S U S TA I N A B I L I T Y

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

Contents

Agenda6-8

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

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Industry Challenges
Introduction Global Environment People Society CSR Governance Toward the Future

Sustainability challenges in the apparel industry
Environmental load from material procurement tomanufacturing
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.

CO2 emissions

Water consumption

Apparel industry CO2 emissions are extremely high, approximately 8% of all industries, hence theSome 90,000kt

Some 8.3bil㎥

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 and2030 to become 2.08 billion tons, which is the equivalent to the annual CO2 emissions from 230 millionfamily 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, theUighur forced labor problem related to Xinjiang cotton production.

Scraps emissions

Some 45,000t

Chemical-induced+watercontamination

Conversion per garment
CO2 emissions

Water consumption

Some 25.5kg

Some 2,300ℓ

In terms of 500ml
bottles of water

In terms of bathtubs

Some255 bottles
for production

Some 11 bathtubs

Source: Ministry of the Environment homepage

3

Our Purpose

Enjoyable fashion entertainment directed at planet
earth, societies and people
Tsi-Groupsocial

will

value

createwithentertainment.

theworldwide
power

of

sym pathy andfashion4

Introduction Global Environment People Society CSR Governance Toward the Future

Sustainability Statement

Creating a sustainable future with fashionentertainment
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 sodoing 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.

Tsuyoshi Shimoji*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.

President, TSI Holdings

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Introduction Global Environment People Society CSR Governance Toward the Future

Corporate ProfileName

TSI Holdings

Location

1-2-3 Aoyama Building Kitaaoyama Minato-ku, Tokyo

Including the previous incarnations as Sanei International & Tokyo Style, TSI Holdings

Established

1 June 2011

has been at the forefront of glittering, joy-giving fashion for more than 70 years.

Capital15 billion yen

Representative

Tsuyoshi Shimoji, President

Corporate profile

Number of Brands
Number of Employees

Entire Group

6,366
peopleOf whom 1,194 aretemps

Number of Actual
Shops

805 in Japan＋
41 overseas
Chn; 22/UK: 11/
USA: 5/Fra 2/ Italy 1

54
brands

As of F28 February 2022

Number of own
E-commerce sites

29
Domestic sites

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Materiality

Having formed the SDGs Promotion Office in 2021, we gathered the perspectives of our
stakeholders and analyzed them to identify the materialities integrally needed as thefoundation for the TSI Group to create long-term and sustainable happiness via business

Step ①：

Extracting and preparing materiality candidates
Based on in-house/outside info and the ideas of competitors, we have chosen materiality
candidates that are highly relevant for the TSI Group to bid for sustainable growth fromthe viewpoints of the global environment, people and society, all value-providing domains.
In selecting these candidates, we refer to the sustainability reporting standards of GRI,
the sustainability accounting standards of SASB and the universal sustainable society
goals of SDGs.
Step ②：materialities

The mapping process is based on info gleaned from the media and competitor
publications as well as interviews with outside experts & external board members,
relevant department managers and members of the SDGs promotion team.
Step ③：

Identifying materiality
Based on the evaluation results in Step ②, materialities were identified with the approvalof management and the board of directors.

Ongoingenhanceme
nt ofmaterialities□ C l i m a t e c h a n g e□ R a w m a t e r i a l s□ W a s t e□ W a t e r r e s o u r c e s□ F a i r l a b o r
c o n d i t i o n s□ L o c a l c o m m u n i t y□ D i v e r s i t y□ H e a l t h & s a f e t y□ E m p l o y e e
w e l l b e i n g

Materialities that
require addressing□Chemical substances□Biodiversity)

1

Strengthening
top priority

・・・

Regarding the candidates extracted and prepared in Step ①, we laid out the importanceto society and stakeholders (customers & employees, etc.) on the vertical axis, and ourcurrent efforts are laid out on the horizontal axis of the adjacent chart. Here, first of all,materiality candidates notably important to society and stakeholders are extracted out.

Important

Evaluating from the perspectives of the company and stakeholders

Notably important

activities.

Importance for society and stakeholders

Introduction Global Environment People Society CSR Governance Toward the Future

Identifying materiality

Areas where action
Is comparatively

Areas where action
is comparatively

lagging

evolving

1) Identify competitor benchmarks and stakeholder opinions on the importance of factors with potential forsustainable growth, which have been pinpointed based on international standards, such as GRI guidelines,

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Introduction Global Environment People Society CSR Governance Toward the Future

Materiality

TSI materiality
Based on the relevance and sentiment to our business, we have identified ninematerialities for three key areas. Moving forward, we will set goals to find

Environment

materiality solutions.

Global Environment
The fashion industry is burdening the global environment in many ways. Tochange that, we first need to visualize the global environmental load and thenchallenge to build a sustainable business model.

GlobalEnvironment

1 Climate change 3 Waste
2 Raw materials

4 Water resources

PeoplePeople5 Diversity

7 Employee wellbeing

6 Health & safety

8 Fair labor
conditions

SocialFashionEntertainment

People are the source of value created in our businessand – therefore - our greatest asset. We will strive tooffer physical and mental happiness to all whom workwith us.

SocietySociety

PeopleIt does not make sense for our business endeavors tobe just for us. We aim to do business that makes
everyone “happy”, including our customers and local
communities and ourselves, while also taking care of
local culture.
9 Local community

8

Our Value Chain & Materiality

All of our value chain activities are closely connected to the global environment. Thus, through our commitment to materiality, we will construct a sustainable business foundation that offers a“happy” outlook to all stakeholders involved in the value chain.

