Evaluation by Society

Last Updated: 2025.03.03
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Fast Retailing is advancing its LifeWear concept to create apparel that emphasizes quality, design, and price, and meets the definition of "good clothing", from the standpoint of environment, people, and society. In recognition of these efforts, we have received high evaluations from various external organizations.

Name	Contents
ESG
FTSE4Good Index*1	Developed by FTSE Russell (UK), a subsidiary of the London Stock Exchange, it is a leading ESG (Environmental, Social and Governance) index that selects companies from around the world based on its own criteria regarding the environment and corporate social responsibility. We have been continuously selected as a constituent of the FTSE4Good Index Series since 2018. Related Links https://www.lseg.com/en/ftse-russell/indices/ftse4good#why-ftse4good-indices
FTSE Blossom Japan*2	Developed by FTSE Russell, the index reflects the performance of Japanese companies that excel in ESG (Environmental, Social and Governance) responsiveness and is designed to be industry neutral. We have been continuously selected as a constituent of the FTSE Blossom Japan Index since 2018. *One of the ESG investment indices used by the Government Pension Investment Fund (GPIF) for domestic equities. Related Links https://www.lseg.com/en/ftse-russell/indices/blossom-japan#t-ftse-blossom-japan-index
FTSE Blossom Japan Sector Relative Index*2	Developed by FTSE Russell, the index is designed to be sector neutral, reflecting the relative performance of Japanese companies that excel in ESG (Environmental, Social and Governance) responses in their respective sectors. To facilitate the transition to a low carbon economy, only companies with particularly high greenhouse gas emissions are included, as their improvement efforts are assessed by the TPI Management Quality score. We have been continuously selected as a constituent of the FTSE Blossom Japan Sector Relative Index since 2022, when the index was launched. *One of the ESG investment indices used by the Government Pension Investment Fund (GPIF) for domestic equities. Related Links https://www.lseg.com/en/ftse-russell/indices/blossom-japan#t-ftse-blossom-japan-sector-relative-index
Morningstar Sustainalytics ESG Risk Ratings*3	Morningstar Sustainalytics' ESG (Environmental, Social and Governance) Risk Ratings measure a company's exposure to industry-specific material ESG risks and how well a company is managing those risks. This multi-dimensional way of measuring ESG risk combines the concepts of management and exposure to arrive at an assessment of ESG risk, i.e.a total unmanaged ESG risk score or the ESG Risk Rating, that is comparable across all industries. Sustainalytics' ESG Risk Ratings provide a quantitative measure of unmanaged ESG risk and distinguish between five levels of risk: negligible, low, medium, high and severe. In February 2025, we were rated as a company with a low level of risk (Low Risk) in all industries. Related Links https://www.sustainalytics.com/esg-rating/fast-retailing-co-ltd/1012371255
MSCI ESG Leaders Indexes*4	Developed by MSCI, the index represents the performance of companies that are selected based on Environmental, Social and Governance (ESG) criteria. We have been continuously selected as a constituent of the MSCI ESG Leaders Indexes since 2010. Related Links https://www.msci.com/indexes/group/esg-leaders-indexes
MSCI Nihonkabu ESG Select Leaders Index*4	Developed by MSCI, the index is constructed by selecting companies that excel in ESG evaluation, with the aim of achieving a target of 50% of the number of stocks in each GICS® (Global Industry Classification Standard), using the 'MSCI Nihonkabu IMI Index' as the parent index. We have been selected as a constituent of the MSCI Nihonkabu ESG Select Leaders Index in 2024. *One of the ESG investment indices used by the Government Pension Investment Fund (GPIF) for domestic equities. Related Links https://www.msci.com/documents/10199/f1498635-6bf7-efa0-8905-93c66eb75e06
MSCI ESG Ratings*5	A global evaluation index for ESG investments provided by MSCI ESG Research that ranks companies' ESG performance on a seven-point scale from "AAA" (the highest rating) to "CCC" (the lowest rating) based on the company's industry specific risks and risk management capabilities. We have continuously received a rating of "AA" in the MSCI ESG Ratings assessment since 2020. Related Links https://www.msci.com/our-solutions/esg-investing/esg-ratings
ISS ESG Corporate Rating "Prime"	The ESG Corporate Ratings conducted by ISS ESG, the responsible investment arm of Institutional Shareholder Services (ISS), an American proxy voting advisory firm, evaluate companies' initiatives from the perspectives of the environment, society and governance, and recognize companies that have received high evaluations within their respective industries as "Prime" rated companies. In 2024, we have received a rating of "Prime" for the first time in the ISS ESG Corporate Ratings. Related Links https://www.issgovernance.com/esg/ratings/
Environment
S&P/JPX Carbon Efficient Index	The index created by S&P Dow Jones Indices, the world's largest independent index company, targeting constituents of TOPIX based on carbon emissions data by Trucost, with increased investment ratio of carbon efficient companies within the industry based on market capitalization and companies that disclose information on greenhouse gas emissions. We have been continuously selected as a constituent of S&P/JPX Carbon Efficient Index since 2018 when the index was launched. *One of the ESG investment indices used by the Government Pension Investment Fund (GPIF) for domestic equities. Related Links https://www.spglobal.com/spdji/en/indices/sustainability/sp-jpx-carbon-efficient-index/#overview
