ESG Data and Related Information

ESG Data

We publicly release ESG (Environment, Social and Governance) data. (Last Updated:June 27, 2022)

• Figures are for ZOZO, Inc. only. In the event that the scope is different, this is explicitly indicated.

Guidelines Comparison Tables (SASB, GRI)

SASB

We organize and disclose information based on SASB standards provided by the U.S. Sustainability Accounting Standards Board (SASB).

Topic	Accounting Metric	Code	Disclosed Materials
Environmental Footprint of Hardware Infrastructure	Total energy consumed, percentage grid electricity, percentage renewable	CG-EC-130a.1	ESG data（Environment）
	Total water withdrawn, total water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress	CG-EC-130a.2	ESG data（Environment）
	Discussion of the integration of environmental considerations into strategic planning for data center needs	CG-EC-130a.3	Not disclosed
Data Privacy & Advertising Standards	Number of users whose information is used for secondary purposes	CG-EC-220a.1	Not disclosed
	Description of policies and practices relating to behavioral advertising and user privacy	CG-EC-220a.2	Not disclosed
Data Security	Description of approach to identifying and addressing data security risks, including use of third-party cybersecurity standards	CG-EC-230a.1	Information Security（ISMS）
	Number of data breaches, percentage involving personally identifiable information (PII), number of users affected	CG-EC-230a.2	Not disclosed
Employee Recruitment, Inclusion & Performance	Employee engagement as a percentage	CG-EC-330a.1	ESG data（Social） Social
	Voluntary, Involuntary all employee turnover	CG-EC-330a.2	ESG data（Social）
	Percentage of gender and racial/ethnic group representation for management, technical staff, and all other employees	CG-EC-330a.3	ESG data（Social）
	H-1B visa acquisition rate for technical staff	CG-EC-330a.4	Not disclosed
Packaging and Delivery of Merchandise	Greenhouse Gas (GHG) Footprint for Merchandise Shipments	CG-EC-410a.1	Not disclosed
	Discussion of strategies for reducing environmental impact through product delivery	CG-EC-410a.2	Sustainability Management Structure
Company-defined indicators of user activity		CG-EC-000.A	Consolidated Business Results
Data capabilities Ratio of outsourcing		CG-EC-000.B	Not disclosed
Number of shipments		CG-EC-000.C	Consolidated Business Results

GRI

GRI(Global Reporting Initiative) The pages listed under the Sustainability Reporting Standards section are shown below.