Materials

Making(Raw materials & cloth)

Value chain
Materiality

Introduction Global Environment People Society CSR Governance Toward the Future

The relationship between our value chain and materiality

Other business

Remake/Reuse/
Recycle(Non-fashion fields)

1

Climate change

CO2 emission reductions and renewable energy utilization in Scopes 1, 2 and 3

2

Raw materials

Improving traceability

3

Waste

Reusing resources

4

Water resources

Water usage reductions

5

Diversity

Achieving diversity & inclusion

6

Health & safety

Developing a healthy & safe working environment

7

Employee wellbeing Ceaselessly improving employee satisfaction

8

Fair labor conditions

Realizing ethical and responsible production processes thattake human rights into account9

Social contribution

Implementing activities that contribute to local communities

Optimizing
production
volumeReuse ofresources

Logistics

Usage(Including transport & sales)(Including customer activities)

Waste

Recovering

Reselling

Waste reduction

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Introduction Global Environment People Society CSR Governance Toward the Future

Environment

Realizing a sustainable global environment through fashion
Creating planet-friendly entertainment

Achieving carbon neutrality

1– Achieving carbon neutrality by
2050– Visualizing environmental loadin manufacturing processes

Achieving zero fashion loss
– Using technology and othertechniques to update businessmodel– Building a circulation business
model

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Our Commitments
Introduction Global Environment People Society CSR Governance Toward the Future

Commitment to global environment
Our fashion approach to achieve a sustainable global environment will be a biaxial one,achieving carbon neutrality and achieving zero fashion loss.

1

Climate change

Achieve carbon
neutrality.
The fashion industry is burdening the global
environment in many ways – namely, we
recognize the immense responsibility of the
fashion industry in relation to the planet’s
environment, and that the fashion-driven TSIGroup has a huge responsibility in materiality
related to the global environment.
Based on this recognition, we will visualize theenvironmental load in our value chain and thentake up the challenge of building a sustainablemodel to reduce that environmental load. Inthat way, we aim to realize fashion-driven
sustainability for the global environment.

Challenging for carbon neutrality
In our challenge to become carbon neutral, we
will reduce CO2 emissions across the entire
value chain in line with the carbon neutral 2050
vision. To that end, we will also visualize theenvironmental load in our manufacturing
processes.

Achieving zero fashion loss
To achieve this, we will utilize, among otherthings, technology to update our businessmodel in ways that are not bound by tradition.
Further, we will simultaneously build a
circulation business model that reuses things
that would normally be discarded.

3

Waste

Build a circulation business modelthat produces minimal waste.

2

Raw materials

Improve traceability of raw materials
and take into consideration theenvironmental load when selecting
materials.

4

Water resources

Reduce water usage.

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Carbon Neutral

1 Climate change

Introduction Global Environment People Society CSR Governance Toward the Future

Challenging for carbon neutrality
We will reduce CO2 emissions across our value chain to achieve carbon neutrality by 2050.
To do that, we will take responsibility for CO2 emissions in the manufacturing process and strive to visualize and reduce
environmental impact across the supply chain.
Switching to renewable energy resource electricity

Long-term goals: Achieve carbon neutrality & aim for virtually zero GHG emissions by 2050

For high-street shops, workplaces, offices and plants that have the right tochoose power contracts, we will switch to contracts offering environmental
value and/or carbon neutrality. Additionally, such contracts will beconsidered when initial contracts are being considered for new shops.

Mid-term goals:

Implementing measures to strengthen zero-emission fashion
We will contribute to the optimization of production volume, including
digitalization of made-to-order production and sample preparation,
strengthening of D2C brands and strengthening digital fashion.

Scope 1 & 2CO2 emissions[t-CO2e]

12,097
Our plants & centers

Building an organizational structure to promote visualization of
CO2 emissions in Scope 3

Offices & workplaces

We will construct a mechanism for calculating Scope 3 CO2 emissions up to
February 2023. Further, for products purchased in category (1), we will visualize
them based on the SAC’s Higg Index, taking into account the differences inmaterials.

Shops (excluding FC)

Formulate roadmap
for visualizing andScope 3 reducing CO2
emissions

30% CO2 reduction by FY February 2025(base year FY February 2020)

842
2,833

8,421

Scope 3 formulation ofroadmap for visualizing andreducing CO2 emissions to beachieved by February 2023.

Reduction target：-30%

11,242
762
2,703

7,776

10,884
776
2,467

7,641

FY02/2020 FY02/2021 FY02/2022

8,500

・・・
FY02/2025(Estimated value 1 in Japan only)
1) CO2 emissions are estimated values calculated using the emission factors of the “Ministry Ordinance on Calculation of Greenhouse Gas
Emissions Associated with Business Activities of Specified Emissions” and the floor areas of shops (business establishments and offices subject
to calculation using . the basic emission coefficient of each fiscal year of general power transmission supplied by power companies locally).

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2 Raw materials

4 Water resources

Introduction Global Environment People Society CSR Governance Toward the Future

Carbon Neutral
CASE

Challenging for carbon neutrality

Switching to materials that are more environmentally friendly

MARGARET HOWELL (UK) initiative to utilize sustainable cotton
In the apparel making process, we resolutely acknowledge that the environmental loaddiffers depending on the raw material, so we will visualize the raw materials used in-houseand strategically switch to ones with low environmental loads (reduced CO2 emissions
and water usage).
We will focus on developing new materials to achieve our long-term goal of selecting
materials that reduce environmental burden. Moreover, we will not limit this to justourselves, but also consider partnerships and investments with material manufacturers
and startups.

Mid-term goals：

Rawmaterials

Water
resources

Achieve 100% traceability ofmajor raw materials
Compile and publish roadmap forswitching to raw materials with a low
environmental impact based on status ofraw materials used.

Visualize water usage inmanufacturing processes for entire
TSI Group

Compile and publish roadmap
for reduction measures basedon status of water usage.

Long-term goals：

The MARGARET HOWELL brand is taking the in tracing raw materials andidentifying areas for improvement. We too are participating in the BETTER
COTTON™, the world’s largest cotton sustainability program, and work with
suppliers to increase the use of organic and recycled yarns in our collection.
After achieving 100% traceability of major raw materials, we will set specific goals(like MARGARET HOWELL) and increase the number of brands that are taking
measures to reduce the environmental burden.

CASE

Developing biodegradable materials

Toska Banok ECO product development
Reduce environmental load
via selection of raw
materials

Toska Banok has developed an environmentally friendly, planet-friendly tag fastener. It
uses biodegradable plastic that can be decomposed by microorganisms in the soil.
① Tag loops ((ITO-LOX) combining natural materials and plant-derived resin
These tags are formed from organic cotton, linen threads and biodegradable plastic that
decomposes in soil.
② Green plastic certification (registration No. 1132)
Verified as safe, collected samples show that microorganisms decompose this product into waterand carbon dioxide at a speed equal to or faster than that for trees.

