TSI : SUSTAINABILITY Story Book

SUSTAINABILITY

Story Book

Creating a sustainable future with the power of fashion

2022/4/13

Challenges in the apparel industry 2

Our Purpose 3

Sustainability statement 4

Corporate info 5

Materiality 6-8

Contents

Agenda

Global environment

(climate change, raw materials, waste, water resources) 9-15

Our commitment to people and our main goals & initiatives

(diversity, health & safety, employee wellbeing, fair labor conditions) 16-24

Our commitment to society and major goals & main initiatives

(Local community) 25-27

CSR 28-30

Corporate governance 31-32

Toward tomorrow's world 33-35

Introduction Global Environment People Society CSR Governance Toward the Future

Industry Challenges

Sustainability challenges in the apparel industry

In the apparel industry, there are sustainability-related problems, such as environmental destruction, resource waste and human rights violations, with global warming being a particularly serious one.

Apparel industry CO2 emissions are extremely high, approximately 8% of all industries, hence the responsibility for controlling global warming is great.

① CO2 emissions

CO2 emissions in the apparel industry are projected to increase by more than 60% between 2015 and 2030 to become 2.08 billion tons, which is the equivalent to the annual CO2 emissions from 230 million family cars, and is a factor propelling global warming, including sea-level rises and climate change.

② Water resources

Some 11 bathtubs of water are used to produce one garment, and a huge volume of water is consumed in the production of cotton, a clothing mainstay, and is a massive factor in the procurement of raw materials for clothing.

It is estimated that 20% of freshwater pollution is caused by chemicals used in the dyeing process, and it is said that 60% of the approximately 13 million tons of microplastics flushed into the ocean occur when washing synthetic clothing.

③Mass production & mass disposal

Some 92 million tons of fiber are discarded annually, with another 57 million tons expected to be added to that by 2030. Japan's 3Rs (reuse, recycling, repair) for clothing is about 26%, which is much lower than the 80% for aluminum cans.

④ Human rights

It is said that forced labor and illegal work conditions are rampant in the value chain - for example, the Uighur forced labor problem related to Xinjiang cotton production.

Environmental load from material procurement to manufacturing

服1着当たりの換算

Source: Ministry of the Environment homepage

Our Purpose

Enjoyable fashion entertainment directed at planet earth, societies and people

Tsi-Group will create worldwide sympathy and social value with the power of fashion entertainment.

Introduction Global Environment People Society CSR Governance Toward the Future

Sustainability Statement

Creating a sustainable future with fashion entertainment

Beautiful planet earth, radiant society, happy life.

As a designer and entrepreneur, I have been attentively making clothes for more than 30 years. We, the sartorial designers, have dedicated ourselves to the idea of creating clothes that are pleasing and admired by as many customers as possible, and in so doing we have obviously created an oversupply situation.

An economy that discounts the idea of thrift has held sway for quite some time, heaping ever greater burdens on the environment, including air pollution, global warming, waste and resource shortages, and now we are beginning to notice the planet's cry for help.

So, how should we live now as intelligent beings?

- A future where both the creator and wearer will be happy together -

Being a company backed by many, we must seriously take initiatives to provide sustainable fashion* as a business model that reduces the burden on the global environment.

We will generate dynamism in society, creating a situation where our customers and all who work with TSI can find happiness both physically and mentally in the joys of daily life while at the same time taking care of planet earth's environment.

I believe that we must all think about what we do individually, and connect those ideas and actions to tomorrow's world.

Because, when all is said and done, our lives move forward in tandem with planet earth.

Takeshi Shimoji

President, TSI Holdings

*Sustainable fashion: A fashion initiative striving for comprehensive sustainability focused on products that include consideration of

background issues such as the global environment and working environment.