Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Corporate Governance
• Human Capital

Social Achievements

• Introduced a defined contribution pension system and provided employee education and training on asset management.

Governance Achievements

• Implemented an electronic method for exercising voting rights in 2021.
• Established a compliance committee to ensure compliance with laws and regulations.
• Introduced a performance-linked stock compensation system in 2016.

Climate Goals & Targets

Environmental Challenges

• Relatively low percentage of foreign institutional investors.
• Lack of a mid-term management plan.
• Absence of committees for nomination and compensation.
• No analysis and evaluation of the effectiveness of the board of directors.

Mitigation Strategies

• Considering the implementation of English translations for meeting notices and information disclosure.
• Planning to develop a mid-term management plan.
• Considering the use of committees or other optional mechanisms to enhance governance.
• Planning to conduct an analysis and evaluation of the board's effectiveness and disclose the results.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• SDGs
• Diversity and Inclusion

Social Achievements

• Implementing measures to ensure diversity in hiring, particularly in mid-career recruitment.

Governance Achievements

• Established a compliance committee to ensure compliance with laws and regulations.
• Implemented an internal reporting system.

Climate Goals & Targets

Environmental Challenges

• Relatively low percentage of foreign institutional investors.
• Lack of specific targets for diversity and inclusion.

Mitigation Strategies

• Considering the implementation of English translations for shareholder meeting notices and information disclosure in the future.
• Considering the implementation of an electronic voting platform.
• Considering the development of a sustainability policy and a framework for evaluating the alignment of resource allocation and business strategies with this policy.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Women's empowerment
• Circular economy
• Sustainable business practices
• Employee engagement
• Social responsibility

Environmental Achievements

• Collaboration with Itokin Co., Ltd. to promote circular economy fashion through upcycling and remake initiatives.

Social Achievements

• Established a company-wide basic policy for promoting women's empowerment and launched awareness-raising activities for all group employees.
• Implemented employee engagement surveys to identify challenges and improve retention and productivity.

Governance Achievements

• Developed a mid-term management plan focusing on sustainable growth and enhanced communication with shareholders.

Climate Goals & Targets

Environmental Challenges

• Decreased revenue and profit in the third quarter compared to the previous year.
• Increased personnel costs due to increased hiring and training.
• Increased sales promotion expenses and amortization of goodwill from previous subsidiary acquisitions.

Mitigation Strategies

• Implemented cost reduction measures, such as reviewing advertising media and improving operational efficiency.
• Continued efforts to improve profitability through store format conversions, new menu introductions, and price revisions.
• Strengthened employee training and development programs.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Upcycled and remade apparel through collaboration with Itokin Co., Ltd.