Fast Retailing

Overall approach

2/10
- Overarching commitment on deforestation
  
  0/4
  
  Overall commitment
  
  Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
  
  0/4
  
  Do they have a commitment for other non-Forest 500 commodities, if so which?: NA
  
  Which commodities does the commodity-specific commitment apply to?: Pulp & Paper
  
  "Fast Retailing Co., Ltd. [...] are committed to protecting the world’s ancient and endangered forests including efforts toward zero deforestation through our approach to procurement of woodbased fabrics, materials derived from forests, and/or manmade cellulosic fabrics. Conservation of Ancient and Endangered Forests and Ecosystems While it is commonly known that paper and wood come from forests, it is a little known fact that trees are being made into clothing. Fabrics originating from forest sources are almost exclusively referring to viscose" [...] "As a company [...] are committed to protecting the world’s ancient and endangered forests and to efforts toward zero deforestation at the forest locations where its paper originates. Accordingly, we have established the "Fast Retailing Group Policy on Responsible Paper Procurement” which prioritizes design innovation that reduces the volume of paper we use and promotes the use of paper manufactured from sustainable raw materials. 1. Scope Overall paper used for Fast Retailing Group’s key business activities, including:  Paper used for shopping bags;  Paper used for product packaging;  Paper used for promotional materials; and  Office-use paper"
  
  Open source document
  Open source document
- Signatory to an initiative tackling deforestation
  
  1/1
  
  Signatory
  
  Yes
  
  1/1
  
  Which initiatives?: UN Global Compact
  
  Fast Retailing are a member of the UN Global Compact.
  
  Open source document
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "As a starting point to geographically locate ancient and endangered forests, maps of High Conservation Value Forests (HCVF), as defined by the Forest Stewardship Council (FSC), and of intact forest landscapes (IFL), can be used and paired with maps of other key ecological values like the habitat range of key endangered species and forests containing high concentrations of terrestrial carbon and High Carbon Stocks (HCS) (The Wye River Coalition’s Endangered Forests: High Conservation Value Forests Protection – Guidance for Corporate Commitments)."
  
  Open source document
- Deforestation as a business risk
  
  0/1
- High-level management of deforestion
  
  0/1
- Executive compensation linked to deforestation
- Target to reduce emissions from land-use change
  
  0/1
- Reporting on emissions from land-use change
  
  0/1
- Disclosure of conservation activity
- Disclosure of reforestation activity
- Target to reduce emissions in scope 1/2
  
  Reduce emissions
  
  Yes
  
  0/0
  
  Is this target aligned with/verified by SBTi?: Yes
  
  Type of climate target: Net-zero emissions
  
  What is the target date for the company to achieve their climate target?: 2030
  
  ・Thoroughly reduce GHG and waste emissions and realize product manufacturing that does not exert any environmental impact ✓ Reduce GHG emissions from our own operations such as stores and main offices (Scope 1 and Scope 2) by 90% by fiscal 2030 (compared to fiscal 2019) ✓ Reduce GHG emissions from raw materials, fabric and garment production for UNIQLO and GU products (Scope 3, Category 1) by 20% by fiscal 2030 (compared to fiscal 2019)" [...] "We will further extend our efforts to reach net zero emissions by 2050. [...] These targets were approved by Science Based Targets initiative (SBTi) as science-based targets (SBTs), "
  
  Open source document
  Open source document
Commodity score

20/90
- Leather
  
  10/90
  - Commitment Strength
    
    0/17
    - Commodity-specific deforestation commitment
      
      0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
    - Commitment to a traceable supply chain
      
      0/7.5
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
  - Associated Human Rights Abuses
    
    4/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      How far back in the supply chain does this commitment apply?: 'their suppliers'
      
      Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association
      
      ""We will continue to encourage our production partners and suppliers to [...] respect for human rights. The Fast Retailing Group does business directly with business partners who share the same ideals and principles. We have enacted a Code of Conduct for Partners [...] These set minimum standards for child labour, forced labour, coercion and harassment, discrimination, health and safety, freedom of association, wages and benefits, management of working hours and environmental protection, and regularly revised according to international standards. We conduct human rights risk and impact assessments as necessary to identify potential human rights issues as well as actual human rights issues. Human rights risks are managed and addressed through audit and remediation programs and through dialogue and collaboration with relevant stakeholders."
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/2
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      " Production partners shall not discriminate against workers on the basis of race, gender, color, nationality, religion, age, maternity, marital status, social or ethnic origin, sexual orientation, political oinion, disability, affiliation, non-affiliation, or any other status."
      
