Sustainability

Initiatives Related to Carbon Neutrality

As a company that places importance on providing customers with dreams and excitement through fashion, we recognize that the apparel industry has various impacts on the global environment and our lives, and that sustainable efforts to reduce environmental burdens are a social responsibility.

In order to build a business model with low environmental impact, in addition to switching to sustainable materials and making efforts to introduce a circular model, we will calculate CO2 emissions as a means of visualizing the environmental impact throughout the supply chain, with the aim of achieving carbon neutrality in 2050.

Governance

Sustainability Committee

 The Company has established a Sustainability Committee chaired by the C.E.O. We are working on important issues such as “the development and provision of environmentally friendly products and the improvement of the environment for obtaining international certification”, and “the contribution to a circular economy through product recycling and upcycling”.
 We will strengthen our governance system appropriately and effectively so that each and every officer and employee can raise their awareness of sustainability and contribute to improving the sustainability of society as a whole in every aspect of our corporate activities.

Governance

Risk management

Identifying risks

 We review scenarios and keep updated on the potential risks and effects (impacts) that climate change may have on our business.

Category
Issue
Business Impact

PhysicsRisk

Rise in Temperature
Business Impact
  • Decrease in sales of seasonal products, etc. due to the blurring of the four seasons
  • Reduced opportunities for consumers to go out due to epidemics, etc.
Rise in Sea level
Business Impact
  • Supply chain disruption, damage and/or shutdown of sales locations
  • Cost increase due to flood control expenses incurred at the plant
Water stress
(drought)
Business Impact
  • A rise in raw material prices due to a decrease in cotton harvest, etc.

MigrationRisk

Change in customer behavior
Business Impact
  • Customer loss and sales decline due to delays in response
Sustainable materials/
products
Business Impact
  • Increased costs due to the development and conversion to sustainable materials
  • Increased development and investment costs to achieve a circular model
Energy
Business Impact
  • Rising production and logistics costs due to soaring fuel prices and rising prices of alternative resources
  • Rising electricity rates due to the shift to green power
Disclosure
Business Impact
  • Increased personnel and operational costs associated with the disclosure of environment-related information
Regulatory compliance
Business Impact
  • Increased costs due to the introduction of regulations such as decarbonization, etc.

Strategies to achieve
carbon neutrality

 In accordance with the categories of emissions set forth in the Greenhouse Gas (GHG) Protocol, we will establish initiatives for each scope and work to implement them.
 Scope 1 and 2 depend mainly on electricity and gas used in offices and distribution centers, but we will promote the switch to electricity derived from green energy to achieve significant reductions.
 For Scope 3, it is essential to reduce CO2 emissions from manufacturing processes upstream in the supply chain, primarily overseas. For this reason, we will strengthen cooperation with overseas production plants and work together to reduce CO2 emissions throughout the supply chain.

Examples of “TAKIHYO FOR GOOD” initiatives

Direction of initiatives to reduce CO2 emissions

Scope 1&2

1Energy conservation and renewable energy
  • Switch to electricity derived from green energy

Scope 3

2Use of environmentally friendly materials
  • Development, use, and sales of materials with low environmental impact
  • Acquisition of GRS, RCS and other certifications, and supply chain development
3Energy conservation in the manufacturing process
  • Reduction of waste by cutting loss and proper production
  • Establishment of a roadmap for the gradual visualization and reduction of water and energy used at main production plants.
4Packaging and logistics methods
  • Improved cargo consolidation and loading efficiency
  • Reduced airline and ferry use
5Support for Circular Economy
  • Collection of clothing

Our CO2 Emissions
Results and Reduction Targets

 We support the Japanese government’s “2050 Carbon Neutral Declaration” and will strive to achieve carbon neutrality by 2050.
 In order to visualize the environmental impact of the entire supply chain, we have begun calculating CO2 emissions from 2021 and will continue to disclose this information.

FY2022 Results
FY2023 Results
(VS 2022)
FY2024 Results
(VS 2023)
Scope1&2

  • 1,061

  • 748
    (-313)

  • 135
    (-613)

Scope3

  • 355,761

  • 335,381
    (-20,380)

  • 268,863
    (-66,518)

Total

  • 356,822

  • 336,129
    (-20,693)

  • 268,998
    (-67,131)

  • The unit of emissions are in tons (t).

  • Scope 1: Direct emissions of greenhouse gases (combustion of fuels, industrial processes) by business operators themselves

  • Scope 2: Indirect emissions associated with the use of electricity, heat and steam supplied by other companies

  • Scope 3: Indirect emissions other than Scope 1 and Scope 2 (emissions from other companies related to business activities)