Vision for the Long Term

To be a “special” department store-centered retail group that enriches the lives of its customers
~ To gain the utmost support in “High sensitivity, fine quality” consumption, with the pride of Japan and the ability to convey this around the world ~

Isetan Mitsukoshi Group Policy on Sustainability

We fulfill our corporate social responsibility facing various social issues and contributing to solving them through our corporate activities.
We will play a role in achieving both a prosperous future for all stakeholders and a sustainable society.

• Standards of Corporate Ethical Behavior
• Human Rights Policy
• Procurement Policy
• Environmental Policy
• Corporate Governance Guidelines

The Isetan Mitsukoshi Group Standards of Corporate Ethical Behavior are the foundation, for each and every person working in the Isetan Mitsukoshi Group, to practice the Isetan Mitsukoshi Group Corporate Philosophy. They are standards for daily behavior.

1. Through the practice of the Isetan Mitsukoshi Group Corporate Philosophy, we earnestly face the various issues brought by social and environmental change and continue to provide long-term value to our stakeholders.
2. We comply with laws and company rules. We abide by business manners. We behave responsibly in accordance with social norms.
3. We listen carefully to feedback from customers and live up to their trust and expectations. We provide greater satisfaction by picking up on customers’ true needs and fulfilling them speedily.
4. We build a flexible and strong company that can cope with social and environmental changes by making use of diverse human resources’ new perspectives and ideas and growing while pushing each other to work hard.
5. In order to meet the expectations of shareholders and investors, we disclose information in a timely and appropriate manner, enhance our communicative ability, and carry out highly transparent corporate operations.
6. In accordance with the Isetan Mitsukoshi Group Procurement Policy, we establish trusting relationships with suppliers based on fair and transparent transactions in pursuit of co-existence and co-prosperity.
7. As a member of the community and broader society, we deepen interactions to establish trusting relationships and cooperate to contribute to the resolution of issues in the community and society, and to their revitalization.
8. In accordance with the Isetan Mitsukoshi Group Environmental Policy, we act with consideration for balance between business and the environment to ensure that a sound and rich environment is handed down to future generations.
9. In accordance with the Isetan Mitsukoshi Group Human Rights Policy, we respect the rights of the various people concerned with our business and take care to conduct business activities with consideration for the dignity of individuals
10. We manage the company’s tangible and intangible assets properly in accordance with rules and use them only for business purposes. We also appropriately handle information and personal information learned in the course of work.

Established in November 2018
Revised in April 2023

Scope and Application

• These Standards apply to all officers and employees of the Isetan Mitsukoshi Group.
• If a serious incident occurs in violation of these Standards, we will investigate the cause and strive to prevent a recurrence.
• We have established a whistleblowing system to resolve issues through the early detection of violations of these Standards, as well as other inappropriate conduct such as breaches of law and acts of injustice.

Isetan Mitsukoshi Group Corporate Philosophy

Throughout its long history, the Isetan Mitsukoshi Group has led a prosperous coexistence with diverse stakeholders, including customers, staff, suppliers, and local communities, and for this reason, we at the Isetan Mitsukoshi Group are very much alive to the need to respect the human rights of everyone who is affected by all of our business activities. At the Isetan Mitsukoshi Group, we strive to fulfill our duty to respect the human rights of all of our stakeholders by establishing this Policy and creating an environment which respects the human rights of everyone who is affected by our business activities, in order to achieve our vision to become a ‘special’ department store-centered retail group that enriches the lives of its customers.

1. The Underpinnings of This Policy

The Isetan Mitsukoshi Group supports and respects the International Bill of Human Rights which incorporates the Universal Declaration of Human Rights (International Covenant on Economic, Social and Cultural Rights / International Covenant on Civil and Political Rights), the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises, as well as the Ten Principles of the UN Global Compact, whilst also respecting the international human rights standards that apply in the countries and regions in which it conducts business.
This Policy sets out our commitment to respect for human rights, which is based on the aforementioned international standards, as well as the Isetan Mitsukoshi Group Standards of Corporate Ethical Behavior and the Isetan Mitsukoshi Group Policy on Sustainability.

2. Scope of This Policy

This Policy applies to all directors, officers, and employees of the Isetan Mitsukoshi Group.
All of the suppliers engaged by the Isetan Mitsukoshi Group are also required to act with due regard to and comply with this Policy. Likewise, sub-tier suppliers engaged by our suppliers are also expected to act with due regard to this Policy and promote the respect for human rights.

3. Our Approach to the Respect for Human Rights

The Isetan Mitsukoshi Group recognizes that the possibility of its business activities having an adverse impact on human rights cannot be eliminated completely, and seeks to fulfil its duty to respect human rights by establishing and continuously operating a human rights due diligence system, as follows.

(1) We will endeavor to identify, prevent, and lessen any adverse impact our business activities may have on human rights.

