Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Switched Mizusawa Factory to 100% renewable energy in March 2020.
• Developed environmentally friendly products like soccer cleats with GAINA heat-insulating coating and CORE COOLER glove.
• Joined AFIRM (Apparel and Footwear International RSL Management Group) to manage restricted substances.

Social Achievements

• Certified as a Sports Yell Company for the second consecutive year.
• Supported employees through COVID-19 with work-from-home infrastructure and business continuity plan.
• Supported stores in South Korea by providing funds to member stores.
• Held the 11th annual nationwide SC role-playing tournament focusing on customer service.
• Conducted Sports School for Healthy Kids, reaching over 38,000 children since 2006.

Governance Achievements

• Established the DESCENTE Group Code of Ethics and Standards of Ethical Behavior.
• Implemented risk management regulations and operating rules.
• Established Ethics and Harassment Consultation Desk and multilingual consultation desks for overseas subsidiaries.
• Two of the six Board of Directors are newly appointed Outside Directors.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and events.
• Supply chain disruptions (monitoring of two factories in China not conducted due to COVID-19).
• Quality incidents related to product planning, design, production, technology, and customer-producer misunderstandings.

Mitigation Strategies

• Implemented work-from-home infrastructure and business continuity plan.
• Collaborated with agents and factories to address findings from CSR monitoring.
• Held Quality Incident Information Exhibit to share lessons and improve product quality.
• Strengthened third-party monitoring standards to encompass environmental aspects.

Supply Chain Management

Supplier Audits: 9 factories monitored in FY2019

Responsible Procurement

• DESCENTE Supplier Code of Conduct (COC)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 26000, UNGC

Certifications: Sports Yell Company, Tokyo Sports Promotion Company

Third-party Assurance: SGS Japan Co., Inc. (for CO2 emissions)

UN Sustainable Development Goals

• Not disclosed

The report mentions alignment with the SDGs but doesn't specify which goals.

Sustainable Products & Innovation

• 3D Foam Lamination Active Shell Jacket
• Solar Thermo Insulated Jacket
• Soccer cleats with GAINA coating
• CORE COOLER glove

Awards & Recognition

• ISPO Award Gold Winner (four consecutive years)
• ISPO Award Winner
• German Design Award 2020 Winner
• 32nd Nikkei New Office Promotion Prize (DISC OSAKA)

Environmental Metrics

ESG Focus Areas

• Sustainable Product Creation
• Innovation and New Value Creation
• Integrity in Organization and Systems, Employees
• Harmony with Local Communities and Society

Environmental Achievements

• Reduced CO2 emissions by approximately 30% (Scope 1 and 2) due to a shift to renewable energy. Note: This is a preliminary figure pending verification by SGS Japan.
• Launched "RE:DESCENTE" initiative focusing on 3Rs (Reduce, Reuse, Recycle), including using biodegradable materials and recycled polyester.
• Implemented company-wide paperless initiatives, reducing copier usage by approximately 60%.

Social Achievements

• Implemented a walking event using a health promotion support app, increasing daily steps for participants.
• Received certifications such as "Health Management Excellent Company 2021" (Ministry of Economy, Trade and Industry), "Sportsエールカンパニー" (Sports Agency), and "Tokyo Sports Promotion Company" (Tokyo Metropolitan Government).
• Held the 12th National SC Role-Playing Contest to improve employee skills and customer satisfaction.

Governance Achievements

• Established a risk management system, identifying 65 risks in 2020, with no major incidents.
• Implemented compliance training, including e-learning on insider trading.
• Two out of six board members are outside directors (33%).

Climate Goals & Targets

Environmental Challenges

• Overproduction leading to environmental damage and excess inventory.
• Impact of COVID-19 pandemic on business operations and employee well-being.

Mitigation Strategies

• Focusing on "Reduce+Innovation" to minimize overproduction and improve efficiency.
• Implementing COVID-19 prevention measures, including remote work and safety protocols.
• Utilizing electronic contracts and digitalizing internal processes to reduce paper usage.

Supply Chain Management

Supplier Audits: Third-party audits by SGS Japan as needed.

Responsible Procurement

• Descente Supplier CoC (Code of Conduct), including factory self-audits and information sharing on used sewing factories.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 26000, SDGs

Certifications: DOWNPASS (for traceable down in Mizusawa Down)

Third-party Assurance: SGS Japan (for CO2 emissions data; pending)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• RE:DESCENTE products using biodegradable materials and recycled polyester.

