Impact

ES

1.Proposing enriched lives that anticipate lifestyle changes

Challenges

Providing goods and services that support a diversifying super-aging society

Reason for Selection

To create the social value of helping to strengthen the resilience of an aging society under our Management Philosophy, "Connecting people and society to the future with a smile"

Main Action Plans

  • Delivering value unique to Joshin by building a strategic business foundation closely aligned with each customer’s lifestyle
  • Enhancing the service and support capabilities of store staff
  • Resolving customer concerns using our own delivery, installation, repair and other infrastructure along with remote technologies
  • Expanding the "local electronics store that is also a mass retailer" model across the entire Kansai region

Main Results(FY 2025)

  • Expanded the Joshin economic zone by raising awareness of the Joshin website
  • Established the Product Development Office within the Merchandise Department and identified and secured several OEM partners
  • Launching the Rapid Response Service marked the first step toward becoming a “local electronics store that is also a mass retailer.”
  • Built an environment to fully attend to the concerns of our customers

Main Goals (FY 2025)

  • Achieving a 50% share of e-commerce sales on our own website by increasing the number of customers using both channels under our OMO strategy [FY2028]
  • Percentage of consolidated net sales from the full-scale launch of the private brand (PB) product business: Achievement of 10% [FY2028]
  • Improving the capabilities of 33 Rapid Response Service staff in the Kansai region with on-the-job training in the Service Support Division [2028]
  • Implementing LIVE ASSIST across all sales divisions and service centers [2030]
  • Expanding the number of stores with resident Rapid Response Service staff to 57 across the Kansai region by FY2027

Issues and Countermeasures (FY 2025)

  • Eliminating shortages of human resources involved in our e-commerce systems and product planning operations
  • From FY2026, began launching PB products focused primarily on small and medium-sized home appliances
  • Establishing and enforcing rules for managing personal and corporate information when implementing LIVE ASSIST to leverage remote technologies
  • Increasing the participation rate for reciprocal training between store staff and Service Support Division personnel
  • Developing Rapid Response Service staff and establishing the necessary staffing structure

Proposing prosperous and fulfilling lives filled with smiles, made possible by energy conservation and clean energy

Reason for Selection

To create the social value of achieving household carbon neutrality under our Management Philosophy, “Connecting people and society to the future with a smile”

Main Action Plans

  • Contributing to GHG reductions by boosting sales of environmentally friendly products
  • Promoting renovations to enhance the functionality of homes and thermal insulation retrofits of windows and doors
  • Promoting the adoption of V2H systems, EV charging equipment, and residential storage batteries, and increasing sales of solar power systems and high-efficiency water heaters

Main Results (FY 2025)

  • Percentage of units accounted for by environmentally friendly products (energy-saving products): 32.1% (Target percentage of units: 30%) (Applicable products: Refrigerators, air conditioners, washing machines, and bidet toilet seats)
  • FY2025 units compared with the previous fiscal year: Interior windows: 182%; entrance doors: 137%
  • Began collaborating with the Toyota Nankai Group on the installation of residential EV charging equipment
  • Used subsidies administered by the Ministry of Economy, Trade and Industry for EV charging outlet installation

Main Goals (FY 2025)

  • Target percentage of units accounted for by environmentally friendly products (energy-saving products): 40% (under FY2024 standards) [FY2030]
  • Annual installation target for thermal insulation improvements to windows and doors (interior windows: 6,000 units; entrance doors: 200 units) [FY2030]
  • Annual sales target for EV-related products (EV charging equipment: 2,000 units; V2H units: 400 units; residential storage batteries: 110 units) [FY2030]

Issues and Countermeasures (FY 2025)

  • Establishing a sales structure following the revision of energy efficiency standards in 2027
  • Promoting bundled sales with air conditioners
  • Proposing that the work be carried out at the same time as renovations that use subsidies
  • Securing B2B projects for common areas of apartment complexes and other facilities
  • Promoting proposals for non-FIT and self-consumption systems

