GlobalData offers a comprehensive analysis of Fast Retailing, providing key insights into its Environmental, Social, and Governance(ESG) factors. By closely monitoring and aggregating mentions of climate change and associated ESG keywords, GlobalData delivers valuable information on Fast Retailing‘s ESG performance. GlobalData’s company profile on Fast Retailing offers a 360-degree view of the company, SWOT analysis, key financials, and business strategy including insights on ESG implementation among other information. Buy the report here.
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Fast Retailing, a global retail company, has set an ambitious target to achieve net-zero greenhouse gas (GHG) emissions by 2050. Recognizing climate change as a critical management issue, the company is committed to aligning business activities with sustainability initiatives. Fast Retailing aims to reduce emissions from its own operations, including stores and main offices, by 90% by fiscal 2030. Additionally, it plans to achieve a 20% reduction in GHG emissions from the production of raw materials, fabrics, and garment manufacture for its products by fiscal 2030, compared to 2019 levels.
Fast Retailing's CO2 emissions have shown a decreasing trend compared to the previous fiscal years. In 2022, the company disclosed its greenhouse gas emissions, reporting 9,738 t-CO2e for Scope 1 (Direct Emissions) and 286,113 t-CO2e for Scope 2 (Indirect Emissions from Electricity) under Location Based and 159,047 t-CO2e under Market Based. These figures represent a significant reduction of 45.7% compared to the 2019 baseline. Additionally, Scope 3 emissions, encompassing the supply chain and other sources, totaled 5,740,872 t-CO2e.
To achieve its emission reduction goals, Fast Retailing is implementing various measures. It is developing products that respond to climate change, such as materials with lower GHG emissions, circular products, and specific clothing made from recyclable materials. The company believes that these products will not only help increase market competitiveness but also contribute to reducing emissions. Fast Retailing is also investing in renewable energy and energy conservation to control costs and improve its brand image. It has installed solar panels at several of its stores in Japan and is sourcing renewable energy at its stores in Europe, North America, Vietnam, Indonesia, and Thailand.
Fast Retailing is actively promoting recycling and circular initiatives. It has been working on clothes-to-clothes recycling and developing new materials in collaboration with strategic partner Toray Industries, Inc. The company is also focusing on the recycling of secondhand clothing collected from customers, turning them into new clothing and other materials. Fast Retailing aims to switch approximately 50% of the materials used in its products to recycled materials by fiscal 2030. It is also working with partner factories to reduce GHG emissions through energy conservation, eliminating coal, and introducing renewable energy.
In conclusion, Fast Retailing is dedicated to addressing climate change and minimizing its environmental impact. The company acknowledges the risks and opportunities linked to climate change, and it proactively takes measures to mitigate these impacts. By establishing net-zero targets, implementing plans for emission reduction, and investing in sustainable practices, Fast Retailing is actively working towards achieving its environmental goals.
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