CDP "Climate change" "Water security" "Forests"	CDP surveys companies around the world and rates them on a scale of A to D- based on how effectively they are addressing issues such as climate change, deforestation, and water security. In 2024, we were recognized as an "A list company" in an area of climate change for three consecutive years, in recognition of our transparency and leadership on climate change. 2021 2022 2023 2024 Climate A- A A A Water A- A A- A- Forest B B B C Related Links https://www.cdp.net/en/companies/companies-scores
Nature Benchmark	Published by the World Benchmarking Alliance (WBA), the benchmark assesses companies' commitment to nature. It assesses how companies mitigate their negative impacts on nature and contribute to the protection and restoration of ecosystems in terms of Governance and Strategy, Ecosystem and biodiversity, and Social inclusion and community impact. We were ranked 2nd out of 66 apparel companies around the world in the Nature Benchmark's 2022 rating, at the start of the benchmarking, in recognition of our assessment of biodiversity impact and dependence in our value chain, as well as our initiatives related to water, pollution, and greenhouse gases. Related Links https://www.worldbenchmarkingalliance.org/publication/nature/2022/rankings/segment/apparel-and-footwear/
Society
Corporate Human Rights Benchmark（CHRB）	Published by the World Benchmarking Alliance (WBA), the benchmark assesses companies' commitment to respect for human rights. It assesses the policies, processes, and practices that companies have in place to systematize their approach to human rights and how they respond to serious allegations. We were ranked 4th out of 55 apparel companies around the world in CHRB's 2023 rating, in recognition of our disclosure of training methods for all employees, managers, and suppliers on our commitment to human rights policies, as well as our efforts to reflect workers' voices in improving our hotline for our factories. 2019 2020 2023 8th/53 4th/53 4th/55 Related Links https://www.worldbenchmarkingalliance.org/publication/chrb/rankings/segment/apparel/
KnowTheChain	Published by KnowTheChain, the benchmark assesses companies' efforts to address the risk of forced labor in their supply chains. It assesses what policies and practices companies have put in place to eliminate forced labor, one of the most serious human rights abuses. We were ranked 4th out of 65 apparel companies around the world in the KnowTheChain 2023 rating, in recognition of our participation in a pilot project for a workers' compensation system in Bangladesh, our signing of the International Accord and Pakistan Accord, and the establishment of a grievance committee with worker involvement in Bangladesh. 2018 2020 2023 20th/43 12th/37 4th/65 Related Links https://knowthechain.org/company/fast-retailing-ltd/
Morningstar Japan ex-REIT Gender Diversity Tilt Index*6	The index developed by Morningstar (US) using Equileap's (Netherlands) Gender Equality Score to focus on companies whose gender diversity policies are embedded in their corporate culture, and which are committed to equal opportunities for their employees, regardless of gender. The index is categorized into five groups in order of score. We have been included in the index since 2023, when it was launched, and are recognized as "Group 1", the highest level of the index. *One of the ESG investment indices used by the Government Pension Investment Fund (GPIF) for domestic equities. Related Links https://indexes.morningstar.com/gender-diversity-indexes
Gender Benchmark	Published by the World Benchmarking Alliance (WBA), the benchmark assesses companies' commitment to gender equality. It assesses companies' performance across their value chain in terms of governance and strategy, representation, compensation and benefits, health and wellbeing, violence and harassment, and marketing and community. We were ranked 7th out of 64 apparel companies around the world in the Gender Benchmark's 2023 rating, in recognition of our high rank in Health and well-being, Violence and harassment, and for requiring suppliers to have effective policies and improvement processes in place to address complaints of violence and harassment from workers. 2021 2023 14th/35 7th/64 Related Links https://www.worldbenchmarkingalliance.org/publication/gender/rankings/segment/apparel/
D&I Award	The award is Japan's largest award recognizing and honoring companies that are committed to diversity and inclusion (D&I). Companies are evaluated on their efforts in the five categories of "Gender", "LGBT", "Disability", "Multicultural symbiosis", and "Childcare and Nursing Care" with a total diversity score of 100 points. We have been continuously awarded as a "Best Workplace", the highest rating, since 2022, in recognition of our efforts to create a work environment that respects the individuality of each employee and provides equal opportunities to take on challenges and expand their potential. Related Links(Japanese only) https://diaward.jobrainbow.jp/
Certified Health and Productivity Management Outstanding Organization	Designed by Japan's Ministry of Economy, Trade and Industry, the system rewards outstanding companies that consider employees' health and productivity management from a business-management perspective and strategically implement initiatives to help maintain and promote health. We were recognized as a Certified Health and Productivity Management Outstanding Organization (Large Enterprise Category) for two consecutive years in 2023 under the joint program operated by the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi. Related Links(Japanese only) https://www.meti.go.jp/policy/mono_info_service/healthcare/kenkoukeiei_yuryouhouzin.html