2. Offering safe and secure products and services

Challenges

Enhancing customer service using AI and ICT technologies

Reason for Selection

To address diversifying lifestyles and household concerns while becoming a “hub for the infrastructure of life” that is indispensable to society

Main Action Plans

  • Establishing a framework for providing safe and secure customer service using the latest ICT technologies
  • Developing a system that links the app with location and skills data to immediately dispatch (match) the most suitable home-visit support staff
  • Promoting OMO that seamlessly integrates online and offline channels

Main Results (FY 2025)

  • Maximized customer lifetime value (LTV) by distributing coupons via the app and using purchase data analysis for marketing
  • Visualized the skills of home-visit support staff and enhanced their response capabilities by accompanying staff on site visits and through other measures
  • Improved the convenience of the e-commerce site by implementing store inventory information display and enhanced search functions

Main Goals (FY 2025)

  • Providing services that combine convenience with safety and reliability by promoting DX that uses AI and other ICT technologies [FY2030]
  • Establishing next-generation support infrastructure that enables the most suitable specialist staff to respond rapidly to unexpected customer concerns
  • Achieving the target number of members using both physical stores and the e-commerce site

Issues and Countermeasures (FY 2025)

  • Establishing a framework for promoting DX to develop services that anticipate latent customer issues by enhancing the analysis of purchase histories and other data, and to accelerate the early implementation of ICT technologies
  • Developing a matching app that connects home-visit support staff with customer needs, and improving on-site response capabilities by using remote support technologies and AI
  • Building a convenient, seamless service environment to encourage customers to use both physical stores and Joshin Web Shop

Ensuring product quality and safety

Reason for Selection

Because, as a Gold Product Safety Company, it is our social responsibility to contribute to a comfortable, safe, and secure society by providing products and services that customers can use with peace of mind

Main Action Plans

  • Improving the system and process for providing recall information
  • Continuously proposing product improvements to suppliers and cooperating in the recovery of recalled products
  • Enhancing and standardizing installation techniques using AI, ICT, and other technologies

Main Results (FY 2025)

  • Began upgrading the system to provide recall information more quickly and efficiently
  • Held 28 discussions with suppliers on handling product recalls and 60 information exchange meetings on safety improvements and other topics during the year
  • Established a system for real-time photographic monitoring of air conditioner installation work, introduced a pre-work facial recognition system, and enhanced practical, specialized training curricula

Main Goals (FY 2025)

  • Streamlining and accelerating recall notifications by upgrading the system [FY2026]; Providing recall information via the app, SMS, and other channels [FY2030]
  • Establishing an integrated product safety framework with suppliers that covers both sales and manufacturing [FY2030]
  • Pursuing zero installation defects at all sites and establishing a strong safety and security brand [FY2030]

Issues and Countermeasures (FY 2025)

  • Reinforcing the integration of the purchaser information database with product and defect information
  • Continuing to contribute to improved product safety by exchanging views with our suppliers
  • Using accumulated data for training and guidance to enhance and standardize installation quality

Environment

3. Contributing to the creation of a better society that is in harmony with the global environment

Challenges

Developing a resource recycling society

Reason for Selection

As this is critically important for preventing the depletion of resources and addressing global warming, and, as a platform for local consumers, we can contribute by appropriately collecting, reusing, and recycling unwanted equipment and products

Main Action Plans

  • Diversifying approaches to resource collection and establishing a recycling-based business model
  • Recycling and reusing in-house equipment and consumables
  • Reducing the use of plastic in containers and packaging materials

Main Results (FY 2025)

  • Collection rate for the four product categories subject to home appliance recycling: 63.0%
  • Launched the project and began considering potential collaboration partners
  • Recycled unwanted equipment and other items resulting from store closures
  • Reduction of plastic usage in shopping bags by 86.7% (compared to FY2019)

Main Goals (FY 2025)

  • Increasing the resource collection rate by diversifying approaches to resource collection

  • Establishing a business model by forming alliances with other industries [2030]

