Respect for the Environment

Response to Climate Change

Action Policy for Climate Change

In order to mitigate the impact of climate change on the natural environment and human society, the Ryohin Keikaku Group recognizes the challenges related to climate change as a key issue and supports the Paris Agreement and its goal of limiting the average temperature increase to 1.5°C. To realize a society with virtually zero greenhouse gas emissions by 2050, the Group will set reduction targets and promote activities to achieve these targets through engagement with its supply chain and participating in international initiatives.

The Group has set a target of reducing its total greenhouse gas emissions (Scope 1 and 2) by 50% by FY2030 compared to FY2021. The Group will also aim to achieve 100% renewable energy for the electricity consumed by its business activities, with a goal of 100% renewable energy adoption in its stores and 100% installation of solar panels on store facilities by FY2030. Furthermore, the Group is committed to not funding climate change denial activities or lobbying against climate regulations, and will not invest in fossil-fuel expansion.

The Ryohin Keikaku Group also collaborates with its business partners to promote energy conservation, reduce greenhouse gas emissions, and improve energy efficiency throughout the entire life cycle of its stores, supply chains, products, services, and activities. In addition, the Group recognizes the importance of disclosing climate-related financial information and is committed to understanding the impact of climate-related risks and opportunities on its business, developing and implementing strategies accordingly, and expanding its information disclosure in line with the TCFD framework.

Efforts to Address Climate Change

The Ryohin Keikaku Group is working to reduce greenhouse gas emissions not only on its own, but also in cooperation with its supply chain and production partners to promote energy conservation and to utilize renewable energy sources.

Ryohin Keikaku Initiatives

Head Office

In February 2024, the head office was relocated to a building that received Four stars in DBJ Green Building certification (as of December 2023).

Stores

In our stores, except for a few, we encourage store members to leave within 30 minutes after closing time to save energy. Additionally, we promote the use of LED lighting and make efforts to conserve energy by limiting the use of indirect lighting that does not have a direct impact on store operations. In addition, we have been installing solar power generation systems in some of our stores since FY2023.

Distribution Center

The Hatoyama Distribution Center has 1,400 kW solar panels on the roof. These solar panels can generate electricity equivalent to the annual power consumption of around 228 general households. We expect to reduce annual carbon dioxide emissions by around 494 tons, an effect equivalent to creating around 72 ha of a broadleaf forest.

MUJI Campsites

Campsites

At Ryohin Keikaku's three campgrounds in Tsunan-cho, Niigata, Takayama-shi, Gifu, and Tsumagoi-mura, Gunma, we manage and conserve approximately 231.4 ha (700,000 tsubo) of forest around the campgrounds in a way that is close to natural, contributing to the absorption of CO2 through the carbon fixation of trees. We also organize outdoor classes for residents and summer camps for kids to deepen their understanding of nature.

Formulation of Adaptation Measures for the Risk of Natural Disasters

Our measures to ensure the safety of our employees in the event of natural disasters includes the introduction of a system (smartphone application) that enables employees to quickly report their safety conditions, and in order to improve effectiveness, we are regularly conducting safety confirmation drills and lectures on initial responses to disasters.

The headquarters office stockpiles of food on a rolling stock basis, and stores are equipped with flashlights and other emergency supplies.

In addition, based on the concept of "incorporating preparedness into everyday life" not only for employees but also for the community as a whole, we are working to raise awareness of disaster prevention together with local residents by developing products and holding events under the theme of "always ready for emergency."

Supply Chain Initiatives

Logistics

the Hatoyama Distribution Center

To reduce GHG emissions and environmental impact, Ryohin Keikaku is actively pursues initiatives such as reuse of logistics equipment and improved transportation efficiency.

1. Delivery and shipment from the warehouse without using slips

We carry out the delivery of almost all products and the shipment of products to directly managed stores from the warehouse without using slips.

2. Delivery by returnable containers

Returnable containers have been introduced for delivery to stores and are reused between stores and distribution centers.

3. Use of ships

We are working on reducing CO2 emissions by delivering products to stores in Hokkaido and Okinawa using ships.

4. Improvement of the loading rate for deliveries to stores and optimization of the number of deliveries

In addition to increasing the loading rate, we are working on optimizing the number of product supplies to all stores by establishing a standard for the quantity of products to be delivered and by reducing the number of delivery days for stores with a small amount of the total supply of products.

5. Shortening of travel distance by sending products directly from the manufacturing factories to customers

Polypropylene storage products and Beads Sofa, which are products that represent MUJI, can be delivered directly from manufacturing factories to customers, allowing shortening of the travel distance. This also reduces product damage during delivery.

6. Reuse of corrugated cardboard boxes used for supply to stores

We have introduced a system to collect some of the cardboard and used paper generated by our distribution centers and recycle it into cardboard for use in supplying our stores.

7. Reduction of transport distance by trucks from domestic distribution centers to stores

We have transferred our inventory base for clothing and miscellaneous goods from Niigata to Saitama in 2014 with the establishment of the Hatoyama Center, moving its logistics center closer to consumption areas and shortening the truck transport distance within the Kanto region, where the stores are concentrated.

