Materiality-based targets

In fiscal 2021, we identified 12 material issues that we will focus on and set targets for each of them for 2030. In the material issues related to climate change, "climate change and global warming countermeasures" and "nature conservation and environmental impact reduction," we have set the targets below.

Expand environmentally friendly business

  • GHG emission reduction-related services comprise 10% of sales (2.1% of FY2020 sales)
  • Zero gasoline-powered work vehicles (AD non-consolidated FY2020: 118 gasoline vehicles out of 289 (40%))
  • Environmentally-friendly products comprise 50% of materials business sales (13% of FY2020 sales)
  • 50% recycling circulation (bottle to bottle) rate for installed vending machines (Rate of FY2020 10%)