Realization of a Decarbonized Society

Verification tests to promote the purchase of eco-friendly products to achieve a decarbonized society

Expanding the initiatives of the Challenge Carbon Neutral Consortium to address issues through supply chain collaboration

In FY 2024, we participated in the Challenge Carbon Neutral Consortium (CCNC) once again. The CCNC is a group of manufacturers, distributors, and other companies that work together to encourage consumers to become more aware and committed to decarbonization, with the aim of accelerating the establishment of a decarbonized society. The theme of the second year was coordination between education and sales promotion. Therefore, this year, we conducted pilot tests of the Minnade GENKOTSU (Let’s All Reduce CO2) Project on the SUGI Pharmacy app and a store in Osaka. The project encourages consumers to “touch” and “learn” about carbon neutrality in their everyday lives and “strive” to achieve it.

FY 2024 Presentation photo session FY 2024 Presentation photo session

ゲンコツ みんなで減CO2プロジェクト Minnade GENKOTSU in-store pilot test

We cooperated with the Osaka De! GENKOTSU Project, led by the Green Marketing Lab of the Japan Research Institute. As part of this project, decarbonization learning kits were distributed to 1,029 schools, including all elementary schools. SUGI Pharmacy provided contents for all SUGI Pharmacy app users to learn about eco labeling. At our Yao Fukumanji store, we held an event to create POP displays that enable customers to learn about and understand the appeal of eco labeling, and we displayed them on shelves alongside products.

We will continue to explore ways to decarbonize through supply chain coordination, leveraging our experience in “green marketing,” which encompasses everything from raising awareness to promoting sales under a public-private partnership.

App contents to raise awareness of decarbonization
スギ薬局アプリの画面

App contents to raise awareness of decarbonization

A decarbonization POP made by a child

A decarbonization POP made by a child

A workshop on eco labeling

A workshop on eco labeling

Gathering GENKOTSU products in one corner to highlight them

Gathering GENKOTSU products in one corner to highlight them

Members Sponsor and partners

Shifting to renewable energy

We will promote the introduction of a solar panel-based power generation system in stores in order to shift to renewable energy. We have planned and started the introduction of renewable energy by using on-site corporate PPAs (third party ownership). In order to achieve the CO2 reduction target for 2030, we will actively use not only on-site PPAs but also off-site PPAs.

Number of stores using renewable energy
234(As of February 28, 2025) *Solar panels installed in-house + on-site PPA
Solar panels installed on the rooftop of Fujimi Store in Kariya City, Aichi Prefecture

Solar panels installed on the rooftop of Fujimi Store in Kariya City, Aichi Prefecture

Solar panels installed on a store rooftop

Solar panels installed on a store rooftop

Reducing the consumption of fossil fuels

In order to reduce the consumption of fossil fuels by company cars, we have started to introduce electric vehicles (EVs). We will continue to expand the introduction of EVs, as well as hybrid vehicles. We have also introduced a mechanism to monitor the driving status of vehicles, such as sudden braking and starting, to seek safe driving and the reduction of fossil fuel consumption at the same time.

Introducing energy saving equipment and reducing power consumption (energy saving)

We are working to reduce power consumption by closely monitoring temperatures and regularly cleaning AC equipment at stores as well as the headquarters and other offices. We have also been working to replace conventional lighting with LEDs at all our stores since FY 2013. We will also replace old LEDs in due course in order to reduce power consumption and CO2 emissions further.

LED introduction rate at end of FY 2024
87.7%
Target LED introduction rate
100%
2019年度は1126店舗。2020年度は1353店舗。2021年度は1454店舗。2022年度は1552店舗。2023年度は1704店舗。2024年度は1917店舗。

Submission of declaration of voluntary action for “white logistics” promotion campaign

In August 2021, the SUGI Pharmacy Group submitted a voluntary action declaration in support of the “white logistics” promotion campaign advocated by the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Economy, Trade and Industry, and the Ministry of Agriculture, Forestry and Fisheries. In 2023, we introduced MOVO Fleet, a dynamic management service, to realize sustainable logistics. This has enabled us to visualize the status of deliveries from distribution centers to the stores, to monitor drivers’ compliance with laws and regulations, and to optimize delivery times and routes. By establishing a safe and efficient delivery system, we strive to ensure stable logistics in harmonious coexistence with local communities.

Chief distribution center attached to the Chubu Head Office

Chief distribution center attached to the Chubu Head Office

Specific actions set forth in SUGI Pharmacy’s voluntary action declaration

Action items Details of efforts
Logistics improvement proposals and cooperation If there are any requests from business partners or logistics companies regarding manual unloading by truck drivers, the rationalization of ancillary work, etc., we will diligently discuss the matters with them and actively propose solutions.
Introduction of reservation reception system The Company will reduce truck drivers’ waiting time by introducing a truck reservation reception system.
Use of pallets, etc. Use of pallets, etc.
Provision of receiving/shipping information from business partners in advance We will secure adequate work hours for on-site workers and truck drivers to allow them to complete their work and delivery without undue time constraints in order to promote the rationalization of logistics by requesting business partners to share quantity information and data with the distribution center in advance.
Leveling order quantity To reduce cargo waiting time and improve operation efficiency, the Company will level out the difference in busyness, such as by equalizing the quantity of cargo per day and month.
Promotion of documented transportation contracts When selecting a logistics company to contract with, the Company will promote legal compliance by mutually confirming relevant laws and regulations.