Response to Climate Change

Action Policy for Climate Change

Ryohin Keikaku consider issues related to climate change as a crucial topic, and we are actively working to reduce greenhouse gas emissions in all our business operations to mitigate the impacts on climate change and biodiversity.

Our company has set a goal to reduce our greenhouse gas emissions (Scope 1 and 2) by 50% for the entire group by FY2030 compared to the FY2021 baseline. To achieve decarbonized management steadily, we plan to implement 100% renewable energy in our stores and install solar panels in 100% of our own store facilities by 2030. Additionally, we collaborate with our business partners to promote energy conservation, reduce greenhouse gas emissions, and improve energy efficiency across the entire life cycle of our stores, supply chains, products, services, and activities. We acknowledge the importance of disclosing climate-related financial information, and we aim to expand our information disclosure based on the TCFD framework by understanding the impacts of climate-related risks and opportunities on our business and developing and implementing strategies accordingly.

Information Disclosure Based on TCFD Recommendations[PDF:362KB]

Efforts to Address Climate Change

Ryohin Keikaku collaborates with its business partners to promote energy conservation and improve energy efficiency in its business activities, while respecting energy reduction goals in the countries and regions where it operates.

Initiatives at the Head Office

We have implemented energy-saving measures such as the introduction of LED lighting and the installation of heat-shielding sheets on south-facing windows in its head office. We continue to work on energy conservation efforts across the entire company.

Initiatives of Distribution Centers

The main energy used in distribution centers is electricity, which is used for product conveyors and air conditioning/lighting. Other ongoing measures are as follows.

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 deliveries from 5 days a week to 4 days a week 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.

9. Introducing Renewable Energy and Installing Solar Panels to Distribution Center

The Hatoyama Distribution Center has 1,400 kWh solar panels on the roof that covers about 50% of the electricity demand at the site. 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.

Initiatives of 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.

Initiatives at 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.

MUJI Campsites

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."

GHG Emissions *horizontal scroll to view full table

Ryohin Keikaku calculates its GHG emissions according to the GHG Protocol, the standard guidelines used worldwide.

We will also continue to monitor the situation in countries and regions where MUJI is operating.

Unit: t-CO2e / Boundary: Ryohin Keikaku Co., Ltd.
Scope	Item	FY 2019	FY 2021^*3	FY 2022
Scope 1	Scope 1 emissions	666	918	1,128
Scope 1	Includes HFCs emissions	16	15	64
Scope 2	Market-based	26,407	29,921	33,746
Scope 2	Location-based	^-	33,005	35,319
Scope1+Scope2（Market-based）		27,073	30,839	34,874
Reduction rate from base year		-	Base year	-13.1%

*1 Data collected from direct-managed MUJI stores, logistics centers, headquarter building and other facilities in Japan owned by Ryohin Keikaku.
*2 Emission coefficients of Scope 1 and 2: The coefficients specified by the Greenhouse Gas Emissions Calculation, Reporting, and Publication System are used.
*3 Emissios for the period FY 2021 have been updated after a review of the locations and energy used in the calculations.(As of Decmber 8, 2022)

Unit: t-CO2e / Boundary: Ryohin Keikaku Co., Ltd.
Scope	Category	FY2019	FY2021^*3	FY2022
Scope 3	1. Purchased products and services	729,859	704,522	811,195
	2. Building and construction of capital goods	80,946	26,618	54,740
	3. Activities related to fuel and energy not included in Scope 1 and 2	4,293	6,098	7,001
	4. Upstream transportation and distribution	46,003	49,175	49,804
	5. Waste generated in operations^*4	298	210	1,529
	6. Business travel	2,712	956	1,989
	7. Employee commuting	2,991	3,386	3,216
	8. Upstream leased assets (included in scope 1 and 2)	-	-	-
	9. Downstream transportation and distribution (included in Category 4)	-	-	-
	10. Processing of sold goods	-	-	-
	11. Use of sold goods	66,004	64,155	48,846
	12. Disposal of sold goods	501	591	346
	13. Downstream leased assets (Excluded)	-	-	-
	14. Franchises	3,844	4,062	5,348
	15. Investments (Excluded)	-	-	-
Scope 3 Total		937,451	859,771	984,013

*1 Businesses within Japan is included in the calculations.
*2 Emission coefficients: Intensity data base of Ministry of Environment and IDEAv2 are used.
*3 Emissios for the period FY 2021 have been updated after a review of the energy and emission factors used in the calculations. (As of Decmber 8, 2022)
*4 CO2 emissions have increased since FY2022 because waste from stores has been added to the calculation.

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.

Scope of verification :
・Greenhouse gas emissions (Scope 1 and 2) for FY2021 at Ryohin Keikaku Co., Ltd.
・Greenhouse gas emissions from products and services purchased by Ryohin Keikaku Co., Ltd. in FY2021. (Scope 3 Category 1)

Verification Report[PDF:1.20MB]

Energy Usage *horizontal scroll to view full table

Unit: MWh / Boundary: Ryohin Keikaku Co., Ltd.
Boundary	Energy usage	FY 2019	FY 2021	FY 2022
Ryohin Keikaku only	Natural Gas	2,828	4,217	5,026
	LP Gas	156	296	249
	Kerosene	322	253	355
	Diesel Oil	14	21	19
	Gasoline	43	53	55
	Warm/cold water	9,545	15,899	19,023
	Electricity(Non-renewable energy)	57,733	64,066	71,931
	Renewable energy	0	2,099	3,008
Total		70,641	86,904	99,667

Sustainability