Sustainability

ESG Data and Related Information

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).

TopicAccounting MetricCodeDisclosed Materials
Environmental Footprint of Hardware Infrastructure
  1. Total energy consumed,
  2. percentage grid electricity,
  3. percentage renewable
CG-EC-130a.1 ESG data(Environment)
  1. Total water withdrawn,
  2. 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 ZOZO Group PrivacyPolicy
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
  1. Number of data breaches,
  2. percentage involving personally identifiable information (PII),
  3. number of users affected
CG-EC-230a.2 ESG data(Governance)
Employee Recruitment, Inclusion & Performance Employee engagement as a percentage CG-EC-330a.1 ESG data(Social)
  1. Voluntary and
  2. Involuntary all employee turnover
CG-EC-330a.2 ESG data(Social)
Percentage of gender and racial/ethnic group representation for
  1. management,
  2. technical staff, and
  3. 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 ESG data(Environment)
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 Result Summary
  1. Data capabilities
  2. Ratio of outsourcing
CG-EC-000.B Not disclosed
Number of shipments CG-EC-000.C Result Summary

GRI

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

GRI Standards Content IndexWebsite
102 General Disclosures Name of the organization

Company Profile

Groupe Company(ZOZONEXT)

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

Groupe Company(ZOZONEXT)

Ownership and legal form

Company Profile

Groupe Company(ZOZONEXT)

Governance Structure

Markets served

Core businesses of the ZOZO Group

Business Model

Market Environment

Scale of the organization

ESG data(Social)

Financial Highlights
Result Summary

Information on employees and other workers ESG data(Social)
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

Endorsement of TCFD

Membership of associations -
Statement from senior decision-maker

TOP Message

Management Message(Integrated Report)
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
Delegating authority Corporate Governance
Executive-level responsibility
for economic, environmental, and social topics
Corporate Governance
Consulting stakeholders on economic, environmental, and social topics Corporate Governance
Communication with Stakeholders
Co-creation and Collaboration with Suppliers
Diversity, Equity & Inclusion
Composition of the highest governance body and its committees Company Profile
Corporate Governance
Chair of the highest governance body Company Profile
Corporate Governance
Nominating and selecting the highest governance body Company Profile
Corporate Governance
Conflicts of interest Anti-Corruption and Corporate Ethics
Role of highest governance body in setting purpose, values, and strategy Company Profile
Corporate Governance
Collective knowledge of highest governance body Corporate Governance
Evaluating the highest governance body’s performance Corporate Governance
Identifying and managing economic, environmental, and social impacts Materiality
Effectiveness of risk management processes Internal Control System and Risk Management System
Review of economic, environmental, and social topics

Integrated Report

ESG data

Highest governance body’s role in sustainability reporting Sustainability Management Structure
Communicating critical concerns Internal Control System and Risk Management System
Risk Management
Nature and total number of critical concerns -
Remuneration policies Corporate Governance
Process for determining remuneration Corporate Governance
Stakeholders’ involvement in remuneration Corporate Governance
Annual total compensation ratio ESG data(Social)
Percentage increase in annual total compensation ratio ESG data(Social)
List of stakeholder groups

Communication with Stakeholders
Co-creation and Collaboration with Suppliers
Diversity, Equity & Inclusion

Group Structure

Collective bargaining agreements Basic Human Rights Policy
Identifying and selecting stakeholders Corporate Governance
Approach to stakeholder engagement Corporate Governance
Key topics and concerns raised

Materiality

Corporate Governance

Entities included in the consolidated financial statements

Company Profile

Group Structure

Groupe Company(ZOZONEXT)

Defining report content and topic Boundaries

IR

Integrated Report

List of material topics Materiality
Restatements of information -
Changes in reporting

IR

Editorial Policy

Integrated Report

Reporting period

IR

Editorial Policy

Integrated Report

Date of most recent report

IR

Editorial Policy

Integrated Report

Reporting cycle

IR

Editorial Policy

Integrated Report

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

Materiality

The management approach and its components

Basic Policy

Materiality

Evaluation of the management approach

Basic Policy

Sustainability Management Structure

201 Economic Performance -

Basic Policy

Financial Highlights

Benefits and Welfare

Corporate Governance

202 Market Presence - -
203 Indirect Economic Impacts -

Social Contribution Activities

ESG data(Social)