Disclaimer

*1 FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Fast Retailing Co., Ltd. has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.

*2 FTSE Russell confirms that Fast Retailing Co., Ltd. has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan Sector Relative Index. The FTSE Blossom Japan Sector Relative Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.

*3 This section includes information and data provided by Sustainalytics and/or its content providers. Information provided by Sustainalytics is not directed to or intended for use or distribution to India-based clients or users and its distribution to Indian resident individuals or entities is not permitted. Morningstar/Sustainalytics accepts no responsibility or liability whatsoever for the actions of third parties in this respect. Use of such data is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers/

*4 THE INCLUSION OF Fast Retailing Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Fast Retailing Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

*5 THE USE BY Fast Retailing Co., Ltd. OFANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES ("MSCI") DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF Fast Retailing Co., td. BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED 'AS-IS' AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

*6 Morningstar, Inc., and/or one of its affiliated companies (individually and collectively, "Morningstar") has authorized Fast Retailing Co., Ltd. to use of the Morningstar® Japan ex-REIT Gender Diversity Tilt Logo ("Logo") to reflect the fact that, for the designated ranking year, Fast Retailing Co., Ltd. ranks within the top group of companies comprising the Morningstar^® Japan ex-REIT Gender Diversity Tilt Index^℠ ("Index") on the issue of gender diversity in the workplace. Morningstar is making the Logo available for use by Fast Retailing Co., Ltd. solely for informational purposes. Fast Retailing Co., Ltd.'s use of the Logo should not be construed as an endorsement by Morningstar of Fast Retailing Co., Ltd. or as a recommendation, offer or solicitation to purchase, sell or underwrite any security associated with Fast Retailing Co., Ltd. The Index is designed to reflect gender diversity in the workplace in Japan, but Morningstar does not guarantee the accuracy, completeness or timeliness of the Index or any data included in it. Morningstar makes no express or implied warranties regarding the Index or the Logo, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Index, any data included in it or the Logo. Without limiting any of the foregoing, in no event shall Morningstar or any of its third-party content providers have any liability for any damages (whether direct or indirect), arising from any party's use or reliance on the Index or the Logo, even if Morningstar is notified of the possibility of such damages. The Morningstar name, Index name and the Logo are the trademarks or services marks of Morningstar, Inc. Past performance is no guarantee of future results.

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