Climate Change Data

Adastria Co., Ltd.

Climate Impact & Sustainability Data (2024)

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Diversity
  • Environmental Sustainability (Climate Change, CO2 emissions reduction)
  • Sustainable Fashion
  • Governance

Environmental Achievements

  • Achieved zero incineration of leftover clothing inventory since fiscal 2020.
  • Increased the percentage of products bearing the company's original Sustainable Mark to 17.2% as of February 2024.
  • Completed identification and disclosure of CO2 emissions (Scope 1, 2, and 3) on a domestic consolidated Group basis.

Social Achievements

  • Increased the ratio of women in management positions to 33.7% (as of February 2024), aiming for 45% by February 2025.
  • Increased the ratio of women in senior management positions to 18.7% (as of February 2024), aiming for 30% by February 2025.
  • Established an anonymous whistle-blowing system (Whistle Line), anti-harassment training for all domestic group employees, and a program related to health issues specific to women.
  • Established the Adastria Health Insurance Association to provide health and welfare services tailored to the characteristics of its employees.

Governance Achievements

  • Transitioned to a company with an Audit and Supervisory Committee to improve corporate governance.
  • Established a Sustainability Committee to strengthen the pursuit of strategies in non-financial areas.
  • Established a Nomination and Compensation Advisory Committee to ensure fairness, appropriateness, and transparency in nominating directors and determining director compensation.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Transition more than half of all products to sustainable raw materials and processing by 2030.
  • Achieve carbon neutrality by 2050.
Short-term Goals:
  • Increase the ratio of women in management positions to 45% by February 2025.
  • Increase the ratio of women in senior management positions to 30% by February 2025.

Environmental Challenges

  • Supply chain disruptions due to natural disasters
  • Climate change related risks
  • Achieving gender diversity targets in senior management
Mitigation Strategies
  • Monitoring CO2 emissions in the supply chain and implementing measures to reduce emissions (LED lighting, solar power generation, optimized transportation routes, low-impact materials, reduced shopping bag use).
  • Supporting the Task Force on Climate-related Financial Disclosures (TCFD) and identifying climate change-related risks and opportunities.
  • Setting specific targets and a roadmap for increasing the number of women in management and senior management positions.
  • Developing a succession plan for representative directors.

Supply Chain Management

Responsible Procurement
  • Adastria Group Procurement Policy and Group Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Supply chain disruptions due to natural disasters

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

  • Products using sustainable raw materials and processing