Sustainability

Basic Policy

Basic Policy

Sustainability Statement

Fashion Connects and Leads us to a Sustainable Future.

We at ZOZO envision a new era of fashion that will improve
our environment and society.

Harnessing the power of imagination, creativity and innovative technologies,
we will prioritize impact above individual gain.

We are committed to solving the challenges our planet faces
by connecting people, technology and fashion in new ways.

We believe in creating a world where fashion enriches our lives,
now and forever.

*Sustainability Statement is approved by the Board of Directors in April 19, 2021.

*We are committed to achieving the goals outlined in our Sustainability Statement by 2030.

Materiality

Identification of Materiality

In 2022, the ZOZO Group identified materiality together with internal and external stakeholders, and in 2024, materiality and Sustainability Four Key Actions were reviewed.

*Materiality is discussed by SDGs Promotion Committee and approved by the Board of Directors in August 16, 2024.

Identification Process

Step 1:  Issue extraction
In alignment with our group's unique characteristics and contributions to growth, we meticulously extracted issues based on assessments from principal ESG evaluation entities (investors), along with demands from society, insights from various stakeholders such as shareholders, customers, suppliers, employees, municipalities, and NGOs.


*Insights were gathered from analyst reports, user interviews, business partner surveys, employee surveys, and NGO interviews.

Step 2: Analysis and evaluation of materiality
Materialities were preliminarily evaluated along two dimensions: their significance to the ZOZO Group and to our stakeholders, factoring in our group values and financial implications. This led to the provisional formulation of four strategic focuses for addressing these materialities.

Step 3: Validating materiality
The SDGs Promotion Committee, alongside our management team, reviewed the validity and strategic alignment of the provisionally assessed materiality and the "Sustainability Four Key Actions." This process ensures our efforts are in harmony with our growth strategy and commitments to sustainable development.

Step4: Approval
Following board approval, the ZOZO Group's materiality is identified and announced.


*The materiality will be reviewed as needed in response to changes in the social and business environment.

Materiality Map

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Sustainability Four Key Actions

We have formulated four key actions to realize our Sustainability Statement, "Fashion Connects and Leads us to a Sustainable Future.," and to solve 19 materiality items.

1. Providing the sustainable and unexpected services through co-creation with our business partners

We aim to solve environmental and social issues by providing safe, secure, sustainable, and exciting services. To achieve this, we leverage technology and work in collaboration and co-creation with all stakeholders, including our business partners.

2. Creating workplaces and communities where everyone can live authentically with joy through the promotion of DE&I

We aim to create a fair and just world where everyone is respected, and can live with joy. To achieve this, we promote a diverse and inclusive work environment, contribute to local community revitalization and next-generation support through collaboration with stakeholders, especially those in industry, government, and academia.

3. Contributing to a vibrant and sustainable planet by reducing negative impacts on the environment

We aim to build a sustainable environment by working with stakeholders to address environmental issues and minimize the negative impact of our business on nature.

4. Maintaining and improving sound management and a strong administrative structure by strengthening governance

We strive to maintain and enhance a sound and flexible administrative structure. We also aim to ensure highly transparent, effective, and responsive management, by strengthening corporate governance, risk management, privacy protection, and other key functions.

Sustainability Four Key Actions and Materiality

Sustainability Management Structure

ZOZO Group has held twenty-six committee meetings since its establishment of SDGs Promotion Committee in November 2020 (as of April 1, 2025) chaired by the President and CEO, to promote SDGs management across the Group. In addition, the Communication Design Division, which serves as the secretariat, will work closely with each business division to implement measures, with the aim of achieving four key actions.

Board of Directors
Reporting
Supervising
SDGs Promotion Committee

Chairman: President and CEO / SAWADA Kotaro

Members: Executive Vice President and CFO, Directors and COO, Executive Officers, other officers or employees deemed necessary by the chairman

Observer: Full-time Audit and Supervisory Committee Member, External Experts

Secretariat: Communication Design Division / Sustainability Promotion Sect.

Cooperation
Each Business Division