(2) Should our business activities cause or exacerbate any adverse impact on human rights, we will respond appropriately to remedy the situation.

(3) Where our business activities are directly linked to adverse impact on human rights because of the business we conduct with our suppliers, we will work with our suppliers to halt or lessen the adverse impact on human rights.

(4) As part of our efforts to ensure the respect for human rights, we will engage in dialogues and discussions with our stakeholders, and we will act in good faith in doing so.

(5) We will publish the details of the initiatives we pursue in order to ensure the respect for human rights pursuant to this Policy, as well as the status of their progress, through various reports and our website.

4. Our Initiatives on Key Human Rights Issues

(1) Prohibition of Forced Labor

We will prohibit forced labor and human trafficking, and uphold sound labor practices that are based on the free will of individuals.

(2) Prohibition of Child Labor

We will adhere to the legal working age, and we will not require young workers below the age of 18 to perform dangerous tasks.

(3) Prohibition of Inhumane Treatment and Harassment

We will: eliminate inhumane treatment such as psychological, physical, or sexual harassment which degrades an individual’s dignity and character; strive to be sound and considerate in our words and actions; and build a relationship of trust with each other and our stakeholders. Furthermore, we will not engage in any unjust treatment whatsoever which is based on characteristics such as gender, sexual preference, disability, age, etc.

(4) Respect for Diversity and Prohibition of Discrimination

We will not tolerate any form of discrimination based on race, ethnicity, nationality, belief, religion, gender, sexual orientation, gender identity, gender expression, sexual characteristics, place of birth, social background, age, health status, disability, employment status, etc., or any other conduct which degrades an individual’s dignity. We will respect the diverse individualities and values of each individual, acknowledge the value our individual differences bring, and strive to create an environment in which our diverse talent can realize their potential to the fullest.

(5) Ensuring Safety and Hygiene at Work, and Maintaining and Promoting Health

We will comply with the laws, regulations, and our internal rules that govern our workplace, and create a work environment which is open and transparent, as well as safe and hygienic. We will then strive to create an environment where our staff can become more health-conscious, and maintain and promote their own health.

(6) Appropriate Wages and Working Hours

We will appropriately manage our staff’s working hours, days off, leave, and wages, by complying with the applicable laws and regulations, and taking into account the international human rights standards as well.

(7) Freedom of Association and Collective Bargaining

We will, in our dealings with our staff, respect our staff’s freedom of assembly and their right to collective bargaining.

5. Education and Training

The Isetan Mitsukoshi Group will, to ensure that this Policy becomes embedded in and implemented in relation to all of its business activities, appropriately educate and train all of its directors, officers, and employees.

Established in November 2018
Revised in April 2023

In order to realize our vision to become a ‘special’ department store-centered retail group that enriches the lives of its customers, we at the Isetan Mitsukoshi Group believe that it is necessary to ensure that our goods and services are procured appropriately, and to secure our customers’ safety and peace of mind at all times.
We will practice sustainable procurement across our entire supply chain, by establishing this Policy and working together with all of our suppliers, so that we may discharge our corporate social responsibility amid the manifestation of human rights and other social issues as well as environmental issues within supply chain.

1. The Underpinnings of This Policy

The Isetan Mitsukoshi Group will not only comply with the applicable international treaties and the related laws and regulations of each of the countries and regions in which it conducts business, but also respect the relevant international codes of conduct, and act transparently and appropriately pursuant to the principle of fair and free competition in its business dealings.

2. Scope of This Policy

This Policy applies to all procurement of goods and services by the Isetan Mitsukoshi Group.
All of the suppliers involved in the procurements of goods and services by the Isetan Mitsukoshi Group are also required to act with due regard to and comply with this Policy. Likewise, sub-tier suppliers engaged by our suppliers are also expected to act with due regard to and implement this Policy

3. Fundamental Initiatives

(1) Fair Business Practices

We will, in order to adhere to the principle of fair and free competition, build partnerships with our suppliers in accordance with the Isetan Mitsukoshi Group’s Basic Policy on Fair Trade.
We will strictly prohibit bribery and corruption, in accordance with the Isetan Mitsukoshi Group Anti-Bribery Policy.
We will respect the trademark rights, design rights, patent rights, and other intellectual property rights held by others, and will not handle goods that infringe the intellectual property rights of third parties.

(2) Quality Control

We will secure our customers’ safety and peace of mind by striving to improve the quality of our goods and services at all times, through our quality control system.
We will promptly and accurately disclose all necessary information which concern the quality or safety of our goods and services.

(3) Consideration for Human Rights

We will promote procurement practices that respect the human rights of everyone who is affected by our business activities, in accordance with the Isetan Mitsukoshi Group Human Rights Policy.

We will put particular emphasis on the following seven areas.