  • Developing domestic recycling channels for unwanted equipment and consumables [2028]

  • Phasing out shopping bags made from plastic materials [FY2040]

Issues and Countermeasures (FY 2025)

  • Considering the development of a business model suited to the circular use of resources and extending product life
  • Increasing the recycling rate by ensuring proper waste separation
  • Considering new shopping bags based on cost and materials

Addressing climate change in our business activities

Reason for Selection

Climate change and biodiversity conservation are pressing global issues that must be addressed not only in relation to the direct environmental impact of the Group’s business activities, but also across the entire supply chain

Main Action Plans

  • Reducing GHG emissions across our entire supply chain
  • Increasing the self-generated renewable energy ratio by optimizing infrastructure facilities
  • Improving the quality of climate change and biodiversity disclosures

Main Results (FY 2025)

  • FY2025:35.0% reduction in Scope 1+2 emissions and 7.8% reduction in Scope 3 (categories 1 and 11) emissions compared with FY2021
  • FY2025 self-generated renewable energy ratio: 28.0%
  • Selected for the CDP Climate Change Program A List for the third consecutive year
  • Began TNFD analysis of dependencies and effects on nature in selected areas of the midstream value chain

Main Goals (FY 2025)

  • 42% reduction in Scope 1 + 2 emissions and 25% reduction in Scope 3 (categories 1 and 11) emissions compared with FY2021 [FY2030]
  • Self-generated renewable energy ratio at business sites where the Company contracts directly with power suppliers: Achievement of 30% [FY2030]
  • Maintaining a high rating in the CDP Climate Change Program [FY2030]
  • Expanding the scope and detail of TNFD-based disclosures

Issues and Countermeasures (FY 2025)

  • Promoting the use of renewable energy at business sites located in leased premises and exploring initiatives to reduce emissions across our entire supply chain
  • Promoting the conversion of business sites into ZEBs
  • Exploring the creation of opportunities related to biodiversity

Social

4. Diversity & Inclusion

Challenges

Securing human resources

Reason for Selection

To secure the human resources that are the source of our organizational strength, and to connect their growth to the Company’s sustainable growth

Main Action Plans

  • Securing human resources in line with the business plan
  • Raising the expertise of head office functions
  • Ensuring and retaining a diverse workforce to enhance corporate value

Main Results (FY 2025)

  • Number of new graduates and mid-career hires: 177
  • Human resources fulfillment rate: 101.2%
  • Turnover rate: 2.3%

Main Goals (FY 2025)

  • Continuing to hire 150 new employees every year [FY2030]
  • Human resources fulfillment rate: 100% [FY2030]
  • Turnover rate of permanent employees: 2.5% or less [FY2030]; 2.0% or less [FY2050]

Issues and Countermeasures (FY 2025)

  • Developing a human resources strategy aligned with the management strategy

  • Optimizing the allocation of personnel to growth businesses

  • Realizing an in-house environment where diverse human resources play a more active role

Human resource development

Reason for Selection

To create new customer satisfaction and enhance corporate value by developing specialized human resources

Main Action Plans

  • Developing specialized human resources for core businesses
  • Reskilling
  • Systematically developing female leaders

Main Results (FY 2025)

  • Percentage of certified Home Appliance Advisors and Engineers among permanent employees: 86.5%
  • DX literacy training: Cumulative total: 4,327 participants; generative AI training: 1,269 participants
  • Percentage of female managers: 4.7%

Main Goals (FY 2025)

  • Percentage of employees holding Home Appliance Advisor and other certifications: 85.0% [FY2030]
  • Having all employees complete DX training [Continuing initiative]
  • Percentage of female managers: 5.0% [FY2030]

Issues and Countermeasures (FY 2025)

  • Developing self-directed human resources
  • Developing a training framework by establishing business-specific academies
  • Supporting women’s career development through networking

Health and productivity management

Reason for Selection

To maximize individual and organizational performance by promoting health and productivity management

