Last Updated: 2023.11.07
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Fast Retailing aims to avoid and minimize the impact of its business on biodiversity, and works on initiatives to conserve and regenerate biodiversity.
Policy Responding to Biodiversity
Biodiversity is fundamentally important for a sustainable society. Fast Retailing's operations also rely on an ecosystem characterized by biodiversity, in areas such as: soil to grow crops including cotton; water stored in forests and wetlands; and pastures for grazing sheep for wool. The apparel industry impacts biodiversity through its use of water and land when grazing livestock, and when farming, cotton, wool, and cashmere, as well as through wastewater from manufacturing. Fast Retailing aims to avoid and minimize the impact of its business on biodiversity, and works on initiatives to conserve and regenerate biodiversity.
Risk Assessment
Biodiversity risk assessment
In 2021, we conducted a biodiversity risk assessment. Referring to IUCN (International Union for Conservation of Nature and Natural Resources) Guidelines, we carried out a qualitative assessment of our value chain's impacts and dependencies on biodiversity.
Methodology for assessing impacts and dependencies
Impact assessment result
We have evaluated the main biodiversity impacts (land use change, pollution and invasive species) in each value chain process and identified high-risk areas, such as land use change and pollution in cotton production, land use change in rayon production, and pollution from product use and disposal.
Dependencies assessment result
We have evaluated our dependencies on main ecosystems (ecosystem services) in each value chain process and identified areas of high dependency, such as water supply, climate stability and disaster prevention.
Our Goal
Biodiversity is critically important to people, so Fast Retailing is working to achieve a long-term net positive impact on biodiversity.* Based on the results of a 2021 risk assessment, the company is working to minimize its impact on biodiversity across identified risk areas, while also conserving and promoting biodiversity throughout its value chain.
*Net positive impact on biodiversity: the state of nature where the positive impact on biodiversity exceeds the negative impact.
Fast Retailing Initiatives
Based on results of a 2021 risk assessment, Fast Retailing will strengthen existing initiatives and promote initiatives for newly-identified biodiversity issues. As the following initiatives are implemented, more detailed targets and timelines will be set forth in implementation plans.
◆Enhancing and securing traceability, and collecting and recording data
Fast Retailing will enhance traceability of product origin to the farm level to fully understand the impact of its business on biodiversity. Fast Retailing will organize a system to collect and record data and establish an information infrastructure to advance the conservation of biodiversity.
◆Avoiding procuring materials from high-risk areas on biodiversity
Fast Retailing will avoid procuring raw materials sourced from areas that present high risk to biodiversity (including legally-protected areas and habitats of endangered species) and from areas that present unacceptable risk to a specific resource within an ecosystem, such as water resources. Fast Retailing aims for zero deforestation and will avoid sourcing from forests at risk of deforestation when procuring wood derived material.
◆Acquiring certification for raw materials with high-risk of degrading biodiversity
Fast Retailing will encourage its suppliers to switch to certified raw materials that consider biodiversity, such as switching to cottons that have lower impact on biodiversity, and using cashmere based on the explicit criteria we set out.
◆Reducing the impact of high-risk raw materials, and switching to low-risk substitute and regenerative materials
Fast Retailing will switch to substitute materials that have lower impact on biodiversity and will increase the proportion of sourcing from regenerative farms.* Fast Retailing will also actively research, develop and invest in advanced technologies and new materials.
* A farming method that aims not only to maintain healthy farmland soil, but also to restore and improve the soil, leading to the recovery of the natural environment.
◆Developing and disclosing a standard for suppliers
Fast Retailing will develop its standard for suppliers with considerations on biodiversity and employ and implement it throughout its supply chain.
◆Promoting initiatives on restoration and regeneration
Fast Retailing will promote initiatives to restore and regenerate ecosystems in areas that may affect biodiversity, such as production areas of cotton and cashmere and areas surrounding production factories.
◆Support suppliers through financing and education
Fast Retailing will provide financial support to farmers who conserve biodiversity and deploy regenerative farming, and offer education to our suppliers on the importance of biodiversity.
