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September 17, 2021

Fast Retailing emissions reduction targets gain SBTi approval

Fast Retailing, the Uniqlo and Gu brand owner, says its targets to reduce greenhouse gas (GHG) emissions by fiscal 2030 have been approved by the Science Based Targets initiative (SBTi), as science-based targets (SBTs).

By Beth Wright

SBTi approval means the targets are in line with what the latest climate science says is needed to meet the goals of the Paris Agreement to limit global warming to well below 2 degrees Celsius above pre-industrial levels and pursue efforts to limit warming to 1.5 degrees Celsius.

Among the targets that have gained SBTi approval are a 90% reduction in Scope 1 and 2 GHG emissions (emissions from own operations, such as stores and main offices)  from FY2019 levels by FY2030.

The retailer is working toward a 20% reduction in Scope 3 GHG emissions (emissions from the production of raw materials for products, fabric production, and garment manufacturing, for Uniqlo and GU products) from FY2019 levels by FY2030; and a 100% reduction in the proportion of electricity sourced for own operations derived from renewable energy by FY2030.

Fast Retailing says it is now implementing measures based on these targets to reduce GHG emissions from its own operations and in its supply chain.

The company is also strengthening measures to achieve net zero GHG emissions by 2050.

Fast Retailing recently revised its full-year earnings outlook as the Covid-19 pandemic continues to affect sales.

In a third-quarter trading update, the group said it expects to record a consolidated operating profit of JPY245bn (US$2.23bn) for the year ended August, compared to previous guidance of JPY255bn. Revenues are expected to be up 7% at JPY2.15trn.

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