Reduce water usage inmanufacturing processes③ Can be burned as waste without sorting
This product emits less CO2 than petroleum-based plastics and can be disposed of without sorting..
④ Please be careful when using over prolonged periods
Unlike ordinary plastic, the connector section weakens due to decomposition, so this product should
be used as soon as possible. Also, out of concern for safety, avoid using for long periods of time insituations where a load is constantly applied.

13

Zero Fashion-Loss

3 WasteIntroduction Global Environment People Society CSR Governance Toward the Future

Achieving zero fashion loss
We will update our business model using technology to construct a circulation businessmodel that produces as little waste as possible.

Optimizing production volume
We will strive to improve the total consumption. Applying our forte in E-commerce
infrastructure databases and new technologies, such as AI and 3D CAD, we will review
manufacturing processes and make organizational changes to develop production processes
to deliver products to customers in the necessary timing cycles, at necessary volumes and at
appropriate prices.

Reuse of things that might be discarded
We will continue to strengthen our efforts to improve the reuse rate, recycle rate, upcycle andrecycle sales rate.

Long-term goals： Constructing a circulation business model that does not generate waste

Mid-term goals：
Scope 1 & 2

Scope 3Compile roadmap tovisualize waste
volume in Scope 3

By 2030:

By 2030:

Reduce amount of waste in
manufacturing processes (fiber
waste, raw fabric)
25
Waste plastics

Minimize waste
in manufactured (Achieve during
products
FY02/2023)
27

Wood chips(including clothing)
Cardboard
Metal scraps
Used paper

22

19
9
VOICE

Hiroshi Seto,
Quality Control Section Chief,
Production Promotion Department,
TSI SCM Division

Innovative practices to prevent disposal of
defective products
Defective products occupy a large share of waste, sobuying good products at the outset is vital in striving toachieve zero waste. On top of that, we have to preventthe production of defective products. To that end, we
have introduced a Dedicated Inspection Center System
as well as held quality info expos. As for any defective
garments that still get produced, besides selling them to
employees, we would like to collaborate with outside
sustainable businesses to find new outlets for them, suchas upcycling.

3

2

1

Our plants(Miyazaki, Yonezawa)

1
external
warehouse

cloth生地メーカー
maker retention
保有

2

3

1

物流center
Logistics
センター

Breakdown of waste volume by our factory and center [t] 1)
1) Target is domestic apparel business. Amount of waste owned by fabric manufacturers is an estimated value calculated bymultiplying amount of waste in external warehouses by weight (t/m) per unit based on quantity (m) data. About 120 (t) of cutting
waste of laminated non-woven fabric due to full production of medical isolation gowns was temporarily generated in our plant in2020. And, as it was a temporary factor, it is excluded from view.

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3 WasteIntroduction Global Environment People Society CSR Governance Toward the Future

CASE

Zero Fashion-Loss

Remaking & selling discarded products

OVERDYE PROJECT

Achieving zero fashion loss
We are beginning to reuse resources as we move toward construction of a circulation
business model. Moving forward, we will continue our challenge for a sustainable circulation
business model for the entire TSI Group.

In the OVERDYE PROJECT, we are regenerating clothes that are still
usable (only have weaving scratches or uneven dyeing, etc., frommanufacturing processes) to give them new life with new value.

CASE

Collecting clothes

Five brands participate in the clothing collection project BRINGTM

VOICEJunji Okamura, Sales,
Business Management Section,
TSI SI Division

I want to contribute to SDGs while having fun
with customers
Since 2019, we have been holding clothing collection
events at our brand stores, which is great for raisingcustomer awareness about SDGs and is a great
opportunity to hear bygone tales about the clothes broughtin for collection. This year, on top of collecting clothes, weplan to resume tree planting via the “Chinju-no-mori-noproject”. Thus, we want to have fun with customers though
events that let each of them not only recycle clothes into
fiber but also turn that effort into the planting of a tree.

Participate in the clothing collection project BRINGTM put together by JEPLAN,
which connects unwanted clothing and textile products to recycling. By having
customers participate in tree planting donations to the “Guardian Forest Project”
via coupons that are given to them when clothes are collected, the project issimultaneously helping the shift to zero fashion loss and offsetting carbon while
involving customers.

CASE

Reducing plastic usage

Reuse of hangers
The TSI Group uses many hangers in plants, inspection sites and shops, so we are implementing initiatives
to reuse them rather than throw them away. In this way, we will focus not only on manufactured products
but also on auxiliary materials, as we aim for zero loss during manufacturing processes and shipping.

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Introduction Global Environment People Society CSR Governance Toward the Future

Zero Fashion-LossAchieving zero fashion loss
What is more, we are moving ahead with various efforts to resolve global
environmental materiality.

INTERVIEW

Yoshihiro Yamada
SDGs project member of Logistics Section,
Production Promotion Department,
TSI SCM Division

Working on the SDGs project ,balancing
between macro strategic perspective and themicro on-site perspective.
Q. What kind of efforts are being made in the SDGs project?

Initiatives already implemented or underway
To make a quick, small start, we are taking specific measures from the range that can be
implemented within the SCM Division.
Example: Conversion to environment-friendly auxiliary materials (packaging bags, hanging
tags, hanger covers, shopping bags and other such items)

Initiatives and plans for the future
Moving forward, we will consider more company-wide actions linked to business strategies andSDGs strategies, not only in the SCM Division, but also hand-in-hand with other businessdivisions.
Example: Collaborate with Logistics Division and shops to switch to cardboard that can beused repeatedly
Example: Collaborate with Planning Division and MD to develop products based on
environment-friendly materials
Example; Collaborate with shops and Manufacturing Division to collect clothing and old inventory
for remanufacturing of B products

In conjunction with the establishment of the SDGs Promotion Office of the Group, the segment that can moveindependently inside the SCM Division is about to start moving quickly, and young employees from each section of thedepartment are heavily involved in the launch of this project. The basic approach of this project is to take advantage ofthe features of the SCM Division, which likes to traverse all divisions in business without being fettered by turf-mindedbrands. With that in mind, we are not tied to brands, so project elements look like they can be put together quickly in
SCM, hence we have started to switch to environmentally friendly auxiliary materials mostly used in the Logistics Center.

