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Improved Energy Efficiency

Last Updated: 2022.09.16
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Fast Retailing promotes greater efficiency in the use of energy in our stores and throughout the supply chain. We also promote the development and production of functional apparel that reduces energy used when worn by our customers.

Policies for Greater Energy Efficiency

Fast Retailing uses a variety of energy sources for store lighting and climate control, product manufacturing and transport, and other purposes. We work with our partners to encourage energy savings and increase efficiency in our business activities, while respecting the energy reduction targets in every region and country where we conduct business. Fast Retailing also plans and develops functional apparel designed to possibly support the reduction of the amount of energy customers consume, simply by wearing our clothing.

Targets

Fast Retailing

We promote energy saving in our stores and offices in every country and region where we conduct business. By changing the way we operate our stores, Fast Retailing introduces energy saving measures in lighting, heating, and temperature control. We have adopted new technologies, including LED lighting and automatic temperature control systems. We are also changing the way we design our stores to make effective use of natural light. We began installing LED lighting in UNIQLO stores in Japan in 2014 with the goal to have LED lighting in 100 percent of UNIQLO stores in Japan by 2020. As a result, we reduced electricity usage per unit of floor area by about 30% compared to fiscal 2013. As of the end of August 2021, LED lighting has been installed in 782 of the 810 UNIQLO stores in Japan (96.5%). As of the end of August 2021, LED lighting has also been installed in 397 of the 408 stores in GU stores in Japan (97.3%). While continuing this effort, we are also moving forward with outfitting LED lighting in UNIQLO stores globally.

We also save energy in our Yamaguchi office through LED lighting and improving air-conditioning efficiency and in Ariake and Roppongi offices through systems that shut down lighting and temperature control systems automatically at the end of the normal workday. At our Ariake Office, we save energy through the use of natural light.

Supply Chain

We evaluate every business associated with the Fast Retailing Group to improve energy efficiency throughout our supply chain. These evaluations include our production partners and logistics partners. We collaborate with our partners to improve productivity and promote the installation of energy-saving equipment.

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. Based on strong relationships with partner factories, we are working to achieve our GHG emissions reduction target by fiscal 2030 in our supply chain through reducing energy usage and improving energy efficiency. Our aim is to reduce energy usage with logistics partners by consolidating shipments and improving loading efficiency.

Customers

We continue to plan and develop functional apparel, contributing to the creation of a society in which our customers make more efficient use of energy in their daily lives. For instance, HEATTECH functional innerwear, a UNIQLO product sold worldwide, is very popular with customers. By wearing HEATTECH products, consumers can potentially reduce the amount of energy they use for heating.

Fast Retailing Initiatives

Stores and offices

・Reductions in energy consumption through energy saving at stores
We strive to reduce GHG emissions by promoting energy savings and reducing electricity usage at stores. We began installing LED lighting in our stores in 2014, reducing the amount of energy we use and the volume of greenhouse gas emissions with the goal to have LED lighting in 100 percent of UNIQLO stores in Japan by 2020. As a result, we reduced electricity usage per unit of floor area by about 30% compared to fiscal 2013. As of August 2021, LED lighting is installed in 782of the 810 UNIQLO stores in Japan (96.5%). As of the end of August 2021, LED lighting is also installed in 397 of the 408 GU stores in Japan (97.3%). While continuing this effort, we are also moving forward with a phased introduction of LED lighting in our 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 formats at the stage of designing stores. With an aim to reduce approximately 40% of electricity usage per store, we plan to launch such stores during 2023.

・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.

・Respecting the environment by acquiring LEED certification
UNIQLO has been working towards reducing its environmental burden through its store designs and operations. UNIQLO has standardized the specifications for roadside stores, utilizing high-quality materials, heat insulation, LED lighting and simple store designs to create durable, energy-efficient retail spaces. The Gold Level LEED® (Leadership in Energy and Environmental Design) certification in the Building Operations & Maintenance (O+M) category was awarded in recognition of this store design and its operating procedures. By the end of fiscal 2021, UNIQLO has acquired LEED O+M Gold certification at eight main roadside stores in Japan including the Kawagoe store. We continue to apply the knowledge gained through these efforts to further lower the environmental impact of its stores.

Related Links

Supply Chain Initiatives

Logistics

・Reducing energy usage
We are taking steps to reduce energy consumption and environmental impacts related to logistics through improved transportation efficiencies.

InitiativesAreasDescription

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.

Container Round Use

UNIQLO
in Japan

  • Container Round Use (CRU) consists of unloading a container used for import and loading it with items for export, instead of returning the container to the port empty. By reducing the number of empty containers in transit, it becomes possible to reduce greenhouse gas emissions and alleviate congestion at ports. UNIQLO is promoting CRU initiatives, such as using the same container to import products and export store materials.

Improving
Shipping Efficiency
Per Truck

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
Increase Loading
Efficiency

UNIQLO and GU
in Japan

  • At UNIQLO and GU, we set minimum orders per item for each store in order to prevent inefficient small shipments from warehouses to stores.
  • In response to the problem of inefficient loading when cardboard boxes of various sizes are used, starting in September 2017 we reduced the number of shipping cartons used by UNIQLO to improving loading efficiency.
  • In slower periods, we improve loading efficiency by further consolidating the deliveries.

Initiatives to
Improve
E-commerce Shipping Efficiencies

UNIQLO in Japan

  • We are improving shipping efficiency at the Ariake warehouse (e-commerce sales) with systems that automatically adjust the height of the carton 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 partner factories, 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

Energy Usage

Third-party verification of energy usage data

The data on energy usage in stores and offices in Japan has been verified by SGS Japan Co., Ltd.

Fast Retailing

Items Units 2019
(September 2018 to August 2019)
2020
(September 2019 to August 2020)
2021
(September 2020 to August 2021)
Energy usage Gas m3 7,669,159 3,142,323 1,923,305
Electricity kWh 561,629,357 560,308,048 524,276,267
Renewable energy sourced kWh - - 13,391,707
Scope Fast Retailing Fast Retailing Fast Retailing

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