Climate Change Data

Environmental Metrics

ESG Focus Areas

• Production
• Environment
• Community
• Human Resources

Environmental Achievements

• Formulated an environmental policy to clarify its responsibilities for more environmentally conscious operations.
• Committed to completely eliminating emissions of hazardous chemicals from the entire product lifecycle by January 2020.
• In UNIQLO stores in Japan, aimed to reduce CO2 emissions relative to floor area 10% from fiscal 2013 by 2020.

Social Achievements

• Employed 1,372 people with disabilities across 12 countries and regions by the end of August 2014.
• Boasted the highest ratio of employees with disabilities of any large company in Japan (6.36%).
• Launched In-Store Shopping Experience events to promote social inclusion for those with disabilities.
• Donated 14.2 million articles of clothing to 53 countries and regions through the All-Product Recycling Initiative.

Governance Achievements

• Ensured the independence and surveillance capacity of board meetings for responsive and transparent management.
• Adopted the corporate auditor governance model and maintained committees to support the board of directors.
• Implemented a global grading system with universal requirements for each position for fair and transparent evaluation and remuneration.

Climate Goals & Targets

Environmental Challenges

• Factory fires and building collapses in Bangladesh.
• Hazardous chemical emissions.
• Low representation of women among senior management.
• Underemployment outside urban centers in Japan.
• Compliance violations.

Mitigation Strategies

• Worked closely with partner manufacturing facilities on processes and carefully monitored working conditions.
• Conducted first-hand checks of every single source for raw materials.
• Implemented reforms in Japan to promote various work styles.
• Set a target to increase the share of female managers to 30% by 2020.
• Launched a new regional regular employee program in Japan.
• Established hotlines for employees to report work-related issues and Code of Conduct violations.

Supply Chain Management

Supplier Audits: 332 factories in fiscal 2014

Responsible Procurement

• Code of Conduct for Production Partners (established in 2004)
• Workplace monitoring
• Pre-contract monitoring
• Environmental monitoring of fabric manufacturers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, DJSI, FTSE4Good

Awards & Recognition

• Prime Minister's Award (South Korea)
• Department of Rehabilitation Employee of the Year award (USA)

Environmental Metrics

ESG Focus Areas

• Supply Chain
• Products
• Stores and Communities
• Employees

Environmental Achievements

• Installed wastewater treatment facilities at a partner factory in China, treating and reusing 12,000 tons of wastewater per day and an additional 60,000 tons from the local community.
• Reduced water and energy consumption by 15% and 10% respectively at core fabric manufacturers by 2020 compared to 2016 levels.
• Completely eliminated the usage of perfluorinated chemicals (PFCs) in apparel products from the 2017 fall–winter season.

Social Achievements

• Launched the Upcycling Project in the Philippines, providing formerly homeless people and refugees with the opportunity to make tote bags and other accessories from denim scraps.
• Achieved 31.3% women in all management positions by 2017, exceeding the 30% target for 2020.
• Employed 1,613 people with disabilities in 16 countries and regions as of August 31, 2017.

Governance Achievements

• Adopted a delegate-based executive director system and separated administrative and decision-making functions to improve performance.
• Established ethics and compliance hotlines for group companies around the world.
• Revised rules on information security and distributed basic rules for information security and the handling of personal information to employees.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied by the need for improved order scheduling and demand forecasting)
• Hazardous chemical emissions in the supply chain (addressed through monitoring and takumi assistance)
• Late responses to revised laws related to various allowances at some partner factories.

Mitigation Strategies

• Improved demand-forecast accuracy derived from sales figures, social media, and other data sources.
• Monitoring of partner factories and takumi teams providing assistance.
• Increased supervision at factories with late responses to revised laws.

Supply Chain Management

Supplier Audits: 105 partner factories monitored in 2016, 69 in 2017

Responsible Procurement

• Code of Conduct for Production Partners
• Responsible procurement guidelines
• UNIQLO Responsible Mill Program
• Higg Index

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

UN Sustainable Development Goals

• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)

Collaborating with partner factories to assure a safe workplace (SDG 8), saving energy and reducing carbon dioxide emissions in manufacturing (SDG 12).

Sustainable Products & Innovation

• Good Wool collection (Theory)
• Eco-conscious jeans (Jeans Innovation Center)

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Community

Environmental Achievements

• 31.6% reduction in greenhouse gas emissions (compared with fiscal 2013, per unit of floor area)
• Launched DRY-EX polo shirt made from recycled polyester from post-consumer PET bottles.
• UNIQLO Kawagoe Store acquired Gold Level LEED certification.

Social Achievements

• Global partnership with UN Women to empower female employees and supply chain workers.
• 38.4% of women in management positions.
• 5.02% of Group employees in Japan with disabilities (exceeding statutory requirement).
• 105 refugees employed in UNIQLO stores across seven countries.
• All-Product Recycling Initiative donated 36.57 million items to countries and regions.

