Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product safety and quality
• Ethical workplace standards
• Material and product traceability
• Energy efficiency and CO2 emissions
• Resource scarcity
• Water efficiency and water pollution
• Diversity
• Fair compensation and performance
• Workplace health and safety
• Physical inactivity and inclusion
• Innovative and efficient product design
• Corporate governance and disclosure

Environmental Achievements

• 93% of waste recovered or recycled at our direct operations
• 42% reduction of CO2 emissions from our road freight in Europe, US and Japan by shifting to a more efficient transportation route
• CO2 emissions decreased by 16.2% for every pair of shoes manufactured (compared to 2015 baseline levels)
• Water consumption decreased by 12% for every pair of shoes manufactured
• 12% reduction in CO2 emissions at ASICS-owned footwear factory in Japan through energy-reducing measures

Social Achievements

• Launched a cross-functional project at headquarters to drive sustainable product development and innovation
• Carried out engagement surveys, training programs and diversity projects to make ASICS a better place to work
• Expanded supplier auditing scope to cover Tier 2 suppliers
• Provided training and capacity building to 198 participants from 109 suppliers
• Donated 50,000 pairs of running shoes to Girls on the Run through the ASICS America Extra Mile campaign

Governance Achievements

• Expanded our monitoring scope to also cover Tier 2 supply base manufacturing fabrics and materials used in ASICS’ products
• 86% of our Tier 1 factories met level C or above on ASICS’ supplier rating scale
• 89% of our contracted Tier 1 suppliers audited in 2016
• Defined new product sustainability criteria for footwear and assessed 387 footwear items

Climate Goals & Targets

Environmental Challenges

• CO2 emissions increased 6.5% from the baseline year due to a significant increase in the number of our own retail stores
• Waste emissions increased 65.3% for every pair of shoes manufactured
• Inability to meet ambitions for VOC reduction due to business growth and reliance on new suppliers

Mitigation Strategies

• Centralized energy procurement review and updated electricity contracts in Europe, switching to renewable resources
• Planning to conduct energy efficiency audits in our most energy-intensive locations
• Creating a new environmental guideline to support suppliers to reduce environmental impacts
• Promoting the use of water-based adhesives or other processes to reduce solvent use and VOC emissions

Supply Chain Management

Supplier Audits: 89% of Tier 1 suppliers audited in 2016; expanded audit scope to include Tier 2 suppliers

Responsible Procurement

• Code of Conduct
• Policy of Engagement
• Environmental Policy
• ASICS Guideline for the Control and Use of Chemicals
• AFIRM RSL

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI, Science Based Targets initiative

Certifications: ISO 14001

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

ASICS' activities are aligned with these SDGs through initiatives related to product sustainability, supply chain management, community involvement, and stakeholder engagement.

Sustainable Products & Innovation

• DynaFlyte running shoe with lighter, more durable midsole
• Event apparel items containing recycled and bio-based materials

Awards & Recognition

• Inclusion in Dow Jones Sustainability Asia/Pacific Index
• Inclusion in FTSE4Good Global Index
• Inclusion in MSCI Global Sustainability Index
• Inclusion in The Sustainability Yearbook

Environmental Metrics

ESG Focus Areas

• Product Sustainability
• Supply Chain Sustainability
• Operational Eco-efficiency
• Ethical Workplace Standards
• Community Engagement
• Health and Wellbeing

Environmental Achievements

• CO2 emissions decreased by 17.5% from direct operations (Scope 1 & 2) compared to 2015 baseline.
• Installed 1 MW solar panel array at Mississippi distribution center, reducing CO2 emissions by nearly 800 tons per year.
• 90% of waste diverted from landfill at direct operations.
• CO2 emissions decreased by 6.9% per pair of shoes manufactured compared to 2015 baseline.
• Water consumption decreased by 12.5% per pair of shoes manufactured compared to 2015 baseline.
• Waste emissions decreased by 47.8% per pair of shoes manufactured compared to 2015 baseline.
• Part of new training apparel collection uses around 50% less water in dyeing process.

Social Achievements

• Launched I MOVE ME™ campaign to promote healthy lifestyles.
• Launched Run the Tube event in London, engaging 5,000 participants.
• Donated $50,000 to PHIT America through a Runkeeper challenge.
• Published factory list for the first time, improving supply chain transparency.
• 88% of Tier 1 supplier factories rated C-Level or above on ASICS’ supplier rating scale.
• 19% of Tier 1 suppliers rated A- and B-Levels on ASICS’ supplier rating scale received self-governance training.
• Launched Be Well employee wellness program in Europe.
• Implemented work style reform program in Japan to promote work-life balance.
• Supported various community initiatives with over $774,138 in financial contributions and in-kind donations.