(i) Prohibition of forced labor

(ii) Prohibition of child labor

(iii) Prohibition of inhumane treatment and harassment

(iv) Respect for diversity and prohibition of discrimination

(v) Ensuring safety and hygiene at work, and maintaining and promoting health

(vi) Appropriate wages and working hours

(vii) Freedom of association and collective bargaining

(4) Consideration for the Environment

We will promote procurement practices that pay due regard to the environment, in accordance with the Isetan Mitsukoshi Group Environmental Policy.
In order to conserve the environment and achieve harmony with nature, we will tackle the following five environmental challenges.

(i) Responding to climate change

(ii) Preventing environmental pollution

(iii) Recycling resources and controlling waste

(iv) Preserving biodiversity

(v) Securing water resources

(5) Information Governance

We will establish an appropriate information management system to ensure that confidential information and personal information we become privy to through our trade are protected against unauthorized disclosure to third parties. We will use such information only to the extent necessary to accomplish our business purposes.

(6) Supporting Local Communities in Tackling Their Issues

We will seek to achieve sustainable development of our local communities and economies, and play our part in helping local communities tackle their issues. We will also build a positive rapport with our local communities through proactive communication, and support our local communities as well as their producers.

(7) Elimination of Antisocial Forces

We will eliminate any dealings, including any trading relationship, with antisocial forces that threaten the order and safety of civilized society.

(8) Communication

To ensure that we practice sustainable procurement in accordance with this Policy, we will appropriately educate and train all of our directors, officers, and employees. We will, through dialogues with our suppliers and other external stakeholders, endeavor to strengthen the partnerships with our external stakeholders, and evolve and develop our approach to sustainable procurement.

Established in May 2018
Revised in April 2023

The Isetan Mitsukoshi Group shall meet face to face with customers and other stakeholders, consider activities for protecting the environment as a corporate social responsibility, and fulfill that responsibility to realize a sustainable society where people live in harmony with the global environment.

1. The Isetan Mitsukoshi Group (hereinafter the “Group”) shall work to reduce its environmental footprint through business activities undertaken by the Group with priority given to the prevention of global warming and environmental pollution. In addition, the Group shall pursue initiatives with consideration given to the environment, and shall propose lifestyles that are spiritually enriched.
2. The Group shall take part in environmental activities in local communities, play roles as a member of the communities, and expand the circles of its activities.
3. The Group shall make each Group employee aware of the need to improve the environment through education and awareness training, and shall have Group employees practice activities for improvement not only at their places of work but also in their homes. The Group shall support such activities.
4. The Group shall comply with the relevant legal restrictions. At the same time, the Group shall establish standards of its own as the need to do so arises in order to pursue environmental activities.
5. In pursuing its environmental activities, the Group shall seek to make continuous improvements by preparing action plans based on an assessment of the current conditions, and inspecting and announcing results periodically.

Established in April 2009

In FY2018, the Isetan Mitsukoshi Holdings dramatically revised the Group structure for the management of conventional CSR activities, including environmental measures, from the viewpoints of the Environment, Society, and Governance (ESG) and the Sustainable Development Goals (SDGs). We aim to achieve sustainable business management by both solving social issues and improving corporate value through business under the leadership of senior management by establishing and holding the Sustainability Promotion Committee chaired by the CEO.
In April 2022, we established the Sustainability Promotion Division within the General Affairs Department of Isetan Mitsukoshi Holdings in order to promote sustainability-oriented management with greater speed.

Main Activities of the Sustainability Promotion Committee and Sustainability Promotion Section Meeting

● Identification of risks and opportunities and formulation of necessary policies in promoting sustainability throughout the Group

● Confirmation of progress on long-term plans and KPIs related to materiality, including climate change response

● Sharing, discussing, and monitoring best practices of ESG initiatives at Group companies

● Sharing the latest knowledge in ESG

Sustainability Promotion Committee

The Sustainability Promotion Committee seeks to promote and raise awareness for the measures and priority initiatives of our sustainability activities across the Isetan Mitsukoshi Group. Chaired by the CEO of Isetan Mitsukoshi Holdings, the Committee consists of the General managers of departments (business unit representatives) and affiliate representatives. The Committee held once in FY2021.

Sustainability Promotion Section Meeting

The Sustainability Promotion Section Meeting operates under the Sustainability Promotion Committee. Chaired by the CAO of Isetan Mitsukoshi Holdings, this Meeting is for promoting sustainability measures in working level. It consists of managers (business subunit chiefs), including the general managers of the general affairs departments of the Group companies and Group stores. The Committee held once in FY2021.

Organization for Promoting Sustainability in FY2022

Role of the Sustainability Promotion Division

● Administrative secretariat for the Sustainability Promotion Committee, Sustainability Promotion Section Meeting, etc.

● Sustainability of the entire Group