Respect for the Environment

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.

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 Hatoyama Distribution Center

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

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.

MUJI Campsites

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.

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

GHG Emissions Reduction Targets:Reduce Scope 1 and 2 by 50% from FY2021 levels by FY2030

*horizontal scroll to view full table
Unit: t-CO2e / Boundary: Ryohin Keikaku Group
Scope Item FY 2021 FY 2022
Scope 1 Scope 1 emissions 1,203 1,422
HFCs emissions 15 64
Scope 2 Market-based 58,002 63,758
Location-based 62,266 66,324
Scope1+Scope2(Market-based) 59,205 65,180
% change from base year Base year 110.1%
Carbon intensity: t-CO2e / Operating revenue (millions of yen) 0.130 0.131

※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
Scope 3 1. Purchased goods and services 897,686 998,449
2. Capital goods 52,127 78,125
3. Fuel- and energy-related activities not included in Scope 1 or 2 10,258 11,549
4. Upstream transportation and distribution 77,680 80,063
5. Waste generated in operations 2,459 2,485
6. Business travel 3,110 4,972
7. Employee commuting 6,557 6,138
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
12. End-of-life treatment of sold products 93,237 109,167
13. Downstream leased assets (Not relevant) - -
14. Franchises 4,890 5,855
15. Investments (Not relevant) - -
Scope 3 Total 1,275,047 1,395,018

For more information on GHG emissions 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.

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

Energy Usage

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Unit: MWh
Boundary Energy usage FY 2021 FY 2022
Ryohin Keikaku Group Natural Gas 5,892 6,664
LP Gas 296 249
Kerosene 253 355
Diesel Oil 21 19
Gasoline 53 55
Warm/cold water 15,900 19,023
Electricity 118,861 131,889
Electricity generated from renewable energy 2,099 3,008
Percentage of electricity generated from renewable energy 1.8% 2.3%
Total 141,275 158,254