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

We routinely gather expectations, requests and opinions from our important stakeholders. Expectations from our service users and clients, among other things, are gathered through questionnaires and interviews, and expectations from existing shareholders and other investors are also gathered through shareholder meetings, engagement meetings, and evaluation data to us. We also strive to understand the expectations of industry groups and NGOs through meetings and interviews. With reference to the expectations and demands of each of these stakeholders and the demands of society, such as the major ESG evaluation items, we discussed and examined them from the viewpoint of the characteristics of our group and the contribution to the growth of our group, and identified materiality items that are of high importance to both stakeholders and us.

• Materiality is discussed by SDGs Promotion Committee and approved by the Board of Directors in March 14, 2022.

Materiality Map

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

  Highlight sustainable fashion choices to improve usersʼ experience

  By sharing information, such as the sustainability criteria and production background of a particular garment, ZOZO will provide its customers with better opportunities to purchase sustainable products and services that are human rights and environmentally friendly.

• 2

  Create a made-to-order platform for zero waste

  ZOZO will build a made-to-order production platform that dramatically reduces waste by avoiding mass production and mass disposal. This manufacturing system will utilize proprietary measurement technologies and various data inputs.

• 3

  Promote diversity, equity & inclusion among everyone involved in fashion

  ZOZO will actively disseminate information and take initiatives that contribute to creating a society where everyone involved in fashion can fulfill their potential. This includes ZOZOʼs own employees, those leading the fashion industry as well as its next-generation, minorities, apparel manufacturers, people affected by pollution, and, of course, its customers.

• 4

  Contribute to sustainable community development

  By combining fashion and technology, ZOZO will work with its stakeholders to solve environmental and social issues in each region and community, and it will contribute to the revitalization and sustainability of various regions.

• We are committed to achieving the goals outlined in our Sustainability Four Key Actions by 2030.

Four Key Actions and Materiality

We have committed to promote four key actions and initiatives to solve materiality items to enhance sustainable growth as a company and to solve environmental and social issues.

Enlarge image

Sustainability Management Structure

ZOZO Group has held fourteen committee meetings since its establishment of SDGs Promotion Committee in November 2020 (as of May 31, 2022) chaired by the President and CEO, to promote SDGs management across the Group. In addition, the Communication Design Office, which serves as the secretariat, will work closely with each business division to implement measures, with the aim of achieving four key actions.

Basic Environmental Policy

ZOZO Group will contribute to the realization of a sustainable environment by active engagement in maintaining and preserving the environment through our business operations.

1.Realize a Decarbonized Society
We will make continuous efforts to reduce CO₂ by conserving energy, conserving resources, reducing waste, reusing, and recycling.

2.Conservation of Natural Capital
We will encourage employee participation in environmental conservation activities, promote green procurement, and take environmental measures.

3.Compliance with Laws and Ordinances
We will comply with all laws, ordinances, international rules and practices related to the environment in Japan and overseas.

4.Cooperate with our Stakeholders
We aim to realize a sustainable environment by working with a diverse range of stakeholders to resolve environmental issues.

5.Enhance Education and Training
We will disseminate this policy and environmental issues to all employees and provide education and training.

6.Disclosure of Environmental Information
We will disclose environmental policies and information and promote transparency.

• Basic Environmental Policy approved by the Board of Directors on October 18, 2021

Basic Human Rights Policy

ZOZO Group strives to maintain a safe working environment and is engaged in initiatives that respect the human rights and individuality of each employee.

1.Commitment to Human Rights
We, all officers and employees of ZOZO, Inc. and its group companies (hereinafter “We”), contribute to sustainable social development by respecting human rights in every aspect of our business activities. We have established our approach as the “Basic Human Rights Policy (Human Rights Policy)” and promise to comply with the policy.

2.Reference and Scope
In accordance with the international principles of human rights*, we appreciate and respect cultures and customs of all countries and regions where we conduct our business activities, and strive to avoid involvement in discrimination and the violation of human rights in all business activities. We also require our suppliers and business partners to respect and refrain from infringing human rights in conformity with the aforementioned policies.

3.Respect for Diversity and Prohibition of Harassment
We respect all people as individuals and do not tolerate discrimination or any disadvantageous treatment on the basis of political beliefs, ideologies, religion, gender, gender identity, sexual orientation, physical features, illnesses, age, nationality, race, ethnicity, etc. We provide equal opportunity in recruitment, evaluation, development, placement, remuneration, promotion, executive appointment, etc., and foster a work environment in which our diverse workforce can play an active role.
In addition, we do not tolerate discrimination or harassment of any kind, and take continued preventive measures, such as through regular employee education.

