Sustainable business strategy of Aeon company-Hama

Professor Williams, I am Hama and sending this blog from Xiandon’s name because I can’t log-in by using my first name.
I analyzed Aeon’s business activities by comparing with other retailers to ensure these activities show the improvement by sustainable business strategy.
Aeon is the first retail group which sales is more than us$39billion. The company aim to growth as top 10 companies in terms sales and management in the world. Aeon is operating 393 stores in Japan and developing their business to Asian countries. The company is also famous in Japan as their proactive activities in terms of sustainable activities and takes part in GRI. They have invested in natural capital as “tree planting campaign” that has planted 5.7 million trees in the world since 1991. And “bring your own bag campaign” which save the waste of plastic bag also has penetrated into customer and accumulated usage of my bag is more than 633k pieces. It seems that Aeon is really proactive to sustainable development, but is it true? Does company commit green wash? To make sure their sustainable business strategy, I analyzed the company’s business activity by comparing with other companies in the same industry.
Firstly, I compared with second retailer, Ito Yokado (IY) in Japan which is operating 183 stores in Japan. I pick up four items (the usage of electricity, plastic bag, copy paper and waste) which have the strong impact on environment to compare the efficiency per store. As for the usage of electricity, Aeon used 5 billion (wh/year), on the other hand, IY used 6.9 billion wh. Aeon managed to control the usage of electricity almost 74% of IY’s usage of electricity per store. In a similar manner, Aeon used almost 52% of plastic bags, 54% of copy paper and exhaust 56% of waste per store. These figures show Aeon managed to control all the items more efficiently than IY in their business activities. Thus, I can make sure Aeon is not the company commits green wash by appealing their environmental activity as PR. Secondary; I tried to compare with Tesco which also proactive to sustainable development in the UK. Unfortunately, I could not get the detail data from their CR review to compare their business activities. However, I could identify that their sustainable strategy is more proactive than Aeon. For example, Tesco open the 90% of new stores on brown field site. Usually, Aeon open the new store green field site, therefore, they destroy many greens and ecosystem to open new stores. In addition, they open the “green” store in Bangkok, which inbuilt roof top solar energy system. These ideas are something new to Aeon. Thus, Aeon still have room to enhance their sustainable activity and can reduce huge amount of energy and waste by applying the central strategy of natural capital such as radical resource productivity into their business activities.

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