Environmental Management

Fast Retailing continues to improve environmental management systems and promote environmental management throughout the supply chain.

Fast Retailing Environmental Policies

Fast Retailing works to eliminate all waste in in order to maximize the effective use of resources across all business processes. As we reduce our environmental impact, we also adopt innovative technologies in an effort to build more sustainable business models.

【Six Core Environmental Initiatives】

・Address climate change
・Improve energy efficiency
・Address biodiversity
・Manage water resources
・Manage chemical substances
・Manage waste, maximize resource efficiency

Fast Retailing Group Environmental Policy (111KB)

【Related Policies】

Approach

Implementation Framework

The Sustainability Committee refers to the company's environmental policies to identify the most important initiatives to address. Each entity within the Fast Retailing Group pursues its own environmental initiatives. Fast Retailing pursues six core environmental initiatives: (1) Address climate change; (2) Improve energy efficiency; (3) Address Biodiversity (4)Manage water; (5) Manage chemical substances; and (6) Manage waste and maximize resource efficiency. The Sustainability Committee sets targets for these areas and implements specific policies to support them. Attended by internal directors, external directors, full-time Audit ＆ Supervisory Board Members, senior operating officers, and external professionals, the Sustainability Committee seeks and considers a wide variety of actions. The specific environmental activities of the committee are conducted by the companies in the Fast Retailing Group, as well as by the departments responsible for product development, production, distribution, sales, and marketing.

We assign sustainability department personnel to the production offices in Mainland China, Southeast Asia and other regions. These employees are responsible for advancing efforts to improve environmental management at factories in our supply chain. Fast Retailing joined Cascale(Formerly known as SAC), a non-profit organization that promotes the reduction of environmental impact in the apparel industry. To assess the environmental impact of our company and our supply chain, we utilize the Higg Index, an industry standard tool developed by Cascale, to understand environmental impacts and risks, and strive for improvement.

Information Disclosure

Based on our Environmental Policy, Fast Retailing recognizes the importance of environmental information disclosure as we continue to pursue improved environmental performance. We actively disclose this information through our websites, Sustainability Data Book, Integrated Report and by other means.

To disclose information about our environmental performance, we responded to the CDP* questionnaire on climate change, water security, and forest conservation. Furthermore, in response to the growing interest in our activities to address climate change, in June 2021, we declared our support of the recommendations made by the Task Force on Climate-related Financial Information Disclosures (TCFD), and in December 2021, we disclosed information in line with the TCFD framework.

Fast Retailing Group TCFD Report 2024 (410KB)

*At the request of institutional investors and major purchasing companies around the world who are highly interested in environmental issues, CDP requested companies and municipalities to disclose information on environmental issues such as climate change, water security, and forest conservation. It is one of the world's most valuable information disclosure platforms for environmental issues. Please see here for our latest CDP response.

Environmental Management in Supply Chain

Production Partners

・Environmental Commitment
In 2020, based on our Code of Conduct for Production Partners, Fast Retailing adopted the "Environmental Commitment" standard that sets out the minimum environmental protection standards that our business partners should comply with. We only contract with partners that can pledge their compliance with this commitment.

【Main Elements of Fast Retailing's Environmental Commitment】

The factory is in compliance with local laws and regulations related to the environment
Environmental impact assessment is conducted when required by local laws and regulations
Initiatives to improve energy efficiency are implemented based on clear understanding of energy usage.
Initiatives to use water efficiently are implemented based on clear understanding of water consumption, water withdrawal, and water discharge data.
Ensure wastewater treatment works properly
Procedures are in place for handling chemical substances and waste products
Training on chemical hazards is conducted for all employees who use chemicals while working in the factory, and on risks when handling chemicals in case of emergency or spill
The factory has authorized contractors for the treatment of hazardous waste

・Adopting the Higg Facility Environmental Module (Higg FEM) at production partners
For our core fabric mills and garment factories, we confirm the status of compliance with the environmental commitment standard through regular assessment using the Higg Facility Environmental Module (Higg FEM), an industry environmental impact assessment standard tool for factories, developed by Cascale. With the introduction of the Higg FEM, we conducted a survey consisting of about 200 questions regarding the environmental impact of fabric mills and garment factories and identify challenges based on these results. We require our core fabric mills to have third-party auditors review water treatment and other environmental measures. Where necessary, Fast Retailing personnel who are recognized by Cascale as FEM trainers, follow up with direct visits and work with factories to ensure required improvements are made. Through this initiative, we work with factories to understand and reduce environmental risks and promote voluntary efforts to make improvements.

【Seven Environmental Factors in the Higg FEM】

Environmental management system (environmental targets, etc.)
Energy use and greenhouse gas emissions
Water use
Drainage
Atmospheric emissions
Waste
Management of chemical substances

・Training at core fabric mills and garment factories
We provide training on the Higg Index at our core fabric mills and garment factories to increase environmental knowledge and awareness. This training focuses mainly on raising awareness of issues surrounding water and energy use, as well as on the management of chemical substances. Providing this training on an on-going basis, we are advancing our goal of appropriate environmental management at our partner fabric mills. In fiscal 2024, we provided training to 421 factories.

Fabric mill personnel receiving training on the Higg Index

Supporting UNEP Sustainability Action

Fast Retailing supports the UNEP Sustainability Action organized by the United Nations Environment Programme. UNEP Sustainability Action is a new platform connecting citizens, companies, governments and the United Nations, and targets an integrated approach to sustainability with a focus on global environmental issues and resource efficiency. The platform builds a global dialogue among executives, and promotes networking and campaign activities for consumers, while also supporting UNEP projects in developing countries. Leveraging the action and power of its participants, the platform helps achieve Sustainable Development Goals (SDGs) and contributes to a more sustainable society.