AUTOBACS SEVEN Annual Report 2014

Feature: To be Infrastructure for a Society where Cars Play Important Roles

Greater Availability, Enjoyment, and Convenience for Customers Eyes firmly fixed on the changing roles of cars in society,and working to firmly root ourselves in local communities

As the roles cars play in society change, AUTOBACS continues to create stores that are always close at hand, and offer one-stop solutions to all car-related needs — stores that provide customers with convenience, reliability, and enjoyment.

In addition, as an employer in local communities, we devote significant resources to personnel development and, through environmental consciousness and activities that contribute to local communities, strive to be a company that is supported and trusted as infrastructure for a society in which cars play important roles.

To Reduce Our Environmental Burden

As a company involved in a business related to cars, we continuously work to reduce the environmental impact of our business activities and, through the merchandise and services we offer, contribute to the development of a sustainable society in which cars are an important element.

AUTOBACS SEVEN Environmental Policy

AUTOBACS SEVEN is committed to activities with considerations to environmental conservation in carrying out its business activities on sales of automotive related goods, statutory safety inspections and maintenance, and car sales.

  1. The Company will grasp the environment impacts of its business activities to determine the objectives, targets and plans for continuous improvement of environmental conservation activities.
  2. The Company will comply with laws, regulations and other requirements pertaining to the environment.
  3. The Company will put priority particularly on the following actions to reduce the relevant environmental impacts among those arising from its business activities.
    1. Promotion of energy saving practices and reduction of greenhouse gas emissions
    2. Reduction of waste emissions and promotion of 3R activities
    3. Purchases of environmentally friendly items
    4. Development of environmentally-friendly goods and services and sales promotion of such merchandise and services at stores
  4. The Company will endeavor to prevent environmental pollution.
  5. The Company will give education to and raise awareness among all its personnel so that they will proactively address the environmental and social issues in an attempt to build a sustainable society with harmony between people and cars.

Environmental Protection Targets and Results

Area FY March 2014 Target Results of Primary Initiatives for FY March 2014 Plans for FY March 2015
Expanded introduction of the environmental management system Acquire ISO 14001 certification for all principal business locations in Japan Acquisition of certification for Chubu locations increased the national total to 8. Acquisition of ISO 14001 certification at the Western Japan Logistics Center
Pursuit of energy efficiency and greenhouse gas reduction Reduction of electricity usage (Reduce CO2 emissions) All locations: 3%
YoY reduction 		Thorough implementation of various energy-saving programs resulted in 5.6% YoY reduction 5% reduction vs. FY March 2013
* Excluding some locations
Reduction of gasoline usage All locations: 3%+
YoY improvement in fuel economy		 Adoption of energy-saving cars, and promotion of environmentally friendly driving of company cars resulted in a 6.0% YoY improvement 5% improvement vs. FY March 2013
* Excluding some locations
Resource-saving initiatives Reduction of waste All locations: 1%
YoY reduction in generation of landfill waste		 Strict enforcement of separation rules resulted in a 17.8% YoY reduction All locations: 1% reduction vs. FY March 2014
Reduction of copy paper usage All locations: 5%
YoY reduction		 Distribution of information by electronic means instead of paper and use of tablet PCs resulted in a 9.8% YoY reduction 2% reduction vs. FY March 2014
*Excluding some locations
Reduction of cardboard usage Western Japan Logistics Center: Reduce 28% vs. FY March 2012 Use of collapsible containers for shipping and properly sized cardboard boxes resulted in a 42% reduction vs. FY March 2012 Western Japan Logistics Center: 29% reduction vs. FY March 2012
Procurement of environmentally friendly products Procurement of green office products All locations: Green procurement ratio of 66.7% or higher Pursuit of green procurement in line with the Company’s guidelines resulted in a green procurement ratio of 86.5％ Achieve a green procurement ratio of 75％ or higher
Environmental communication Environmental education for employees, and publicizing of activity programs — Circulation of education materials, and publicity through PR efforts by individual locations and departments Continuation of initiatives
Contribution to local beautification Neighborhood clean-ups All locations: Implemented over 90% of activities planned for the year Outperformed plans for the year All locations: Participation by all company employees

Environmental Manager

Yoshiharu Yamada General Manager, General Affairs Department

Making societies in which cars are an important element more vibrant through its business activities is the mission of AUTOBACS SEVEN. And because we are a company whose business involves cars, it is particularly important that we take initiatives to protect the environment.

