Fast Retailing : Hosts Second LifeWear = Sustainability Briefing - Progress and Achievements Toward Commitments Outlined in December 2021

Last Updated: 2022.11.16

FAST RETAILING CO., LTD.
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Fast Retailing today held its second LifeWear = Sustainability media and analyst briefing in Tokyo. The session built on the company vision for LifeWear-clothing made with simplicity, quality, and longevity in mind-as the model for a new kind of industry. Fast Retailing provided updates for key stakeholders on its progress and achievements towards the goals it announced at the previous session in December 2021.

Fast Retailing Group Senior Executive Officer Koji Yanai presented the latest evolution of LifeWear and the products and services offered by the company. Fast Retailing Group Executive Officer responsible for Sustainability, Yukihiro Nitta, detailed progress made on such key initiatives as reducing CO2 emissions, enhancing traceability, and improving transparency. Fast Retailing Group Executive Officer and Fast Retailing USA Chief Administrative Officer & General Counsel Serena Peck also spoke on talent development and Diversity and Inclusion initiatives in the US to strengthen functions of Fast Retailing Global Headquarters.

"Over the past year we have been making progress on many initiatives with the aim of bringing LifeWear to even more customers and carrying out business activities that improve the lives of people and societies throughout the world", said Fast Retailing Group Senior Executive Officer Koji Yanai. "Taking feedback from customers globally, we launched such new projects as our RE.UNIQLO STUDIO repair service. Going forward, in collaboration with customers, business partners and NGOs, we will continue to accelerate initiatives to make LifeWear a cornerstone of better lives and societies for all people."

Progress of key initiatives toward Fast Retailing targets for fiscal 2030:

Products

• Across the entire Fast Retailing Group, the proportion of recycled materials and materials with low greenhouse gas emissions for 2022 products has risen to 5%; steady progress towards reaching the target of 50% by FY2030. The proportion of polyester derived from recycled sources out of all polyester used has risen to approximately 16%.
• From the Fall/Winter 2022 season, UNIQLO Furry Fleece Zip Jackets are now made from 100% recycled polyester, mainly from recycled PET bottles.
• In September 2022, UNIQLO launched RE.UNIQLO STUDIO, a new service to enable customers to wear cherished LifeWear items for longer, at its Regent Street Store in London. Additionally, we have started the service in several markets globally, including a trial of the service at the UNIQLO Setagaya Chitosedai store in Japan that began on October 22, 2022. UNIQLO aims to expand the service going forward, both in Japan and overseas.

CO2 Reductions

• At stores and offices: In line with the company's target of switching to 100% renewable energy by FY2030, UNIQLO stores and offices in Europe, North America, Vietnam, Indonesia and Thailand have already practically switched to 100% renewable energy.
• Supply Chain: The key partner factories that produce 90% of UNIQLO and GU items are advancing energy saving measures, reducing coal use, and adopting renewable energy. The company's CO2 reduction plan is progressing steadily through regular problem-solving discussions with these partner factories.

Pursuing Traceability and Enhanced Transparency

• A system to confirm supply chain planning and results for each product has been completed, enabling traceability data management on the system, coordinating with partner factories starting in Fall/Winter 2022 season.
• A third-party traceability confirmation program has also been completed and launched at the same time.
• Aiming for Spring 2023, Fast Retailing plans to implement its Code of Conduct for Production Partners for spinning mills and carry out regular labor environment and traceability audits.
• These initiatives, which started with select UNIQLO products, are planned to be expanded to cover all UNIQLO products and all Fast Retailing Group brands in future.
• Fast Retailing will continue efforts to enhance transparency by expanding the scope of its production partners list, and is considering expanding the list to include spinning mills in future.

Reforming Labor Environment Monitoring Methods

• Since September 2020, Fast Retailing has been incrementally adopting the SLCP: Social and Labor Convergence Program, an apparel-industry assessment framework for factories to independently evaluate risks and issues in the labor environment and improve on them. The program is scheduled to be introduced at all garment factories and major fabric mills by the end of FY2023.
• At the same time, Fast Retailing adopted a zero-tolerance policy that strictly deals with any considerable infringements of human rights, strengthening the detection of human rights infringement and labor environment risks before they occur.

Expanding Information Shared with Customers

• Starting in 2023, UNIQLO will disclose supply chain information for individual products in phases on its online store. During 2023, individual product pages will begin displaying the country of production, with country of origin for fabrics planned to be disclosed in the next phase.
• By 2025, UNIQLO will determine and subsequently disclose the information necessary for customers to make an informed decision when choosing products.
• UNIQLO is working with experts to establish a verification system that ensures product information is displayed correctly to prevent customer misunderstandings.

Social Contribution Initiatives

• In FY2022, Fast Retailing contributed JPY 8.8 billion through social contribution activities, as well as contributing 6.98 million pieces of clothing* as part of support initiatives. The total number of beneficiaries reached 7.49 million people.
• UNIQLO launched PEACE FOR ALL, a charity T-shirt project that reflect the company's hopes for peace. All profits from sales are donated to organizations carrying out humanitarian aid including UNHCR, Save the Children, and Plan International. Total profits as of the end of August 2022 amount to 145 million yen. This initiative will also continue in the future.
• Fast Retailing will expand its support activities for refugees and displaced peoples. In Europe, the company is advancing the employment of and supporting the resettlement of people fleeing Ukraine. Fast Retailing has also launched a project to support the independence of displaced Rohingya women seeking refuge in Bangladesh.
• The company will expand its next-generation development program with UNIQLO Global Brand Ambassadors. On November 19, Roger Federer visits Japan for the first time since his retirement and will host a junior tennis session as part of the program.
• The Fast Retailing Foundation launched a reforestation project in the Philippines, with a plan to plant a total of approximately 200,000 trees across three locations.

*Excluding clothing collected at stores and donated to refugees and other people in need.

Advancing Diversity and Inclusion

• Fast Retailing has set a target to increase female management representation to 50% by the end of FY2030. As of the end of August 2022, this figure had increased to 43.7%.
• Fast Retailing has set a global employment target for people with disabilities and is strengthening initiatives towards achieving this.

More information regarding Fast Retailing's fiscal 2030 sustainability targets and action plan are available at the link below:

Fast Retailing Establishes Fiscal 2030 Sustainability Targets and Action Plan - Making LifeWear a "New Industry," and Accelerating the Transition to a New Business Model Supporting Both Sustainability and Growth (Published: December 2, 2021)
https://www.fastretailing.com/eng/sustainability/news/2112021500.html

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