Q. Could you tell us what new insights you have gained from your input to this project?
Since starting work on it, I have realized how SDGs need to be viewed from both micro and macro angles.
SDGs are concepts related to the foundation of business. Hence, when considering the orientation of
measures, the essence of TSI and our business strategy need to be considered. Conversely, for instance,
the idea for switching in-use auxiliary materials came about because project members went to the logistics
center every day to watch actual work with their own eyes. In other words, an on-site perspective is
indispensable for extracting issues and incorporating them into specific actions. Thus, I want to continue
focusing on the balance between macro strategic perspective and the micro on-site perspective.

Q. Could you tell us about your vision for the future?
While it is very meaningful to undertake the current efforts because they can be completed quickly, I also
appreciate that there are limits to what can be done just in the SCM Division. Moving forward, I would like to
see us bolster cooperation with other business divisions to create a big movement. Notably, a policy andsystem for promoting SDGs throughout the company has been established, so the potential for the spreadof SDGs is increasing. And, I hope our activities will lead to changes in the behavior and awareness ofmany TSI employees. Then, by adeptly blending the on-site perspective of each team with the decisionmaking skills of the SDGs Promotion Office and the ideas of the business departments, TSI will be able toprovide new value to customers.

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Introduction Global Environment People Society CSR Governance Toward the Future

PeopleCreating values that brighten up the spirit
Creating

valuesthat leads

to healthandhappiness

Protect the rights of fellow
workers who create value with us–

2

Respect for human rights throughout the
supply chain

Diverse and flexible work life––

Richly diverse activity
Flexible work styles and systems that canadapt to change

A fashion-driven fresh smile–

Contribute to solving social issues throughthe purchase of products and services

17

Our Commitments
Introduction Global Environment People Society CSR Governance Toward the Future

Our commitment to people
To create values that brighten up the spirit, we aim to orientate our approach to keep in mind
employees, business partners and customers.

The underlying intention of our business is thedesire to create values that brighten up the
spirit of people and share the joy of living
together because everyone is the source of
happiness. We understand that we must create
fashion entertainment that leads to the healthand happiness of all who are involved in ourbusiness.
Based on this recognition, the TSI Group will
enable everyone involved in our business toplay an active role and enrich their lives, both
physically and mentally.

Employees
We will create a working environment that isdiverse and flexible for all. Specifically, we will
design a system that welcomes richly diverse
activities and a system that allows flexible
working styles in line with these changing times.

Business partners
We will do our best to protect the rights offellow workers who create value with us. We
will respect the human rights of everyone in theentire supply chain and protect the rights of all
workers involved in our business.

Customers
We will create a fashion-driven fresh smile. We
will plan and develop products and services
that can contribute to solving customers’ social
issues, and make them barrier-free in fashion.
「

５ Diversity

6

We will create anenvironment where all richly
diverse people can play
active roles.

We will protect thephysical and mental
health of our employees,
the source creators ofvalue.

7

Employee wellbeing

We will create value that
leads to financial
satisfaction, mental
satisfaction, selfactualization and growth of
employees.

8

Health & safety

Fair labor conditions

We will respect the humanrights of all people in the
supply chain who contributeto creating value.

18

Diversity

5 Diversity

Introduction Global Environment People Society CSR Governance Toward the Future

Diverse and flexible work life
The TSI Group has and will continue to actively promote initiatives to make a reality of the slogan: “Everyone is like everyone, we should all
have diversity and flexibility in our work life,” to build an environment where anyone can thrive diversely.
VOICE

Important KGIs：

2025

Important KGIs：

Female manager
ratio 1)

Entire
group

27%

60%

73%

40%

Activity index that
does not depend on
genderFemale29%
employee ratio1)

Childcareleave ratio2)
Activity index that
does not depend onlife stage

Activity index thatmakes most of
individual diversity

1)
2)

Examples of initiatives to achieve goals–

Aiming for afemale manager
ratio of 40% by
2025

–
–
–
–

Female

71%

98%

Male

98%

Post childcare return93%
to work ratio2)

93%

Retention ratio due
to childcare leave2)

84%

84%

Disabled
2.5%
employment (Legal employment ratio of 2.3%))
ratio3)Requirements for promotion to managerial positions& skill map compilation
Revision of evaluation system based on managerial
requirements
Creation of management training & education
programs
Visualization & illustration of managerial career paths
Next-generation manager training

Aiming tomaintain current
high level
throughout TSI
Group

Aiming tomaintain andimprove legal
employment ratioof +0.1%

–

–

–
–

Continuation of generous childbirth/childcare/nursing
system that underpins high level of above current
indicators
Productive management training regardless of life
stage

Expansion of opportunities for disabled
Revision of work regulations/introduce condolencemoney system that take into consideration
LGBTQ/dual surnames/common-law marriage, etc.

Mariko Tsujimoto,
Personnel Section Expert,
Personnel Department,
TSI Corporate Division

Achieving diversity of workstyles to provide
all employees with secure and flexible
options
We provide detailed support. Since 2021, we havebeen running a special subsidiary to promote
employment of the disabled throughout the Group. ¥e
are also building strong ties with local authorities andschools to enable us to offer detailed support toeveryone so that they can thrive safely and securely
in their jobs with us.
Also, out of consideration for the high ratio of womenin the TSI Group, from 2007, we have made thetargeted period for reduced working hours forchildcare up to graduation from elementary school.
We carefully inform employees about childbirth andchildcare laws and relevant company regulations, and,as a result, many take childcare leave, and thenumber of those who return to work is also high, as is
the number of those who take work leave..

