Response to Climate Change

Last Updated: 2024.12.27
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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.

As local situations vary depending on the energy policies of the countries where we operate, and where our supply chains are located, we have not established a global uniform policy on the energy sources we use. However, we are working to identify best-fit methods for each region, and toward the elimination of coal, introducing renewable energy to reduce greenhouse gas emissions throughout the value chain.

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 the fiscal year ending August 2030 from the fiscal year ending August 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 the fiscal year ending August 2030. These targets were approved by the 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 achieve the goal of 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.

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. Since spring/summer 2014, we have been installing LED lighting in all UNIQLO and GU stores in Japan. We are also working to install LED lighting systems at UNIQLO stores globally.

• Currently, we are striving to achieve our emissions reduction target by the fiscal year ending August 2030 and further promoting energy efficiency by installing an air conditioning system that controls overtime use and automatically adjusts to a preset temperature. As of end of August 2024, 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. The UNIQLO Maebashi Minami IC Store, which opened in April 2023, has obtained ZEB Ready* certification for its store design, which combines energy conservation and energy generation. We will continue to increase the number of stores designed in line with this new format both in Japan and overseas.

  *A highly insulated building with efficient energy-saving equipment enabling reduced energy consumption, which makes efforts to achieve ZEB (net-zero energy building), which is a building with net-zero or negative annual primary energy consumption.

• 
  UNIQLO Maebashi Minami IC Store

・Introducing renewable energy
Aiming at 100% sourcing of renewable electricity by the fiscal year ending August 2030, we have introduced renewable energy at stores and offices through initiatives such as an on-site installation* of solar power generation equipment, purchasing green electricity products provided by energy suppliers and renewable energy certificates. We have achieved 67.6% sourcing of renewable electricity as of the fiscal year ending August 2023.
*Sourcing through PPA (Power Purchase Agreement)

Related Links

• UNIQLO Addressing Climate Change
• Data Publication under the Tokyo Carbon
  Reduction Reporting Program (Japanese only) (112KB)

Supply Chain Initiatives

Production Partners

・Initiatives to reduce GHG emissions
Based on strong relationships with production partners, Fast Retailing is working to achieve its greenhouse gas emissions reduction targets in the supply chain leading up to fiscal year ending August 31, 2030. We use the Higg Index and other apparel industry indices to measure environmental impact, including greenhouse gas emissions, at our core garment factories and fabric mills, then work with each partner to reduce this impact. By November 2021, we defined specific conditions and issues across countries and regions, and at each of the core partner factories jointly accounting for 90% of UNIQLO and GU manufacturing. We then formulated plans to reduce greenhouse gas emissions, and to implement decarbonization, energy-efficiency, and renewable-energy initiatives. To ensure these plans are implemented, we work closely with our partner factories to check progress, and conduct a review every three months. To help our partners meet challenges, we provide tailored advice for each factory on suitable options for their circumstances, and introduce funding sources to help them implement plans.

For example, such consultive support has led to some fabric mills suppliers installing highly-efficient small boilers and other key equipment. In Bangladesh - a region where it remains difficult to procure renewable energy - we worked directly with renewable energy providers to ensure our partner factories could procure renewable energy certificates on a priority basis.

Promoting GHG emission reductions in the sourcing of raw materials

From our product-planning stage, we encourage the use of raw materials that were produced with lower GHG emissions. Specifically, we aim to increase the proportion of materials with low GHG emissions such as recycled materials to approximately 50% by the fiscal year ending August 2030, and are starting to switch to use them. In 2024, the ratio of products made from materials with low GHG emissions such as recycled materials increased to 18.2% (from 8.5% in the previous year) of total materials used. For polyester, 47.4% (from 30.0% in the previous year) of total materials used were made from recycled polyester.

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.

Related Links

• Responsible Procurement

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.

GHG Emissions

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

Fast Retailing (stores and offices)

*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

* Changed emission factors used or boundaries of activity data

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 Scope 3^*2, which is the indirect emissions from the value chain.
*1 The verification scope up to the fiscal year ending August 2020 is for main offices and UNIQLO and GU stores in Japan. From the fiscal year ending August 2021, the scope covers global operations of Fast Retailing.
*2 The verification scope up to the fiscal year ending August 2021 is for Category 1 purchased goods and services: raw material production, fabric production and sewing for UNIQLO and GU products. From the fiscal year ending August 2022, the scope covers all categories of Scope 3 emissions of Fast Retailing.

• Verification Report

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