Governance Achievements

• Established the Fast Retailing Group Human Rights Policy.
• Formed the Nomination and Remuneration Advisory Committee.
• Formed the Sustainability Committee.
• Increased Board of Directors' independence with five out of nine external directors.

Climate Goals & Targets

Environmental Challenges

• Climate change and resource depletion.
• Human rights issues in the supply chain.
• Challenges faced by female workers in the supply chain.
• Refugee issues.

Mitigation Strategies

• Commitment to Science-Based Targets (SBTs) aligned with the Paris Agreement.
• Human rights grievance systems, including hotlines.
• Partnership with UN Women for women's empowerment programs.
• Partnership with UNHCR for the Power of Clothing Project.
• Workplace monitoring of partner factories.
• Code of Conduct for Production Partners.

Supply Chain Management

Supplier Audits: 585 factories monitored in fiscal 2019

Responsible Procurement

• Code of Conduct for Production Partners, workplace monitoring, third-party inspections

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: LEED Gold (UNIQLO Kawagoe Store)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• DRY-EX polo shirt made from recycled PET bottles

Awards & Recognition

• Power of Clothing Awards (Mikikita High School)

Environmental Metrics

ESG Focus Areas

• Create New Value through Products and Services
• Respect Human Rights in Our Supply Chain
• Respect the Environment
• Strengthen Communities
• Support Employee Fulfillment
• Corporate Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 38.7% in FY 2020 (compared to FY 2013, per unit area) in UNIQLO Japan through LED lighting.
• Reduced water consumption in jeans finishing process by up to 99% (UNIQLO) and 96% (GU).
• Launched Recycled Down Jackets made entirely from recycled down and feathers collected through RE.UNIQLO program.
• 93.8% installation rate of LED lights for store lighting in UNIQLO Japan.

Social Achievements

• Employed 121 refugees in UNIQLO stores globally as of April 2020.
• Women made up 39.2% of total management positions within the FR Group as of August 2020.
• Launched AIRism Mask in June 2020 in response to customer requests.
• Donated approximately 14,000 clothing items to domestic violence victims in Japan through Closet for Needs.

Governance Achievements

• Established various committees (Human Rights Committee, Risk Management Committee, etc.) to enhance the functions of the Board of Directors.
• Increased the Board of Directors’ independence by appointing external directors to five of the nine director positions.
• Established the Fast Retailing Group Code of Conduct and implemented annual e-learning for all employees.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on global operations and supply chains.
• Climate change and its potential impact on operations and supply chains.
• Marine plastic pollution.
• Inequality and social issues.
• Maintaining a safe and secure working environment at partner factories.

Mitigation Strategies

• Provided support to various people impacted by COVID-19 around the world.
• Signed the Fashion Industry Charter for Climate Action.
• Joined the Better Cotton Initiative and ZDHC Group.
• Implemented initiatives to reduce single-use plastics.
• Provided guidelines to factories to strengthen sanitization measures and ensure employee safety.
• Conducted training for factories on labor standards and the Code of Conduct.

Supply Chain Management

Supplier Audits: Workplace monitoring at partner factories; training for 489 factories in FY 2020.

Responsible Procurement

• Better Cotton Initiative
• ZDHC Group
• Traceability to viscose mills
• Fast Retailing Code of Conduct for Production Partners

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact, Fashion Industry Charter for Climate Action, Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• DRY-EX Polo Shirt (recycled polyester)
• Fluffy Yarn Fleece (recycled polyester)
• Recycled Down Jackets
• GU Tapered Ankle Jeans (water-saving technology)
• J Brand Mid-Rise Super Skinny (traceable cotton and recycled polyester)

Environmental Metrics

ESG Focus Areas

• Respect Human Rights in Our Supply Chain
• Respect the Environment
• Strengthen Communities
• Support Employee Fulfillment
• Corporate Governance

Environmental Achievements

• Reduced water used in jeans finishing process by up to 99% using BlueCycle technology.
• 8 UNIQLO stores acquired LEED Gold® certification for Operations and Maintenance of Existing Buildings.
• Switched to renewable energy in 67 European stores.

Social Achievements

• Donated approximately 1 million AIRism masks to refugees.
• Donated approximately 600,000 AIRism masks to India for distribution to frontline response teams.
• 120 refugees employed at UNIQLO stores in eight countries through the RISE Program.
• 42.6% of women in managerial roles across the Fast Retailing Group.

Governance Achievements

• Majority of external directors on the Board.
• Established internal hotlines for reporting compliance violations.
• Human Rights Committee chaired by an external expert.

Climate Goals & Targets

Environmental Challenges

• High production costs and difficulty in mass production of circular products.
• Supply chain disruptions due to COVID-19.
• Challenges in achieving greater traceability down to the raw materials level.

