Fast Retailing sustainability score: 33/100

Fast Retailing (Uniqlo's parent) publishes Scope 1 and Scope 2 (market-based and location-based) figures annually, verified by KPMG AZSA Sustainability Co., Ltd. FY2024 data: Scope 1 = 8,760 tCO₂e; Scope 2 market-based = 43,154 tCO₂e; Scope 2 location-based = 297,360 tCO₂e. GHG Protocol methodology. Third-party verification has been in place since FY2019. Multi-year data is publicly available on the Fast Retailing website. Score capped from 8 because granularity at individual-store level and full methodology notes are limited in public disclosure.

Fast Retailing discloses Scope 3 total of approximately 5.2 million tCO₂e (FY2024, per Tracenable/company website), KPMG-assured, with a category-level breakdown for 9 out of 15 Scope 3 categories. However, the Scope 3 target covers only Category 1 (purchased goods and services) — 1 out of 15 categories per GHG Protocol. Stand.earth (2024 Clean Energy Close Up) found Fast Retailing publishes no supply chain energy data. Good On You notes absence of on-track evidence for supply chain targets. The disclosure is meaningful but incomplete — upstream transport emissions surged 81% vs. 2019 baseline with no credible reduction target for that category.

Scope 1 and 2 emissions show a verified, substantial decline — FY2025 achieved a 90.3% reduction vs. 2019 baseline, five years ahead of the SBTi-approved target. Total Scope 3 declined by approximately 3.8% from FY2023 to FY2024 (from ~5.72Mt to ~5.2Mt), and Category 1 Scope 3 was down 10% vs. 2019 at FY2024 TCFD Report stage. However, upstream logistics emissions surged 81% vs. 2019 baseline, and total Scope 3 remains over 5 million tCO₂e. The company's revenue grew 9.6% in FY2025, meaning production volume is increasing — absolute Scope 3 reduction while production expands is positive but fragile. Scores 5 rather than 6: multi-year absolute reduction on Scope 1/2 is strong and verified, but Scope 3 reduction is partial (Category 1 only targeted) and modest relative to 1.5°C alignment (-27% benchmark). Not capped at 4 because absolute targets are set and Scope 1/2 reductions are genuine, not intensity-only.

By FY2025, Fast Retailing achieved 93.5% renewable energy in stores and offices, up from 84.7% in FY2024, and reports 'substantially 100%' renewable for own operations excluding certain areas. The transition has been achieved through PPAs and green electricity products. Target is 100% by FY2030. However, the company's supply chain — which accounts for ~97% of emissions — has no reported renewable energy proportion and no supply chain renewable energy target, per Stand.earth's Clean Energy Close Up (2024). Scores 7 rather than 8 because the supply chain energy transition is absent from public data and own-operations RE includes some exclusion caveat.

Fast Retailing has published a biodiversity protection policy (zero deforestation commitment for wood-based materials, Canopy-listed MMCF suppliers, Better Cotton Initiative membership) and recognises biodiversity risks from cotton, wool, and cashmere sourcing. Good On You confirms a biodiversity protection policy exists for some of the supply chain. However, no quantified nature footprint exists, TNFD disclosure is absent, and Stand.earth found 'no evidence of impact yet' for regenerative farming claims. The company's core business model — mass production of synthetic and natural fibre garments at scale using global supply chains with heavy polyester use — creates significant ongoing nature pressure. A $150,000 donation to the Nature Conservancy (100,000 trees in the US) is marginal relative to the footprint. No net-positive biodiversity commitment or third-party-verified nature programme.

RE.UNIQLO clothing collection programme operates in stores globally (since 2006), and a Pre-owned Clothes Project launched in October 2023 (trial in four stores, Japan). Recycled polyester now accounts for 46.4% of all polyester used (FY2025), up from 41.5%. Materials with low GHG emissions reached 19.4% of total mix (FY2025). Higg FEM assessments used at core factories. However, Good On You notes Uniqlo does not publish an aggregate breakdown of materials used, RE.UNIQLO results are not disclosed, and Stand.earth identifies resale/repair as limited (56 stores across 22 countries). The company is predominantly linear in production model; circularity targets exist but progress reporting is thin.

Fast Retailing has a published water management programme: working with partner factories (80% of total water withdrawal) to reduce per-unit water withdrawal 10% from 2020 levels by end-2025. As of December 2023, 51% of factories achieved the target. The company aims for zero wastewater pollution at partner factories by 2030 and is a member of the ZDHC Group for hazardous chemical elimination. Third-party involvement from 2024 in factory assessments. Better Cotton Initiative membership addresses agricultural water. However, no absolute water consumption data for operations or supply chain is publicly disclosed (intensity targets only), and Ceres Valuing Water Finance Initiative Benchmark 2023 coverage flagged as relevant for apparel. Scores 4: monitors water, has reduction measures, no disclosed total absolute figure.

Fast Retailing holds SBTi-validated near-term targets (approved, not lapsed): 90% Scope 1/2 reduction by FY2030 vs. 2019 (achieved in FY2025, five years early) and 30% Scope 3 Category 1 reduction by FY2030 vs. 2019 (raised from 20% in November 2025). Both are absolute reduction targets. The Scope 3 target covers only 1 of 15 categories — a material limitation flagged by Stand.earth, which notes the target is not aligned with the 1.5°C pathway benchmark of -27% by 2030 (original target was only -20%). Net-zero by 2050 is stated. No validated long-term SBTi net-zero target. No reliance on offsets identified. Scores 5 because SBTi near-term targets are validated and reduction-first, but Scope 3 coverage is narrow and the overall ambition remains below 1.5°C alignment across the full value chain.

Fast Retailing publishes an annual Integrated Report and TCFD Report, disclosing Scope 1, 2, and 9 of 15 Scope 3 categories with KPMG AZSA third-party assurance for FY2025. The company participates in CDP and has signed the UNFCCC Fashion Industry Charter for Climate Action. A dedicated sustainability team exists. However, Uniqlo does not separately disclose its own sustainability data at brand level (all disclosure is at Fast Retailing Group level). Good On You (2023) noted Uniqlo does not report progress against its targets, and Ethical Consumer (2023) found disclosure inadequate. TCFD-aligned reporting is published. No CSRD disclosure (Japan-domiciled). Board-level climate governance exists but executive compensation linkage to sustainability targets is not publicly evidenced. Scores 5: solid third-party verified group-level disclosure, but brand-level transparency gap and weak governance-pay linkage.

No upheld regulatory actions or significant fines for environmental conduct found. InfluenceMap found Fast Retailing has zero or very low climate policy engagement intensity — neutral direct lobbying position, no active obstruction. Stand.earth's 2023 Fossil Free Fashion Scorecard awarded Fast Retailing a D- grade, noting slow progress on fossil fuel phase-out, high synthetic material reliance, and no discernible renewable energy advocacy. Stand.earth's 2024 Clean Energy Close Up placed Fast Retailing among the lowest scorers. Ethical Consumer (2023) found inadequate emissions disclosure. Multiple NGO sources (Stand.earth, Good On You, Ethical Consumer) note greenwashing concerns: claims without sufficient evidence of delivery, no textile certifications, marketing initiatives (RE.UNIQLO, Doraemon sustainability ambassador) called out as insufficiently substantive. Deducting 2 points: credible NGO criticism from multiple independent sources (Stand.earth D- scorecard, Ethical Consumer inadequate disclosure finding). Starting at 8, minus 2 = 6.