Ratios at TSI Holdings, TSI, Ueno Shokai. And Wander, Laline JAPAN, Urth Caffe JAPAN, HYBES, TSI Social Works, S-Groove and PLAX (as of 1/2/2022)
Ratios at TSI Holdings, TSI, Ueno Shokai. And Wander, Laline JAPAN, Urth Caffe JAPAN, HYBES, TSI Social Works, S-Groove and PLAX, but exclude those who retired due to restructuring or leave of absence without returning to workplace.
Aggregation period is one year from January to December 2021.
3) Ratios at seven specially certified companies (TSI Holdings, TSI, Alpage, Lalina JAPAN, TSI Sewing, S-Groove and TSI Social Works) (as of 15/11/2021)

19Good Health and Well-Being

6

H e a l t h & safety

Introduction Global Environment People Society CSR Governance Toward the Future

Protecting the physical and mental health of employees
In addition to establishing a system based on laws and regulations, such as holding occupational safety & health committee meetings andVOICE

conducting stress checks, we are flexibly implementing what we can do to protect the lives of employees due to the recent corona
pandemic. Further, as part of our workstyle reform, we pushed for telework in all offices in Japan, and, as a result, we achieved a reduction
in working hours. Therefore, we will continue to strive for even better balance between work and private life.
Hanami Ito,
General Affairs Section,
TSI Corporate Division

Important KGIs：
As of February 2022
Labor-related
fatalities1)
Indicators forcreating healthyand safe
workplaces

Indicators for
improving individual
mental andphysical healthIndicators forachieving work-lifebalance forindividuals

0

2025

15

0

Number of laborrelated illnesses1)

0

0

90%

Always thinking of employees

0

Number of laborrelated injuries1)

Health check
ratio1)

Examples of initiatives to achieve goals

100%

Aiming tocontinue atzero acrossentire group

Aiming to
implement for
all employees–

Health & safety committee PR work–

Stress checks within improvement
measures
Initiatives to improve employee
health literacy––

Averageovertime1)

4.2 hours

Aiming to curb overtime––

Initiatives to improve work styleflexibility
Development of flextime system &reduction of working hours
Lifting of ban on second jobs

1) Figures & ratios at TSI Holdings, TSI, Ueno Shokai. And Wander, Laline JAPAN, Urth Caffe JAPAN, HYBES, TSI Social Works, S-Groove and PLAX. Note that these figures do
not include executives, parttime workers and agency staff, nor do they include legal holiday work. Aggregation period is one year from January to December 2021.

From the end of June 2021, the new coronavirus
antigen test kit “Icheck” is being distributed to stores
managed directly by the TSI Group.
The kit is used when there is a suspicion of infection
among staff while at work. It was especially usefulwhen there were market shortages. Additionally, foremployees who have no choice but to look after
themselves at home, I think in hindsight we
responded beyond the demands of legal regulations,with food-securing efforts such as providing
emergency food supplies and supporting online
grocery shopping, while also offering special leave toemployees who react adversely to vaccination.

20

5 Diversity

6 Health & safety

Creating new value kicking off from inclusion

Status of initiatives to achieve diversity

CASE

and inclusion

Disabled involved in farming at Urth Caffe JAPANTo maximize the individuality of our fellow workers, we will promote initiatives to ensure
physical and mental health as well as achieve diversity and inclusion.

A numerical overview of diversity, health & safety

Childcare leave ratio

Return from childcare
leave ratio

98.1%

93.2%

Total number of days for nursing
care leave (up to 93 days by law)

Up to graduationfrom elementary
school365 daysmaximum

1)2)3)Ratios at TSI Holdings, TSI, Ueno Shokai. And Wander, Laline JAPAN, Urth Caffe JAPAN, HYBES, TSI Social
Works, S-Groove and PLAX (as of 1/2/2022)
1)Aggregation period is one year from January to December 2021.
2) Object people are those who return to work after January 2020 and enroll for a year.
3) Aggregation period is one year from March to February 2022.

To accommodate the unique
individuality within the TSI Group,
which brings together companies
with different organizational
climates and cultures, we will
flexibly provide diversity in duties,
occupations and careers (freshers
and mid-career switchers), suchas providing a flextime system,
reducing working hours, allowing
second jobs and arranging various
training systems, while
implementing our personnel
system appropriately.

Job title

Level-based training
Sales department

TOP

Officer & executive
officer seminars

MiddleDepartment
manager training

Lower

Basic management
training

Shop manager
training

Mid-career
employees

Leadershiptraining

Sub-trainingYoung
employees

Training for young
employees

Sales produce
training

RookieJoint training for
new employees

Follow-up training

Commontraining

Elective
training

External seminar

Reduced working hours (up to
age 3 by law)

System design
creating flexibility

Business workshop

4.2 hours

Work-life support that brings diversity and flexibility

HD sponsored departmental
seminars

84.2%

CASE

General employee

Entrenched childcare
leave

Average monthly
overtime per person

In the TSI Group, disabled employees do various jobs in shops, garment
plants, centers and other such places. One such signature job involves
growing vegetables on a farm. They grow their favorite vegetables fromscratch, doing everything from harvesting, packaging and shipping. We areconsidering using their produce on the customer menu at Urth Caffe JAPAN.
In this way, we aim to create an environment in which the disabled can play
active roles in society and create new value. Moreover, we hope that these
activities will motivate the disabled to get involved.

Management

Introduction Global Environment People Society CSR Governance Toward the Future

Diversity & Inclusion

21

Our Colleagues

Comments from fellow workers who share in our work and activities
Introduction Global Environment People Society CSR Governance Toward the Future

INTERVIEW

Asami Ono,
Director Section Manager,
TSI Rose Bud Division

Achieving balanced system, communication andwillpower
Q. Could you tell us about your career so far?
After a part-time job during college, I joined ROSE BUD in 2004. I worked for a while at the Shibuya store
and was then transferred to the new Ginza branch in 2007 to become a store manager. While working as
store staff at Shibuya, I also worked as the press officer, so my aim was to become a press officer at head
office, but the managerial experience I gained at Ginza changed my career ideas, and in 2011 I became
an area manager. In 2016, the idea of becoming general manager was floated to me, but I was uncertain
because of work-life balance issues such as having a family, but my boss showed understanding of myneeds and said that I could build my needs into my work, which was the kind of helpful push I needed.

Q. How was it when you took maternity and childcare leave?
I gave birth to my first child in 2017 and the second in 2020, taking maternity and childcare leave in bothcases. For my first birth, I was worried about the impact on my career, but the company reassured me thatmy position was safe, which motivated me to do my best upon return. Although taking such leave iswritten into law, it is reassuring when the setup is one that makes it easy to take leave. Also, as I am
allowed to work shorter hours until my children graduate from elementary school, I can flexibly plan for along-term career.

Q. Could you tell us about your future plans?
Many things only became clear after returning to work, so I felt it was important to communicate how I
intended to use the leave/shorter hours system to both company and family. I also think it is essential to
avoid being passive and instead express to the company how I can contribute amid a shorter working
week. My next step is to develop the workforce, as brand growth has to go hand-in-hand with manpower
growth if the company is to be resilient. Hence, I want to nurture a fresh generation of staff for the future
while also personally taking steps to move in a new direction myself.

