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Response to Climate Change

Last Updated: 2022.09.16
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Honoring the goals set in the Paris Agreement on Climate Change for the reduction of greenhouse gases emissions by 2050, Fast Retailing is continuing efforts to reduce the release of greenhouse gases by our stores, throughout the supply chain, and in the use of our products.
Please visit here for our TCFD* report.

*Task Force on Climate-related Financial Information Disclosures

Policies Responding to Climate Change

To mitigate our impact on climate change and biodiversity, Fast Retailing identifies and reduces emissions of greenhouse gases (GHGs) across all business activities, from product manufacturing to product disposal. To further these initiatives, we acknowledge the GHG emission long-range targets set under the United Nations Framework Convention on Climate Change (the Paris Agreement) to reduce GHG emissions by 2050. Fast Retailing has set targets and engages in measures to achieve these goals.

Targets

Long-term goals

・Long-term targets for decarbonization
Fast Retailing commits to reducing absolute GHG emissions from its own operations such as stores and main offices by 90% by fiscal 2030 from a fiscal 2019 base year; and absolute GHG emissions from raw materials, fabric and garment production* by 20% over the same time frame. We also commit to achieving 100% sourcing of renewable electricity by fiscal 2030. These targets were approved by Science Based Targets initiative (SBTi) as science-based targets (SBTs), and are in line with the level of decarbonization required to achieve the Paris Agreement goals.
We will further extend our efforts to reach net zero emissions by 2050.
*UNIQLO and GU products

・Fashion Industry Charter for Climate Action
In January 2020, Fast Retailing signed the Fashion Industry Charter for Climate Action, sponsored by the United Nations Framework Convention on Climate Change (UNFCCC). This charter supports the goals of the Paris Agreement, and specifies measures for the entire fashion industry to contribute to the realization of the goals.
Fast Retailing will further strengthen such measures as procurement of sustainable materials, reducing environmental impact in the manufacturing process, and promoting dialogue with consumers to raise awareness, as well as accelerating cooperation within the industry to reduce GHG emissions.

Customers

・Reducing GHGs through functional apparel
Fast Retailing considers the possibilities of reducing GHG emissions through apparel with functional characteristics. For example, HEATTECH functional innerwear is a high selling item by UNIQLO. We count on HEATTECH technology to provide greater warmth, thus potentially reducing the amount of energy needed for heating.
We also encourage reuse and recycling. For example, UNIQLO promotes the RE.UNIQLO initiative that collects UNIQLO clothing that is no longer needed by customers and gives them new life and new value, which contributes to the efficient use of resources through such reuse and recycling of our products.

Fast Retailing Initiatives

Stores and offices

・Initiatives to reduce GHG emissions through energy saving at stores
We strive to reduce GHG emissions by promoting energy savings and reducing electricity usage at stores. We began by installing LED lighting at UNIQLO stores throughout Japan, with a reduction target of 10% per unit of floor area by the end of fiscal 2020, as compared to fiscal 2013 emissions. As of the end of fiscal 2020, UNIQLO stores in Japan achieved a near 38.7% reduction of GHG emissions per unit of floor area compared to fiscal 2013 levels. As of the end of August 2021, 782 of the 810 UNIQLO stores (96.5 percent) and 397 stores of the 408 GU stores (97.3%) in Japan have LED lighting installed. We are also moving to install LED lighting systems at UNIQLO stores globally.

Currently, we are striving to achieve our emissions reduction target by fiscal 2030 and further promoting energy efficiency by installing an air conditioning operation control system that controls overtime use and automatically adjusts to a preset temperature. As of the end of fiscal 2021, UNIQLO has acquired Gold Level LEED® (Leadership in Energy and Environmental Design) certification in the Building Operations & Maintenance (O+M) category at eight main roadside stores in Japan. In addition to implementing measures such as adjusting lighting and air conditioning, we are developing new, highly energy-efficient roadside store format, starting from store-design stage. With an aim to reduce approximately 40% of electricity usage per store, we plan to launch such stores during 2023.
*Since fiscal 2019, franchise stores are excluded from Scope 1 and 2 based on the GHG Protocol.

・Introducing renewable energy
Aiming at 100% sourcing of renewable electricity by fiscal 2030, we have introduced renewable energy at stores and offices. As of the end of 2020, our Yamaguchi head office and all UNIQLO stores in nine countries in Europe achieved 100% use of electricity from renewable sources. In 2021, we installed solar panels at 13 UNIQLO and GU stores in Japan. We are currently starting to source renewable energy at stores in North America and in some countries in Southeast Asia and will accelerate such initiatives.

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Supply Chain Initiatives

Logistics

・Initiatives to reduce GHG emissions through greater transportation efficiency
Fast Retailing pursues a number of initiatives designed to reduce GHG emissions through more efficient logistics.

InitiativesAreaDescription

Buyer Consolidation

Global

  • By consolidating goods shipped from UNIQLO and GU factories having similar delivery dates, we reduce our global shipping volume by nearly 10,000 containers annually.

Improving Truck Shipping Efficiency

UNIQLO and GU in Japan

  • In March 2016, we began improving truck shipping efficiency by expanding the hours when goods can be delivered to stores and by using the same truck to deliver goods to UNIQLO and GU stores located in close proximity.