Governance Achievements

• Became a bluesign® System Partner.
• Joined the Leather Working Group (LWG).
• Continued participation in AFIRM Group for chemical management collaboration.
• Expanded audit scope to include Tier 1 and Tier 2 suppliers.
• Published a public statement in response to the UK’s Modern Slavery Act.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions (supply chain).
• Improving waste recycling rate.
• Ensuring ethical workplace standards across the supply chain.
• Water scarcity risks for some suppliers.
• Maintaining high compliance standards across global operations.

Mitigation Strategies

• Set a target to reduce Scope 3 CO2 emissions by 55% per product manufactured by 2030.
• Developing guidance and tools to improve recycling rates.
• Conducting regular audits and assessments of suppliers.
• Implementing training and capacity-building programs for suppliers.
• Collaborating with NGOs and industry stakeholders to improve standards.
• Strengthening focus on water management in supplier audits.

Supply Chain Management

Supplier Audits: 113 audits (internal, commissioned, and partner audits)

Responsible Procurement

• ASICS Global Code of Conduct
• Policy of Engagement
• ASICS Materials Guideline
• Supplier assessments
• Country risk assessments
• Training and capacity building programs

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

ASICS' sustainability activities are aligned with these SDGs.

Sustainable Products & Innovation

• Apparel with waterless dyeing technology
• Sports shoes with bio-based materials

Awards & Recognition

• ENERGY STAR award (Mississippi distribution center)

Environmental Metrics

ESG Focus Areas

• Sustainability of products and services
• Management of product chemical safety and traceability
• Operational eco-efficiency and management systems
• Safe and ethical workplace standards and sustainable practices at Tier 1 and Tier 2 suppliers
• Sound governance and disclosure, organizational efficiency and developing an engaged workforce
• Contributing to healthier communities through movement and sport
• Climate Change
• Supply Chain Sustainability
• Health and Well-being
• Diversity and Inclusion

Environmental Achievements

• CO2 emissions decreased by 15.7% from the 2015 baseline in direct operations (Scope 1 & 2).
• 93.1% of waste diverted from landfill.
• CO2 emissions decreased by 27.9% per pair of shoes manufactured (compared to 2015 baseline levels).
• 83% of leather sourced from LWG medal-rated suppliers.
• 16.4% of electricity from renewable sources.

Social Achievements

• 95% of Tier 1 supplier factories rated C-Level or above on ASICS’ supplier rating scale.
• 103 participants from 67 suppliers receiving training and capacity building.
• $502k cash and in kind contributed to communities.
• Female representation at management level increased to 10.6%.
• Employee smoker proportions decreased from 15.6% in 2018 to 11.9% in 2019.
• Improved employee work-life balance by 10% compared with 2017.

Governance Achievements

• Established a Sustainability Committee chaired by the President & COO, reporting directly to the Board of Directors.
• Updated Policy of Engagement to reflect evolving ambitions and expectations to suppliers, including specific updates relating to forced labor and migrant workers.
• Introduced a grievance mechanism for migrant workers in factories located in Thailand and Japan involved in the manufacture of products for the Tokyo 2020 Games.

Climate Goals & Targets

Environmental Challenges

• Climate change impacting production sites and logistical routes.
• Water scarcity in some regions where factories are located.
• High risk of human rights issues such as forced and child labor in the cotton supply chain.
• Waste emissions increased by 55% due to more factories reporting data in 2019.

Mitigation Strategies

• Committed to setting science-based GHG emissions reduction targets, aligned with a net-zero future by 2050.
• Switching to more sustainable materials (recycled polyester, sustainable cotton, solution dyed fabric, bio-based materials).
• Working with suppliers to reduce energy use and switch to renewable energy.
• Implementing water risk assessments and improving water management practices.
• Partnering with Better Cotton Initiative (BCI) for more sustainable cotton sourcing.
• Implementing a new environmental guidelines to support suppliers to further reduce environmental impacts.
• Updated auditing process and rating criteria about greenhouse gas emission, energy and water use, machine maintenance and waste management to reflect our new science-based targets and insights from the Higg FEM analysis.