4.Prohibition of Forced Labor and Child Labor
To protect basic human rights, we forbid the use of any and all forced labor or child labor, and engage in business activities adhering to all compliance requirements.

5.Management of Working Hours and Wages
We stipulate appropriate working hours, break time, overtime hours, late-night work, day offs, and vacation in our rules of employment in accordance with the Labor Standards Act and labor-management agreements. In compliance with legal requirements, we also stipulate minimum wage, legal benefits and deductions, overtime work, etc., in our pay regulations, and make payments directly to our employees.

6.Respect for the Freedom of Association and the Exercise of the Right to Collective Bargaining
We respect the rights of employees to form trade unions based on the employees’ own wills and the right to choose whether or not to participate. We authorize the exercise of collective bargaining right in an effective manner, and shall negotiate in good faith through constructive dialog with labor representatives.

7.Maintenance of Employees’ Safety and Health
We exercise due care to maintain our employees’ physical and mental health and strive to secure safe and healthy workplace environments. We comply with the laws, regulations, and rules related to safety and health, and work to maintain this by adopting appropriate measures to address health risks.

8.Freedom of Expression and Privacy Protection
We recognize freedom of expression and privacy protection in telecommunications and the Internet, and in communications on social media. We take the utmost care not to infringe on such rights. In addition, we serve all our users in a fair and equitable manner and provide safe and convenient services.

9.Initiatives and Structure to Respect Human Rights
We construct mechanisms for effective countermeasures by establishing human rights reporting desks to prevent human rights violations. We conduct human rights due diligence to assess the impact of business activities on human rights, continuously monitor the impact, and report to the stakeholders. In the unlikely event that business activities should have a negative impact on human rights, we shall respond appropriately using fair and equitable remedial actions to mitigate and resolve such effects.

10.Communication
Under the Z Holding’s Risk Management Committee which includes the co-chief executive officers, the Human Rights Working Group is responsible for the promotion of human rights initiatives. The Working Group promotes the Basic Human Rights Policy (HR policy) to all officers, employees and external stakeholders and actively conducts human rights awareness activities.

* "Universal Declaration of Human Rights," "UN Guiding Principles on Business and Human Rights," "Children's Rights and Business Principles," and the "Eight Fundamental Conventions of the ILO"
※Basic Human Rights Policy approved by the Board of Directors on October 18, 2021

Communication with Stakeholders

We aim to increase our corporate value through promoting four key actions, by closely communicating with our stakeholders to address issues and reflect them in our business operation.

Stakeholders	Our Relations	Means of communication
Customers	Our Customer Support Center has a central philosophy of "becoming a friend with our customers." We strive daily to support and make our customers smile as if we help out friends.	Social Networking Service Pages Contact Points for Inquiries Website
Shareholders and Investors	Aiming to be a company trusted by the shareholders and investors, we strive to practice corporate management that meets their expectations and to disclose corporate information in a timely and appropriate manner.	General Meeting of Shareholders Financial results briefing Individual interviews in IR activities Website Integrated Report  Sustainability Report
Business partners	Encouraging mutual development by building good and healthy relationships with our business partners through fair and equitable transactions.	Website Communication through Transactions Receipt and shipment of product Sustainability Report
Employees	Creating and offering a workplace where motivates each employee to demonstrate his or her individuality, and demonstrate his or her power of creativitity and imagination.	Training programs Seminar Pulse Survey Internal and external consultation desks Company intranet, the company newsletter
Local communities	Contributing to the vitalization of local communities and the realization of sustainable communities by working to resolve environmental and social issues, mainly in regions where we have bases.	Dialogue and cooperation with local governments Educational collaboration with school organizations and educational boards Cooperation with local facilities Website Sponsored to sporting organizations

Editorial Policy

This sustainability page reports ZOZO Group's sustainabi​lity-relat​ed​ information. In order to build better relationships with our stakeholders, we ensure to disclose information, focusing on ESG information.

Issuer	ZOZO, Inc.
Date of publication	October 27, 2021
Target period	Target period October 2021 to June 2022 * Including the programs held before the target period
Contact Information	Please contact us for inquiries.