Mitigation Strategies

• Developed cost-effective production methods for recycled down jackets.
• Implemented remote guidance to factories during the pandemic.
• Strengthened risk prevention frameworks by conducting stricter checks on occupational health and safety training.

Supply Chain Management

Responsible Procurement

• Fast Retailing Code of Conduct for Production Partners
• Regular monitoring of working environments at partner factories
• Hotlines for partner factory employees

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Certifications: LEED Gold®

Sustainable Products & Innovation

• Recycled down jackets
• DRY-EX polo shirts
• Fluffy yarn fleece jackets
• AIRism absorbent sanitary underwear

Environmental Metrics

ESG Focus Areas

• Human Rights
• Environment
• Community
• Employee Fulfillment
• Corporate Governance

Environmental Achievements

• Reduced water consumption in jeans production by up to 99% using Blue Cycle technology.
• Created a fleece jacket made from 100% recycled plastic bottles.
• Achieved 100% renewable energy in Europe, North America, Vietnam, Indonesia, and Thailand.

Social Achievements

• Launched PEACE FOR ALL charity T-shirt project, donating profits to humanitarian organizations.
• Employs over 100 refugees and internally displaced persons.
• Provided emergency aid and clothing to refugees in Ukraine and Afghanistan.

Governance Achievements

• Appointed a majority of external directors to the Board of Directors.
• Improved transparency and independence of the Nomination and Remuneration Advisory Committee.
• Implemented an annual survey of all directors and statutory auditors regarding the effectiveness of the Board.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 lockdowns in mainland China.
• High water usage in some production processes.
• Difficulty in sourcing recycled materials for zippers.

Mitigation Strategies

• Improved product lineups and marketing to mitigate sales losses from supply chain disruptions.
• Implemented Blue Cycle technology to reduce water usage in jeans production.
• Negotiated with manufacturers to develop zippers made from recycled materials.

Supply Chain Management

Supplier Audits: 546 factories monitored in FY2022

Responsible Procurement

• Code of Conduct for Production Partners; Social & Labor Convergence Program assessment framework; traceability verification program.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Recycled fleece jacket; products made from recycled polyester and recycled nylon; Blue Cycle jeans.

Awards & Recognition

• CDP A List for climate change and water security

Environmental Metrics

ESG Focus Areas

• Human Rights
• Environment
• Community
• Employee Fulfillment
• Corporate Governance

Environmental Achievements

• Reduced GHG emissions at stores and main offices by 45.7% in FY2022 (vs. FY2019)
• Increased the percentage of recycled materials to 8.5% in FY2023, with the ratio of recycled polyester to total polyester rising to 30.0%
• Achieved 99.7% compliance with ZDHC wastewater standards in 2023
• Opened UNIQLO Maebashi Minami IC store with energy-efficient features, projected to consume 40% less power than conventional stores and generate solar power covering 15% of total needs.

Social Achievements

• Donated approximately 54.63 million items of used clothing (2006-Aug 2023)
• Employed 53 refugees in Japan (as of April 30, 2023)
• Increased percentage of women in management positions to 44.7% in FY2023
• Increased percentage of non-Japanese people in management positions to 56.4% in FY2023
• Launched PEACE FOR ALL charity T-shirt project, donating over ¥800 million (as of end November 2023)

Governance Achievements

• Established an effective corporate governance structure with a majority of external directors on the Board
• Established various committees (Human Resources, Sustainability, Disclosure, IT Investment, Code of Conduct, Business Ethics, Risk Management, Nomination and Remuneration Advisory, and Human Rights) to support the Board
• Conducted annual survey of all directors and Audit & Supervisory Board members regarding the effectiveness of the Board

Climate Goals & Targets

Environmental Challenges

• Rising raw materials costs
• Weak yen
• COVID-19 impact on sales (Greater China)
• GHG emissions increase in FY2022 due to increased production
• Difficulty in using recycled polyester in HEATTECH due to impurities in waste products

Mitigation Strategies

• Thorough low-cost management
• Strengthened marketing and sales systems
• Accelerated store network replacement and closure of unprofitable stores
• GHG emissions reduction plan with progress monitoring and review
• Improved process for removing impurities from recycled polyester raw materials

Supply Chain Management

Responsible Procurement

• Production Partner Code of Conduct
• Social and Labor Convergence Program (SLCP)
• Traceability of commercial flow from raw material to garment factory
• Consolidation of business with select spinning mills for cotton products

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: CDP A-list company

Sustainable Products & Innovation

• HEATTECH with recycled polyester
• Fluffy Fleece Full-Zip Jacket with 100% recycled polyester
• UT graphic T-shirts with recycled cotton
• DRY EX items made partly from recycled polyester