Parent company of Uniqlo, GU
Fast Retailing demonstrated progress in categories including Climate Commitments and Transparency as well as Renewable and Energy-efficient Manufacturing. This allowed the company to move from the bottom of the 2021 Scorecard, and improve its grade from F to D-, but the company still has a long way to go. Fast Retailing reported requiring its suppliers to provide facility-level data via the Higg Index and annually report on their GHG emissions. It also reported engaging with suppliers to create GHG emissions reduction plans that included renewable energy. However, Fast Retailing has acted slowly to phase down fossil fuel based fabrics, increase closed-loop apparel-to apparel recycling for synthetics, and switch to 100% organic cotton. It has not engaged in any discernible renewable energy advocacy during the 2023 Scorecard period. Given its reported growth in upstream transportation emissions from 2019 to 2021, Fast Retailing should set a near-term plan to ship its cargo via cleaner vessels, avoid air freight, and commit to transitioning to zero emissions vessels.
Key Findings for Fast Retailing
Fast Retailing has set an emissions reduction target for its own operations of 90% by 2030, which is in line with keeping warming below 1.5°C.
The company has also set an emissions reduction target for its supply chain of 20% by 2030 from its UNIQLO and GU brands. This target is far short of the 55% reduction required.
Fast Retailing has set a renewable energy target in its own operations of 100% by 2030, but it is not clear whether the energy will be additional to the grid.
Fast Retailing has yet to set a target of 100% renewable energy for its supply chain by 2030, which is an essential step for decarbonising its manufacturing.
Coal phase out:
Fast Retailing has not publicly set a target to phase out coal-fired boilers from its supply chain by 2030 to reduce air pollution and cut emissions, and is no longer a member of the UN Fashion Charter so did not agree to the charter’s renewed commitments.
Fast Retailing publicly reports GHG emissions in its own operations and in its supply chain. The company does provide a full breakdown of its Scope 3 emissions.
Fast Retailing does publicly report its energy use for its own operations, including a breakdown of its renewable energy use and how that energy is sourced.
For its supply chain, Fast Retailing does not publicly report its energy use or a breakdown of its suppliers’ renewable energy use and how that energy is sourced.
Fast Retailing provides a partial supplier list to Tier 1 or 2.
Fast Retailing reports providing its suppliers with training on Higg FEM to help them make energy efficiency improvements and engaging with suppliers through evaluation and target setting. Fast Retailing does not report providing its major suppliers with financial incentives for energy efficiency measures, and does not require them to make energy savings as a condition of contract.
Fast Retailing does not require suppliers to reduce thermal coal demand in their manufacturing processes.
Fast Retailing does not report providing its suppliers with training and resources to help them transition to renewable energy, but does report engaging with suppliers to create GHG reduction plans that include renewable energy. The company does not appear to provide financial support or incentives to make the energy transition, and does not require suppliers to use renewable energy as a condition of contract.
Fast Retailing does not require its suppliers to set GHG emissions reduction targets, but it does require suppliers to provide facility level data via the Higg Index and annually report GHG emissions, and works with them to create reduction plans.
Fast Retailing has not made any commitments to phase out fossil fuel based materials.
Fast Retailing has not made a public policy to ban the sourcing of leather from the Amazon Biome, and the company does not appear to have specific processes in place to avoid leather sourced from deforested regions. Fast Retailing does have a general policy against contributing to deforestation through other materials including cellulose-based fabrics, including respecting the rights of Indigenous Peoples.
Fast Retailing has not committed to increasing closed-loop apparel-to-apparel recycled content for synthetics and plant-based materials, but is increasing its use of recycled polyester from plastic bottles. Fast Retailing has not committed to reduce the impact of its raw materials sourcing by switching to 100% organic cotton or cotton sourced from regenerative agriculture by 2030, although it does plan to use 100% cotton from “better sources” by 2025, defined as Better Cotton, cotton sourced from the United States or Australia, recycled cotton, organic cotton, Fair Trade cotton; and Cotton made in Africa.
Fast Retailing is acting slowly to increase circularity by introducing a take back program and some limited textile recycling through its Re-UNIQLO program. Fast Retailing has established LifeWear to increase the durability and repairability of its products, but its extent and impact is unclear.
Fast Retailing does not publicly report its material mix, its volume of deadstock or how it manages or disposes of its deadstock to reduce waste.
Fast Retailing does report its shipping emissions annually, but does not provide a breakdown of its transportation methods, and does not have a target to reduce GHG emissions from transportation.
Fast Retailing does not report having a policy to avoid aviation and commit to slower shipping methods such as maritime, rail and land. The company does not report having a near-term plan to ship its cargo via cleaner methods, but has implemented some efficiency measures to reduce transportation emissions. It reported a 6.3% increase in its upstream transportation and distribution emissions between 2019 and 2021.
Fast Retailing has not committed to transitioning to zero emissions vessels (ZEV) by 2030. The company has not used its voice publicly to advocate for Zero Emission Shipping.
Fast Retailing has yet to commit to transitioning its last mile delivery to zero emission vehicles.
It is not discernible that Fast Retailing has engaged in any advocacy to promote renewable energy during the Scorecard period.
More About Fast Retailing
EngagementFast Retailing did not respond to requests
- “Fast Retailing CDP,” 2020.
- “Fast Retailing CDP,” 2021.
- “Fast Retailing CDP,” 2022.
- “Fast Retailing Responsible Product Policy: Wood-Based Products and Forest Materials,” 2018. https://www.fastretailing.com/eng/sustainability/products/pdf/forest_materials_policy_en.pdf.
- “Fast Retailing Sustainability Report 2022 ‘AN AGE OF OPPORTUNITY,’” January 31, 2022. https://www.fastretailing.com/eng/sustainability/report/pdf/sustainability2022_en_print.pdf#page=1&pagemode=thumbs&zoom=80.
- “Improved Energy Efficiency,” November 30, 2022. https://www.fastretailing.com/eng/sustainability/environment/energy.html.
- “Production Partners List,” December 1, 2022. https://www.fastretailing.com/eng/sustainability/labor/list.html.
- “Response to Climate Change,” January 27, 2023. https://www.fastretailing.com/eng/sustainability/environment/climatechange.html.