FAST RETAILING HOLDS LIFEWEAR = A NEW INDUSTRY BRIEFING| A new Industry and analyst briefing.

A NEW INDUSTRY BRIEFING

The briefing explained how Fast Retailing is transforming its business to balance sustainability and business growth, and to contribute to a more sustainable society through a new circular business model.

Explained how new processes and systems it has implemented will enable greater visibility and control over environmental and workplace factors.

Throughout the entire supply chain and post-purchase phases.

FAST RETAILING

Fast Retailing also provided progress updates on its public FY2030 sustainability targets.

Creating a stable, agile supply chain to deliver greater sustainability, building the same strong and long-term partnerships previously established with garment and materials producers to upstream processes in its supply chain.

This enables it to better manage the entire supply chain, directly applying its quality, procurement, production, environment, and worker-rights standards across all production stages.

After visualizing its supply chain from finished product back the raw material level.

The company began consolidating business with a small number of select partners, including future plans to source raw materials from designated farms and ranches.

RE.UNIQLO

Simultaneously, Fast Retailing is advancing its RE.UNIQLO initiative to promote recycling or reuse for all UNIQLO products.

Following the 2020 launch of its Recycled Down Jacket, Fast Retailing has continued to pursue development of additional clothing-to-clothing recycling products that use cashmere, wool, and cotton.

TAKE RESPONSIBILITY

“We take responsibility for every item of LifeWear we provide to customers. We are uncompromising, through product development, production and post-sale.

To ensure our products are used longer and with greater peace of mind.

Together with our customers, local communities, and business partners, we continue to expand the possibilities of LifeWear, creating a business to enrich people’s lives and society around the world.”

-Koji Yanai, Fast Retailing Group Senior Executive Officer

FISCAL 2030 SUSTAINABILITY

Today’s briefing a covered several major initiatives in products, services, and the supply chain, as well as Fast Retailing’s progress toward meeting its Fiscal 2030 sustainability targets, as follows:

MAIN INITIATIVES IN PRODUCT DEVELOPMENT

The percentage of materials used with low greenhouse gas (GHG) emissions, such as recycled materials, rose to 8.5% for all 2023 planned products.

For polyester products, recycled polyester now accounts for 30% of all polyester used. Work continues toward the FY2030 target of 50%.

UNIQLO PRODUCTS 2023 RECYCLED MATERIALS

The number of UNIQLO products in 2023 using recycled materials is around 370 products, approximately 46 times more than in 2020.

From 2023, recycled polyester and nylon material was used for certain HEATTECH and AIRism products for the first time.

Extensive research has ensured the smooth comfort and high functionality characteristics of both products is maintained.

In addition, some PUFFTECH outerwear hoodies include recycled polyester, and some UT graphic T-shirts are made with recycled cotton.

SUSTAIN LIFEWEAR

UNIQLO launched its RE.UNIQLO initiative to promote the recycling or reuse of all its products. The UNIQLO PRE-OWNED CLOTHES PROJECT was piloted as part of this initiative.

In the trial, a pop-up store selling used clothing was opened for a limited time at the UNIQLO Harajuku Store in Tokyo, from October 11 to 22, 2023.

REUNIQLO STUDIO

Launched in September 2022 in London, the RE.UNIQLO STUDIO to repair or remake clothing has expanded globally. By September 2023, the service was available in 35 stores in 16 markets.

Expanding its clothing-to-clothing recycling efforts, Fast Retailing is now developing new products using cashmere, wool, and cotton from UNIQLO products collected at stores.

IN PRODUCTION

Working to establish a system of end-to-end management of its supply chain, enabling it to directly apply quality, procurement, production, environment, and worker-rights standards across all stages of production.

This includes specifying raw materials and fabrics from sewing stage back to raw-materials procurement.

2023 SPRING/SUMMER SEASON

From the 2023 Spring/Summer season, all UNIQLO products are traceable to the raw material level.

By August 2023, the company identified spinning process suppliers to build trusted, long-term relationships with UNIQLO cotton products.

Moving forward, Fast Retailing plans extend a similar initiative for spinning process suppliers of all other materials.

