Training, feasibility studies, and non-financial support for climate action
No strong examples. Provides training through the Higg Index for Tier 1 and 2. Communicated that with core partner factories it is formulating plans to reduce greenhouse gas emissions, and to implement decarbonization, energy-efficiency, and renewable-energy initiatives. ‘To ensure these plans are implemented, we work closely with our partner factories to check progress, and conduct a review every three months. To help our partners meet challenges, we provide tailored advice for each factory on suitable options for their circumstances, and introduce funding sources to help them implement plans.’
Additional, targeted support for transition planning: No further evidence
Financial Support for Decarbonization
Loans and financing: No but says – We introduce sources of funding for capital investment and other initiatives aimed at reducing environmental impact, in line with the needs of individual factories.
Collective financing initiatives: No
Direct/debt-free financing: No
Responsible/equitable buying to enable climate action
Purchasing decisions incentivize climate action: According to CDP response, yes that environmental requirements are included. Company says it established “Code of Conduct for Production Partners” in 2004 and only contract with factories that request and are willing to commit to compliance with the Code. This CoC includes the following compliance requirements for environmental protection.
Equitable/long-term sourcing to enable climate action: Did not give clear answer in response. Communicated top 40 suppliers, 45% of those have been doing business with company 20 + years and 10% of those have been with company for 30 years
Prices enable climate action: No
Climate Adaptation
Adaptation/worker just transition training funded or provided: No
Emergency support developed with local groups: No
Decarbonization Progress
Reducing manufacturing emissions: Fast Retailing data shows a 9% overall reduction as well as a 4% YOY reduction.
Increasing supply chain renewable electricity: No. Brand says “Many factories are currently planning to install equipment such as solar panels and some of the factories have already succeeded in early implementation of the reduction plans including introducing renewable/low-carbon energy. For example, as reported in our Annual Report 2022, one of our major suppliers, set a target to reduce GHG emissions by 30% by 2030 and achieve carbon neutrality by 2050. The partner has introduced solar power generation at all production facilities.”
Coal phase out transition progress: Unclear