Water Resource Management

Last Updated: 2024.02.16
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To protect the environment at every stage of the product life cycle--from raw materials sourcing to manufacturing, sale, and consumer use--Fast Retailing strives to solve water-related issues at local level by preventing and reducing water pollution and water usage.

Policies for Water Resource Management

Water is an essential component when making Fast Retailing apparel. Growing cotton used as raw material for apparel requires significant amounts of water. Fabric dyeing and other parts of the production process also require large volumes of water. We aim to protect the environment at every stage of the product life cycle; from raw materials sourcing to manufacturing, sale, and consumer use, Fast Retailing strives to identify and solve local water-related issues. Our Water Action Plan with specific targets and measures supports the health of the local water environment by preventing and reducing water pollution and water usage. Many environmental problems cannot be solved by a single company working alone. This is why Fast Retailing partners with companies, organizations, and NPOs to protect precious water resources.

Risk Assessment

Water Risk Assessment

We regularly conduct risk assessments throughout the value chain using the Aqueduct, a water risk assessment tool developed by the World Resources Institute. In the fiscal year ending August 31, 2021, we assessed our core stores and offices, as well as garment factories and fabric mills, and identified facilities located in high-risk areas. For stores and offices in high risk areas, we conducted a follow-up survey on past damages caused by floods etc. and existing countermeasures and confirmed that such risks have been reduced as a part of a company-wide risk management. Since the impact on the supply chain is significant, we conducted a survey on the actual water conditions and fluctuations in water prices for the factories that were risk-assessed by Aqueduct, and identified factories that have water risks. In 2022, based on the survey results, we began working with NGOs, government, and other local stakeholders to donate water treatment systems to schools near our factories in Vietnam that are at risk of salt damage. As of the fiscal year ending August 31,2023, we have donated water treatment systems to 14 schools. Through these efforts, Fast Retailing is supporting communities at risk of salt damage and bringing water to those who need it as effectively as possible. We are also working to understand the production areas of raw materials and water risks in the region.

Related Links

• Environmental Conservation/Protection

Targets

Fast Retailing carries out its Water Action Plan to bring the local water environment into a healthy state, preventing and reducing water pollution and excess water usage.

Fast Retailing

・Water risk assessment and environmental management at stores and offices
We carry out water risk assessments for stores and offices on a regular basis, implementing measures to reduce water-related risks such as flood risk. We also undertake initiatives to identify and resolve local water-related risks and issues.

Supply Chain

・Reduce water use
Focusing on areas with high water supply risk and factories that use a lot of water, we evaluate water use at our partner factories, working with them to reduce water consumption. We have set a reduction target of 10% per unit of water used at each factory from the 2020 levels by the end of December 2025 at our partner factories that account for 80% of total water consumption.

・Introduce water-saving technologies
Through collaboration with factories, we aim to introduce technologies that use less water. For example, we have developed "Blue Cycle", a technology that drastically reduces water consumption through the use of nanobubble and ozone-wash innovations in denim finishing processes, which are used to achieve the "wash" and "damage" characteristics of jeans. We had introduced this technology for jeans produced and sold by all brands under the Group by December 2020.

・Implement water treatment
Fast Retailing requires its core garment factories and fabric mills to conduct wastewater testing based on the ZDHC (Zero Discharge of Hazardous Chemicals) wastewater guidelines and to upload and disclose results on ZDHC's information platform, 'ZDHC Gateway'. If hazardous chemicals are detected in wastewater, we require factories to submit a root cause analysis and an improvement plan based on the analysis results. Based on the improvement plans submitted by factories, Fast Retailing employees visit factory facilities to provide technical support and on-site coaching as needed. We aim to achieve zero wastewater pollution (100% of the overall compliance rate towards zero wastewater pollution) in our partner factories by the end of December 2030.

・Reduce water usage related to raw materials
When planning products, we encourage the use of materials that can be produced with less water, reducing water consumption. Specifically, our goal is to achieve 100 % procurement of sustainable cotton１ among all Fast Retailing Group brands by the end of December 2025. The definition of sustainable cotton includes cotton procured from areas where improvements have been made regarding water usage*.
We also aim to switch approximately 50% of all materials used to materials with low greenhouse gas emissions, such as recycled materials, by the fiscal year ending August 31, 2030.

