January 18, 2024
Japan Textile Federation

Action Policy for Fiscal 20 24

As the influence of the COVID-19 pandemic declined gradually lastyear and our life is slowly getting back to normal, a proper response tostructural changes continues to be considered essential.

In thissituation, new online methods are routinely used when we hold meetingsand seminars .

Accordingly, we continue to implement our action policy this year
based on the “Recommendations for a Desirable Shape of Our Industryin 2030”.

TheJapanTextileFederation( JTF)

publishedin2020

the“Recommendations for a Desirable Shape of Our Industry in 2030” thatdepicts “a desirable shape” of the Japanese textile industry.

Since

then, we have worked on various problem-solving efforts throughorganizing our common challenges to be solved and directions , making
such challenges and directions known to the textile and other industries
and cooperating with our member organizations, in order to realize the“desirable shape”.

In our action policy this year, w e categorize our major activities
into two large themes: “Response to Sustainability” and “Support for
Small and Medium Businesses”.
The theme “Response to Sustainability” is divided into three items:(1) Securing Human Resources, (2) Response to Circular Economy, and1

(3) Trade Optimization.
The theme “Support for Small and Medium Businesses” is divided
into two items: (4) Response to Digital Revolution and (5) Support forOverseas Business Expansion.

Moreover, (6) Active Approaches toCope with Trade Issues, (7) Strengthening of Information Transmission
Capability and Brand Power, and (8) Response to Taxation Issues
continue to be tackled as our major activities.

Inaddition,

wedevelopedandpublishedthe“GuidelinesforResponsible Corporate Conduct in Textile Industry” in collaboration
with the ILO Tokyo Branch Office in 2022, recognizing the necessity toearnestly address human rights issues including proper operation of theTechnical Intern Training Program in the entire Japanese textile
industry.

We continuously work to make the Guideline well known to

our industry through our member organizations in this year as well.

JTF will make every effort for further development of the textile
industry by recognizing that the trust from the society on the textile
industry is important and sharing responsibilities in the overall supply
chain, while further strengthening the trust -based mutual relationships
between our member organizations.

Also, JTF will reinforce its

activity basis through continuously making active policy proposals tothe government.

Based on the basic concept outlined above, JTF will c arry out its
activities for development of the Japanese textile industry in accordancewith the eight policies shown below:

Response to Sustainability (Securing Human Resources)2

For securing sufficient human resources in the current labor
shortage situation, we will work to create a better working environment
for women, elderly people as well as foreigners, in addition todedicating efforts to improve productivity.

Specifically, we aim to create a better business environment, strive
to add other industrial areas to the “Specified Skilled Workers
Program”, and appropriately cope with the revision of the “TechnicalIntern Training Program ” and the “Specified Skilled Workers Program ”,
through increasing the companies in the textile industry that declare toimplement

the“ResponsibleCorporateConduct”

andtryingtodisseminate the “Guidelines for Responsible Corporate Conduct”.

Asa result, such companies fulfill their social responsibilities including
respect of human rights of those who work in their own companies aswell as suppliers and vendors .
Response to Sustainability (Response to Circular Economy)
Environmental issues ( including responsive measures for global
warming, resource recycling society, etc.) that are closely related tosustainability

are a common challenge for the textile industry.

Accordingly, we collect the related information both at home and abroad
and provide our member organizations with such information .

Response to Sustainability (Trade Optimization)
Since trade optimization is a significant issue in terms of corporate
survival, respect of human rights in supply chain and wage hike, we
continue our efforts for ensuring proper business transactions with thecooperation with our member organizations through follow -up programs
including the voluntary action plan, etc. in coordination with theFashion Industry SCM Promotion Association.

Furthermore, we will

promote our newly prepared voluntary action plan to address severe
3situations in physical distribution industry that emerge as the “2024problem”.

Support for Small and Medium Businesses (Response to DigitalRevolution)
We will promote various activities for small and medium
businesses (SMBs) as a main target that have limited knowledge on
specific responsive measures and are less advanced in efforts to copewith digitalization, including (1) introduction of appropriate measuresthat can be easily implemented in SMBs, (2) matching with vendors thathave developed simplified and affordable systems for SM Bs, and (3)matching with consulting organizations regarding IoT.

Support for Small and Medium Businesses (Response to Digital
Revolution)
We will strive to build a support network for small and medium
businesses.

Specifically, together with our member organizations, wefacilitate the use of the existing support networks with public assistanceorganizations playing a core role to create an environment for suchbusinesses as a main target that are indispensable for the textile
industry to gain necessary support more easily.

Active Approaches to Cope with Trade Issues
JTF will further take advantage of regional economic partnershipagreements including RCEP.

Also, JTF continues to hold the Japan -China-Korea Textile &Clothing Conference annually in cooperation with the China National
Textile and Apparel Council and the Korea Federation of Textile
Industries to exchange the information broadly.
4Strengthening of Information Transmission Capability andBrand PowerJTF will put its efforts into information transmission activities
including appeal of high -quality, high -sensitivity and high -functional
materials that incorporate sophisticated technology and sensibility of
the Japanese textile industry through cooperation in “J∞QUALITY
Product Certification Project” and other events.
Furthermore, in collaboration with the “Cool Japan Strategy”
implemented by the government, JTF will work on the relatedorganizations in order to allow textile products ranging from fashion
goods to functional goods to be promoted widely both at home andabroad.

Response to Taxation Issues
We will request the ruling parties and the relevant ministries forappropriate revision of taxation systems related to the whole textileindustry.

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