204 Procurement Practices - -
205 Anti-corruption -

Anti-Corruption and Corporate Ethics

ESG data(Governance)

206 Anti-competitive Behavior -

Anti-Corruption and Corporate Ethics

ESG data(Governance)

207 Tax - -
301 Materials - ESG data(Environment)
302 Energy - Climate Change
ESG data(Environment)
303 Water -

Protection of Water Resources

ESG data(Environment)

304 Biodiversity - ESG data(Environment)
305 Emissions -

Climate Change

ESG data(Environment)

306 Effluents and Waste -

Waste Reduction

ESG data(Environment)

307 Environmental Compliance - ESG data(Environment)
308 Supplier Environmental Assessment - -
401 Employment - Labor Practices
ESG data(Social)
402 Labor / Management Relations - -
403 Occupational Health and Safety - Labor Practices
ESG data(Social)
404 Training and Education -

List of Training Programs Implemented in Fiscal 2021

ESG data(Social)

405 Diversity and Equal Opportunity -

Governance

Diversity, Equity & Inclusion

406 Non-discrimination - Diversity, Equity & 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
413 Local Communities - Social Contribution Activities
414 Supplier Social Assessment - Communication with Stakeholders
Co-creation and Collaboration with Suppliers
415 Public Policy - ESG data(Governance)
416 Customer Health and Safety - Information Security
Improving service quality
417 Marketing and Labeling - ZOZO Group PrivacyPolicy
418 Customer Privacy - Information Security
ZOZO Group PrivacyPolicy
419 Socioeconomic Compliance - -

External Evaluation

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

HDI Five-Star Certification Program

  • 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 AA in MSCI ESG Ratings

As of December 2021, we have received its MSCI ESG Rating of AA, , the second highest rating, the MSCI ESG Rating, in which companies from around the world are rated from an ESG perspective by MSCI (USA). This is an improvement from our previous A rating and is recognition that our ESG initiatives are rated highly.

MSCI ESG Ratings

*THE USE BY ZOZO, INC. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES ("MSCI") DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF ZOZO, INC. BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED 'AS-IS' AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

MSCI Japan ESG Select Leaders Index

ZOZO is selected as a constituent of the MSCI Japan ESG Select Leaders Index, a leading index of environmental, social and governance (ESG) investment. The index is adopted by Japan's Government Pension Investment Fund (GPIF), as references for making its investments.

ESG Select Leaders Index

* THE INCLUSION OF ZOZO, INC. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF ZOZO, INC. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

MSCI Japanese Empowering Women Index (WIN)

ZOZO is selected as a constituent of the MSCI Japan Empowering Women Index (WIN) for companies with exceptional gender diversity. This inclusion indicates that we have  been assessed as a company leading efforts to support the participation and promotion of women in the workplace through diversity policies. The index is adopted by Japan's Government Pension Investment Fund (GPIF), as references for making its investments.

MSCI Japanese Empowering Women Index (WIN)

* THE INCLUSION OF ZOZO, INC. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF ZOZO, INC. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Received the highest "Gold" rating in the "PRIDE Index 2022" for the second consecutive year

  • Received the highest Gold Rating in the PRIDE Index 2021

For the second consecutive year, we received the highest Gold Rating, in the PRIDE Index 2022 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

  • 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.

S&P/JPX carbon efficient index

ZOZO is selected as a constituent of the S&P/JPX carbon efficient index,which is offered by S&P Dow Jones Indices and the Tokyo Stock Exchange for member companies in the Tokyo Stock Price Index (TOPIX). It decides on the investment weights to be applied to such member companies with a focus on the disclosure of environmental information and level of carbon efficiency (carbon emissions per sales).

S&P/JPX Carbon Efficient Index

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

  • Received the Prime Minister's Award at the Japan

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.