Awards & Recognition

• Health Management Excellent Company 2021
• Sportsエールカンパニー
• Tokyo Sports Promotion Company

Environmental Metrics

ESG Focus Areas

• Sustainable manufacturing, products, and systems
• Creating new value
• Business with integrity
• Harmony with society

Environmental Achievements

• Launched 10 YEARS POLO SHIRTS by Munsingwear, designed for 10 years of use.
• Established a new repair center to extend product lifespan.
• Prohibited the use of real fur in new products (Autumn/Winter 2023).

Social Achievements

• Increased childcare support for employees, including subsidized extended childcare fees.
• Supported men taking childcare leave.
• Developed PROTECT HEADBAND to mitigate head injuries in children's soccer.

Governance Achievements

• Established the Sustainability Committee, chaired by the Senior Managing Executive Officer.
• Implemented performance-linked remuneration for directors.
• Consolidated ARENA (SHANGHAI) INDUSTRIAL CO., LTD. and LE COQ SPORTIF (NINGBO) CO., LTD.

Climate Goals & Targets

Environmental Challenges

• Soaring raw material prices and weak yen affecting product costs.
• Need to strengthen branding in Japan.
• Maintaining profitability in the face of global geopolitical risks and societal demands.

Mitigation Strategies

• Thorough review of cost structure and logistics efficiency improvements.
• Branding initiatives to clarify brand value and target customers.
• Aggressive strategies and candid sharing of opinions within the Board of Directors.

Supply Chain Management

Responsible Procurement

• Direct trade with product manufacturing factories.
• Code of Conduct (CoC) with factories.
• Voluntary audits and on-site inspections of factories.

Climate-Related Risks & Opportunities

Physical Risks

• Damage to tangible assets and inventory due to typhoons, hurricanes and floods
• Decrease in sales due to deterioration of the environment in which winter sports are played

Transition Risks

• Cost increases due to carbon tax and GHG emissions regulations
• Increase in procurement costs due to transition to new and recycled materials

Opportunities

• Increased need for sustainable products
• Capture of new markets through market development such as after-sales service, resale/subscription and recycling

Reporting Standards

Frameworks Used: TCFD

Certifications: DOWNPASS, RDS

Sustainable Products & Innovation

• 10 YEARS POLO SHIRTS
• MIZUSAWA DOWN jackets
• R90 golf shoes

Environmental Metrics

ESG Focus Areas

• Long-Life Product Manufacturing
• Human Capital Development
• Environmental Impact Reduction
• Community Engagement

Environmental Achievements

• Expanded GHG emissions measurement scope to include overseas sites (Scope 1 and 2) and domestic Scope 3 emissions.
• Reduced GHG emissions (t-CO2e): 116,709 in FY2023 (compared to previous years, specific reduction percentage not provided).

Social Achievements

• Established Human Resources Strategies Slogan and Action Guidelines.
• Introduced super flextime and telework systems.
• Improved employee engagement through surveys and initiatives.
• Increased local employee participation in management positions in overseas subsidiaries (approx. 96%).
• Launched employee wellbeing initiatives (details not specified).

Governance Achievements

• Established the Nomination and Remuneration Committee.
• Implemented a performance-linked remuneration system for executives.
• Strengthened internal control systems and risk management structure.
• Improved transparency and accountability in decision-making processes.

Climate Goals & Targets

Environmental Challenges

• Decreasing sports apparel market size due to declining birthrate and aging population.
• Intensified competition for market share.
• Climate change risks (e.g., extreme weather, increased energy costs, changes in consumer behavior).
• Supply chain disruptions.
• Need for sustainable products and transition to a circular economy.

Mitigation Strategies

• Promoting clear-cut branding and DTC strategies.
• Implementing Long-Life Product Manufacturing initiatives (including repair services).
• Diversifying suppliers to reduce supply chain risks.
• Developing sustainable products and materials.
• Investing in R&D for innovative and functional apparel.
• Improving awareness of long-life product manufacturing through information dissemination.

Supply Chain Management

Responsible Procurement

• Direct dealings with product manufacturing factories.
• Code of Conduct (CoC) with factories.
• Monitoring and on-site inspections of factories.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods).
• Increased average temperatures affecting winter sports.
• Increased summer heat affecting summer sports.

Transition Risks

• Changes in energy mix.
• Introduction of carbon tax.
• GHG emissions regulations.
• Increased costs for environmentally friendly materials.

Opportunities

• Increased demand for sustainable products.
• Transition to a circular economy.
• Expansion of e-commerce sales.
• Enhanced R&D activities.

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• MIZUSAWA DOWN jacket
• 10 YEARS POLO SHIRT
• CREAS shell jacket