Make sincere efforts to promote safety and quality, decarbonization, resource recycling (plastic-free, food loss reduction, etc.), and diversity.

We will work to establish a system for thorough quality control of products so that customers can shop with peace of mind.

The Food Hygiene and Quality Control Promotion Subcommittee has been established to prevent food accidents by developing a quality control system for the entire group and studying ways to respond to legal revisions.

• Hankyu Hanshin Department Store
  For in-store products, we regularly conduct spot checks for bacteria, while third-party inspections by an external organization are conducted once a year at suppliers' factories and twice a year at in-store kitchens. If the results are not satisfactory, we request the submission of an improvement report to ensure thorough quality control.
   
• Izumiya Co., Ltd., Hankyu Oasis Co., Ltd.,
  Qanat Co., Ltd.
  The Quality Control Department, which collectively manages the quality of products handled by the three supermarkets, checks (from development to sales) the quality of private brand (PB) products and products processed at each store. The Quality Control Department also conducts monthly hygiene inspections of store kitchens, checks food labels and expiration dates, and conducts bacterial inspections of sampled products in stores to improve the quality control level.

• KANSAI SUPERMARKET LTD.
  KSP Inc. Kobe Akamatsudai Center "Kobe Central Kitchen" produces cooked rice and rice products. "Kobe Process Center" produces processed vegetable products. The introduction of state-of-the-art equipment has improved
  productivity and contributed to a significant reduction in work hours at the stores. In December 2020, the company received JmHACCP (HACCP) accreditation from the Japan
  Sozai Association in recognition of its thorough hygiene management.

As the Group operates many commercial facilities, including department stores, food supermarkets, shopping centers, and other facilities that are visited by an unspecified number of customers, we place a high priority on measures against natural disasters, including earthquakes. Reflecting on our response to the many natural disasters that have occurred in recent years, such as the 2018 Northern Osaka Earthquake, we have begun reviewing our initial response manual in the event of a disaster and are working to build a system that will enable us to continue and restore our operations quickly.

At stores in the city center, where there are many foreign tourists, we have implemented multilingual emergency earthquake alerts and evacuation guidance. In addition, all stores have expanded their
stockpiles to aid those whose journey home has been made more difficult and are strengthening their countermeasures in the event of a disaster.

Agreement signing ceremony between Yao city & Izumiya

In addition, the Company and its major subsidiaries have introduced a system for confirming the safety of employees, as well as IP wireless phones, Google Chat, and web bulletin boards for communication among our headquarters, to enable prompt safety confirmation and information communication in the event of a disaster.

Addressing climate change is an urgent issue that our generation must tackle to pass on a beautiful global environment to future generations. In addition, natural disasters, which are expected to increase and become more severe due to climate change, will have a significant impact on the business activities of the group. Based on this recognition, we believe that contributing to the realisation of a decarbonised society is our responsibility, and last year we set medium to long-term targets for GHG reduction. Specific measures in addition to current measures such as the promotion of energy conservation through the switch to LED lighting and the introduction of frozen
reach-in showcases and energy-saving control equipment, the use of renewable energy will be expanded sequentially.
Additionally, we have begun demonstration tests of an air conditioning
system using the latest AI technology at the Hankyu Umeda main store in collaboration with Kobe University, and we plan to continue promoting a variety of initiatives in the future. We will continue to address climate change issues in a multifaceted manner, considering social conditions and trends in technological innovation.

To achieve a decarbonised society, we have set medium to long-term GHG emission reduction targets and are implementing initiatives to reduce carbon.

We responded to CDP 2021 (Climate Change) as part of our climate
change-related disclosure. We received a "B" rating for our disclosure of the group's awareness of climate-related issues, organisational structure, climate-related opportunities and risks, greenhouse gas emissions, and efforts to reduce emissions.

In addition to Scope 1 and 2, for the first time the Group has calculated its Scope 3 greenhouse gas (GHG) emissions.
In addition, to improve the reliability of our data, we have obtained a third-party guarantee from Deloitte Tohmatsu Sustainability Co., Ltd.for our 2020 energy consumption and GHG emissions (Scope 1, 2, and Scope 3 Category 1).