8. Operation of global distribution/transit centers

In 2013, we set up a global distribution center in China, one of our production bases, and transferred our product inventory base from Niigata Prefecture to China. In 2014, we opened a global transit center in the ASEAN region, along with the transfer of the production bases to ASEAN. We are working on streamlining marine transport and domestic transport by consolidating products produced at multiple factories into the global distribution/transit centers to increase the loading rate of containers.

Production Partners

Ryohin Keikaku has been a member of CDP Supply Chain Program since FY2023 in order to reduce GHG emissions in our supply chain. We request information on climate change from our major production partners, provide feedback based on our own assessment of the survey results. We will continue to engage with our production partners to monitor and reduce GHG emissions throughout our supply chain.

GHG Emissions

Targets:Reduce absolute global Scope 1&2 GHG emissions 50% by FY2030 from FY2021 baseline.

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Unit: t-CO2e / Boundary: Ryohin Keikaku Group
Scope Item FY 2021 FY 2022 FY 2023 FY 2024
Scope 1 Scope 1 emissions 1,082 1,278 1,355 1,450
HFCs emissions 15 64 63 52
Scope 2 Market-based 59,096 64,557 75,658 73,744
Location-based 62,344 66,250 78,025 93,138
Scope1+Scope2(Market-based) 60,177 65,835 77,013 75,194
% change from base year Base year 109.4% 128.0% 125.0%
Carbon intensity: t-CO2e / Operating revenue (millions of yen) 0.133 0.133 0.132 0.114

※FY2021, FY2022 and FY2023 values were revised in August 2024 due to a review of activity data and emission factors in some countries and regions including Japan.

※Scope 1 and 2 coverage:Ryohin Keikaku Group directly managed stores (MUJI, Café&Meal MUJI, Café MUJI, IDÉE), offices, logistics centers, MUJI campsites and other facilities.

※Energy consumption:In case data is not provided from the property management company, etc., estimates are made based on energy consumption per unit area.

※Scope 1 emission factors:The calculation methods and emission factors under the Ministry of the Environment, Government of Japan's accounting and reporting system is used for both Japan and other countries.

※Scope 2 market-based:In case the information of the power supplier is not provided from the property management company, etc., location-based emission factors are used.

※Scope 2 location-based:Adjusted emission factors under the GHG emissions reporting system are used for Japan, and the latest annual version of the IEA Emission Factors are used for other countries.

Unit: t-CO2e / Boundary: Ryohin Keikaku Group
Scope Category FY2021 FY2022 FY2023 FY2024
Scope 3 1. Purchased goods and services 897,685 998,450 1,244,281 1,293,127
2. Capital goods 52,127 78,125 77,451 116,057
3. Fuel- and energy-related activities not included in Scope 1 or 2 10,670 12,305 14,173 15,721
4. Upstream transportation and distribution 77,680 80,063 78,697 81,939
5. Waste generated in operations 2,194 2,169 2,250 2,440
6. Business travel 3,106 4,964 7,230 12,323
7. Employee commuting 6,557 6,138 6,783 8,787
8. Upstream leased assets (included in Scope 1 and 2) - - - -
9. Downstream transportation and distribution (included in Category 4) - - - -
10. Processing of sold products (Not relevant) - - - -
11. Use of sold products 127,041 98,215 119,001 169,799
12. End-of-life treatment of sold products 88,814 106,352 107,646 86,366
13. Downstream leased assets (Not relevant) - - - -
14. Franchises 4,890 5,855 6,311 6,521
15. Investments (Not relevant) - - - -
Scope 3 Total 1,270,765 1,392,636 1,663,823 1,793,081

Energy Usage

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Unit: MWh / Boundary: Ryohin Keikaku Group
FY 2021 FY 2022 FY 2023 FY 2024
Consumption of fuel
(excluding feedstocks)
Natural Gas 5,188 5,945 6,250 6,219
LP Gas 317 213 333 592
Kerosene 253 331 332 442
Diesel Oil 21 18 17 25
Gasoline 53 52 36 39
Consumption of
heat / steam / cooling
Heat 15,413 20,565 22,009 17,075
Steam 2 2 1,631 1,834
Cooling 4,223 5,088 4,128 5,121
Consumption
of electricity
Electricity 118,832 131,982 155,443 188,124

Electricity generated from renewable energy

2,281 3,054 3,636 42,214

Percentage of electricity generated
from renewable energy

1.9% 2.3% 2.3% 22.4%
Total 144,302 164,197 190,178 219,471

For more information on GHG emissions and energy usage by segment and details on calculations, please refer to the ESG Databook.

Third-Party Verification

Ryohin Keikaku undergoes third-party verification by the Japan Management Association GHG Certification Center for the appropriateness of its greenhouse gas calculation method and scope of calculation to ensure the reliability of disclosed data.

Regarding FY2024 data, we have received third-party verification for the following data: Verification subject: GHG emissions, energy consumption, and water usage of the Ryohin Keikaku Group.

Regarding FY2021 and FY2021 data, we have received third-party verification for the following data: Verification subject: GHG emissions for Scope 1, 2 and Scope 3 Category 1.