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Total Score

D

Manufacturing Emissions Change

-23%

2023 Score

D-
* Baseline year for emissions comparison: 2019

Emissions change of Scope 3 Category 1 emissions when compared with the brand’s baseline year. Emissions change of -27% is used as the benchmark for alignment with 1.5C, based on 50% total reduction by 2030 compared with 2018 levels.

Positively, the company decreased Scope 3 emissions by 9% compared to its baseline.

Fast Retailing reports achieving 67.6% sourcing of renewable electricity for its own operations, some of which was through a PPA. There are many ways Fast Retailing can improve its score, including setting supply chain renewable energy targets and coal phase out plans, plus providing stronger evidence of renewable energy advocacy and training and support for manufacturers.

The brand must work to remedy its upstream transport emissions too by setting clear policies towards zero-emission transportation, as this has incurred a sharp increase of 81% compared to its 2019 baseline.

Score Breakdown

Climate and Net Zero Targets
Scope 1 and 2: Yes but later baseline – Scope 1 and 2 reduction 90% by 2030, base year 2019

Scope 3: No – Scope 3 Category 1 reduction by 20% by 2030 against base year 2019

Mid-term (2035/2040) milestones: No – Company says has long term target to be net zero by 2050 and is considering disclosing a transition plan for 2030 target

Net Zero Roadmap: Company has target but no clear roadmap.

Renewable Energy Targets
Own operations RE target: Yes – 100% sourcing or RE in stores/main offices by 2030 does not specify high impact.

Supply chain RE target: No. The company told Stand.earth that it is working to identify best-fit methods for each region, and toward the elimination of coal, introducing renewable energy to reduce greenhouse gas emissions throughout the value chain.

Thermal Coal Phase Out
2030 Coal Phase-out Target: Didn’t disclose in response. From our research: Says supporting some manufacturers with coal phase out – only 1 mention. No mention of thermal/coal in CDP

Thermal energy transition/ electrification: Didn’t disclose in response. From our research: Says supporting some manufacturers with coal phase out – only 1 mention. No mention of thermal/coal in CDP

Transparency
Emissions data: Shares Scope 1- 3 and category breakdown on website. No country/tier breakdown.

Supply chain energy data: No

Supplier lists published: From our research: posts production partner list, including processing factories and core fabric mills on website. Strong presence in Bangladesh.

Supplier list link

 

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

Commitment to phase out fossil fuel-derived fibers
No – Target to increase recycled polyester by 50% by 2030. Recycled represented 18.2% of total materials. For polyester specifically, 47.4% was recycled.

Deforestation-free materials
Leather: Not explicitly. Brand response references material procurement policies

Man-made Cellulosic Fibers: Yes – Has a company policy for wood based and forest derived materials and to protect ancient forests.

Low-carbon materials
Not strong examples. Response gives 2 examples, a recycled hybrid down jacket using 100% recycled down and feathers. The second example is uniform for Swedish olympic athletes that used a molecular recycling method. It says it is researching new tech to reduce & reuse textile waste. No more detail on funding or amount invested or impact.

Increasing Circularity
Fast Retailing does not have clear public targets to increase recycled, organic or regenerative cotton to 100%. However, the company says that it will provide financial support to farmers who conserve biodiversity and deploy regenerative farming, and offers education to suppliers on the importance of biodiversity. No evidence of impact shared. The company offers resale in some geographies and stores.

Target & increase recycled cotton
No.

100% recycled/organic/regen cotton + wool, report on progress
No

Support farmers, transition to regen/organic farming
Says yes – Fast Retailing will provide financial support to farmers who conserve biodiversity and deploy regenerative farming, and offer education to our suppliers on the importance of biodiversity. No evidence of impact yet.

Resale/repair – % total sales/disclosure on #
Not in all stores. Response discusses Re Uniqlo Studio, only in 56 stores across 22 countries, launched a pre-owned project in Harajuko Tokyo.

Direct link resale/repair to reduce production
No

Materials transparency
Shares material mix: No

Provides data on units sold: No

Fast Retailing reported very limited action to reduce the impact of its upstream logistics, and does not currently have a target to cut emissions from this area. Unsurprisingly, Fast Retailing has significantly increased (91%) its upstream shipping emissions compared with its base year of 2019. The company does not share a breakdown of its transportation modes, but did report in a survey to Stand.earth that it limits air freight.

Action to reduce the impact of marine shipping: Member of the Smart Freight Centre. The company told Stand.earth ‘We pursue a number of initiatives to reduce GHG emissions through more efficient logistics through buyer consolidation, use of biofuels and improving delivery and loading efficiency.

No commitments or action to promote a shift to zero emission vessels by 2030.

No strong direct examples.