Hankyu Hanshin Department Store is actively promoting the use of LED lighting, whilst the Hanshin Umeda Main Store, which had its grand opening in April 2022, now exclusively uses LED lighting in all areas, including in the noncustomer facing areas.

In addition to the use of LED lighting, supermarkets are taking energy-saving measures such as the introduction of frozen reach-in showcases (showcases with glass doors) and the installation of nighttime curtains on refrigerated open cases. IZUMIYA is working to reduce CO2
emissions by purchasing emission credits through customer-articipation prize campaigns and sales of PB products with emission credits.
In FY2022, we purchased a total of 2,407 tons of credits from Miyagi and Iwate prefectures, among others, and provided them to the Japanese government free of charge.

Hankyu Hanshin Department Stores, Izumiya, Hankyu Oasis,and Kansai Super Market are striving to reduce food waste generated by their stores and are promoting efforts to recycle it as carbonised fuel and animal feed. Most of the waste oil and fish waste generated during in-store cooking is recycled.

Kansai Super Market has certified and registered all its stores under “Eco Action 21”, an environmental management system from the Ministry of the Environment. We are actively working to reduce waste, conserve energy and resources, and create environmentally friendly stores.

The group is engaged in the recycling business in partnership with Kanso Co.,Ltd. to build a recycling-oriented society. At Kan-so's Tsumori Eco Center (Nishinari-ku, Osaka City), styrofoam delivered by group companies and other companies is crushed, melted, and turned into plate blocks, and aluminum cans and milk cartons collected from
customers at stores are recycled as resources. We also recycle paper such as expired important ledgers. The Tsumori Eco Center has also obtained ISO 14001 certification and is promoting initiatives for a
recycling-oriented society. 

Hankyu Men's Tokyo，Kawanishi Hankyu

We believe that one of our core missions is to contribute to the creation of a better social environment by maintaining fair relationships with our many stakeholders, including customers, shareholders, business partners, employees, and residents, to realize our basic group philosophy: 
"Continue to be an indispensable part of the local community by providing a living model for local residents”.

We have formulated the "H2O Retailing Group Human Rights Policy" based on an understanding of the corporate responsibility to respect human rights as stated in the United Nations Guiding Principles on Business and Human Rights. The basic human rights policy shared by the Group is to respect the dignity and basic human rights of all people and not to discriminate in any way based on race, nationality, ethnicity, gender, sexual orientation, gender identity, disability, age, creed, or social status.

Based on these basic policies, we will make group-wide efforts to ensure that each employee can conduct business activities with respect for the dignity and basic human rights of various stakeholders.

Hankyu Hanshin Department Stores, Inc. has been providing training and supporting qualification acquisition since 2018.
In addition, video training is provided for all employees so that each employee can acquire a standard mindset and knowledge, and we
also use morning meetings and other occasions in stores to ensure that employees understand and permeate the training.

As a group whose main business is retailing, we believe that we should actively promote women, and we are working to create systems and raise awareness that support working styles that match different life stages, such as childbirth, parenting, and nursing care, as well as the promotion of women.
 

The group, whose main business is retailing, believes that as customer needs and lifestyles diversify, it is essential to create unprecedented new added value through customer-driven co-creation and collaboration, incorporating various perspectives to realise its vision.
To this end, we will further promote diversity initiatives in the future to ensure our diverse workforce including people of all genders, sexual orientation, age groups, race, abilities, and handicaps can realise their full potential. Among other things, priority was first given to the advancement of women, who account for more than half of the workforce, so a target was set for the proportion of women in management positions by 2030.
In addition, the Sustainability Management Promotion Committee has held several discussions on the group's unique female successes, (not limited to managerial positions) and has been considering specific measures to achieve this. We will continue to be proactive, by for example establishing projects in each of our operating companies, so that each individual can maximise their strengths and expand their field
of activity.