Initiatives to Improve Loading Efficiency

UNIQLO and GU in Japan

  • For UNIQLO and GU, we set minimum orders per item for each store to prevent inefficient small shipments from warehouses to stores.
  • In September 2017, we reduced the number of cardboard box sizes used at UNIQLO to improve loading efficiency. This overcame the inefficiencies of shipping boxes in a wide range of sizes.
  • During slower periods, we improve loading efficiency by further consolidating deliveries.

Initiatives to Improve E-Commerce Shipping Efficiency

UNIQLO in Japan

  • We improve shipping efficiency at the Ariake warehouse (e-commerce sales) using systems that adjust the height of the carton automatically according to the quantity of products the carton contains to minimize the carton size.

Production Partners

・Reducing Environmental Impacts
To reduce environmental impact throughout the supply chain, Fast Retailing uses the Higg Index and other apparel industry indices at our core garment factories and fabric mills to measure and reduce their environmental impact. For example, in the UNIQLO Responsible Mill Program, which we conducted between 2016 and 2020, we aimed for a reduction in energy usage by 10% of the 2016 levels by the end of 2020 and achieved this goal. Based on strong relationships with production partners, we are working to achieve our GHG emissions reduction target by fiscal 2030 in our supply chain. By November 2021, we defined conditions and issues at each of the core partner factories jointly accounting for 90% of UNIQLO and GU manufacturing, and formulated plans to reduce greenhouse gas emissions and to implement energy efficiency, decarbonization, and renewable energy initiatives. Also, we have established solid processes and structure in our manufacturing and sustainability departments to monitor and manage greenhouse gas reduction efforts.

Related Links

Promoting GHG emission reductions in the sourcing of raw materials

To achieve our GHG emissions reduction target by fiscal 2030, we are encouraging the use of raw materials produced with lower levels of GHG emissions from the product planning stage. We aim to increase the proportion of recycled materials to approximately 50% by fiscal 2030 and are starting to switch to use raw materials with lower levels of GHG emissions. For example, we have introduced DRY-EX and Fluffy Fleece items of clothing that incorporate recycled polyester fibers, and waist bags using recycled nylon. We are expanding the introduction of materials that place a lower burden on the environment, starting with synthetic fibers such as rayon and nylon.

GHG Emissions

Fast Retailing calculates its GHG emissions according to the GHG Protocol, the standard guidelines used worldwide.

Fast Retailing (stores and offices)

Units: t-CO2e; Scope: Fast Retailing

Scope Items 2019
(September 2018 to August 2019)
2020
(September 2019 to August 2020)
2021
(September 2020 to August 2021)
Scope 1
(Fast Retailing Direct Emissions)
Gas 12,295 13,026 10,029
Scope 2
(Fast Retailing Indirect Emissions)
Electricity Location Base*1 308,691 298,205 291,190
Market Base*2 298,566 279,281 275,419

*1 Location Based: A method of calculation using the average GHG emission coefficient of the region's electricity grid, regardless of the source of power purchased from the electric company. This calculation method estimates the amount of GHGs emitted according to the amount of electricity used.
*2 Market Based: A method of calculation using the GHG emission coefficient for each electric company to calculate the quantity of GHG emissions taking into account the power sources purchased by Fast Retailing. In case that no information on the power supplier can be obtained from the building owner company, the emission intensity of the retail electricity supplier in that region is applied. The figures here include location-based emissions for some part of operations.

Supply chain and others

Units: t-CO2e; Scope: Fast Retailing

Scope 3 Categories FY2019
(September 2018 to August 2019)
FY2020
(September 2019 to August 2020)
FY2020
(September 2020 to August 2021)
1. Purchased goods and services 4,694,117 4,373,497 4,161,926
Raw materials, fabric and garment production for UNIQLO and GU products (fiscal 2030 target boundary) 4,165,738 3,944,349 3,883,961
2. Capital goods (not relevant) - - -
3. Fuel and energy related activities 43,836 41,613 42,546
4. Upstream transportation and distribution 355,654 379,042 378,114
5. Waste generated in operations 120,006 109,636 107,578
6. Business travel 6,655 7,139 7,060
7. Employee commuting 61,120 65,314 56,402
8. Upstream leased assets (included in Scope 1 and 2) - - -
9. Downstream transportation and distribution - - -
10. Processing of sold products (not relevant) - - -
11. Use of sold products (not relevant) - - -
12. End-of-life treatment of sold products 438,926 463,751 429,219
13. Downstream leased assets (not relevant) - - -
14. Franchises 10,086 5,655 3,405
15. Investments (not relevant) - - -

Third-party verification of GHG emissions

The data on GHG emissions has been verified by SGS Japan Co., Ltd. The verification scope covers Scope 1 and Scope 2 in the GHG Protocol, which is the emissions derived from energy use in our company's direct operations*1, and Category 1 of Scope 3, which is the emissions from the supply chain (purchased goods and services: raw material production, fabric production and sewing*2).
*1 The verification scope is for direct operations for Fast Retailing.
*2 The verification scope is for UNIQLO and GU products only.


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