•  Isetan Mitsukoshi Group Standards of Corporate Ethical Behavior

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 Our Philosophy. They are standards for daily behavior.

• Basic Policy on Sustainability

We fulfill our corporate social responsibility by facing various social issues and contributing to solving them through our corporate activities. We will thereby play a role in realizing the prosperous future of all the people involved and a sustainable society.

•  Isetan Mitsukoshi Group Human Rights Policy

The Isetan Mitsukoshi Group respects the human rights of the various stakeholders concerned with its corporate operations, including customers, employees, suppliers, and local communities. The Group will educate all of its officers and employees about this policy and also strive to keep everyone aware and informed so as to ensure consideration is given to human rights throughout the supply chain.

•  Isetan Mitsukoshi Group Procurement Policy

The Isetan Mitsukoshi Group will contribute to realizing a sustainable society by sharing this Policy with its suppliers and advancing initiatives in areas such as measures via supply chains to prevent global warming, biodiversity, consideration for human rights and working conditions, and resources recycling, under strong relationships of trust.

•  Isetan Mitsukoshi Group Environmental Policy

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.

•  Management Structure

In FY2018, we significantly changed our structure for managing our CSR activities, including environmental measures, from the viewpoints of environment, society, and governance (ESG) and Sustainable Development Goals (SDGs). (See the figure at right.) We established the Sustainability Promotion Council, which is chaired by the CEO. Under the leadership of our top manager, this council aims for sustainable management that is based on the provision of solutions for social issues through business activities and the improvement of our corporate value as the two inseparable and fundamental elements. We dissolved the previous Isetan Mitsukoshi Group Environmental Committee in a constructive manner and absorbed its functions into the Sustainability Promotion Committee that was established under the Sustainability Promotion Council.

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 Our Philosophy. They are standards for daily behavior.

1. Through the practice of Our 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.

Revised November 2018

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.

The Isetan Mitsukoshi Group respects the human rights of the various stakeholders concerned with its corporate operations, including customers, employees, suppliers, and local communities. The Group will educate all of its officers and employees about this policy and also strive to keep everyone aware and informed so as to ensure consideration is given to human rights throughout the supply chain.

1. Respect for Human Rights
We respect the human rights and personal dignity of all people concerned with our corporate operations. We see the various issues related to human rights as issues that each and every one of us should address.

2. Compliance and Fair Employment
We support and respect international norms related to human rights. We comply with international treaties and relevant laws applied in each of the countries and regions connected to our business activities, and we abide by fair employment and working conditions.

3. Prohibition of Unfair Labor
We abide by sound labor based on individuals’ voluntary intentions, with no unfair labor such as child labor or forced labor that results in the abuse of human rights.

4. Prohibition of Harassment
We reject such acts as emotional, physical, and sexual harassment that damage individuals’ character or dignity. We aim for considerate speech and conduct as well as sound communication, and we establish trusting relationships.

5. Respect for Diversity
We respect diverse values and seek value in each other’s differences. We strive to create workplaces where all individuals can fulfill their potential and to implement work style reforms for that same purpose.

6. Prohibition of Discrimination
We respect diverse personal qualities. We make sure that there is no discrimination based on such things as race, ethnicity, nationality, creed, religion, gender, sexual orientation, place of origin, age, disease, disability, or employment status, and ensure that no acts are committed that damage individuals’ dignity.

7. Maintenance and Improvement of Health
We strive to enhance employees’ awareness of health and to create an environment where they can maintain and improve their own health.

8. Ensuring Occupational Safety and Hygiene
We abide by laws and company rules related to the workplace environment. We create well-ventilated, safe, and hygienic working environments.

Established November 2018

1. Compliance and Fair Trade
The Isetan Mitsukoshi Group (hereinafter the “Group”) shall comply with international treaties applied in each of the countries and regions where the Group undertakes business activities, relevant laws, regulations and other requirements, and shall engage in transparent and appropriate transactions based on fair and free competition.

2. Quality Control
The Group shall ensure the safety and peace of mind of its customers by making constant efforts to improve the quality of commodities and services based on its quality control systems.
The Group shall speedily and accurately disclose information required in connection with the quality and safety of commodities and services.

3. Sustainability
The Group shall try to make the sustainability of the global environment compatible with business growth and corporate value enhancement by aggressively challenging the solution of social issues suited to sustainable development goals (SDGs) shared worldwide.

4. Responding to Biodiversity
The Group shall comply with international treaties, relevant laws, regulations and the like in order to keep enjoying the bountiful blessings of biodiversity. The Group shall make efforts so that its entire supply chains can take actions, including the elimination of illegal transactions, fishing, gathering and logging, for procuring materials in such manners that give consideration to biodiversity.

5. Reducing Environmental Loads and Preventing Pollution
The Group shall try to build distribution systems that impose a reduced burden on the environment through supply chains.
The Group shall work to reduce greenhouse gas emissions and prevent pollution for easing climate change.

