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Governance and Management Structure

Last Updated: 2024.02.29
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Governance and Management Structure

At Fast Retailing, the company president and CEO, as the executive officer with overall responsibility for sustainability, appoints directors and an executive officer in charge of sustainability. We have also set up a Sustainability Committee which is tasked with promoting sustainability activities and ensuring sustainability efforts are closely integrated with overall business strategy and direction. Chaired by the director in charge of sustainability, the committee is attended by internal directors including the representative director, outside directors, Audit & Supervisory Board Members, an external expert, and relevant executive officers. The committee discusses all manner of sustainability-related policies and measures from various perspectives and provides advice, recommendations, and supervision to the departments that execute sustainability measures. The Committee convened four times in fiscal 2023, where participants discussed sustainability activities, including climate change, biodiversity, and the circular economy. They also discussed ways to communicate with customers and other stakeholders to encourage participation in social contribution activities.

The Risk Management, Human Rights, Code of Conduct, and Business Ethics committees, which are attended by internal and external directors, Audit & Supervisory Board Members, external experts, and executive officers, also discuss, advise, and supervise risks related to important issues such as the environment and human rights. The Audit & Supervisory Board also recognizes various sustainability-related issues as risks and requests reports from the departments that execute sustainability measures as appropriate.

With regard to the remuneration of directors and executive officers in charge of sustainability, the evaluation criteria for variable remuneration incorporate the results of quantitative and qualitative targets related to their areas of responsibility.

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To steadily implement sustainability activities throughout the Fast Retailing Group, the management of each business unit and company takes the lead in implementing and promoting initiatives in cooperation with the Sustainability Department. For example, sustainability activities are positioned as a key issue in the Ariake Project, a group-wide transformation initiative. Each department in the supply chain management, including sales in stores and e-commerce, production, and logistics, appoints a responsible person and sets targets and KPIs for each sustainability issue, such as reducing greenhouse gas emissions and waste, developing products using recycled materials, and establishing traceability. We are also promoting sustainability initiatives at our major overseas bases. We have appointed sustainability personnel at major overseas bases to strengthen our global promotion system.

We work with stakeholders worldwide to deepen our understanding of global social issues and environmental problems, continuously striving to improve our sustainability initiatives and their effectiveness. We aim to be accountable and transparent, disclosing important information and engaging with external stakeholders.

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