INTERVIEW

Naoya Nakatsuka,
Special Employment Promotion Department,
TSI Social Works

Valuing individuality in the workplace to encourage
everyone to shine, we positively support lasting
employment for the disabled

Q. Could you tell us about the role of TSI Social Works?
As a special subsidiary of our company, we are in charge of hiring the disabled at group companies.
There are 43 disabled employees engaged in various roles at our logistics center, B product management
center, EC-dedicated center and farm. My role is to share information with the managers at business sites
and troubleshoot for individuals and tasks, so that everyone can focus on work in a relaxed manner. I takeparticular care about work, health and life issues, as these can have an adverse impact on the ability towork – so, besides managing, I support the disabled by taking care over those three areas.

Q. Could you tell us how you create a relaxed working environment?
We strive to create an environment where people can work enthusiastically to the best of their abilities.
We subdivide work to find out what people can do, might be able to do and what is perhaps too difficult.
Moreover, we promote steady development via job rotation to offer various work experience to improve
aptitude and motivation. And, although communication can be difficult during the teaching process, we
see mutual trust grow through communication, leading to confidence and job satisfaction.

Q. Could you tell us about your future plans?
The next issue for me is to think about where work can be done – in other words, thediversification of working styles. With the prolonged corona pandemic in mind, we need todevelop a system that offers (among other things) telework to provide lasting employment.
Many of our disabled employees adore fashion, so – although a pipe dream – it would be great
to see TSI developing some garments specifically for the disabled, garments that would
expand the image of creativity based on the things we have experienced in our work.

22

7 Em ploye e w e llbe ing

Creating value that leads to employee self-growth
We are surveying employee satisfaction (eNPS)
across the entire TSI Group to create anLong-term goals：Constant improvement of employee satisfaction (eNPS)

environment in which all employees can work indiverse and flexible manners according to their own
desired vision.

We are striving to improve the working environment

Employeesatisfaction
monitoringindex

in each business based on the 2021 survey (527
respondents1))

We plan to continue doing this once a year.

Implementatio
n of initiatives
based onindex results

Conduct regular employee satisfaction surveys (eNPS) and fixed-point observations
Oversee constant improvement in eNPS
Survey outline/items are scheduled to be announced

Main survey items

Introduction Global Environment People Society CSR Governance Toward the Future

Employee Satisfaction

Identifying gap between
Aims and results ofsatisfaction survey

Management message

Vision, leadership, social contribution, brandCommunication

Communication opportunities and places, feedback,open culture

Organizational management system

Rules, systems, evaluation, handling, treatment,
environment

Observing
fixed–point
effects
via regularsurveysTask
identification

Effectevaluation

Factoranalysis

Mutual respect

Company-own relationship, company-team
relationship, team-own relationship

1) The target of this survey is TSI Holdings, and the assumption isthat all full-time employees of the TSI Group will be targeted in the
future.

Growth & development
Opportunities for growth, decision-making, creativity

Improvement
implementation
Implementing improvement
measures atappropriate layers

Factor analyzing eNPS bysetting detailed survey
items

23

8 Fair labor conditions

Respect for Human Rights

Long-term goals： Respect for human rights throughout supply chain

supply chain
To achieve fair labor conditions, the TSI Group has revised the code of conduct for

Mid-term goals： Acquisition of supplier code of conduct signatures and establishment ofmanagement and operation system for all suppliers and designated inspection
plants with the TSI Group by 2025

business partners and specified the scope of coverage, and is informing suppliers ofBusiness partner code of conduct

those changes.
Main tenets

We will continue to work to protect the human rights of our partners and plant
workers, who create value together with us.

Mechanism are needed to eliminate forced laborfrom the supply chain. Since 2018, we havereceived confirmation of CSR initiatives fromsome 200 major suppliers, and we have newly
compiled the TSI code of conduct for business
partners. We have expanded this to all suppliers,
and started signing them up from January 2021.
First off, with the understanding of our business
partners, we will do our best to operate it as an
initiative that covers the entire TSI Group.

Executed1)
Scheduled

Other groupcompanies

Sanae Harami,
QC Section,
Production Promotion Department,
TSI SCM Division

Respecting human rights• Freedom of association
and respect for the rightto collective bargaining

TSI /And Wander

VOICE• Freedom of choice of
employment

TSI Group

Introduction Global Environment People Society CSR Governance Toward the Future

Respecting human rights of all people in• Safe & hygienic working
conditions• Prohibition of
discrimination• Prohibition of child labor• Application of regular
employment• Guarantee of living wages• Compliance with legal
working hours• Environmental
protection

In-house awareness–Raising awarenessabout code of conduct
for business partners(briefings, in-house PR, inhouse newsletters, etc.)–• Prohibition of harsh &inhumane treatment–• Handling of dangerous
goods• About ethics, bribery &corruption• Subcontracting &working from home

Outside awarenessManagement & operation

Sending code of conduct
to business partners andresponding to inquiries–

Manage PLM system–

Dissemination andcollection for new
business partners–

Regular update of codeof conduct

–

Audit

(only in Japan at present)–

Confirmation collection

Raising awareness about
code of conduct forbusiness partners–

Sending code of conduct
to business partners andresponding to inquiries(briefings, in-house PR, inhouse newsletters, etc.)–

Confirmation collection

1)

2022年3月31日時点

24

Smiles!
Introduction Global Environment People Society CSR Governance Toward the Future

A fashion-driven fresh smile!

CASE

The fun of fashion in the working scene

Producing nursery school uniforms at Nano Universe
Beginning with the products and services we create, we will bring fresh smiles to peoples’
faces while sticking close to the various scenes our customers are involved in.

CASE

Nano Universe has produced a nursery school staff uniform for Memorytree
Nursery School (operated by nexus) based on the concept of “fashionableuniform that looks right even after work”. This product is designed to be trendy
but practical (incorporating input from on-site nursery teachers) and functional
to guarantee ease of use in nursery work. We will continue to plan anddevelop products and services that convey the joy of fashion across various
walks of life.

