Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• 厳しい経営環境、市場環境の低迷、米国発のサブプライムローン問題に端を発した国際的な金融市場の混乱から実体経済への影響の拡大、企業収益の急激な落ち込みによる景気後退、消費マインドの減退、百貨店衣料品販売の低迷、為替の変動、現地労働コストの上昇、紳士服の販売量の落ち込み、販売単価の下落

Mitigation Strategies

• 分社経営体制の強化とグループ総合力の向上、生産会社群の整備及び主力製造ラインの移設による効率化、衣料品販売会社の拡充による収益力の強化、重複業務を持つ子会社の統合、不採算店舗の撤退、チャネル別販売戦略の展開、業務改革推進室の新設による業務改善と情報システム開発・構築、中国における生産体制の効率化、コスト低減、積極的なセール対応による在庫圧縮と収益の確保、新規出店強化

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental conservation
• Social contribution
• CSR

Environmental Achievements

• Participation in the "Eco-Network" wool recycling activity
• Introduction of solar power generation and storage facilities at Daido Forward Dinacity Div.
• Development of biodegradable fleece "Biopile" by Pontetorto S.p.A.
• Installation of electric vehicle rapid charging equipment "EV Eco-Station"

Social Achievements

• Implementation of RFID tags to improve efficiency and reduce working hours, aiming for improved work environment and employee satisfaction.
• Launch of new brands "True Navy" and "SIPULI"

Governance Achievements

• Compliance with CSM2000 certification and Daido Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Decreased sales due to changes in consumer purchasing behavior, the impact of the US-China trade friction and Brexit, and a cold snap at the beginning of the fiscal year.
• Decreased orders for fashion apparel materials

Mitigation Strategies

• Focusing on e-commerce and flagship stores to secure sales.
• Strengthening the system for increasing pattern order reception.
• Improving operational efficiency in stores and logistics.
• Expanding the range of materials handled and seeking new transactions.
• Improving manufacturing efficiency along with increased product orders.

Supply Chain Management

Supplier Audits: Obtaining agreement forms for the "Daido Supplier Code of Conduct"

Responsible Procurement

• Daido Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs (Sustainable Development Goals)

Certifications: CSM2000

UN Sustainable Development Goals

• Unspecified SDGs

The report mentions contributions to 5 unspecified SDGs through environmental conservation and social contribution activities.

Sustainable Products & Innovation

• Biopile biodegradable fleece

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Shifted shopping bags from plastic to paper materials.
• Held 'MY BAG NO BAG CAMPAIGN' to reduce plastic waste.

Social Achievements

• Held a campaign to collect and reuse old New Yorker products.
• Improved online store convenience through system upgrades and AI.

Governance Achievements

• New management team implemented to adapt to changing business environment.

Climate Goals & Targets

Environmental Challenges

• Decreased sales due to unfavorable weather, natural disasters, post-consumption tax hike reaction, and the COVID-19 pandemic.
• Reduced orders due to economic uncertainty and low personal consumption.
• COVID-19 pandemic impact on retail sales and temporary store closures.

Mitigation Strategies

• Business efficiency improvements and strengthening of growth businesses.
• Focus on e-commerce and flagship stores for sales.
• Expansion of product range and sales channels.
• Improved operational efficiency in stores and logistics.

Supply Chain Management

Responsible Procurement

• Daido Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Unfavorable weather
• Natural disasters

Reporting Standards

Frameworks Used: SDGs

UN Sustainable Development Goals

• Unspecified SDGs

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

Environmental Metrics

ESG Focus Areas

• SDGs
• Environmental conservation
• CSR

Environmental Achievements

• Introduced organic cotton and persimmon tannin-processed yarn (Pappy)
• Reduced material and product loss through improved inventory efficiency

Social Achievements

• Held the 'NEWYORKER BLAZER STORY' exhibition
• Developed versatile items suitable for various lifestyles and remote work

Governance Achievements

• Implemented Compliance & Supply Chain Total Management System
• Established Daido Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Severe business environment due to the COVID-19 pandemic
• Decreased demand in the apparel industry
• Temporary closures and reduced operating hours of commercial facilities
• Reduced consumer spending and changes in lifestyle
• Uncertainty in the future outlook

Mitigation Strategies

• Efforts to secure sales and adjust inventory
• Expansion of e-commerce business
• System renewal for online stores
• Improved convenience of the company website
• Cessation of knit product manufacturing at a Chinese factory
• Digital transformation for efficiency improvement
• New digital technology adoption
• Improved supply chain quality

Supply Chain Management

Responsible Procurement

• Daido Supplier Code of Conduct

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 3
• Goal 15

Organic cotton and persimmon tannin-processed yarn contribute to SDGs Goal 3 and Goal 15.