Supply Chain Management

Supplier Audits: 116 audits in 2019 (internal, commissioned, and partner audits)

Responsible Procurement

• Policy of Engagement
• Global Code of Conduct
• Supplier assessment tools
• Higg Index tools
• Commitment to Responsible Recruitment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting production sites and logistical routes

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI, TCFD, UN SDGs

Certifications: ISO 14001

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

• 3
• 5
• 6
• 8
• 12
• 13

ASICS sustainability activities align with UN SDGs 3, 5, 6, 8, 12, and 13.

Sustainable Products & Innovation

• METARIDE™ with cellulose nanofiber
• Edo Era Tribute Pack made from recycled PET bottles
• Products using solution dyed fabric and recycled materials

Awards & Recognition

• Dow Jones Sustainability Asia/Pacific Index component company
• CDP B-level rating on climate change
• FTSE4Good Index Series inclusion
• CDP Supplier Engagement Leaderboard recognition
• FTSE Blossom Japan Index inclusion
• MSCI Japan ESG Select Leaders Index inclusion
• SAM Sustainability Yearbook 2020 inclusion
• S&P/JPX Carbon Efficient Index inclusion
• Japan Women Award from Forbes Japan
• Gold prize at Pride Index 2019
• ENERGY STAR award for Byhalia distribution center and Irvine headquarters

Environmental Metrics

ESG Focus Areas

• Mental and Physical Well-being
• Human Rights in the Supply Chain
• Employee Engagement
• Innovation
• Product and Service Quality
• Climate Action
• Circularity
• Water Management
• Corporate Governance and Disclosure

Environmental Achievements

• In 2021, more than 90% of performance running shoes will be made using recycled materials.
• Aiming to reduce CO2 emissions 63% compared to 2015 by 2030 and net-zero greenhouse gas emissions by 2050.

Social Achievements

• Launched UNOHA, a new lifestyle brand focused on sustainable materials and women's fashion.
• Increased the number of OneASICS™ members.
• Implemented supply chain management programs in accordance with ILO and other international standards at more than 150 Tier 1 suppliers.

Governance Achievements

• Transitioned to a company with an Audit and Supervisory Board.
• Increased the ratio of independent outside directors on the Board.
• Improved the efficacy evaluation results for the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Intensification of the competitive environment due to the entry of new competitors.
• Global warming associated with climate change.
• Retaining and developing human resources.

Mitigation Strategies

• Differentiating ASICS based on technological capabilities rooted in human-centric science.
• Proactively engaged in climate change efforts.
• Promoting global management, establishing a common global human resource system and actively engaged in employee exchanges.

Supply Chain Management

Supplier Audits: Periodic assessments of facilities; regular meetings and trainings.

Responsible Procurement

• ASICS Global Code of Conduct
• ASICS Policy of Engagement
• Global Policy on Environment
• Business Partner Management Policy

Climate-Related Risks & Opportunities

Physical Risks

• Environmental changes making it difficult for people to exercise and play sports

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Third-party Assurance: Third-party assurance in the Sustainability Report 2020

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

ASICS business activities correspond to all 17 SDGs, but are particularly relevant to the goals listed above.

Sustainable Products & Innovation

• UNOHA brand
• Shoes and apparel using recycled materials

Awards & Recognition

• Japan Open Innovation Award (2020)

Environmental Metrics

ESG Focus Areas

• Mental & physical well-being
• Innovation
• Product and service quality
• Climate action
• Supply chain human rights
• Circularity
• Employee engagement
• Water management
• Corporate governance & disclosure

Environmental Achievements

• Reduced CO2 emissions by 19.7% compared with 2015 levels by the year 2021
• 95% of new performance running shoe products used recycled materials in 2021
• Six of the business sites owned by ASICS in Japan switched to 100% renewable energy from 2022.

Social Achievements

• Launched ASICS World Ekiden 2020, a virtual relay race with 56,007 runners from 179 countries and regions.
• Increased the ratio of females in manager and senior positions to 10.9% in 2021.
• All Tier 1 supplier factories met ASICS’ sustainability standards by 2021.

Governance Achievements

• Transitioned to a company with an Audit and Supervisory Committee in 2020 to improve transparency.
• Established a Sustainability Committee chaired by the president, meeting semi-annually.
• Separated the roles of Chairman of the Board of Directors and CEO in 2022.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic (Vietnam factory closure)
• Competition in the performance running market
• Maintaining profitability in Japan and the US
• Climate change risks (supply chain disruptions, rising raw material prices)

Mitigation Strategies

• Implemented measures such as reducing low-profit items and revising inventory to secure profits.
• Launched the Chojo Project (C Project) to recapture market share among top athletes.
• Focused management resources on Performance Running, Onitsuka Tiger, and Greater China.
• Implemented risk management measures, including diversification of raw material producing regions and development of alternative sourcing strategies.