In order to create a comfortable working environment for employees at various life stages, such as childbirth, child rearing and nursing care, Hankyu Hanshin Department Stores and other group companies have established various systems, such as leave systems and short-time working systems that exceed legal requirements, spouse parenting leave and telework.

H2O Smile Co., Ltd. was established in 2016 as a special subsidiary for the purpose of calculating the employment rate of people with disabilities. Currently, 28 employees are engaged in clerical work and light work at group companies, and the employment rate of people with disabilities through the entire special grouping of the company is 2.38% (as of June 30, 2022).

In addition to annual medical checkups, we are also strengthening our mental health checks. Stress check surveys are conducted even at offices with less than 50 employees (at which we are not legally required to conduct stress check surveys). At some group companies, the H2O Retailing Group Mutual Aid Association takes the initiative in conducting mental health questionnaires once every two years to prevent and detect mental health problems. We also have a system in place that allows employees to consult with an industrial counselor or an independently contracted mental health physician when they have concerns about their health or mental health.

We conduct an annual "emotional wellbeing survey" so that we can monitor the status of employees. In addition, Occupational Health
and Safety Committee meetings are held at each workplace unit to create a comfortable workplace so that employees can work whilst maintaining health and safety.

The  H2O Retailing Group has labor unions in all major operating companies, and labor and management engage in active discussions on such issues as working conditions, the working environment for employees, and ensuring that work rules are thoroughly understood. In addition, at Hankyu Hanshin Department Store, the labor union conducts an employee satisfaction survey of its members. The company conducts awareness surveys among managers and shares the results with them, using them to improve the workplace and consider measures to create a more comfortable workplace.

At the H2O Retailing Group, we believe that demonstrating individual capabilities for self-fulfillment through work is the driving force for creating new value and responding to change and leads to increased corporate value.
For this reason, we promote human resource development by providing human resource development programs and various types of support to help each employee think about and realize his or her own career plan.

The Group HR office was newly established in January 2021 at the holding company H2O Retailing. The promotion of autonomous careers for employees of each group company, reskilling (retraining) to meet future needs and devising digital education, were launched as one of the projects of the Group HR office and are being promoted by each group company.

The core company of the H2O Retailing Group: Hankyu Hanshin Department Store, has established the Hankyu Hanshin
College, which offers a variety of skill development programs to help employees continue to learn with a sense of autonomy and career awareness as they aim to improve themselves. In addition to conventional programs, the college offers a variety of programs, including business skills such as leadership and coaching, and
career support training for different age groups, to promote a culture of continuous learning. In the direction of human resource development, we plan to further brush up the Hankyu Hanshin College and
promote initiatives in which employees of all group companies can participate. KANSAI SUPER MARKET LTD. strives to improve knowledge and work efficiency from multiple perspectives through various educational programs, such as agricultural experience and central market training, and utilises these programs for growth.

The Hankyu Hanshin Department Store has a system in place to reward "hard-working" salespeople and staff for their efforts to improve sales, service, and operations. Each quarter, we commend individuals and sales units that have achieved outstanding results, and the rewards committee decides who will receive special commendations from among them. Food supermarkets Izumiya, Hankyu Oasis and Qanat have launched a joint sales promotion campaign with the aim of utilising the Group's economies of scale and increasing staff motivation.
Shops from both Izumiya and Hankyu Oasis that achieve certain targets as well as stand out for their sales floor development efforts are awarded excellent store awards.

We have a training facility (Maishima School) that can be used by group companies. The Maishima school has large classrooms that can be used flexibly according to the content of the training, as well as accommodations, and can accommodate up to 130 people at a time.
The dedicated facilities not only enable highly intensive training, but also provide an opportunity for participants to deepen communication with each other. Training centers have also been established at Izumiya and Hankyu Oasis, where participants can learn practical skills, such as
display techniques and cash register operations, in addition to processing techniques for agriculture, livestock, fisheries and delicatessen products.

Hankyu Hanshin Department Store new employee training at Maishima School

Hankyu Oasis cashier training