Information session materials for the media

Initiatives of the Wacoal Groupfor Solving the Climate Change Issues
October 4, 2021
Wacoal Holdings Corp.
Wacoal Corp.

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Regarding our goals for 2030
for solving the climate change issues
Tomoyasu ItoDirector, Vice President Corporate Officer, Wacoal Holdings Corp.
Representative Director, President and Corporate Officer, Wacoal Corp.

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Purpose of the Wacoal GroupWe will contribute to society
by helping women to express
their beauty.
“It is indispensable to conduct business administration
while securing profit in order to make each enterprisesurvive, but this is not the ultimate goal of enterprises.
Enterprises are continuously asked by the times how theyshould behave. Enterprises will not be allowed to survive,
unless they give an accurate answer to the times.”(Excerpt from the material for our management policy releasedin February 1975)
Founder: Koichi Tsukamoto
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Philosophy
Our VisionWe, the employees and management ofWacoal, will maintain a refined corporate
culture based on mutual trust and willcontinually strive to make the Company a
global leader in the industry.
Our Value
1.Create products loved by customers

2.Develop new products that meet theneeds of the times
3.Conduct business in a fair manner with aforward focus

4.Build a better Wacoal through better
human resources
5.Fear not failure and boast not of success

We aim to achieve a sustainablegrowth while creating both “economicvalue” and “social value.”

Mutual trust-oriented management= ESG management
Business activities focusedon ESG (environment,society, and governance)
based on the venture spirit
4HistorySince 1962, we have conducted mutual
trust-oriented management while“respecting human beings,” andrecognized the change in society toempower women as our growth
opportunity.
Entry into the U.S.
market (1983)

Launch of Wing,a brand for GMS,
supermarkets

Bras in the early days

Bra pads

1950s
Domestic market
cultivation period

Growththanks to theexpansion ofdepartment
stores1960s
Domestic market
establishment period

Growth thanks
to theexpansion ofGMS,
supermarkets

1970s
Overseas market
cultivation period

Opening of directly
managed stores(2001)

Acquisition of Eveden as asubsidiary(present: Wacoal Europe)

Growth through M&A,
directly managed stores,
and overseas business

Foray into
overseas
markets
Establishment of Human Science
Establishment of Kyoto
Research Center for “studying Costume Institute for “learning
the human body with data”
from the West”(1964)(1978)

1980s-90s
Overseas market
establishment period

2000s

2010s

“Global Wacoal” realization period55Changes in the environment surrounding theWacoal Group(Changes in the recognition of sustainability)
Worsening of global environmental problems
・Stagnation of business activities due to the increased frequency of abnormal weather
caused by global warming
・Contribution to the Paris Agreement and the Japanese government’s declaration ofcarbon neutrality

Changes in the supply chain・Rise in awareness of human rights and environmental issues in the supply chain
・Addressing supply chain issues became a corporate responsibility.

The generation that practices new consumer behaviors
・The contribution to solving social issues such as the SDGs determines consumption
behavior (corporate selection).

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Toward a sustainable society where all people in the world canflourish and the improvement in corporate value of the Wacoal Group We recognize the response to sustainability problems as an important management issue
that would increase opportunities to reduce risks and earn revenues.

 In order to realize a sustainable society where all people in the world can flourish andimprove our corporate value, the Wacoal Group implements measures for solving issues
regarding ESG, including governance, human rights, and the environment.
 The pillar of our long-term strategy is “ESG management” aimed at growth through thecreation of social value and economic value, while we recognize the response to social
issues, which are getting more complex and diverse, as a “growth opportunity.”(A new medium-term management plan is to be announced in the spring of 2022.)
 We agreed with the suggestion of Task Force on Climate-related Financial Disclosures(TCFD) and set goals of our original environmental activities that we aim to achieve by 2030,
in order to solve the worsening global climate change issues and realize a decarbonizedsociety. In addition, we calculated the emissions of Scope 3 for the first time.

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Environmental goals for 2030
In-house emissions“Zero”

Product disposal“Zero”

Aiming to reduce our ownemissions to zero, we are
gradually switching torenewable energy sources.
(Target: Domestic business)

To reduce the ratio of productdisposal from 1% to zero.
In addition, we are promoting
initiatives to reduce thedisposal of waste materials at
our plants.
(Target: Wacoal Corp.)

Environmentally friendly
materials "50%"

To increase the percentage ofenvironmentally friendly
materials used to "50%“(Target: Wacoal Corp.)

・Targets for reducing greenhouse gas emissions in the supply chain will be disclosed in the spring of 2022.
・Long-term targets for environmental activities toward 2050 will be disclosed in the spring of 2022.
・As for overseas business initiatives, we will start with a survey of our own emissions, and set targets as the timing allows.

8Survey on Greenhouse Gas Emissions in the Supply Chain First calculation of greenhouse gas emissions (Scope 3) for the entire supply
chain of the Wacoal business (in Japan), in order to promote efforts to realize adecarbonized society and further ensure the reduction of greenhouse gas
emissions in the supply chain Responded for the first time at the end of July 2021 to the Climate Change
Questionnaire of CDP, an international non-profit organization, in order topromote disclosure of information on climate change initiatives.