Stepping toward the next generation with smiles for kids

「DORAEMON × Jack Bunny!! Golf Competition

CASE

Collaboration on the theme of sustainability

Staging Together with EarthThis was staged at Daimaru and Matsuzakaya stores nationwide (9department stores & 92 shops) as a collaboration campaign undertaken by TSI
and World, a first in terms of linking sales sites. With the theme of Together
with Earth, Besides marketing this season’s fashions in sustainable materials,
both companies held a clothing collection campaign, to show how companies
can cross boundaries in a sustainable initiative that covers new clothes,upcycle ones, and recycling.
Jack Bunny!! held a customer participation event “DORAEMON x Jack Bunny!! Golf Competition
2021”. There was lots of fun to be had, with Doraemon’s secret tools appearing at holes, attraction
holes where Doraemon’s rules apply and other fun things. And, as to golf, well it has a strong adultimage, but both kids and grownups could enjoy this event, which put smiles on the faces of the next
generation.

Sales of upcycle products to revive surplus inventory
The company human woman remakes in-stock knitwear, upcycling tocreate new designs that express color schemes in different ways andadd charm to the natural splendor of ramie fibers.

25

Introduction Global Environment People Society CSR Governance Toward the Future

SocialCreating value to share lasting happinessRealizing sustainable communities while coexisting with nature

Customers and communities
all sharing sustainablehappiness with us

3– Contributing to sustainablecommunities via a wide variety ofactivities

26

Local Community
Introduction Global Environment People Society CSR Governance Toward the Future

Commitment to communities
To become the happiest fashion house in the world, we will not only move ahead with oursartorial acumen, but also develop contents that add color to people’s lifestyles and create
new businesses that solve social issues.

Looking broadly at society, we see many
communities already under siege from serious
problems, such as environmental destruction
and depopulation.
Having turned our attention to such local
communities, we are striving to solve theirproblems and bring about sustainable
development by creating new lifestyles andmanufacturing from their local areas by fusing
our expertise cultivated through thedevelopment of a wide variety of brands withlocal resources.

Until now, we have been developing theapparel business as well as contents that
illuminate people’s lifestyles in areas such as
cosmetics, food & drinks and habitat design.
From here on, using our brands to produce
products and services, we will shape new ties
with local communities and contribute toregional revitalization & related repopulation.
Moreover, we will strive to protect nature andculture and generate employment as we step
up to the task of realizing sustainable local
communities that coexist with nature.

9

Local communities

Utilizing our technologies and knowhow, we will contribute to theconservation of local communities
and the global environment as well as
promote activities that tie into thenext generation.

27

9 Social contribution
Introduction Global Environment People Society CSR Governance Toward the Future

CASE

Local Community

Our mission to solve problems in local communities
By developing business in collaboration with various partners in various fields in given
regions, we will carry out corporate activities to solve problems and then help revitalize anddevelop those regions.

Creating new community-based lifestyles and manufacturing

Comprehensive cooperation agreement with Kamikawa in Hokkaido to develop a community thatcreates new value
In recent years, the town of Kamikawa in Hokkaido has been actively engaged in various regional
revitalization projects, such as tourism promotion and job creation in collaboration with the public andprivate sectors. Agreeing with the sentiment of these efforts, we concluded a comprehensive cooperationagreement with Kamikawa and are looking to make a sustainable commitment to the town in various ways.

We will utilize our technology and know-how to think about what we can do to maintain local
communities and local environments. And, as a member of society, we will fulfill our mission
to responsibly solve social issues.

CASE
VOICE

Wataru Nishiuchi,
CEO, TSI Sewing

Linking local feelings to the next generation

Being able to contribute via our businessSpinning ideas to come up with a remake project
concept

We developed and as of last year started selling
chainsaw protective trousers that meet EU’s
strictest quality standard ENISO 11393-2: 2019.
Also, following the agreement with Kamikawa, wewill undertake activities to help this thriving forestry
town. Listening to what the town needs, we want to
put our workplace technologies to good use to help
the town.

One collaboration with Kamikawa is the remake project, which
involves remaking clothes worn by parents and grandparents into
new clothes to be worn by their children and grandchildren – inother words, linking up multiple generations.
Yet, as a fashion company – not just a remake business – we willcontinue to come up with ideas to connect sentiments to contributeto the local community and society.

28

Introduction Global Environment People Society CSR Governance Toward the Future

CSR

To fulfill our social responsibilities
We will contribute to the construction of a sustainablef u t u r e s o c i e t y.

4

29

CASE
Introduction Global Environment People Society CSR Governance Toward the Future

CSR

CSR basic policy
The TSI group bases its management philosophy on the statement: “We create values
that brighten up the spirit of people through fashion and share the joy of living withsociety.” in order to commit with all our stakeholders to business activities that will build asustainable future society.

Contributing to the realization of a society free of poverty
and discrimination“Happiness for All” Project from JILL by JILLSTUART× Plan International
Plan International is an international NGO working in more than 70 countries to promotechildren’s rights and create a society free of poverty and discrimination. In support of the“Because I am a Girl” campaign within the “Happiness for All” project developed by this NGO,
JILL by JILLSTUART donates to the campaign via sales of target products.
“We want to play our part in eliminating poverty and discrimination in the world”
Based on our sustainability statement and humanitarian support initiatives & contributions tolocal communities through our CSR,
we will donate to and support this cause.

CASE

Swift provision of supplies to places and people in need

Clothing support for shelters in rain-damaged Atami via Japan Heart Social Network
The TSI Group backs Japan Heart Social Network, run by Japan Heart (NPO). Responding torain damage in Atami, Shizuoka prefecture, in July 2021, we provided T-shirts, tank tops andother clothing to shelters in Atami as disaster support.
“Swift provision of supplies to places and people in need”
We will continue to cooperate with various
outside organizations to contribute in waysthat are close to the essence of a fashiongroup like TSI.

30

CASE
Introduction Global Environment People Society CSR Governance Toward the Future

CSR

Our efforts in regard tohumanitarian aid to Ukraine
A s a c h a r it a r ia n e f f o r t s f o r h u m a n it a r ia n
a s s is t a n c e b a s e d o n p e a c e k e e p in g , we
d o n a t e d 1 0 m illio n ye n t h r o u g h t h e J a p a n e s e
R e d C r o s s S o c ie t y' s "U k r a in ia n H u m a n it a r ia n
C r is is R e lie f F u n d . "T h is d o n a t io n wil l b e u s e d f o r h u m a n it a r ia n
a c t i v i t ie s in U k r a in e a n d t h e E u r o p e a n r e g i o n .
M o r e o ve r , we p la n t o d o n a t e a ll o r p a r t o f t h e
p r o f it s e a r n e d f r o m o u r b u s in e s s a c t ivit ie st h r o u g h t h e J a p a n e s e R e d C r o s s S o c ie t y a n dp a r t ic ip a t in g p r o j e c t s in o r d e r t o h e lp t h e ir
lif e in U k r a in e o r t h e o n e a t t h e s h e lt e r .

