Ryohin Keikaku has consistently addressed social issues since day one. Our core value is "to contribute to society and people" and this value is rooted in all our business activities.
Our commitment to the three perspectives of selection of materials, streamlining of processes, and simplification of packaging have made us a pioneer in what the world now calls sustainability. Based on these three perspectives, we continue to develop products that consider the influence on the society and the environment. This policy has become even more important under the "Second Founding" which we initiated in 2021, in order to create a better world 100 years from now and to become a front runner of ESG management. We will contribute to the creation of a circular, nature-coexisting, sustainable society in every aspects of our products and services, and reduce our environmental impact and respect individual human rights throughout the entire lifecycle of our products, services and actions. Through these commitments, we aim to build a "truthful and sustainable life for all."
We will practice our ESG management, which creates new values and contributes to the society, by implementing innovative ESG approaches towards our products, business activities and activities with local communities.

・ESG in products

We will encourage participation in sustainability activities^* worldwide by adopting circular design for all products and offering them at affordable prices

・ESG in business activities

We will collaborate with stakeholders to reduce social costs and environmental burden. At the same time, we will contribute directly to solving social issues through our business activities

・ESG through activities in regions

We will make positive impacts on the society by revitalizing local areas through our activities with local communities.

* Encourage participation in sustainability activities: We believe that in the current consumer market, in general, companies strengthen ESG and sustainability initiatives in a way that makes consumers bear some of the cost. Ryohin Keikaku conducts environmental and social initiatives naturally and effortlessly and provides products and services at affordable prices. Through MUJI, we want to reduce our environmental impact in a way that occurs seamlessly in daily life--in fact, that is MUJI's founding philosophy. By practicing and broadly expanding this philosophy, we encourage people to take part in sustainability activities.

Ryohin Keikaku identified material issues in formulating its ESG strategy towards 2030.
Within this process, we perceived and identified material social issues from two aspects of the importance to our stakeholders and the importance to the Company. We also held interviews with the management and received support from external organizations to score the importance of each social issue. After being narrowed down to 12 issues, the Board of Directors then approved the four material issues below.

1. Build a sustainable society while achieving circularity, and coexisting with nature

• Reduce combustion of fossil fuels and use of their derivatives
• Guarantee ethical production processes
• Encourage participation in sustainability activities

2. Revitalize communities and resolve their issues through localization activities

• Resolve issues arising from an aging society and declining population
• Open stores and revitalize industry and the economy in local communities
• Preserve local communities, the environment and traditional culture

3. Promote high employee engagement and acquisition of problem-solving skills

• Maintain a corporate culture of acting proactively and independently
• Be highly sensitive to social issues and finding solutions
• Demonstrate commitment to diversity
• Create workplaces where anyone can fit in and succeed

4. Achieve "public interest and people-centered management"

• Encourage co-owned management
• Earn strong shareholder support
• Earn strong support from residents, customers, local communities and business partners

Ryohin Keikaku launched the ESG Promotion Committee at the beginning of the fiscal year ended August 31, 2022 in order to address its material issues and further accelerate ESG management. This committee is held monthly and addresses medium- and long-term Company-wide ESG issues. The chairman & representative director serves as the chairperson. Inside directors, executive officers, and managers of related business divisions participate in the committee's monthly meeting.
Key projects with different themes have been launched based on the four material issues identified. Progresses of each project are reported and discussed at the Committee. Executive officers are responsible for each project and select project leaders. Project leaders then select project members from throughout Ryohin Keikaku. Progress toward achieving goals for 2030 is their benchmark.