Sustainable Products & Innovation

• Organic cotton yarn
• Persimmon tannin-processed yarn

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established a compliance committee and risk management committee; implemented anti-corruption training and measures against anti-social forces; strengthened corporate governance through the introduction of an executive officer system.

Climate Goals & Targets

Environmental Challenges

• Changes in consumer preferences; impact of weather conditions and natural disasters; risks associated with overseas operations; risks related to business partners; quality-related risks; information-related risks; compliance-related risks; uncertain market environment due to demographic changes and the COVID-19 pandemic.

Mitigation Strategies

• Diversification of products and sales channels; strengthening relationships with domestic partner factories; enhancing information system security; strengthening internal control systems; compliance committee and risk management committee; efforts to improve business performance and address challenges mentioned in section 1, item (4).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Daido Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: EY ShinNihon LLC

UN Sustainable Development Goals

• Not disclosed

Compliance & Supply Chain Total Management System since 2002; Daido Supplier Code of Conduct

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Governance
• Human Capital

Social Achievements

• Launched "NY・RECYCLE" program to collect unwanted clothing.
• Held "Sustainability Month" events twice a year at New Yorker stores.
• Implemented various initiatives for employee wellbeing, including work-from-home, flextime, and mental health support.

Governance Achievements

• Established the Daido Engagement Sustainability Promotion Office in 2011 (renamed in 2023), reporting regularly to the board of directors.
• Established a Compliance Committee and a Risk Management Committee.
• Introduced a performance-based restricted stock compensation plan in 2024.

Climate Goals & Targets

Environmental Challenges

• Continued operating losses over the long term.
• Impact of the COVID-19 pandemic and recovery efforts.
• Changes in consumer preferences.
• Weather conditions and natural disasters.
• Risks associated with overseas operations.
• Risks related to suppliers.
• Quality-related risks.
• Information-related risks.
• Compliance-related risks.

Mitigation Strategies

• Developed a three-year medium-term management plan (2024-2027) aiming for ¥1.5 billion in operating profit and 8% ROE.
• Implemented measures to improve profitability, including closing unprofitable stores and reducing discounts.
• Implemented business restructuring in Chinese subsidiaries.
• Diversification of products and sales channels.
• Strengthening of risk management systems and committees.
• Strengthening of information system security and compliance measures.
• Implementation of the Daido Engagement system to ensure product safety and quality.
• Strengthening of supplier relationships and monitoring.
• Investment in human capital through training and improved work environment.

Supply Chain Management

Responsible Procurement

• Daido Supplier Code of Conduct

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• SDGs
• Environmental Sustainability
• Corporate Governance

Environmental Achievements

• Launched wool recycling activity "Eco-Network" in 1998, with 49 participating companies by 2016.
• Started clothing reuse activity "NY RECYCLE" in 2016.
• Introduced solar power generation and storage facilities at DynaCity Odawara and Pontetorto's factory.
• Installed EV eco-stations at DynaCity Odawara's parking lot.
• Pontetorto developed biodegradable fleece "Biopile", winning an eco-performance award in 2017.

Social Achievements

• Not disclosed

Governance Achievements

• Considering changes to the board of directors to promote diversity, including appointing female outside directors.
• Considering changes to the stock option system to strengthen incentives for achieving the plan.

Climate Goals & Targets

Environmental Challenges

• Long-term operating losses due to low profitability in the apparel business.
• Insufficient growth strategy and investment.
• Limited effectiveness of restructuring measures.
• Lack of clarity in growth and cost-cutting strategies.

Mitigation Strategies

• Implementing a three-year medium-term management plan themed "Innovation and Evolution" to build a stronger profit structure.
• Clarifying growth and reduction businesses, focusing on high-profitability and growth businesses.
• Strengthening management and reform implementation capabilities through external support.
• Implementing cost reduction measures and pursuing new sales growth.
• Improving SCM, brand reform, and exploring new business opportunities (outdoor apparel, DX/CRM, M&A).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Initiatives such as wool recycling, clothing reuse, renewable energy introduction, and EV station installation contribute to various SDGs.

Sustainable Products & Innovation

• Biodegradable fleece "Biopile"

Awards & Recognition

• Pontetorto's Biopile won an eco-performance award in 2017.