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Improved Energy Efficiency

Last Updated: 2019.02.19
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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. Our goal is to have LED lighting in 100 percent of UNIQLO stores in Japan by 2020. As of August 2018, LED lighting is installed in 734 of the 827 UNIQLO stores in Japan (88.8 percent), resulting in the reduction of electricity per unit of floor area by about 13% compared to fiscal 2013 We are also moving forward with outfitting LED lighting in UNIQLO stores outside of Japan and GU stores in Japan.

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 partner factories and logistics partners. We collaborate with our partners to improve productivity and promote the installation of energy-saving equipment.

We operate programs to reduce energy usage at fabric mills, working with each business partner to set reduction targets (reduction by 10 percent of the 2016 levels by the end 2020 - the effort spanning three years from 2018 to 2020). 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

・Reductions in energy consumption through LED lighting
We began installing LED lighting in our stores in 2014, reducing the amount of energy we use and the volume of greenhouse gas emissions. As of August 2018, LED lighting is installed in 734 of the 827 UNIQLO stores in Japan (88.8 percent), resulting in reduction of electricity per unit of floor area by about 13% compared to fiscal 2013. Our goal is to have LED lighting in 100 percent of UNIQLO stores in Japan. We are also moving forward with a phased introduction of LED lighting in our UNIQLO stores internationally and GU stores in Japan. We plan to introduce energy management systems (EMS) and continue with other efforts to increase energy usage efficiency and reduce greenhouse gas emissions.

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.

Fabric mills

・Reduce water and energy usage under the UNIQLO Responsible Mill Program
Fabric mills use a significant amount of water and energy in the manufacturing process. To alleviate the environment impacts, UNIQLO launched the UNIQLO Responsible Mill Program, which calls for a reduction in energy usage by 10 percent of the 2016 levels by the end 2020 - the effort spanning three years from 2018 to 2020.

UNIQLO Responsible Mill Program

  • Evaluating the water and energy usage of the factories and formulating plans to reduce usage by 2020
  • When factories do not appear likely to achieve reduction targets completely, we work with outside experts to investigate areas that may yield additional reductions, including boiler upgrades, inverters, and other improvements to facilities and equipment operations.
  • Revising or creating new energy saving plans
  • Regular progress checks

Related Links

Reductions in energy usage in the product use stage

1 billion HEATTECH products have been sold worldwide

Since being introduced in 2003, UNIQLO has sold a total 1 billion HEATTECH items (as of fiscal 2017) HEATTECH innerwear is popular with customers worldwide. By wearing HEATTECH, customers could lower their room temperatures due to the insulating nature of the product. This can translate into reduced energy usage and lower emissions of greenhouse gases. In surveys of HEATTECH users, many reported lower heating bills.

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

ItemsUnits2016
(September 2015 to August 2016)
2017
(September 2016 to August 2017)
2018
(September 2017 to August 2018)
Gas (Stores) m3 2,737,918 3,086,825 2,851,413
Gas (Headquarters) 5,823 6,073 6,356
Electricity (Stores) kWh 214,045,172 272,424,374 255,631,048
Electricity (Headquarters) 4,259,323 12,016,239 13,621,405
Survey Scope
  • Headquarters:
    Yamaguchi Head Office and Roppongi Office
  • Stores:
    UNIQLO in Japan
  • Headquarters:
    Yamaguchi Head Office, Roppongi Office, and Ariake Office
  • Stores:
    UNIQLO and GU in Japan
  • Headquarters:
    Yamaguchi Head Office, Roppongi Office, and Ariake Office
  • Stores:
    UNIQLO and GU in Japan

Supply chain

・Energy usage at UNIQLO's core fabric mills
As part of UNIQLO Responsible Mill Program, Fast Retailing has calculated the environmental impacts of UNIQLO's core fabric mills through the Higg Index environmental module developed by the Sustainable Apparel Coalition. As the program is aiming to calculate each factory's entire environmental impact, the data covers total usage without taking into account UNIQLO's share of their production.

Units: GJ

UNIQLO's core fabric mills2015
(January to December 2015)
2016
(January to December 2016)
2017
(January to December 2017)
44,385,294 40,686,713 41,023,975

・Energy usage at logistics

Units: GJ

Logistics (UNIQLO in Japan)2016
(April 2015 to March 2016)
2017
(April 2016 to March 2017)
2018
(April 2017 to March 2018)
258,321 261,769 284,141

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