Main Action Plans

  • Preserving and improving mental and physical health
  • Improving health literacy to promote healthier lifestyles (diet, exercise, and sleep)
  • Creating a safe and secure work environment

Main Results (FY 2025)

  • Presenteeism: 92.9% Overall health risk: 101
  • Health index score (obesity, blood pressure, liver function, lipids, blood sugar, and smoking): national average -4.0%
  • Occupational accident frequency rate: 1.36; occupational accident severity rate: 0.02

Main Goals (FY 2025)

  • Presenteeism: 94.0% [FY2030] (Measured using the WLQ-J) Overall health risk: 102 or lower
  • Health index score (obesity, blood pressure, liver function, lipids, blood sugar, and smoking): national average +2.0% [FY2030] (National averages are based on the Ministry of Health, Labour and Welfare’s NDB Open Data)
  • Occupational accident frequency rate: 1.30 or lower; occupational accident severity rate: 0.02 or lower

Issues and Countermeasures (FY 2025)

  • Providing targeted support based on potential health risks
  • Enhancing individualized guidance and support to address health concerns
  • Regularly assessing risks in the work environment

5. Building a responsible value chain

Challenges

Respect for human rights

Reason for Selection

To carry out business management that respects the fundamental human rights of all stakeholders in line with our corporate motto of “Thoughtfulness” and international human rights standards

Main Action Plans

  • Communicating the Joshin Group Human Rights Policy to stakeholders 
  • Implement human rights due diligence

Main Results (FY 2025)

  • Held stakeholder meetings
  • Provided feedback on the results of the human rights questionnaire

Main Goals (FY 2025)

  • Promoting awareness of respect for human rights throughout our value chain
  • Prevent and mitigate risks to human rights across our value chain

Issues and Countermeasures (FY 2025)

  • Collaborate on human rights awareness initiatives under the UN Global Compact
  • Support partner companies in implementing human rights due diligence

Sustainable purchasing activities

Reason for Selection

To reduce and prevent risks in our supply chain and build a sound and resilient procurement framework in the spirit of the UN Global Compact

Main Action Plans

  • Communicate the Procurement Policy and Procurement Guidelines and conduct supplier assessments
  • Promote engagement (collaboration) with suppliers

Main Results (FY 2025)

  • Conducted a procurement questionnaire targeting 303 major suppliers; sustainable procurement rate: 70.5% (Response rate 52.5%)
  • Selected as a CDP Supplier Engagement Leader for two consecutive years

Main Goals (FY 2025)

  • Establish resilient and sustainable partnerships with suppliers in order to address ESG issues
  • Achieve a sustainable procurement rate of 80% [FY2030]
  • Continue to be selected as a CDP Supplier Engagement Leader [FY2050]

Issues and Countermeasures (FY 2025)

  • Enhance analysis of assessment results and hold individual feedback meetings with suppliers
  • Build a framework for resolving issues across the entire supply chain through engagement

6. Promoting synergies with local communities

Challenges

Further developing businesses that support the growth of local communities

Reason for Selection

To promote solutions to social issues by leveraging our core business in our role as part of the infrastructure of life and achieve sustainable growth alongside local communities, whose development is essential to the Company as a business built on community-based stores

Main Action Plans

  • Promote community engagement and businesses that address social issues, based on the four pillars of safety and security, a healthy life, support for the development of the next generation, and the environment
  • Promote the resolution of local issues and sustainable creation of shared value (CSV) in collaboration with local governments, educational institutions, and other organizations
  • Bridge the digital divide (information gap) in local communities by providing smartphone support and other services

Main Results (FY 2025)

  • Achieved closed-loop recycling of 315.6 kg of bubble cushioning material in collaboration with other companies at Joshin Outlet Kitahanada Store
  • Donated 693 air purifiers to elementary and junior high schools and other institutions in Izumisano City, Osaka
  • Implemented programs to support the development of the next generation in inquiry-based learning classes and other activities at elementary and junior high schools
  • Contributed to bridging the digital divide by rolling out free and paid smartphone support services at all stores