The AUTOBACS Group undertakes environmental protection activities in line with its environmental policy. The Environmental Committee, composed of employees, leads environmental improvement activities and takes steps, such as announcing our headquarters’ monthly electricity consumption to all employees in morning assemblies, to raise environmental awareness among individual employees.

Yoshiharu Yamada
Promoting Energy Saving and Cutting Greenhouse Gases

Formulating Energy-Saving Measures and Cutting CO2 Emissions

Initiatives at AUTOBACS

For the fiscal year ended March 31, 2014, AUTOBACS’ electricity consumption* declined by 29.4% year on year, to 7,515 MW, and total CO2 emissions* fell by 20.9%, to 4,787t. The AUTOBACS Group has formulated energy-saving measures to be implemented over the coming 2-3 years. The programs we are implementing as a result include, for example, a commitment to “no overtime days” enabled by operational improvements and efficiencies.

Electricity Consumption and CO2 Emissions*

Electricity Consumption and CO2 Emissions

* Total for AUTOBACS SEVEN headquarters, offices, directly managed stores, and logistics centers

Initiatives at AUTOBACS Stores

Setting the goal of reducing CO2 emissions by 30% at existing stores of the same size, AUTOBACS installed energy-saving air conditioning systems, LED lighting, solar panels, and rooftop greenery at two test stores in the fiscal year ended March 31, 2011. Using the results of these tests, we are now considering installation of these technologies at new and existing stores.

Solar panels at the AUTOBACS Yamato Koriyama store

Solar panels at the AUTOBACS Yamato Koriyama store

LED lighting at the AUTOBACS Yamato Koriyama store

LED lighting at the AUTOBACS Yamato Koriyama store

Resource–Saving Initiatives

Practicing the 3Rs for Effective Use of Limited Resources

Reducing the Use of Containers and Packaging

During the fiscal year ended March 31, 2014, the Group reduced its use of shopping bags and other types of containers and packaging by 2.5% year on year, to 214t. Reduction in the use of shopping bags was accomplished in part by asking customers for their understanding and cooperaton in using fewer bags. In addition, for AUTOBACS private brand items, we are gradually transitioning to packaging materials that weigh less or use more environmentally friendly materials.

Container and Packaging Usage

Container and Packaging Usage

Reducing Waste, Properly Processing, and Recycling

For the paper, plastic, and other types of general waste emanating from our stores and offices, we constantly remind employees to properly separate waste and strive to generate less waste. And for the waste resulting from the replacement work performed in our service pits, we commission licensed industrial waste management subcontractors to properly dispose of and recycle these materials. At the same time, we use our own systems to ensure proper waste processing by confirming that all waste is being handled in compliance with the law.

Waste Recycling Initiatives

  • 1.Waste Tires
    Special contractors shred the tires, which are mainly used for fuel at cement and paper plants, with some of the material also used in cement.
  • 2.Waste Oil
    Specialist contractors refine and recycle the oil, which is used mainly as boiler fuel.
  • 3.Waste Batteries
    Specialist contractors recycle the lead and plastics to create new batteries.

Using Fewer Resources for Shipping by Employing Collapsible Containers

To reduce resources used for packaging, we are working to substitute reusable collapsible containers for cardboard, which is disposed of as waste, to ship products to stores.

Collapsible shipping containers

Collapsible shipping containers

Promoting Reuse through Our Operations

We promote reuse by purchasing cars and parts from customers and selling them through our stores as used cars and used parts.

Buying and selling of used parts at the AUTOBACS Secohan Ichiba

Buying and selling of used parts at the AUTOBACS Secohan Ichiba