Fast Retailing is diversifying its production bases. Along with expanding production in its main manufacturing country of China, the proportion of items produced in Southeast Asia is also growing.

The rate of domestic production in Indonesia and Vietnam has surpassed 50%. Fast Retailing also plans to expand domestic production in India, a growth area of our business.

For greater visibility and control over raw materials procurement, Fast Retailing is establishing a system to specify the producing area and quality of raw materials at planning stage.

And to trace these at any given time. Starting with cotton, it plans to expand this system to all materials.

WILL WORK WITH PRODUCTION PARTNERS

Moving forward, Fast Retailing will work with production partners to specify farms, ranches, and factories for procurement of key raw materials.

For recycled polyester, Fast Retailing already specifies manufacturers and quality standards of flakes and chips, thereby ensuring stable quality, transparency, and safety of sourcing to the highest level upstream.

Fast Retailing concluded a Production Partner Code of Conduct with spinning mills for UNIQLO cotton products in Spring 2023. Regular audits of major spinning mills were introduced by August 2023.

From August 2023, UNIQLO and GU in select markets began disclosing sewing country information on individual product pages in their online stores. We will expand the initiative to other markets.

REDUCE GHG EMISSIONS AND PROGRESS TOWARD FY2030 TARGETS

STORES AND OFFICES

Fast Retailing has a target to reduce greenhouse gas (GHG) emissions from energy use at its facilities, such as stores and major offices, by 90% compared to FY2019 levels, by the end of FY2030.

As of FY2022, the reduction was 45.7%.

Fast Retailing has a target of transitioning to 100% renewable electricity used at all Fast Retailing Group stores and offices worldwide, by end of FY2030. As of FY2022, this had reached 42.4%.

SUPPLY CHAIN

Fast Retailing has a target to reduce GHG emissions related to raw material production, fabric making, and sewing for UNIQLO and GU products by 20%, compared to FY2019 levels, by the end of FY2030.

As of FY2022, the reduction was 6.2%. Fast Retailing will continue to work closely with partner factories on initiatives to achieve the reduction target.

BIODIVERSITY INITIATIVES

Fast Retailing published the Fast Retailing Group Biodiversity Conservation Policy. The company aims to achieve net positivity for biodiversity throughout its value chain over the long term.

Fast Retailing conducted qualitative and quantitative assessments of biodiversity impacts and dependency risks in the value chain.

Identifying significant land-use impact from cashmere, wool, and cotton production.

CASHMERE

For cashmere, Fast Retailing collaborated with researchers at the University of the Ryukyus in Japan.

Using satellite data to analyze the vegetation status at ranches supplying UNIQLO with cashmere. Sustainability Department personnel also visited the ranches and conducted field surveys.

For wool, Fast Retailing plans to replicate efforts it has made for cashmere. For cotton, Fast Retailing is studying the applicability of renewable agriculture.

SOCIAL CONTRIBUTION ACTIVITIES

In FY2023, Fast Retailing contributed JPY 5.4 billion through social contribution activities, as well as supplying 1.13 million articles of clothing. * Beneficiaries reached 1.82 million people.

In September 2022, Fast Retailing launched a livelihood support project with UNHCR for Rohingya refugee women in Bangladesh, and by August 2023 had completed sewing skills training for approximately 350 women.

In addition, approximately two million cloth sanitary napkins and 430,000 women’s underpants were produced and distributed in refugee camps as relief supplies.

By 2025, Fast Retailing aims to complete training for 1,000 women, to ensure a sufficient supply of sanitary products to meet the needs of women in refugee camps.

THE FAST RETAILING FOUNDATION

The Fast Retailing Foundation joined the Philanthropy Asia Alliance launched in September 2023.

The foundation plans to contribute USD 25 million over 10 years to help solve issues related to the natural environment, education, and public health in Asia.

The foundation also launched a scholarship program for international students in Vietnam, with the first group of six students entering universities in Japan in the fall of 2023.

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

ADVANCING DIVERSITY AND INCLUSION (D&I)

Fast Retailing has a target to increase female management representation to 50% by the end of FY2030. As of the end of August 2023, this figure had increased to 44.7%.

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