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 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 130 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.
The recycling rate has changed due to the addition of more recyclable hangers and more recycling locations.
※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　Private brand (PB) products across all businesses.
To emphasize promoting the sales of sustainable products, we have changed our medium-term target from "Sustainable product purchasing ratio: 40%" to "Sustainable product ratio: 40%."
The product ratio is calculated based on sales.
※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 （FY2/2025） Initiative Items and Target
■ Circular Economy 　 Promotion	Complete recycling ratio of hungers 90.0％	●Hanger Recycling ①Complete recycling rate for hangers: 80.0% ②Expansion of complete recycling by expanding recyclable hangers
	Complete recycling ratio of plastics: 50.0%	●Plastic bag Recycling ①Fully recyclable recycling ratio of Shima-eco vinyl: 30.0% ②Implementation of measures to improve awareness of shopping bag recycling and to raise the collection rate
	Complete recycling ratio of plastics: 50.0%	●small delivery bags ①Promotion of "New Small Delivery Bags
■Reduction of GHG 　 Emissions	Continuation of zero product waste	●Product Collection and Recycling ①Preparing for collection at all stores ②Researching viability of collecting non-clothing items
■Reduction of GHG 　 Emissions	GHG emissions (Scope 1 and 2) 60% reduction (compared to FY2013)	①Systematically replacing LEDs and air conditioners ②Continue research on sustainable stores ③Measures against heat in transfer centers (heat-shielding coating on roofs) ④Modal shift and expansion of electric trucks
■ Sustainable 　 procurement	Sustainable product ratio: 40.0%	●Expansion of sustainable products ①Increasing the proportion of sustainable products across all areas of business(PB products 35% or more) ②Strengthening sustainability initiatives and setting standards in production processes
	Sustainable product ratio: 40.0%	●Expansion of sustainable auxiliary materials ①Expansion in the rate of using JB sustainable auxiliary materials ②Risk hedging and cost reduction of auxiliary material production sites
	Continuation and evolution of suppliers' CoC compliance structure	●Human Rights and Environmental Compliance in the Supply Chain ①Improvement in the accuracy of management of CoC compliance by PB factories ②Improve management accuracy of 2nd and 3rd tier suppliers other than PB factories
■ Activities by Diverse 　 Human Resources	Ratio of female managers 23.0％	●Expansion of female managers ①Ratio of female managers 21.0％ ②Promotion of a curriculum to train female executives（continuation） ③Promote and improve awareness and training curriculum for store managers and block managers
	Ratio of female managers 23.0％	●Promotion of work-life balance ①Improvement in the efficiency of head office operations ②Response to the diversification in employment patterns ③Increased employee satisfaction and motivation
	Employment ratio of people with disabilities 5.0％	●Expand employment of persons with disabilities ①Maintaining an employment rate of people with disabilities at 5.0% or higher ②Expansion in the number of certified professional life counsellor for people with disabilities ③Creating a rewarding work environment
■ Enhancement of Roles 　 of The Clothing 　 Infrastructure	Implementation of traveling sale	●Implementation of traveling sale ①Optimizing product lineup ②Improved efficiency of field operations ③180 times a year
	acceptance of shopping tours	●acceptance of shopping tours ①Optimizing product lineup ②Implementation in Other Businesses ③240 times a year
	Expansion of online store	●Expansion of online store ①Enhanced assortment of products for the elderly ②Conduct sales to institutions
■ 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.