Fast Retailing : LifeWear=New Industry detail

I am Yukihiro Nitta, Group Executive Officer of Fast Retailing responsible for sustainability.

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I would like to talk here about our Promise No. 1: To further perfect our finished LifeWear products by reviewing our entire supply chain.

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To achieve the third important point of creating a zero-impactproduct-creation system, we have committed to adhering to targets for reducing greenhouse gas emissions by 2050, as stipulated in the Paris Agreement. We have set our own specific targets and are now actively pursuing activities designed to achieve those targets.

By fiscal 2030, our aim is to reduce Scope 1 & 2 emissions relating to our own company's operations by 90% compared to fiscal 2019 levels.

We also aim to reduce Scope 3 emissions relating to broader product manufacturing processes by 20% compared to fiscal 2019 levels.

And finally, we intend to procure 100% of the energy used in our company activities from renewable energy sources by fiscal 2030.

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On emissions, let me first explain our efforts to reduce Scope 1 & 2 emissions from our own company activities, a large proportion of which are generated by our stores.

We are already working in stores to reduce the actual levels of energy used. We are targeting an approximate 40% reduction in energy use at roadside stores and an approximate 20% reduction in stores located within shopping malls. To achieve that, we plan to introduce new stores that are highly energy efficient right from the design stage, and we want to introduce new prototype stores in 2023.

For instance, we have started designing highly energy efficient new stores by reviewing store layouts to facilitate a reduction in the number of lighting fixtures, introducing more effective natural light, and improving the efficiency of air-conditioning installations

We are also working steadily toward our goal of procuring all the electricity used to power our company activities from 100% renewable energy sources. Already, we have completed the switchover to renewable energy in all 64 of UNIQLO stores located in nine markets across Europe. We expect North America and some markets in Southeast Asia will also be able to achieve 100% renewable energy use by the end of August 2022.

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Next, I would like to explain our initiatives to reduce Scope 3 greenhouse gas emissions in the supply chain.

Our targets to reduce greenhouse gas emissions in the supply chain cannot be achieved without the cooperation of partner factories.

For years, Fast Retailing has considered it our job to stand alongside partner factories and help solve any problems they are facing together, and we have always pursued growth together with our partner factories. As a result of this strategy, we have been able to develop solid, long-term partnerships, which has proved to be one of our key strengths.

We have shared our goals with our partner factories by conducting repeated briefings to explain the background and importance of addressing climate change, the targeted reductions we are aiming to achieve, and what we want our partner factories to do.

After that, we held multiple dialogues with individual factories to make sure we had a clear understanding of each factory's individual circumstances and issues. Then, we got together with the partner factories that account for 90% of our production volume to formulate plans for reducing greenhouse gas emissions that include measures on energy saving, coal elimination, and the introduction of renewable energy. We intend to follow up on these plans to ensure factories are creating and implementing concrete measures under the planned frameworks.

Furthermore, since these initiatives are likely to require considerable investment by the factories themselves as well, we are ready to consider extending financial support to promote progress in this area.

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