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.
In January 2024, we reviewed some of our material issues due to changing market and business conditions.

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

• Reduce the use of fossil-based raw materials and fuels
• Ensure business operations based on integrity and ethical judgements
• Democratize sustainability in a way that is accessible to everyone
• Inherit culture and tradition

2. Address local challenges and revitalize regions

• Revitalize regional economies and industry through store openings and business development that highlights local traditions and utilizes local resources
• Build local communities that are active and lively

3. Practice business activities in which each and every diverse individual plays a leading role

• Maximize the value of diversity and inclusion to achieve open innovation
• Build a self-motivated and autonomous corporate culture
• Achieve high employee engagement and workplaces where everyone can play an active role

4. Realize governance aligned with "public interest and people-centered management"

• Generate co-creation with people and local communities
• Realize governance with people in local communities as shareholders
• Encourage co-owned management by employees
• Earn strong support from investors

Ryohin Keikaku launched the ESG Management 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 President & representative director serves as the chairperson. Inside directors, executive officers, and managers of related business divisions participate in the committee's monthly meeting.
In FY2023/8, we promoted 19 Company-wide, cross-functional projects organized by theme to address our material issues. 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.
In September 2023, we established a system to make ESG the main focus of our business, with each division having responsibility for their related themes of the 19 projects. Each division has formulated short-, medium- and long-term ESG targets and roadmaps based on our material issues, and is working to further incorporate ESG management into our business activities and create value unique to Ryohin Keikaku. The ESG targets of each division are also incorporated into the individual targets of the persons responsible in each division. The divisions and administrative support office have established a forum to regularly exchange opinions, where they discuss issues related to ESG Management. The progress of each division is reported to the ESG Management Committee, and discussions take place among the inside directors, executive officers, and managers of related business divisions.

• Reduction of use of virgin plastics in our products and packaging. Acceleration of recycling and reuse of products
• Development of new materials and new businesses that take environmental and social issues into consideration
• Reduction of greenhouse gas (GHG) emissions globally and across our supply chains, looking ahead to 2030 and 2050
• Minimization of adverse impact of business activities on the environment, including in areas such as water resources, biodiversity and waste
• Projects that improve diversity & inclusion and engagement
• Achieve "public interest and people-centered management"
• Enhancing information and data security including personal information and ensuring compliance with various laws and regulations