Impact and dependencies assessment
While Fast Retailing discloses its assessment of its value chain’s impact and dependencies, it is unclear whether it covers and assesses all of its own operations.
Key areas and species
Fast Retailing does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency in this area.
Ecosystem conversion and restoration
No evidence was found regarding Fast Retailing’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets. While Fast Retailing is committed to sourcing man-made cellulosic fabrics from non-Ancient and Endangered forests, no evidence was found that the company sets similar targets for other high-risk commodities such as rubber.
Resource exploitation and circularity
Fast Retailing does not disclose its inputs, including its material footprint. The company does not report quantitatively on its group-wide circularity performance. Neither does it disclose efforts to improve soil health.
Water
Fast Retailing does not disclose a time-bound target to reduce water withdrawal across its own operations. It also does not report how much water is withdrawn for its own operations in water-stressed areas. The company does not disclose a commitment to respect the right to water. Nor does it disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.
Solid and air pollution
No evidence that Fast Retailing is reducing the production of hazardous waste was found. While the company discloses an 85% reduction in plastic use in shopping bags and product packaging in 2020, no evidence was found that the company reports on the most relevant part of its value chain. Moreover, while the company reports on waste plastics from its stores and its recycling rate, it is unclear if this only concerns its own packaging. Fast Retailing does not report on air quality parameters of emissions of harmful air pollutants. Moreover, the company does not report time-bound targets to reduce air pollutants across the most material parts of its value chain.