      Open source document
    - Commitment to remediation
      No
      
      0/1
    - Commitment to test Free, Prior and Informed Consent
      No
      
      0/3
    - Commitment to respect customary rights to land, resources, and territory
      No
      
      0/3
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    7/56
    - Reporting is independently verified
      No
      
      0/2
    - Suppliers aligned with deforestation commitments across supply chain
      No
      
      0/3
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      No
      
      0/2
    - Jurisdictional approach focused on sustainable land use
      No
      
      0/2
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "Apart from complying with all applicable environmental Laws, production partners should strive to improve their environmental performance by meeting the requirements set by FAST RETAILING – requirements that may go beyond applicable environmental Laws. [...] Production partners must allow FAST RETAILING and its designated agents to access all workers, all facilities, including manufacturing and worker housing facilities, and relevant documents to confirm compliance with the code of conduct, with or without notice provided in advance."
      
      Open source document
    - Accessible grievance mechanism
      No
      
      0/4
    - Report volumes of commodity sourced/used
      No reporting
      
      0/3
    - Monitor compliance for labour rights and FPIC
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      3/5
      
      Monitor compliance for labour rights and FPIC
      
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      2.5/5
      
      What steps has the company taken to implement their labour rights commitment?: audits
      
      What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
      
      What is the status of those FPIC processes?: NA
      
      "Fast Retailing has a zero-tolerance policy for issues that seriously violate human rights. The issues that fall under the zero-tolerance standard are child labor, forced labor, coercion and harassment, discrimination, serious violation of freedom of association, underpayment of minimum wages and falsification of records. [...] As per the Code of Conduct for Production Partners (established in 2004), Fast Retailing monitors the compliance status of garment factories and fabric mills etc. through workplace monitoring. As part of this monitoring, we have implemented unannounced audits by third-party entities and assessments using frameworks common to the apparel and footwear industry. Using both methods, we evaluate working environments at factories, and engage in improvement activities appropriate to existing risks. In addition, we conduct pre-production audits of garment factories before we start business with them. This enables us to screen factories and start improving working environments from an early stage"
      
      Open source document
    - Monitor compliance for zero tolerance approach and customary rights
      No
      
      0/5
    - Downstream: Reporting suppliers
      Yes, report direct suppliers
      
      2/4
      
      Downstream: Reporting suppliers
      
      Yes, report direct suppliers
      
      2/4
      
      What type of location data (boundary, point, etc.) is provided for smallholder farms?: NA
      
      From what country(ies) does the company source material?: Bangladesh, China, Indonesia, Japan, Italy, Korea, Malaysia, Portugal, Thailand, Turkey, Vietnam
      
      For what percent is no location data disclosed?: 0%
      
      For what percent of smallholder suppliers is location disclosed?: NA
      
      For what percent of suppliers' production areas are point locations disclosed?: 100%
      
      For what percent are boundaries disclosed?: 0%
      
      Does the company disclose location of suppliers' production areas or primary processing sites?: No
      
      From what sub-national jurisdiction(s) does the company source material?: NA
      
      What is the volume of each forest risk commodity that the company sourced in the previous year from each national or subnational location?: NA
      
      "As of September 2022, the list includes all garment factories* with whom we expect to continue business relationships, fabric mills that have been continuously producing materials for our products as well as the factories that garment factories outsource some processes to (washing, printing, etc.)."
      
      Open source document
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      No engagement or exclusion
      
      0/2
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Pulp & Paper
  
  30/90
  - Commitment Strength
    
    11/17
    - Commodity-specific deforestation commitment
      
      3/4
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "Fast Retailing Co., Ltd. [...] are committed to protecting the world’s ancient and endangered forests including efforts toward zero deforestation through our approach to procurement of woodbased fabrics, materials derived from forests, and/or manmade cellulosic fabrics. Conservation of Ancient and Endangered Forests and Ecosystems While it is commonly known that paper and wood come from forests, it is a little known fact that trees are being made into clothing. Fabrics originating from forest sources are almost exclusively referring to viscose" [...] "As a company [...] are committed to protecting the world’s ancient and endangered forests and to efforts toward zero deforestation at the forest locations where its paper originates. Accordingly, we have established the "Fast Retailing Group Policy on Responsible Paper Procurement” which prioritizes design innovation that reduces the volume of paper we use and promotes the use of paper manufactured from sustainable raw materials. 1. Scope Overall paper used for Fast Retailing Group’s key business activities, including:  Paper used for shopping bags;  Paper used for product packaging;  Paper used for promotional materials; and  Office-use paper"
        
        Open source document
        Open source document
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        Interim target date
        
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        What date is given for the interim milestone?: 2022
        
        " the end of 2020, Fast Retailing Co., Ltd. is committed to ensuring its paper shopping bags are made from materials outlined in the Basic Policy above. For other uses of paper, the company will work to ensure these are derived from materials outlined in the Basic Policy by the end of 2022."
        
