Financial risks from delays in sustainability initiatives and climate change

「The group identifies and analyzes the risks and opportunities related to climate change and makes related disclosures. To mitigate the financial impact of future tighter environmental regulations and rising energy costs, it has established the “Mitsukoshi Isetan Group 2030 Medium-Term Environmental Targets” and the “Mitsukoshi Isetan Group 2050 Long-Term Environmental Targets,” and continues to promote initiatives toward achieving a decarbonized society, including reducing greenhouse gas emissions and adopting renewable energy.」

「If the group’s sustainability management falls behind these societal trends, this could adversely affect corporate management through a decline in market competitiveness resulting from a loss of trust among customers and other stakeholders, as well as difficulty securing financing and talent.」

「If the group’s response to these societal trends is inadequate and lags behind, this could undermine the foundation of the department store business, which has evolved with local communities and customers over time, damage social trust and make financing difficult, adversely affecting the continuity of management and financial condition. In addition, tighter environmental regulations due to climate change and higher equipment costs and product prices resulting from surging energy prices could affect the finances of the group’s businesses.」