1 For us, sustainable cotton means Better Cotton2; cotton sourced from the United States or Australia, recycled cotton3; organic cotton4; Fair Trade cotton by definition.
2 See Better Cotton Initiative, below.
3 Cotton certified by GRS (Global Recycled Standard) or RCS (Recycled Claim Standard)
4 Cotton certified by GOTS (Global Organic Textile Standard) or OCS (Organic Content Standard)

Customers

・Reduce water consumption by consumers using products
We are researching ways to reduce the amount of water used for washing clothes. We intend to inform our customers about low-water cleaning methods that use less water and energy, which reduces the impact on the environment.

Fast Retailing Initiatives

Water risk assessment and environmental management at stores and offices

We carry out water risk assessments for stores and offices on a regular basis, implementing measures to reduce water-related risks such as flood risk. We also undertake initiatives to identify and resolve local water-related risks and issues. For example, for facilities that are identified to have a high risk of flooding, we have formulated and are implementing measures to prevent and reduce that risk by using hazard maps and water-stopping plates and sandbags. In addition, we are promoting efforts to reduce environmental impact, including water saving, by acquiring LEED® (Leadership in Energy & Environmental Design) certification, an international environmental performance evaluation system for building and site use.

Supply Chain Initiatives

Production Partners

・Reduce water consumption
In order to reduce environmental impact in the supply chain, we strive to identify and reduce environmental impact of our core garment factories and fabric mills using the unified indicators of the apparel industry, such as The Higg Index. We are working with our partner sewing and material factories that account for 80% of total water consumption to achieve our goal to reduce each factory's water usage per unit* by 10% from the 2020 levels by the end of December 2025. As of December 31, 2022, 49% of the factories achieved a reduction of 10% or more in water usage per unit from the 2020 levels.

* "Per unit" refers to one unit of production volume. The production volume is measured by kilograms, meters, the number of products (pieces), etc.

Related Links

• Initiatives to reduce the environmental impact at fabric mills

・Reduce water consumption in the jeans finishing process by up to 99%
We have developed our BlueCycle technology that reduces water consumption by up to 99%* during jeans finishing processes, such as washing and damaging. BlueCycle incorporates advanced nanobubble and ozone washing technologies.
* Shows reduction in a comparison of 2018 model UNIQLO Men's Regular Fit Jeans, against the same product from 2017. Percentage of reduction in water usage varies by product.

Related Links

• Innovative Washing Process for Jeans to Cut Water Usage
• BLUE CYCLE JEANS

・Implement water treatment
Please see the details in the related links below.

Related Links

• Chemical Management
• Initiatives on Microplastics

Reduce water usage related to raw materials

・Reduce water consumption by using sustainable cotton
Fast Retailing aims to procure 100% of its cotton from sustainable sources by the end of December 2025. Fast Retailing defines sustainable cotton as cotton that is grown in a way that reduces the use of water, pesticides, and chemical fertilizers during the cultivation process, takes into consideration soil and ecosystem conservation, and respects the labor environment of farmers. For us, sustainable cotton means Better Cotton^*1; cotton sourced from the United States or Australia, recycled cotton^*2; organic cotton^*3; Fair Trade cotton by definition.

*1 See Better Cotton Initiative, below.
*2 Cotton certified by GRS (Global Recycled Standard) or RCS (Recycled Claim Standard)
*3 Cotton certified by GOTS (Global Organic Textile Standard) or OCS (Organic Content Standard)

・Better Cotton Initiative
Fast Retailing became an affiliate member of the Better Cotton Initiative (BCI) in January 2018. BCI is a non-governmental organization dedicated to the sustainable production of cotton. BCI promotes better cotton cultivation, educating farmers on the proper use of water, pesticides and other agricultural chemicals, and guiding on respect for workers' rights, etc. Farmers meeting standards set by BCI are certified as Better Cotton producers.

Related links

• Procurement of Plant-Derived Materials

Water Consumption

Fast Retailing

Supply Chain^*1

*1 Partially estimated and calculated based on figures reported by each factory to the Higg Facility Environmental Module (Higg FEM), the apparel industry's standard tool for assessing factory environmental impact.
*2 UNIQLO factories only until 2021, UNIQLO and GU factories from 2022

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