Natural Capital

Natural Capital

Initiatives to Conserve Water Resources

We recognize water resources as a key element in conserving natural capital, as they are closely linked to climate change and biodiversity issues. We are committed to reducing water consumption, conserving water sources, and managing and addressing water-related risks in our business activities. Within the ZOZO Group, water is primarily used for data center cooling and daily use at offices. The water usage at offices is limited to the amount necessary for daily workplace activities.

Water Risk Assessment and Response, Identification of Priority Areas

We regularly monitor water-related risks, including "Overall Water Risk," "Water Stress Risk," and "Future Risk," using the Water Risk Atlas^※1 provided by the World Resources Institute (WRI), focusing on 15 sites that are consolidated as a group companies both in financial and non-financial reporting.

Of the 15^※２ sites analyzed, 12 (approximately 80%) are located in Japan, which also accounts for over 99% of our total sales. The water stress risk at each site is outlined in the table below.
※１：World Resources Institute's (WRI) Water Risk Atlas tool (external website)
※２：As of May 2025

Overall water risk

Many of our domestic sites are assessed as "Low to Medium (10–20%)" in terms of water risk. We believe the potential impact from those domestic sites on our operations is limited. However, we recognize that several domestic sites are located in low-lying coastal areas, which may be exposed to risks such as heavy rainfall, flooding, and storm surges associated with climate change.

In addition, two sites located in two overseas countries have been identified as "High Risk" (with a risk ratio of 40% or more). These areas are considered high-priority due to population concentration and risks such as water scarcity and drought.

We also assessed the projected water risks for 2050 and identified areas classified as high risk (40% or more). In these areas, concerns include mid- to long-term risks such as submersion, flooding, drought, water scarcity, and water quality issues. We are committed to water conservation efforts to ensure the continuity of our business operations.

Data Center Initiatives

The data center used by ZOZO utilizes the World Resources Institute's (WRI) Aqueduct 4.0 tool to better understand water stress concerns. In recent years, the data center has enhanced its ability to accurately measure water use baselines and monitor annual progress on a facility-by-facility basis. Water Use Efficiency (WUE) has been monitored, and the goals of water use reduction have been set to improve overall facility.

To reduce water consumption, we are actively working toward becoming water positive — returning more water to the natural environment than we use — through initiatives such as on-site fuel cells, recycling of domestic wastewater, and rainwater harvesting.

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Biodiversity

In January 2023, ZOZO Group announced the “Net Zero,” which aims to achieve virtually zero CO₂ emissions by 2050. Reducing CO₂ emissions not only mitigates climate change, but also leads to ecosystem conservation and maintains biodiversity. In addition, we consider biodiversity as one of our materiality and reflect into our corporate activities by curbing deforestation and maintaining, strengthening and conserving biodiversity and ecosystems. For example, we have adopted FSC certified (*1) corrugated containers and environmen​tally-frie​ndly​ packaging materials, reduction of paper consumption by digitizing delivery slips and receipts, and changing the cushioning material used for delivering products from plastic materials to 100% recycled paper. We will continue to comply with relevant treaties and laws and regulations, and aim to realize a society that coexists with nature.

* FSC certification is an internationally recognized system for "appropriate forest management," which was created with the aim of sustainable forest use and conservation.Basic Environmental Policy
Changed Packaging for Delivery to Environmentally Conscious Materials

Sponsorship and Participation in Environmental Conservation Events

We have sponsored and participated in the environmental conservation event "Shibuya and Plogging" organized by the "Ocean Taro Association" every year since 2022. In the event, we participate in "plogging," an activity that combines jogging with trash collection, together with brands closely associated with Shibuya district, a central hub of fashion.
At the event held on Saturday, November 23, 2024 (National Holiday), 60 participants, including our employees and fashion industry professionals, took part and collected a total of 52 kilograms of trash.
Plastic bottles collected through these activities are recycled into new fashion materials using a material recycling system. Since 2023, we have been manufacturing and selling products made from recycled fibers through our production support service "Made by ZOZO."
"ZOZO Beach Clean Action" Implemented