GRI Standards Content Index			Website
102	General Disclosures	Name of the organization	Company Profile
		Activities, brands, products, and services	Core businesses of the ZOZO Group Business Model
		Location of the organization’s head office	Company Profile
		Location of operations	Company Profile
		Ownership and legal form	Company Profile Governance Structure
		Markets served	Core businesses of the ZOZO Group Market Environment
		Scale of the organization	Financial Highlights Result Summary
		Information on employees and other workers	Company Profile
		Supply chain	Communication with Stakeholders Co-creation and Collaboration with Suppliers
		Significant changes to the organization and its supply chain	IR
		Precautionary Principle or approach	Internal Control System and Risk Management System Risk Management Information Security
		External initiatives	External Evaluation
		Membership of associations	-
		Statement from senior decision-maker	TOP Message TOP Message（Sustainability Report）
		Key impacts, risks, and opportunities	Internal Control System and Risk Management System Risk Management
		Values, principles, standards, and norms of behavior	Philosophy
		Mechanisms for advice and concerns about ethics	Internal Control System and Risk Management System
		Governance structure	Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Delegating authority	Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Executive-level responsibility for economic, environmental, and social topics	Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Consulting stakeholders on economic, environmental, and social topics	Corporate Governance Communication with Stakeholders Co-creation and Collaboration with Suppliers Diversity & Inclusion
		Composition of the highest governance body and its committees	Company Profile Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Chair of the highest governance body	Company Profile Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Nominating and selecting the highest governance body	Company Profile Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Conflicts of interest	Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Role of highest governance body in setting purpose, values, and strategy	Company Profile Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Collective knowledge of highest governance body	Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Evaluating the highest governance body’s performance	Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Evaluating the highest governance body’s performance	-
		Effectiveness of risk management processes	Internal Control System and Risk Management System
		Review of economic, environmental, and social topics	ESG data
		Highest governance body’s role in sustainability reporting	Sustainability Management Structure
		Communicating critical concerns	Sustainability Management Structure Risk Management
		Nature and total number of critical concerns	-
		Remuneration policies	Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Process for determining remuneration	Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Stakeholders’ involvement in remuneration	Corporate Governance The Corporate Governance Code Corporate governance report (Japanese only)
		Annual total compensation ratio	ESG data（Social）
		Percentage increase in annual total compensation ratio	-
		List of stakeholder groups	Communication with Stakeholders Co-creation and Collaboration with Suppliers Diversity & Inclusion
		Collective bargaining agreements	Basic Human Rights Policy Diversity & Inclusion ESG data
		Identifying and selecting stakeholders	The Corporate Governance Code Diversity & Inclusion
		Approach to stakeholder engagement	The Corporate Governance Code Diversity & Inclusion
		Key topics and concerns raised	The Corporate Governance Code Diversity & Inclusion
		Entities included in the consolidated financial statements	Company Profile
		Defining report content and topic Boundaries	IR
		List of material topics	Key Actions
		Restatements of information	-
		Changes in reporting	IR Editorial Policy
		Reporting period	IR Editorial Policy
		Date of most recent report	IR Editorial Policy
		Reporting cycle	IR Editorial Policy
		Contact point for questions regarding the report	Please contact us for inquiries.
		Claims of reporting in accordance with the GRI Standards	-
		GRI content index	-
		External assurance	-
103	Management Approach	Explanation of the material topic and its Boundary	Basic Policy
		The management approach and its components	Basic Policy
		Evaluation of the management approach	Basic Policy
201	Economic Performance	-	The Corporate Governance Code
202	Market Presence	-	-
203	Indirect Economic Impacts	-	Environment
204	Procurement Practices	-	-
205	Anti-corruption	-	Governance ESG data
206	Anti-competitive Behavior	-	Governance ESG data
207	Tax	-	-
301	Materials	-	Environment ESG data
302	Energy	-	Environment ESG data
303	Water	-	ESG data
304	Biodiversity	-	ESG data
305	Emissions	-	ESG data
306	Effluents and Waste	-	ESG data
307	Environmental Compliance	-	-
308	Supplier Environmental Assessment	-	-
401	Employment	-	Diversity & Inclusion ESG data
402	Labor / Management Relations	-	-
403	Occupational Health and Safety	-	Creating a comfortable working environmen​t/Occupati​onal​ health and safety Diversity & Inclusion
404	Training and Education	-	ESG data List of Training Programs Implemented in Fiscal 2020
405	Diversity and Equal Opportunity	-	Diversity & Inclusion
406	Non-discrimination	-	Diversity & Inclusion Compliance Basic Human Rights Policy
407	Freedom of Association and Collective Bargaining	-	Basic Human Rights Policy
408	Child Labor	-	Basic Human Rights Policy
409	Forced or Compulsory Labor	-	Basic Human Rights Policy
410	Security Practices	-	-
411	Rights of Indigenous Peoples	-	-
412	Human Rights Assessment	-	Basic Human Rights Policy ESG data
413	Local Communities	-	Social Contribution Activities
414	Supplier Social Assessment	-	Communication with Stakeholders Co-creation and Collaboration with Suppliers
415	Public Policy	-	ESG data
416	Customer Health and Safety	-	Information Security Improving service quality
417	Marketing and Labeling	-	-
418	Customer Privacy	-	Information Security ZOZO Group Privacy policy
419	Socioeconomic Compliance	-	-

External Evaluation

We promote ESG initiatives and have been highly evaluated by evaluation organizations.

HDI Five-Star Certification Program

In HDI Five-Star Certification Program defined by HDI-Japan, we were the first in the apparel industry to receive the five-star certification, the highest rating, for the third consecutive time^※.

• The previous certification was "Five Star Certification" in 2017. As the certification is valid for two years, we undergo an examination every two years.

Received the highest Gold Rating in the PRIDE Index 2021

We received the highest Gold Rating, in the PRIDE Index 2021 formulated by work with Pride, a voluntary organization that supports the promotion and establishment of diversity management related to LGBTQ and other sexual minorities.

Received the “Advanced” Certification in D&I Award

We have received Advanced certification in D&I Award 2021, which certifies companies that engage in diversity and inclusion sponsored by JobRainbow Corporation.

Received the Prime Minister's Award at the Japan Open Innovation Grand Prize sponsored by the Cabinet Office

The Open Source Development and Implementation Foundation for Social Decision Algorithms, developed by a researcher at ZOZO RESEARCH, an R&D organization of ZOZO Technologies, and a joint R&D team at Semiju Virtual Co., Ltd., won the Prime Minister's Award at the Japan Open Innovation Grand Prize sponsored by the Cabinet Office.

• ZOZO, Inc. has implemented an absorption-type company split and change of trade name of the split company on October 1st, 2021.

Received 34th Nikkei New Office Award

Our new ZOZO head office won the New Office Promotion Award/Creative Office Award at the 34th Nikkei New Office Award sponsored by Nikkei Inc. and the New Office Promotion Association.