Sustainability Management

Providing affluence and leeway in our customers' lives

President and CEO
Jun Tsuruha

As the role played by companies in solving global social and environmental issues is becoming more important, working to create a sustainable society as set forth by the SDGs is one of the important themes for sustainable corporate value improvement. The Tsuruha Group thinks that.
Under the theme of "Providing affluence and leeway in the lives of our customers," the Tsuruha Group's management philosophy is to support beautiful and healthy living as a lifeline that protects the lives of the region, as well as employment and economic activities for the local people. We are advocating contributions to the local community through our business, such as providing a place for employees.
In order to meet the expectations of all stakeholders, including customers, local communities, shareholders, business partners, and employees, and fulfill our corporate responsibilities, the Tsuruha Group is "promoting business activities to realize our management philosophy." We will aim to improve corporate value through the two wheels of "enhancing actions to solve social issues".

Basic concept of sustainability

● The Tsuruha Group has promoted business activities based on the management philosophy of "providing affluence and leeway in the lives of our customers." In order to continue to fulfill our responsibilities as a company, we will further contribute to the local community through our business, face various social and environmental issues, and through dialogue with our stakeholders, SDGs (Sustainable Development Goals). ) Aim to be a company that contributes to the development of.

● The status of sustainability initiatives is reported to the Board of Directors at least once a year.

Tsuruha Group Management Philosophy

Let's provide richness and leeway to our customers' lives. Become the Tsuruha Group that Japan is proud of.
"The Tsuruha Group is the best drugstore." "Let's come again. Let's tell everyone." Let's become a drugstore that customers can say.
In addition, it will be a drugstore that local people can recommend with confidence and pride, "That drugstore is wonderful" and "Make that drugstore".
This is the only way to generate high productivity and high profits, guarantee the happiness, affluence and margin of life of each customer and employee, and contribute to society.

Business strategy	Specific content	Social value
Dominant area strategy Opening a store based on	Specific details Based on the belief that we will open stores in places that are needed by everyone in the region, we will promote regional centralized store openings based on the dominant area strategy and further expand our store network.	Social value Providing products and services necessary for daily life as a lifeline in the local community
Pursuit of expertise and convenience	Specific content We will focus on developing human resources with specialized knowledge and counseling technology related to health and beauty, and work to create stores from the customer's perspective, aiming to be a convenient and reliable drugstore.	Social value We help our customers solve their problems by providing products and services centered on healthcare and beauty care.
Private brand Expansion of expansion and improvement of product power	Specific details Tsuruha Group's original brands "Kurashi Rhythm" and "Kurashi Rhythm MEDICAL" and other private brand products will be actively developed and improved to provide even more attractive products.	Build good relationships with manufacturers and business partners through the development of social value products, and improve the quality of life of our customers through high-quality products.
Strengthening the organizational strength and profitability of the group	Specific details We will strive to further improve corporate value by increasing profitability by increasing buying power by taking advantage of the economies of scale of multi-store development and reducing costs through the integration of headquarters organizations.	Social value Return to shareholders and investors by improving the dividend level in line with continuous profit growth

Sustainability promotion system

Important issues (materiality)

■ Identification of materiality

We have identified five materialities for the Tsuruha Group to create a sustainable company and society. We will promote ESG initiatives based on the identified material issues and aim to sustainably increase corporate value.

■ Process of identifying and reviewing materiality

Material issues were identified based on the Tsuruha Group's management philosophy through repeated discussions and discussions on solutions for each environmental, social, and governance item at the Group Executive Committee chaired by the president. We have embodied our ideal vision, points of contact and dialogue methods, and main initiatives, and have positioned related SDGs (Sustainable Development Goals) as goals, and after deliberation at the Board of Directors, we have approved the identification of materiality.

