Last Updated: 2024.12.27
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Governance and Management Structure
Fast Retailing has established a Sustainability Committee to promote sustainability activities in tandem with our business operations. Sustainability Committee meetings are attended by our internal directors (including our representative director as the chairperson of the committee), external directors, audit & supervisory board members, external experts, and relevant executive officers, and involve discussions regarding various sustainability policies, measures plans, targets and issues and directions of individual activities from a variety of different perspectives, and also, based on progress reports on each area, including environment, human rights, and social contribution, serve as opportunities to provide advice, recommendations, and supervision to departments executing business operations. Meetings for the Committee were held four times this consolidated fiscal year, and were host to discussions regarding sustainability activities pertaining to matters like climate change, biodiversity, circular economy, respect for human rights, social contribution, communication, and EU regulatory compliance. The Committee also discussed how best to communicate with customers and other stakeholders in order to solicit their participation in our social contribution activities.
We engage in debate, offer advice, and provide supervision regarding risks associated with key matters such as the environment and human rights during meetings of committees attended by internal and external directors, audit & supervisory board members, external experts, and executive officers, such as the Risk Management Committee, the Human Resources Committee, the Human Rights Committee, the Code of Conduct Committee, and the Corporate Transaction Ethics Committee. Furthermore, the Audit & Supervisory Board recognizes various issues pertaining to sustainability as risks, and requests reports from departments executing business operations as appropriate.
At Fast Retailing, the Company Chairman and President, who occupies the highest position of authority in terms of sustainability, appoints directors and executive officers in charge of sustainability. To enable them to evaluate and manage the impacts, risks, and opportunities presented by their specific areas of responsibility, those directors and executive officers supervise relevant departments, receive reports on a regular basis, and make management decisions. Additionally, evaluation standards of variable remuneration for directors and executive officers in charge of sustainability-related matters include the evaluation of results pertaining to quantitative and qualitative goals set for the matters for which they are responsible.
Managers of each operation and company play a central role in implementing initiatives in cooperation with the Sustainability Department in order to facilitate the steady and integrated pursuit of sustainability activities and business growth. For example, we have positioned sustainability activities as a priority issue within Fast Retailing's transformative Ariake Project*. Each department involved in supply chain management, including in-store and e-commerce sales, production, and distribution, appoints a person in charge of individual sustainability issues ranging from reducing greenhouse gas emissions, eliminating waste, developing products using recycled materials, and establishing traceability. Metrics and targets have been set, and various initiatives are being pursued.
*The Ariake Project is tasked with transforming Fast Retailing into a digital consumer retailing company that connects directly with its customers, turns customer feedback and global information into superior products, and delivers those products in the most efficient and effective way. The project also seeks to use digital and other technologies to change the structure of the supply chain and the way the Company and its employees operate, and to expand global business while creating a business model that makes, transports, and sells only what is necessary, because we believe this is the way to improve customer satisfaction and solve sustainability issues, such as reducing environmental impact.
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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.