Supply Chain Management

Supplier Audits: Over 100 factory audits in 2021

Responsible Procurement

• ASICS Global Code of Conduct
• ASICS Policy of Engagement
• GLOBAL POLICY ON ENVIRONMENT
• Sustainable Sourcing Code

Climate-Related Risks & Opportunities

Physical Risks

• Supply chain disruptions due to natural disasters
• Rising concerns from stakeholders
• Fewer opportunities for sports due to rising temperatures

Transition Risks

• Policies and legal restrictions (carbon tax, product labeling regulations)
• Changing customer preferences
• Sharp rise in prices of petroleum-derived materials

Opportunities

• Development of low-carbon products and services
• Use of low-carbon energy sources

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations

Third-party Assurance: Third-party assurance provided for Scope 1+2 CO2 emissions in the Sustainability Report 2021

Sustainable Products & Innovation

• METASPEED™ running shoes
• Shoes and apparel made from used clothing and textile waste
• Running shoes using cellulose nanofiber

Awards & Recognition

• Japan Open Innovation Prize Selection Committee Special Award for cellulose nanofiber initiative

Environmental Metrics

ESG Focus Areas

• Mental & Physical Well-being
• Human Rights in the Supply Chain
• Climate Action & Circularity

Environmental Achievements

• 22% reduction of CO2 emissions from direct operations (vs 2015)
• 3.1% reduction of CO2 emissions from supply chain (vs 2015)
• >90% of new running shoes in 2022 contain recycled material
• Launched the world's lowest emissions shoe, GEL-LYTE III CM 1.95 (1.95kg CO2e per pair)
• 26.7% renewable electricity used in business facilities

Social Achievements

• 38.3% women in management positions
• US$820,444 in contributions and donations to communities
• Over 22,000 participants in ASICS World Ekiden
• Over 99% of Tier 1 supplier factories rated C-Level or above on ASICS’ supplier rating scale. All Tier 1 strategic partner factories met ASICS B-Level or above.
• Launched ASICS Human Rights Policy

Governance Achievements

• Established a Human Rights Committee
• Updated human rights due diligence system
• Executive compensation linked to ESG performance (partially)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19
• Price fluctuation of raw materials
• Transition risks (regulatory changes, market shifts)
• Physical risks (extreme weather, natural disasters)

Mitigation Strategies

• Developed alternative sourcing strategies
• Close collaboration with suppliers to adapt to price fluctuations and net-zero goals
• Implemented scenario analysis considering climate change impacts
• Improved data management and reporting
• Implemented responsible purchasing practices

Supply Chain Management

Supplier Audits: 36 audits in 2022 (7 internal, 18 commissioned, 11 partner)

Responsible Procurement

• ASICS Supplier Code of Conduct
• ASICS Green Procurement Policy
• Responsible Purchasing Practices guidance

Climate-Related Risks & Opportunities

Physical Risks

• Decreased sports opportunity due to rising mean temperature
• Suspension of factory operation due to severe natural disasters

Transition Risks

• Price fluctuation of raw materials
• Product labeling regulations

Opportunities

• Development of new products and services through R&D and innovation
• Increase in consumer preference for sustainable products

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001

Sustainable Products & Innovation

• GEL-LYTE III CM 1.95
• Onitsuka Tiger MEXICO 66™ CACTFUL™
• GEL-SONOMA 15-50
• Actibreeze 3D Sandal

Awards & Recognition

• Gold in PRIDE Index 2022 (Japan)

Environmental Metrics

ESG Focus Areas

• Mental and Physical Well-being
• Innovation
• Quality of Products and Services
• Human Rights and Transparency in the Supply Chain
• Climate Action
• Circularity
• Diversity, Equity, and Inclusion
• Corporate Governance and Disclosure
• Biodiversity and Water Management

Environmental Achievements

• 29.8% reduction of CO2 emissions from direct operations
• 21.6% reduction of CO2 emissions from the supply chain
• 29.8% renewable electricity at business facilities
• More than 40% conventional polyester materials replaced with recycled polyester
• Launched GEL-LYTE™ III CM 1.95, a low-carbon emission sneaker
• Introduced carbon footprint labeling on GEL-KAYANO™ 30 shoes
• 80% of strategic footwear suppliers set and disclosed a 1.5˚C reduction target
• 90% of strategic footwear suppliers have concrete renewable energy sourcing plans
• 50,253 people completed Run for Reforestation Challenge, resulting in tree planting