Important issues	What you should aim for	Main initiatives	ESG field	Related SDGs
In your life Providing "richness and margin"	What you should aim for ・ Providing better service ・ Supporting the beauty and health of all customers ・ Product proposals and development that help a healthy and prosperous life ・ Extension of healthy life expectancy by providing healthcare services ・ Role as an indispensable lifeline for local customers	Main initiatives ・Realization of management philosophy ・HP, SNS, in-house app measures ・Holding online health festivals and health seminars ・Nutrition and health consultation session by a registered dietitian ・Promoting the establishment of dispensing facilities and accepting dispensing trainees ・Convenience due to new store openings ・Implementation of local events and activities ・Agreements with local governments (disaster support, etc.) ・Emergency assistance, humanitarian assistance <KPI> Number of point card members (number of active members*1) 2021 12.2 million people 2025 15.8 million people 22 million people in 2030	Corresponding ESG field S	Related SDGs
Providing an environment where each person can work comfortably and worthwhile	What you should aim for ・ A work-life balanced environment that is easy to work regardless of age, nationality, gender, etc. ・ Place of activity and promotion of human resource development ・ Promote employee health	Main initiatives ・Promoting diverse human resources, active participation of women, and work styles ・Reducing travel time and burden through online use ・Promoting employee health maintenance and health promotion ・Annual awards ・Employee recognition system <KPI> Selection of core human resources (female ratio) 2021 female ratio 17.5% 2025 Female ratio 25% (2021 difference +7.5%) 2030 female ratio 37% (2021 difference +19.5%)	Corresponding ESG field S	Related SDGs
To the next generation Think about the global environment	What you should aim for ・ Reduction of environmental load toward the realization of a carbon-free society ・ Switching and introducing environmentally friendly products ・ Reduction of waste	Main initiatives ・Promoting ethical living (plastic products, reducing the number of deliveries, LED lighting, air conditioning equipment, solar power generation, etc.) ・Provide environmentally friendly products, including private brand products ・Reduction of waste loss <KPI> Reducing CO2 emissions per store (compared to 20132) 2020 CO2 emissions 70% (30% reduction) (compared to 2013) 2025 CO2 emissions 63.3% (36.7% reduction) (compared to 2013) 2030 CO2 emissions 54% (46% reduction) (compared to 2013) Optimization of pharmaceutical distribution Reduce CO2 emissions by reducing the number of deliveries of prescriptions (compared to 20203) 2021 CO2 emissions 55% (45% reduction) (compared to 2020) 2025 CO2 emissions 53% (47% reduction) (compared to 2020) 2030 CO2 emissions 50% (50% reduction) (compared to 2020) Ratio of environmentally friendly PB products (compared to 2021*4) 2021 Environmentally friendly PB product ratio SKU4.2% 2025 Environmentally friendly PB product ratio SKU8.7% (compared to 2021) 2030 Environmentally friendly PB product ratio SKU13% (compared to 2021)	Corresponding ESG field E	Related SDGs
Cooperation with business partners	What you should aim for ・ Continue to strengthen cooperation through fair transactions ・ Promote sustainability through the supply chain (legal compliance)	Main initiatives ・ Execution of regular meetings regarding products handled and product development ・ Implementation of business partner briefing sessions ・ Formulation of CSR procurement policy ・ Promotion of product traceability	Corresponding ESG field S	Related SDGs
Promotion of governance	What you should aim for ・ Strengthening effective governance system and implementing risk management ・ Timely and accurate information disclosure	Main initiatives ・ Strengthening board monitoring ・ Thorough compliance ・ Organizational response to information security ・ Conversations with investors and shareholders Websites for investors and enhanced disclosure of non-financial information	Corresponding ESG field G	Related SDGs

Stakeholder engagement

Stakeholders	Policies / Issues / Initiatives and Direction	Main points of contact and dialogue methods
Customer	Policy / Issues / Initiatives and Direction Providing "richness and margin" through products and services	Main points of contact/dialogue methods Developing products with high added value Customer service at store In-house app Homepage/SNS
Employee	Policies / Issues / Initiatives and Direction Easy-to-work and rewarding work environment Human resource development, active promotion, career advancement support Occupational safety and health (promotion of employee health)	Main points of contact and dialogue methods Management policy presentation In-house newsletter / In-house intranet Training / study session Self-assessment and interview feedback Whistleblower window
Community	Policies, issues, initiatives and direction Providing social infrastructure and serving as a local lifeline Revitalizing local economy and promoting employment	Main points of contact/dialogue methods Expand store network by opening new stores Collaboration with local governments and medical institutions Participation in local activities
business partner	Policies / Issues / Initiatives and Direction Strengthening cooperation through fair transactions Promotion of sustainability through the supply chain (legal compliance, human rights, environment)	Main points of contact and dialogue methods Meeting on product development, etc. Information session for business partners Business partner social gathering
Shareholders / Investors	Policies / Issues / Initiatives and Direction Improving shareholder value and enhancing shareholder returns Timely and accurate information disclosure and communication Fair and transparent management Enhancing and strengthening governance Risk management	Main points of contact and dialogue methods General meeting of shareholders Financial results announcement Investor meetings and interviews Investor website
global environment	Policies, issues, initiatives and direction Contributing to a decarbonized society Contribution to resource circulation	Main points of contact/dialogue methods Global environmental measures for the next generation (sustainable ethical environmental activities towards a decarbonized society, utilization of renewable energy) Development and provision of environmentally friendly PB products