6. Controlling Waste Discharges and Recycling Resources
The Group shall work to control waste discharges, process wastes properly and recycle resources across supply chains to achieve the goal of a sustainable, recycling-oriented and resource-conserving society.
In addition, the Group shall try to recycle water resources and manage drainage appropriately.

7. Eliminating Chemical Substances
The Group shall not deal with commodities in which chemical substances and raw materials prohibited by international treaties, relevant laws, regulations and the like are used.

8. Respecting Human Rights and Prohibiting Unfair Labor Practices
The Group shall respect the human rights and dignity of all individuals who take part in its business activities.
The Group shall procure commodities by means of labor based on the voluntary intentions of individuals free from unfair labor such as child labor and forced labor.

9. Employment, Working Conditions, Safety and Hygiene
The Group shall try to procure commodities manufactured and distributed under proper employment arrangements for all people involved in its business activities and working conditions that are safe and hygienic.

10. Managing Information (Secret Information, Personal Information, Etc.)
The Group shall prepare appropriate information management systems in order to prevent secret information and personal information gained through transactions from becoming disclosed to any third party. The Group shall limit the use of such information to the achievement of its business objectives.

11. Protecting Intellectual Property Rights, Etc.
The Group shall respect the rights of right holders who own intellectual property rights, such as trademark rights, design rights and patents. At the same time, the Group shall refrain from dealing with commodities that infringe on the intellectual property rights of any third party.

12. Excluding Antisocial Forces
The Group shall not deal with any antisocial force.

* The Group shall revise this Policy in response to changes in social conditions and new information.

Established in May 2018

In FY2018, we significantly changed our structure for managing our CSR activities, including environmental measures, from　the viewpoints of environment, society, and governance (ESG) and Sustainable Development Goals (SDGs). We established the Sustainability Promotion Council, which is chaired by the CEO.
Under the leadership of our top　manager, this council aims for sustainable management that is based on the provision of solutions for social issues through　business activities and the improvement of our corporate value as the two inseparable and fundamental elements.
We dissolved the previous Isetan Mitsukoshi Group Environmental Committee in a constructive manner and absorbed its　functions into the Sustainability Promotion Committee that was established under the Sustainability Promotion Council.

The Isetan Mitsukoshi Group has previously set numerical goals for energy and waste figures in Isetan Mitsukoshi Group 2020 Medium-term Environmental Targets, and has promoted improvement initiatives accordingly. Progress towards achievement of these targets has been steady through to FY2017. (Refer to end of document).

Development of 2030 Medium-term Environmental Targets
As initiatives to reduce carbon emissions are being demanded more and more, at the FY2018 we developed the Isetan Mitsukoshi Group 2030 Medium-term Environmental Targets, based on the global trend brought about ｔhe Paris Agreement and other factors. We have set group-wide targets to combat climate change, and we are devoting ourselves to reducing CO2. Furthermore, our reduction targets are based on FY2013 levels, which are the same as the Paris Agreement, and they exceed Japans international commitments.

Sector	2030 Medium-term Environmental Targets (developed in March, 2019)
CO2reduction	A reduction of the Groups CO2 emissions of 42% from FY2013 levels by FY2030 (adjusted coefficient of variation applied).

Long-term Environmental Targets
In FY2019 , We aim to develop the Isetan Mitsukoshi Group 2050 Long-term Environmental Targets in order to create a sustainable society. As with our medium-term targets, our long-term targets will be based on the reduction of total CO₂ emissions, and we are considering acquiring SBT (Science Based Targets) certification.

Ref Medium to long -term Environmental Target Progress

1) Progress towards Isetan Mitsukoshi Group 2020 Medium-term Environmental Targets

Sector	2020 targets	Results	Progress
CO2 reduction	A reduction of the Groups basic units of energy consumption (consumption / (floor area x business hours)) of 20% from FY2010 levels by 2020	FY2016 results: -16.8% FY2017 results: -19.8%	〇
Waste	Achievement of a group-wide waste recycling rate of 75%	FY2016 results: 77.6% FY2017 results: 75.9%	◎

2）Progress towards 2030 targets under the Paris Agreement (government commitments)

Sector	2030 targets	Results	Progress
CO2 reduction	A reduction of the Groups CO2 emissions of 26% from FY2013 levels by FY2030　(fixed coefficient applied).	FY2016 results: -10.8% FY2017 results: -17.0%	〇～△

3）Progress towards Japan Department Stores Association 2030 environmental Targets

Sector	2030 targets	Results	Progress
CO2 reduction	A reduction of the Groups basic units of energy consumption (consumption / (floor area x business hours )) of 15.7% from FY2013 levels by 2030	FY2016 results: -2.4% FY2017 results: -5.9%	△～×

*The above 1) through 3) are limited to the Groups department stores in Japan (excluding the Ebisu store). Overseas stores, small to medium, and satellite stores are excluded.