 Wacoal business (Japan) emitted approximately 340,000 tons in the supplychain. Based on these results, the Company will discuss emission reduction
targets for the supply chain and plan to set them during the current fiscal year
(year covered by the survey: FY2020).

9Enhancement of collaborative activities with consumers
We enhanced the development of environmentally friendly products andmaterials, in order to realize a sustainable earth environment and meet
consumers’ “wish to use environmentally friendly products.”(Launch of a lineup of environmentally friendly products in the fall-winterseason in 2021)

Release of “Nature Couture” of
Wacoal in September 2021

“L∞ping,” a brand of directly managed
stores, is to be released in the springsummer season in 2022
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Regarding our environmental activities andinitiatives for solving the climate change issues

 To address climate change To conduct business activities friendly to consumers and the earth11

To address climate change
We think that climate change, which significantly affects the earth and corporate
activities, is a risk for the management of the Wacoal Group, but brings new business
opportunities. In September 2021, we agreed with the suggestion of Task Force on
Climate-related Financial Disclosures (TCFD), while recognizing that solving
environmental issues and improving global environment would lead to our growth asa healthy enterprise and the realization of a sustainable society. In addition, wecalculated the greenhouse gas emissions (Scope 3) in the entire supply chain of theWacoal Business (Japan) for the first time, and plan to disclose our goal for reducing
the emissions by the end of the current term.

12 Progress of Wacoal Group’s initiatives for coping with theclimate change issues (until the term ended March 2021)
Primary initiatives ・Survey on the direct emissions from our company (Scopes 1 and 2) (target: domesticoffices, including the headquarters)that have been ・Energy-saving efforts in each office (Wacoal Distribution Corp.: adoption of solar power
implementedgeneration and modal shift)・Setting of target reduction amounts of direct emissions from our company (Scopes 1 andPrimary initiatives 2)
・Survey on the total emissions in the entire supply chain (Scope 3) and setting target
to be
reduction amounts
implemented
・Survey on the emissions from overseas offices

 Initiatives for coping with the climate change issues in the current
term ending March 2022
(1) The first survey on the greenhouse gas emissions in the supply chain (Scope 3)(2) The first response to the questionnaire sheet of the environmental NGO “CDP”(3) In September 2021, we agreed with TCFD.
(4) Disclosure of the target reduction amounts of greenhouse gas emissions in the supply chain andprocesses for achieving the target (to be disclosed by the end of this fiscal year)13 The emissions in the supply chain of the Wacoal Business (Japan)(Scope 3) amount to about 340,000 tons.
The greenhouse gas emissions in the Wacoal Business (Japan) are composed mainly of theemissions in the supply chain (Scope 3). In particular, the emissions from “purchased products
and services (such as raw materials)” account for about 90%.
We will discuss the target reduction amounts of greenhouse gas emissions in the supply chain andthe processes for reducing the emissions, and disclose the target together with a new mediumterm management plan by the end of the term ending March 2022.
Upstream

In house

Downstream(7) Commuting(1) Raw materials(4) Transportationand delivery*Other:(2) Capital goods(3) Fuel and energy-related activities not included in Scope 1 or 2
(5) Discarded items(6) Business trips(8) Leased assets

Combustion of fuelUse of electricity(11) Use ofproducts(12) Disposal ofproducts*Other:(9) Transportation and delivery(10) Processing of products(13) Leased assets(14) Franchise(15) Investment(Source: Green Value Chain Platform of the Ministry of the Environment)

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Scope/Category

Boundary

Scope 1
Scope 2
Scope 3Business establishments, factories, and distribution centers in Japan (excludes PJ and Torica)

CO2 emissions [CO2e-t]

Composition ratio

1,833
4,719
337,7301%
1%98%

Category 1 Purchased products and services

307,195

91%

Category 2 Capital goods

13,507

4%

Category 3 Fuel and energy-related activities not included in Scope 1 or 2

1,2790%Category 4 Transportation and delivery (upstream)

4,5231%

2890%

Category 6 Business trips

3,6811%Category 7 Commuting of employees

1,0270%Category 8 Leased assets (upstream)

1,5420%Category 9 Transportation and delivery (downstream)

2,357

1%

Business establishments, factories, and distribution centers in Japan (excludes PJ and Torica)

Wacoal Business (Japan) (survey not conducted on PJ and others)

Category 5 Items discarded in business

Category 10 Processing of sold products

ExcludedCategory 11 Use of sold products

ExcludedCategory 12 Disposal of sold products

2,331

Category 13 Leased assets (downstream)

ExcludedCategory 14 Franchise

ExcludedCategory 15 Investment

Excluded344,2811%15

Environmental goals for 2030
In-house emissions“Zero”

Product disposal“Zero”

Aiming to reduce our own
emissions to zero, we are
gradually switching torenewable energy sources.
(Target: Domestic business)

To reduce the ratio of productdisposal from 1% to zero.
In addition, we are promoting
initiatives to reduce thedisposal of waste materials atour plants.
(Target: Wacoal Corp.)