Social Achievements

• 99% Tier 1 supplier factories rated C-Level or above on ASICS’ sustainability rating scale
• 9.45 million OneASICS members
• 38.1% women in management positions (surpassing the 35% target)
• US$1,025,836 in contributions and donations
• Improved international gaming rankings by 75% for participants in a four-month exercise program
• Launched ‘Move Every Mind’ study on the gender exercise gap
• Signed a Global Partnership Agreement with Renshi Chokai, the first professional para-athlete

Governance Achievements

• Updated Customer Harassment Policy in Japan
• Launched a Human Rights Policy in 2022
• Established a Human Rights Committee
• Improved KnowTheChain ranking to 12th out of 65 companies
• Implemented the ASICS Academy – a next-generation leader development selection program ensuring equal gender participation
• Introduced a training program to cultivate the managerial mindset for new female managers

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions throughout the value chain
• Ensuring responsible sourcing and ethical working conditions in the supply chain
• Increasing supply chain transparency and traceability
• Achieving gender equality and diversity in the workforce
• Managing waste and promoting circularity
• Mitigating water impacts and preserving biodiversity
• Ensuring product quality and safety
• Climate change risks (physical and transition)

Mitigation Strategies

• Setting ambitious CO2 reduction targets for 2030 and net-zero by 2050
• Implementing a robust supplier code of conduct and monitoring system
• Developing a digital traceability platform
• Setting gender targets and implementing DE&I initiatives
• Promoting the use of recycled materials and take-back programs
• Implementing water-efficient technologies and reducing water consumption
• Developing a biodiversity policy and using the AR3T framework
• Implementing a quality assurance and management system
• Conducting TCFD scenario analysis to assess climate-related risks and opportunities
• Developing a climate transition plan

Supply Chain Management

Supplier Audits: 71/year

Responsible Procurement

• ASICS Supplier Code of Conduct
• Green Procurement Policy
• Responsible Purchasing Practices
• Higg FEM score incorporation

Climate-Related Risks & Opportunities

Physical Risks

• Flooding of outsourced manufacturing plants
• Reduction in sports opportunities due to rising temperatures

Transition Risks

• Fluctuations in raw material prices
• Introduction of product labeling regulations

Opportunities

• Expansion of customer base through climate initiatives
• Development of low-carbon products and services
• Utilization of sustainable finance

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

Sustainable Products & Innovation

• GEL-LYTE™ III CM 1.95
• GEL-KAYANO™ 30
• Products using recycled materials and sustainable dyeing techniques

Awards & Recognition

• Sustainable Japan Award Grand Prize
• FY2023 Commendation for Climate Change Action from Japan’s Minister of the Environment
• Gold rating in the Pride Index in Japan for the fifth consecutive year

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• GEL-LYTE III CM 1.95, sneaker with the lowest greenhouse gas emissions won the 6th Japan Open Innovation Award.
• Launched NIMBUS MIRAI, recyclable running shoes.
• Received an A in the Climate Change Survey by CDP.

Social Achievements

• Announced Human Rights Policy in 2022 and held Human Rights Committee meetings.
• Incorporated consideration of human rights into the Cultural Guide.
• Formulated the ASICS Diversity Inclusion and Cultural Guideline with internal training.
• Introduced a new profit-sharing bonus structure.
• Paid a temporary lump-sum payment to all global employees.

Governance Achievements

• CEO Hirota assumed the position of Chairman of the Board Meeting from January 2024.
• Established a structure for prompt action on points raised by directors at Board Meetings.
• ASICS trademark officially granted as a well-known trademark in India.
• Participated in the Seminar for Vietnam Enforcement Agencies for anti-counterfeiting activities.

Climate Goals & Targets

Environmental Challenges

• Rapid trend cycles in the sneaker market.
• Economic indicators were weak in China.

Mitigation Strategies

• Flexibly create business opportunities and respond to risks in the sneaker market.
• Develop high-end product lines based on existing designs.
• Closely monitor inventory levels.
• Sales increased in all categories in China despite weak economic indicators.

Supply Chain Management

Responsible Procurement

• Respect human rights in the supply chain

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• GEL-LYTE III CM 1.95
• NIMBUS MIRAI

Awards & Recognition

• 6th Japan Open Innovation Award