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.

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

In order to realize a sustainable society, the Shimamura Group positions various issues related to the environment, society, and governance at each stage of the supply chain as management issues, and takes action to resolve those issues.
Our management philosophy and mission are in line with the SDGs advocated by the United Nations, and we believe that our corporate activities and efforts to solve issues will contribute to the achievement of the SDGs. Of the 17 goals of the SDGS, nine are considered particularly relevant, and the Shimamura Group has established six Sustainability Priority Issues related to the nine goals.

	Sustainability Priority Issues	Long-Term Target（FY2/2030）
ENVIRONMENT	■Circular Economy Promotion	Reduce plastic waste
	■Reduction of GHG Emissions	Continuation and evolution of zero product disposal
	■Reduction of GHG Emissions	Reduction of GHG emissions
	■Sustainable Procurement	Development and promotion of sustainable products
	■Sustainable Procurement	Respect for human rights in supply chains
SOCIAL	■Activities by Diverse Human 　 Resources	Promote diversity
SOCIAL	■Enhancement of Roles of The 　 Clothing Infrastructure	Enhancement of roles of the 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 Target（FY2/2027）
Sustainability Priority 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	Sustainable product sales ratio: 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 　 Roles of the 　 Clothing 　 Infrastructure	Sales target 200 million yen　※6
	Implementation of traveling sale
	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.
※2　Transparent plastic for product protection used at the time of delivery (made of polypropylene).
※3　Shimamura has currently achieved zero product disposal. We will continue these initiatives in the future.
※4　PB products of Shimamura, Avail, Birthday, and Chambre businesses.
※5　Ratio of female managers in the senior class and above
※6　Total sales from traveling sale, shopping tours and online store for the elderly in the Clothing.

Annual Targets

Sustainability Priority Issues	Medium-Term Target（FY2/2027） Initiative Items and Target	Annual Target （FY2/2026） Initiative Items and Target
■ Circular Economy 　 Promotion	Complete recycling ratio of hungers 90.0％	●Hanger Recycling ①Complete recycling rate for hangers: 90.0% ②Introduced urethane anti-slip hangers
	Complete recycling ratio of plastics: 50.0%	●Plastic bag Recycling ①Fully recyclable recycling ratio of Shima-eco vinyl: 50.0% ②Expanded the use of Shima-eco vinyl
	Complete recycling ratio of plastics: 50.0%
■Reduction of GHG 　 Emissions	Continuation of zero product waste	●Product Collection and Recycling ①Expanded clothing collection to all stores (excluding remote islands) and established a system ②Researched the viability of collecting non-clothing items (excluding underwear & large items)
■Reduction of GHG 　 Emissions	GHG emissions (Scope 1 and 2) 60% reduction (compared to FY2013)	①Greenhouse gas emissions (Scope 1 & 2): 60% reduction compared to 2013 ②Planned replacement of dimmable LEDs (120 stores) and air conditioners (150 stores) ③Renovated for sustainable stores (achieved environmental improvements and CO2 reduction) ④Modal shift and expanded EV trucks Modal shift and expanded EV trucks
■ Sustainable 　 procurement	Sustainable product sales ratio: 40.0%	●Expansion of sustainable products ①Increased the sales ratio of sustainable products (private brand products: 40% or more) Sm: 40%, Av: 40%, Br: 60%, Cm: 40%, ②Increased sustainable materials and manufacturing methods in the Import Department
	Sustainable product sales ratio: 40.0%	●Expansion of sustainable auxiliary materials ①Established management methods for designated factories for auxiliary materials ②Risk hedging and cost reduction for auxiliary materials production areas
	Continuation and evolution of suppliers' CoC compliance structure	●Human Rights and Environmental Compliance in the Supply Chain ①Improved the accuracy of Code of Conduct compliance management at private brand factories ②Improved the accuracy of checking second-tier and third-tier suppliers other than private brand factories
■ Activities by Diverse 　 Human Resources	Ratio of female managers 23.0％	●Increase the number of female managers ①Ratio of female managers: 23.0% ②Raise awareness of store and block manager promotion and improve the training curriculum ③Visualized the career aspirations of female employees and provided optimal support
	Ratio of female managers 23.0％	●Promotion of work-life balance ①Continued our efforts to achieve zero harassment ②Established a system to support early career development and necessary self-development
	Employment ratio of people with disabilities 5.0％	●Continued employment of people with disabilities ①Maintained the employment rate of people with disabilities at 5.0% or higher ②Completed the employment of people with disabilities across all areas of businesses and all blocks ③Planned and implemented measures to improve job satisfaction
■ Enhancement of Roles 　 of The Clothing 　 Infrastructure	Sales: 200 million yen	Sales: 200 million yen
	Implementation of traveling sale	●Implementation of traveling sale ①400 times last year ②Took measures to implement in all blocks ③Expanded awareness measures
	acceptance of shopping tours	●acceptance of shopping tours ①250 times last year ②Implemented in other businesses ③Expanded awareness measures
	Expansion of online store	●Expansion of online store ①Expanded the product range for seniors ②Planned and implemented sales expansion measures for "ShimaSapo ChokuTokubin" B-to-B website
■ Evolution of 　 Governance	Promotion of debate over the growth strategies and capital policy	①Discussed and implemented growth strategies and capital policies ②Reviewed risk management for the Medium-Term Management Plan 2030 ③Reviewed the structure of the Board of Directors for the Medium-Term Management Plan 2030
	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.