Main Goals (FY 2025)

  • Create and expand businesses that address social issues based on these four pillars [FY2030]
  • Build a model for resolving issues in collaboration with local governments and educational institutions in the communities where we operate [FY2030]
  • Achieve a digital society where people of all generations can live with peace of mind by expanding smartphone support and other services [2050]

Issues and Countermeasures (FY 2025)

  • Build a new business model that leverages stores as local hubs for the infrastructure of life
  • Participate in events and inquiry-based learning in ongoing collaboration with local governments and schools
  • Expand the function of our physical store network as a consultation point forming part of the infrastructure of life in communities with aging populations

Governance

7. Enhancing corporate governance

Challenges

Corporate/Group governance

Reason for Selection

Because a sophisticated corporate governance system is required to link the creation of social value to Joshin’s sustainable growth, enhanced corporate value, and realization of its Management Philosophy

Main Action Plans

  • Fine-tune medium- to long-term growth strategies
  • Promote more efficient management with a focus on cost of capital and stock price
  • Develop board succession plans to support growth strategy execution and the promotion of efficient management

Main Results (FY 2025)

  • Operating income:
    ¥5,422 million, ROE: 3.1% [End of FY2025]
  • Cross-shareholdings:
    Holdings in 23 companies, representing 5.5% of net assets [End of FY2025]
  • Transitioned from being a company with a Board of Auditors to one with an Audit and Supervisory Committee [FY2025]
  • Independent outside director ratio: 75.0% (six outside directors / eight total directors) [FY2025]
  • Female director ratio: 50.0% (four female directors / eight total directors) [FY2025]

Main Goals (FY 2025)

  • Operating income: ¥10 billion or higher, ROE: 7.0% or higher [FY2028]
  • Ratio of cross-shareholdings to consolidated net assets: Less than 3.0% [FY2028]
  • Ensure and maintain the independence and diversity of the Board of Directors [FY2028] (Maintain an outside director ratio of over 50% and a female director ratio of over 40%)

Issues and Countermeasures (FY 2025)

  • Enhance dialogue with shareholders and institutional investors
  • Promote balance sheet management
  • Enhance the Board of Directors’ monitoring functions and strengthen coordination with executive officers
  • Enhance the succession plan for outside directors

Ensuring compliance, managing risk, and maintaining corporate ethics

Reason for Selection

Because adherence to laws and social norms (compliance) and high ethical standards (corporate ethics) are required to maintain sustainable corporate growth and the trust of stakeholders

Main Action Plans

  • Enhance compliance training in the value chain
  • Construct a business continuity management system in the value chain

Main Results (FY 2025)

  • Enhanced the structure of the Legal and Risk Management Divisions in anticipation of future expansion of business fields
  • Formulated information security and BCP guidelines and ensured they are widely communicated

Main Goals (FY 2025)

  • Promote compliance training at Group subsidiaries and cooperating companies [Continuing initiative]
  • Introduce a fixed-term system (renewal system) for assigning staff to management positions [FY2030]

Issues and Countermeasures (FY 2025)

  • Promote skills training for executive officers overseeing the specialized subcommittees of the Risk Management Committee
  • Encourage awareness and cooperation in compliance management among contractors

Improving data security

Reason for Selection

Because enhancing resilience (capacity to recover) against diverse risks that threaten business continuity, including increasingly sophisticated cyberattacks, and establishing and operating a robust management framework are key management issues

Main Action Plans

  • Build an effective data security system

Main Results (FY 2025)

  • Maintained PrivacyMark certification for 20 consecutive years (since FY2005)
  • Introduced a service that detects unauthorized activity in logs and blocks network access

Main Goals (FY 2025)

  • Retain PrivacyMark certification [FY2050]
  • Establish a CSIRT (Computer Security Incident Response Team) to bolster business continuity [2030]

Issues and Countermeasures (FY 2025)

  • Continue activities to raise awareness of personal information protection across the Group
  • Enhance backup capabilities to establish a rapid recovery framework