        Open source document
    - Commitment to a traceable supply chain
      
      4/7.5
      - Commitment details
        Downstream company, traces to Processing Facility, checks compliance
        
        4/4
        
        Commitment to a traceable supply chain
        
        Downstream company, traces to Processing Facility, checks compliance
        
        4/4
        
        When was this commitment set?: NA
        
        "By 2020 Fast Retailing Co., Ltd. will develop 100% traceability on our forest material suppliers up to our viscose fiber producers for all our products. Through the best available channels, Fast Retailing will verify that our viscose fiber producers are providing us forest materials consistent with this policy through independent third-party reports and audits, such as through the CanopyStyle Audit and the Hot Button Issue."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
        
        Commitment applies to all regions, suppliers and operation
        
        No
        
        0/2
        
        What subsidiaries are explicitly excluded?: NA
        
        What subsidiaries are explicitly included?: NA
        
        What percentage of commodity production/sourcing is excluded?: NA
        
        What is the rationale for any exclusions?: Viscose specific policy
        
        If no, what is excluded?: Product line
        
        "By 2020 Fast Retailing Co., Ltd. will develop 100% traceability on our forest material suppliers up to our viscose fiber producers for all our products."
        
        Open source document
      - Target date
        Past target date, not updated or not achieved
        
        0/1
        
        Target date
        
        Past target date, not updated or not achieved
        
        0/1
        
        "By 2020 Fast Retailing Co., Ltd. will develop 100% traceability on our forest material suppliers up to our viscose fiber producers for all our products."
      - Interim target date
        No
        
        0/0.5
  - Associated Human Rights Abuses
    
    6/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      How far back in the supply chain does this commitment apply?: 'their suppliers'
      
      Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association
      
      ""We will continue to encourage our production partners and suppliers to [...] respect for human rights. The Fast Retailing Group does business directly with business partners who share the same ideals and principles. We have enacted a Code of Conduct for Partners [...] These set minimum standards for child labour, forced labour, coercion and harassment, discrimination, health and safety, freedom of association, wages and benefits, management of working hours and environmental protection, and regularly revised according to international standards. We conduct human rights risk and impact assessments as necessary to identify potential human rights issues as well as actual human rights issues. Human rights risks are managed and addressed through audit and remediation programs and through dialogue and collaboration with relevant stakeholders."
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/2
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      " Production partners shall not discriminate against workers on the basis of race, gender, color, nationality, religion, age, maternity, marital status, social or ethnic origin, sexual orientation, political oinion, disability, affiliation, non-affiliation, or any other status."
      
      Open source document
    - Commitment to remediation
      No
      
      0/1
    - Commitment to test Free, Prior and Informed Consent
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      Commitment to test Free, Prior and Informed Consent
      
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      How far back in the supply chain does this commitment apply?: 'Their suppliers'
      
      "Fast Retailing Responsible Product Policy: Wood-based Products and Forest Materials [...] Fast Retailing expects that all our suppliers respect the Universal Declaration of Human Rights and acknowledge indigenous and rural communities legal, customary or user rights to their territories, land, and resources. To do so, Fast Retailing endorses the rights of Indigenous People and rural communities to give or withhold their Free, Prior and Informed Consent (FPIC) before new logging rights are allocated or plantations are developed."
      
      Open source document
    - Commitment to respect customary rights to land, resources, and territory
      No
      
      0/3
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    14/56
    - Reporting is independently verified
      No
      
      0/2
    - Suppliers aligned with deforestation commitments across supply chain
      No
      
      0/3
    - Deforestation cut off date
      Yes, for all sourcing regions/operations
      
      2/2
      
      Deforestation cut off date
      
      Yes, for all sourcing regions/operations
      
      2/2
      
      What cut-off date is specified?: 1994
      
      "Work to eliminate sourcing from companies that are logging forests illegally or tree plantations established after 1994, from areas being logged in contravention of indigenous and local peoples’ rights, and/or from other suppliers identified by Fast Retailing as controversial."
      
      Open source document
    - Collaborative actions
      No
      
      0/2
    - Jurisdictional approach focused on sustainable land use
      No
      
      0/2
    - Risk assessments for forest risk
      Yes
      
      2/2
      
      Risk assessments for forest risk
      
      Yes
      
      2/2
      
      For what percentage of material produced or sourced by the company has forest risk been assessed?: 100%
      
      How frequently are assessments conducted?: not specified
      
      "Fast Retailing Co., Ltd. is committed to undertaking reasonable efforts in the following: 1. Assess and map our existing use of forest materials and eliminate sourcing identified as coming from endangered species habitat and ancient and endangered forests."
      
      Open source document
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "Apart from complying with all applicable environmental Laws, production partners should strive to improve their environmental performance by meeting the requirements set by FAST RETAILING – requirements that may go beyond applicable environmental Laws. [...] Production partners must allow FAST RETAILING and its designated agents to access all workers, all facilities, including manufacturing and worker housing facilities, and relevant documents to confirm compliance with the code of conduct, with or without notice provided in advance."
      
