Endorsement of TCFD Recommendations
ZOZO Group announced the agreement to "Task Force on Climate-related Financial Disclosures (TCFD)" (※) in February 2022. We will continue to disclose climate-related risks and opportunities - "Governance", "Strategy", "Risk Management" and "Indices & Targets" based on TCFD’s recommendations.
ZOZO Group has established SDGs Promotion Committee in November 2020, as an advisory organization to the Board of Directors. The Committee is chaired by the President and CEO, and acts as a chief executive officer of environmental management responsible to oversee discussions regarding climate-related risk and opportunities, policies and goals, progress of initiatives, and to report to the Board of Directors important matters discussed at the SDGs Promotion Committee.
Our Corporate Governance Structure
Climate Change Initiatives
We are implementing measures to address climate change through the introduction of renewable energy at our head office and several logistics centers and through services utilizing technologies such as ZOZOMAT, a mat for foot 3D measurement.
Introduction of 100% Renewable Energy Power to the Head Office
We are introducing 100% renewable energy to our new ZOZO head office, which was relocated in February 2021. We have adopted ENECT RE100 Plan from minnadenryoku Co., Ltd., which provides 100% renewable energy for electricity consumption. This plan enables it to prove the traceability of electricity through proprietary blockchain technology.
Introduction of 100% Renewable Power to ZOZO Head Office in Nishi-Chiba
Using Renewable Energy in All Data Centers
We use renewable energy in the data centers that store servers and other products to help realize a sustainable society. Among multiple data centers, data centers that consume the largest amount of electricity use 100% of renewable energy, while other sites also use a portion of renewable energy.
Using Renewable Energy in All Data Centers
Special section entitled "Let's Learn Fashion and Sustainability with ZOZOTOWN"
On October 8, 2021, we released a special section titled "Let's Learn Fashion and Sustainability with ZOZOTOWN" on our ZOZOTOWN to learn from customers about sustainability. This special web page incorporates the desire of ZOZOTOWN to learn together from the same perspective as our customers, with the keywords of "friendliness", "friendliness" and "empathy". It presents the environmental initiatives of the brands and discussions on the "Relationship between Fashion and the Global Environment" with the Task Force of the Ministry of the Environment.
Special section entitled "ZOZOTOWN and Learning Fashion and Sustainability"
In order to solve the common problem when shopping online, which is that customers have no chance to try out, we have developed and provided services for measurement tools such as ”ZOZOSUIT”(※), a bodysuit for body 3D measurement, ”ZOZOMAT”, a mat for foot 3D measurement, and ”ZOZOGLASS”, a skin tone capturing device. We will continue to provide opportunities to enjoy fashion more conveniently through the use of technology. At the same time, we will contribute to reducing environmental impact by reducing delivery for the purpose of returning products, etc.
Reduce Environmental Impact by Lowering the Return Rate of Shoes Compatible with ZOZOMAT
YOUR BRAND PROJECT
In the D2C business, YOUR BRAND PROJECT Powered by ZOZO, provide individuals a full support for the product planning, production, sales, logistics, customer support, and other processes and funding required to launch a brand as if they unite as one. The initiative also develops a number of products incorporating environmentally and ethical materials.
Sustainable Materials Used in YOUR BRAND PROJECT
Carbon Neutral Declaration
In February 2022, we announced the 2030 Carbon Neutral Declaration (※1), which aims to reduce greenhouse gas emissions from our business activities to virtually zero by FY2030. Firstly, by around FY2025, we will convert more than 80% of the electricity we use to renewable energy. In the next five years we will convert the remaining electricity consumption to 100% renewable energy. Furthermore, ZOZO also aims to join “RE100” (※2), a global initiative that aims to promote 100% renewable energy in the electricity used by the company, at the earliest possible stage.
In order to realize a sustainable society, we are working to reduce waste by recycling clothing through secondary distribution and reducing paper consumption.
We roll out a "replacement discount" service that allows customers to trade in products previously purchased on ZOZOTOWN and purchase new products at discounted prices when ordering. We reuse clothing by selling the products traded in within the "ZOZOUSED".
ZOZOUSED's Sustainable Framework
Use of Cushioning Materials with 100% Recycled Paper
Since October 2020, we have switched to a 100% recycled paper cushioning material from plastic materials to cushioning materials. Previously, we used a cushioning material of plastic materials to fill a gap between the product and the cardboard so that the product will not be damaged during delivery. (※)
We will continue to promote environmentally conscious initiatives while complying with the Law for the Promotion of Plastic Resource Recycling, which will go into effect in April 2022.
Changed Packaging Materials for Delivery to Environmentally Conscious Materials
Improvement of Operational Efficiency and Reduction of Paper Consumption by Introducing Electronic Contracts
From May 2020, we introduced cloud signage, an electronic contract service, as a way of concluding contracts with the aim of improving operational efficiency and reducing paper consumption. The use of online-based electronic contract service not only reduces personnel costs, but also promotes telework and strengthens compliance by reducing the time required for signing and other operational efficiencies.
Improve Operational Efficiency and Reduce Paper Consumption by Introducing Electronic Contracts
Reduction of Paper Consumption by Digitizing Delivery Slips and Receipts
As of the shipment on Tuesday, July 27, 2021, we computerized the delivery slips and receipts that were simultaneously packaged with the orders of ZOZOTOWN to reduce paper use and reduce CO2 emissions.
Electronic ZOZOTOWN Delivery and Receipt
Protection of Water Resources
Initiatives to Conserve Water Resources
ZOZO Group does not require a large amount of water or water of a designated quality for its normal business activities. However, regarding the management of water resources as an important challenge in environmental protection, it analyzes risks and manages the quantity of water intake and discharge. The use of water is broadly divided into water for cooling and humidifying at data centers and water for daily use at business sites. The business sites consume only the amount necessary for their workplace lives.
With regard to the water resources used in these businesses, we regularly check water stresses at water source sites using Water Risk Atlas of the World Resources Institute (WRI). For data center water source locations, which account for the majority of our own water consumption, risk is Low-Medium and we are aware that water stress and total water risk are not high. We will maintain the monitoring system to continuously watch for changes in water stress, and will take appropriate steps if the water stress is judged to be high risk.