Producing a limited
edition of the classic
DINEX mug“and wander” produced
a limited edition of
the classic DINEX mug
and started ordersales on April 8th.
CASE

THE LIBRARY × EW.Pharmacy /edenworks
In collaboration with “EW.Pharmacy”
of edenworks’s dried flower shop,“THE LIBRARY” will sell limitedbouquet at all stores on April 15th.

CASE

T- s h i r t p r o j e c t t o a i d
Ukraine5 Brands jointly producedo r i g i n a l T- s h i r t s a n dstarted order sales on
March 30th.

31

Introduction Global Environment People Society CSR Governance Toward the Future

Corporate GovernanceManagement system
Building a swift and transparent management system532Introduction Global Environment People Society CSR Governance Toward the Future

Corporate Governance

Correct management“We create values that brighten up the spirit of people through fashion and share the joy ofliving with society” is the management philosophy we strive to live by.
To tailor a business system apt to a global fashion group, we will be sound and transparent,
establish a prompt decision-making system and galvanize in-house control, including thoroughcompliance and risk management.
Through these efforts, we will strive to continuously improve corporate value – which is ourbasic management policy – with the aim of building good relationships with stakeholders andfurther enhancing corporate governance.
（2021年12月20日時点）

Corporate governance system
Overall group business is audited from anexpert perspective by outside executives,and – if necessary –outside auditors will
collaborate with our in-house audit office toaudit our business.
While we believe that the current
governance system is the optimal systemfor ensuring appropriate business, we willkeep looking at ways to improve it to stayabreast of future scenarios.

Strengthening the SDGs promotion
systemGeneral meeting of shareholders
Appointment/Dismissal

Appointment/Dismissal

The SDGs Promotion Office has been set
up to work on this issue, and the office’s
members will take the lead in formulating
draft response policies and disseminatingthem to relevant departments.
The system is set up in a way that lets theboard of directors decide important issues
after discussion with the sustainability
committee, which is composed of members
cored around in-house directors.

Variousmeetings

Board of directors

Audit

Board of corporate
auditors
Appointment/Dismissal

Appointment/Dismissal/audit

CEO

Audit

ReportCommands/Supervises Commands/Supervises

Head office administration/Group
companies

In-house Audit
OfficeIn-house audit/
recommendations/
Requests

Accounting auditor
AdviceAdviceLawyers, tax accountants,
patent lawyers, social
insurance consultants

33

Introduction Global Environment People Society CSR Governance Toward the Future

Toward the Future of Fashion

Toward tomorrow’s world
Bridging the way to sustainability for the future of fashion

34

Introduction Global Environment People Society CSR Governance Toward the Future

Globalenvironment

Creating sustainable, circulation
business opportunities

PeopleSociety

Manufacturing
technologies &functionsCustomer
contact
Human
resources

Toward the Future of Fashion

The future of fashion and stakeholder
happiness
Sustainable, circulation business is the future shape of fashion. And that iswhere yet unseen happiness awaits.
We are depicting the shape of happiness awaiting all our stakeholders - from
customers and business partners through to all of our shareholders – beyond
the task of solving social issues.
To that end, we will be the driving force behind the creation of sustainable,
circulation business opportunities while making effective use of existing assets.

Happiness delivered by fashion because it is sustainable

Customers
Enjoying happiness via
fashion & entertainment– Enjoy a fashionable life instep with the global
environment– Enjoy inclusive designs– Customers themselvescontribute to thedevelopment of local
communities & cultures

Partners

Investors &shareholders

Enjoying happiness via
the creation of joint
business opportunities

Enjoying happiness via
profits created throughbusiness opportunities– New revenue opportunities– Solve social issues via
innovative business– Financial benefits– Contribute to society via
investment in TSI Group

35

Members

Editor's Note

Sustainability Storybook production members

From left to right in the front row

From left to right in the back row

Mariko Tsujimoto

Hisashi Kobayashi

Kohei Yamada

Yoshihiro Yamada

Maya Kinoshita

Katsunori Yamaguchi

Toshiko Katayoshi

Satoshi Arai
Shunsuke Hasegawa

Editor’s note
Most of the raw materials for the products we supply to our customers are put together
from threads and cloths, having undergone many processes in our plants before being
stitched together. We also purchase products from other companies, as seen in our SelectShop line of business. Yet, the reality of the apparel industry is that there are many issues
that make it difficult to visualize everything.
What is more, it is said that CO2 in manufacturing accounts for 70% of the total, whichcannot be overlooked because the apparel industry causes the second largest
environmental load after the oil industry.
We established the SDGs Promotion Office in September last year and began work bygetting our heads around the actual situation. Then, in February, we set up a project team,summarized group materiality across departments, and published our findings as asustainability book cored around Scopes 1 & 2.
We have come through M&A deals repeatedly, but have not extended this to subsidiaries
because the systems used are different, yet we will gradually increase the number of target
companies to promote visualization. First off, our inclination is to make disclosures in linewith the GRI Standards.
Moreover, we will face sustainability issues with our various business partners, strive to
visualize Scope 3, develop products with low environmental impacts using innovativetechnologies and build a circulation system that does not let anything go to waste.
On the editorial front, we will continue to give information gravitas by specificallyintroducing the activities of brands and employees. We hope that it will help you tounderstand what we are aiming for in the future.
In conclusion, we would like to take this opportunity to express our sincere gratitude to all
those concerned for their unstinting cooperation in preparing this report.

Kohei Yamada
Manager of SDGs Promotion Office,Sustainability Value Department,
TSI Holdings

2022/4/13
Descriptions about future within thisdocument are based on the information thatthe company obtains on the date of thisreport and certain assumptions deemed tobe reasonable. Actual earnings may differ
materially from various future factors.
Copyright ©2022 TSI Holdings Co., Ltd. All rights reserved.