      Open source document
    - Accessible grievance mechanism
      No
      
      0/4
    - Report volumes of commodity sourced/used
      No reporting
      
      0/3
    - Monitor compliance for labour rights and FPIC
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      3/5
      
      Monitor compliance for labour rights and FPIC
      
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      2.5/5
      
      What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
      
      What is the status of those FPIC processes?: NA
      
      What steps has the company taken to implement their labour rights commitment?: External audits
      
      "Fast Retailing has a zero-tolerance policy for issues that seriously violate human rights. The issues that fall under the zero-tolerance standard are child labor, forced labor, coercion and harassment, discrimination, serious violation of freedom of association, underpayment of minimum wages and falsification of records. [...] As per the Code of Conduct for Production Partners (established in 2004), Fast Retailing monitors the compliance status of garment factories and fabric mills etc. through workplace monitoring. As part of this monitoring, we have implemented unannounced audits by third-party entities and assessments using frameworks common to the apparel and footwear industry. Using both methods, we evaluate working environments at factories, and engage in improvement activities appropriate to existing risks. In addition, we conduct pre-production audits of garment factories before we start business with them. This enables us to screen factories and start improving working environments from an early stage"
      
      Open source document
    - Monitor compliance for zero tolerance approach and customary rights
      No
      
      0/5
    - Downstream: Reporting suppliers
      Yes, report direct suppliers
      
      2/4
      
      Downstream: Reporting suppliers
      
      Yes, report direct suppliers
      
      2/4
      
      For what percent of suppliers' production areas are point locations disclosed?: 100%
      
      From what sub-national jurisdiction(s) does the company source material?: NA
      
      What type of location data (boundary, point, etc.) is provided for smallholder farms?: NA
      
      What is the volume of each forest risk commodity that the company sourced in the previous year from each national or subnational location?: NA
      
      For what percent of smallholder suppliers is location disclosed?: NA
      
      Does the company disclose location of suppliers' production areas or primary processing sites?: Yes
      
      For what percent is no location data disclosed?: 0%
      
      From what country(ies) does the company source material?: Bangladesh, China, Indonesia, Japan, Italy, Korea, Malaysia, Portugal, Thailand, Turkey, Vietnam
      
      For what percent are boundaries disclosed?: 0%
      
      "As of September 2022, the list includes all garment factories* with whom we expect to continue business relationships, fabric mills that have been continuously producing materials for our products as well as the factories that garment factories outsource some processes to (washing, printing, etc.)."
      
      Open source document
    - Downstream: Monitor compliance in supply chain
      Yes, for its suppliers
      
      2/4
      
      Downstream: Monitor compliance in supply chain
      
      Yes, for its suppliers
      
      2/4
      
      How frequently is compliance assessed?: not specified
      
      What percentage of the company's supply chain volume does that represent?: 100%
      
      How is compliance monitored?: Certification; Internal monitoring and verification systems
      
      For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: 100%
      
      For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA
      
      For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%
      
      "These commitments are aligned with, and build on, the work of Canopy (a non-profit organization), who collaborates with brands and retailers to ensure that their supply chains are free of ancient and endangered forests. To that effect, we will continue to work with Canopy and our suppliers to support collaborative and visionary solutions that protect remaining ancient and endangered forests."
      
      Open source document
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: engage to change practices
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: Yes
      
      Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: Yes
      
      What criteria does the policy specify for blacklisting or exclusion?: NA
      
      "Should we learn that any of our forest materials are being sourced from ancient and endangered forests, endangered species habitat or through illegal logging, we will investigate our supply chain, engage our suppliers to change practices, and/or re-evaluate our relationship with them."
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
Commitment strength

5/17

Avg. score
Implementation and Reporting

10/56

Avg. score
Associated Human Rights Abuses

5/17

Avg. score

Profile

Fast Retailing isa Japanese clothing retailer operating through well-known brands such as UNIQLO and J Brand. Fast Retailing is selected as a powerbroker for leather and pulp & paper.

Sector

Industry sector

Apparel Retail

Segments

Retailer

Japan

Company Type

Company type

Collective Commitments

Consumer Goods Forum member

New York Declaration on Forests signatory

Top Brands

UniQlo, Gu, PLST, Theory, Theory Luxe, Helmut Lang, Comptoir des Cotonniers, Princesse tam tam, J Brand

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Full corporate sector performance data Forest 500 assessment methodology

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Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.

fast_retailing_logo.png

Fast Retailing

Total

Score:

Total score:

21%

Profile

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How we assess the Forest 500

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fast_retailing_logo.png

Fast Retailing

Total

Score:

Total score: 21%

Profile

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How we assess the Forest 500

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Total score:

21%