Environmentally friendly
materials "50%"

To increase the percentage ofenvironmentally friendly
materials used to "50%“(Target: Wacoal Corp.)

・Targets for reducing greenhouse gas emissions in the supply chain will be disclosed in the spring of 2022.
・Long-term targets for environmental activities toward 2050 will be disclosed in the spring of 2022.
・As for overseas business initiatives, we will start with a survey of our own emissions, and set targets as the timing allows.

16Issues to be addressed
Since the greenhouse gas emissions of the Wacoal Group are composed
mainly of the emissions in the supply chain (Scope 3), it is important tocooperate with suppliers to reduce Scope 3. We will discuss action plans andprocesses for coping with climate change in the entire supply chain from themid/long-term viewpoint, and promote suppliers to reduce greenhouse gasemissions.

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To conduct business activities friendly to consumers and the earth
As people are becoming more interested in the environment andsustainability, consumers hope to “use good products for a longer period oftime” and “use environmentally friendly products” more strongly. The Wacoal
Group strives to produce products that will be loved by consumers for a long
period of time and promotes environmentally conscious business activities
while recognizing that “the conservation of the global environment is a
corporate responsibility.”18

 “Creation of products” that would be loved for a long period of time
We engage in activities for improving quality in all production
processes, including material procurement, product planningand design, and manufacturing, in order to provide products“that would be loved for a long period of time.” If customerskeep using our products for a long period of time, we will beable to contribute to the sustainable consumption behavior ofcustomers.

 Provision of sustainable options through services tailored to respective customers
By offering products and services tailored to respective
customers through consulting sale by sales staff and “3D Smart& Try” based on digital technology, we can provide sustainableoptions.

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 Development of a system that will not build
up inventory
To develop a system for minimizing the disposal ofproducts while generating profit through waste-freeprocesses.
Ratio of disposal of products of Wacoal Corp.*: 1.0%
*Calculated by dividing the number of products discarded by the number ofproducts produced in the term ended March 2020

 Promotion of the “bra recycling campaign”
To implement a campaign of collecting and recyclingbras that have become unnecessary, which wasplanned after receiving a comment from customers:“Bras are difficult to discard.”20 Promotion of the size customization business

WACOAL SIZE ORDER enables each customer to order snug bras fromamong about 3,000 sizes and provides products that would be used bycustomers for a long period of time. With this made-to-order businessmodel, we aim to conduct waste-free operations.

21 Energy saving efforts in distribution (Wacoal Distribution Corp.)
Wacoal Distribution Corp. installed a solar power generation system for the purposes ofpromoting environmental activities and reducing power consumption (the largest
power generation amount in Shiga Prefecture). In the fashion field, the modal shift has
already been conducted ahead of other competitors in the same industry.

A solar power generation system was built, covering about 30% of the annualpower consumption amount (from 2012).

Modal shift for reducing the CO2 emissions during transportation (from2014) *The modal shift reduced CO2 emissions by about one-eighthcompared with the transportation with trucks.

22 Eco-friendly efforts with mannequins (Nanasai)Nanasai Co., Ltd. has been offering BIO TORSO, a mannequin torso 100% derived
from plants, since 2018. The bio-plastics, which have heat-resistant and impactresistant properties like conventional ones, are biodegradable and return to nature.

4 types of mannequin torsos for men’s, ladies’, kids’clothes, and underwear

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Release of a new “group of environmentally friendly products”
aimed at achieving a sustainable global environment

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Nature Couture of Wacoal(released in September 2021)
A lineup of underwear made of environmentally friendly natural materials, such as organic cotton
produced in the U.S. and traditional Japanese paper produced from mainly cellulose fiber extracted fromManila hemp.
The designs and patterns that minimize the disposal of materials were adopted.
From now on, we aim to establish a “discarded materials recycling system,” in which we will collectmaterials discarded at the time of cutting cloth, produce threads from them, and use them as materials
for the following seasons.
 Environment-conscious measures
Regarding materials
The products are 100% made of organic cotton that does not produce
environmental burdens on the soil or water and that are friendly to the health ofworkers.
We also use the traditional Japanese paper made of mainly cellulose fiber extracted
from Manila hemp, which grows rapidly.

Regarding dyeing
For the ivory color, we adopted the method of not dyeing cloth, because
water consumption is low.

Regarding manufacturing
The designs and patterns that minimize the disposal of materials were adopted.

Discarded materials recycling system
To collect materials discarded during manufacturing and recycle them as threads.
To use them as materials for products in the following seasons25

L∞ping(We plan to sell the products of this brandmainly at directly managed stores from thespring/summer season of 2022.)
Non-wired bras made from recycled nylon andpolyurethane.
In the future, we will discuss the recycling ofused products.

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While recognizing that “the conservation of the global environment is acorporate responsibility,” we will “create products” that would be loved byconsumers for a long period of time and conduct environmentallyconscious business activities.

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