Basic policy, priority issues, long-term, medium-term and annual targets

Basic Policy

Based on our mission of building a "good company" for our employees, customers, business partners, shareholders, and society, the Shimamura Group is promoting sustainable "ESG response by Shimamura" through our main businesses in order to realize a sustainable society.

Priority Issues Related to Sustainability (Material Issues) and Long-Term Targets

To realize a sustainable society, the Shimamura Group treats various issues related to the environment, society, and governance at each stage of the supply chain as management issues and takes action to resolve them. Our management philosophy and mission align with the SDGs advocated by the United Nations, and we believe that our corporate activities and efforts to solve issues will aid in the achievement of these SDGs. We believe that nine of the 17 SDGs are particularly relevant to us and have established six priority issues related to sustainability that are connected to these nine goals.

	Material Issues	Long-Term Targets（FY2/2030）
Environment	■Circular economy promotion	Reduce plastic waste
	■Reduction of GHG emissions	Continue with zero product disposal; evolve process
	■Reduction of GHG emissions	Reduction of GHG emissions
	■Sustainable procurement	Develop and promote sale of sustainable products
	■Sustainable procurement	Demonstrate respect for human rights in supply chains
Society	■Activities by diverse human 　 resources	Promote diversity
Society	■Enhancement of the roles of 　 clothing infrastructure	Enhance the role of clothing infrastructure （mainly for vulnerable shoppers）
Governance	■Evolution of governance	Promotion of debate over the growth strategies and capital policy
		Continuation and evolution of risk management
		Fostering of successors
		Ensuring diversity and appropriate scale of the board of directors

Medium-Term Target

Medium-Term Targets（FY2/2027）
Material Issues	Initiative Items and Target
■Circular economy promotion	Complete recycling ratio of hungers : 90.0％　※1
■Circular economy promotion	Complete recycling ratio of plastics : 50.0%　※2
■Reduction of GHG emissions	Continuation of zero product waste 　※3
■Reduction of GHG emissions	GHG emissions (Scope 1 and 2) : 60% reduction (compared to FY2013)
■Sustainable procurement	Ratio of sustainable products : 40.0%　※4
■Sustainable procurement	Continuation and evolution of suppliers' CoC compliance structure
■Activities by diverse 　human resources	Ratio of female managers : 23.0％　※5
■Activities by diverse 　human resources	Employment ratio of people with disabilities : 5.0％
■Enhancement of the roles of 　clothing infrastructure	Sales target : 130 million yen　※6
	Implementation of traveling sales
	acceptance of shopping tours
	Expansion of online store
■ Evolution of governance	Promotion of debate over the growth strategies and capital policy
	Continuation and evolution of risk management
	Fostering of successors
	Ensuring diversity and appropriate scale of the board of directors

※1　Plastic hangers in the Company's designated colors that come with products.
The target recycling ratio was changed due to the addition of new types of recyclable hangers and additional recycling locations.
※2　Transparent plastic for product protection used at the time of delivery (made of polypropylene).
※3　Shimamura currently operates with zero product disposal. We will continue this trend going forward.
※4　Private brand (PB) products for the Shimamura business, the Avail business, the Birthday business, and the Chambre business.
To emphasize sales of sustainable products, we have changed the wording of our medium-term target from a purchase ratio of sustainable products of 40% to a ratio of sustainable products of 40%.
※5　Ratio of female managers in the senior class and above.
※6　Combined net sales from traveling sales, shopping tours, and the online store for senior adults.

Annual Targets

Material Issues	Medium-Term Targets（FY2/2027） Initiative Items and Targets	Annual Targets （FY2/2025） Initiative Items and Targets
■ Circular economy 　 promotion	Complete recycling ratio of hungers : 90.0％	●Hanger Recycling ①Complete recycling rate for hangers : 80.0% ②Expand complete recycling policy by increasing use of recyclable hangers
	Complete recycling ratio of plastics : 50.0%	●Plastic bag Recycling ①Complete recycling ratio of Shima Eco plastics 30.0% ②Plan and implement measures to raise awareness of shopping bag recycling and achieve target collection rate
	Complete recycling ratio of plastics : 50.0%	●small delivery bags ①Popularize small delivery bags
■Reduction of GHG 　 emissions	Continuation of zero product waste	●Product collection and recycling ①Make preparations to enable collections for all stores ②Research the collection of non-clothing items
■Reduction of GHG 　 emissions	GHG emissions (Scope 1 and 2) : 60% reduction (compared to FY2013)	①Make scheduled replacements of LED lighting and air conditioners ②Continue research into sustainable stores ③Implement measures against heat in Transfer Centers (heat shield coating on roofs) ④Implement modal shift and expand use of EVs
■ Sustainable 　 procurement	Ratio of sustainable products : 40.0%	●Expansion of sustainable products ①Increase the ratio of sustainable products across all businesses (35% of PB products or more) ②Enhance sustainability efforts in production processes and set standards
	Ratio of sustainable products : 40.0%	●Expansion of sustainable auxiliary materials ①Expand ratio of JB products that utilize sustainable auxiliary materials ②Implement risk hedging and cost reduction measures at auxiliary material production sites
	Continuation and evolution of suppliers' CoC compliance structure	●Human rights and environmental compliance in the supply chain ①Promote more thorough, higher-quality management related to compliance with CoC at PB factories ②Promote more thorough, higher-quality management related to compliance with CoC for second and third-tier business partners (aside from PB factories)
■ Activities by diverse 　 human resources	Ratio of female managers : 23.0％	●Increase the number of female managers ①Ratio of female managers 21.0％ ②Continue to promote a training curriculum for cultivating female executives ③Raise awareness of promotions to store and block manager positions, and improve training curriculum for these positions
	Ratio of female managers : 23.0％	●Promotion of work-life balance ①Improve the efficiency of head office operations ②Adapt to diversifying employment patterns ③Increase employee satisfaction and motivation
	Employment ratio of people with disabilities : 5.0％	●Continued employment of people with disabilities ①Maintain an employment rate of people with disabilities of 5.0% or higher ②Increase the number of certified professional life counselors for people with disabilities ③Create a rewarding work environment
■ Enhancement of the 　Roles of Clothing 　 Infrastructure	Implementation of traveling sale	●Implementation of traveling sales ①Optimizing product lineup ②Improve efficiency of onsite operations ③Target number of traveling sales : 180
	acceptance of shopping tours	●acceptance of shopping tours ①Optimizing product lineup ②Hold shopping tours for non-Shimamura businesses ③Target number of traveling sales : 240
	Expansion of online store	●Expansion of online store ①Expand product lineup for senior adults ②Conduct sales to facilities
■ Evolution of 　 governance	Promotion of debate over the growth strategies and capital policy	①Discussing and implementing growth strategies and capital policies ②Checking and reviewing the progress of risk management ③Fostering of successors
	Continuation and evolution of risk management
	Fostering of successors
	Ensuring diversity and appropriate scale of the board of directors

Sustainability Promotion System Initiatives

Sustainability promotion system: View details of initiatives

To achieve these targets, we have established an ESG promotion team that brings together various departments across the company and meets monthly to report on progress and raise awareness of issues.