Baroque Japan Limited Information disclosure in line with TCFD recommendations
For Baroque, sustainable initiatives do not end at simply making clothes with environmentally friendly materials, rather they are initiatives that aim to create not
only a sustainable society, but a sustainable company.

And we are working group-wide to achieve sustainable management from the three perspectives of theenvironment, society, and people.
Based on the TCFD framework, we have collected and analyzed necessary data and have identified our “risks” and “opportunities” regarding the impact ofclimate change on our business activities.

At the same time, we have verified the resilience of the strategy through scenario analysis.

Going forward, we will

steadily promote countermeasures against the identified “risks” and “opportunities” and actively disclose information.

１．GOVERNANCE〇 The Sustainability Promotion Office examines and deliberates on basic policies, important matters, risks and opportunities related to climate change. In
addition, in May 2022, we established the Sustainability Committee to examine sustainability, including climate change risks.
〇 Matters deliberated and decided by the Sustainability Committee are submitted to the Board of Directors.
〇 Proposals deliberated and decided by the Board of Directors are rolled out to each department and reflected in their respective management plans and business
operations.

２．STRATEGY〇 We perceive “climate change” as one of the medium- to long-term risks for our business. In order to consider our strategies and organizational resilience inlight of “climate change” related risks and opportunities, we referred climate change scenarios (less than 2°C scenario and 4°C scenario) made by the International
Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC), considered the long-term impact on our company until 2050 and performed
scenario analysis focusing on the manufacturing retail industry (domestic) such as apparel and accessories.
〇 In order to prioritize climate change risks, we will focus on the items with the highest impact on the table below due to the likelihood and impact of risks andopportunities. Going forward, the Sustainability Committee will continue to confirm this.
※ Less than 2°C scenario : IEA-SDS, IPCC-AR5 (Fifth Assessment Report)-RCP2.6, etc.
※ 4°C scenario : IPCC-AR5 (Fifth Assessment Report)-RCP8.5, etc.

Major Risks and Opportunities and Responses Related to Climate Change
scenario

2℃

factorchangeIntroduction

Increase Inof carbon tax

procurement costs

Risk/Opportunity
RISK

Impact on us

Our measures●The introduction of a carbon tax will

□Promoting appropriate

increase the manufacturing costprocurement by improving supply andof purchased products, which

demand forecasts andwill increase our procurement costs.

inventory management.
□Strengthen cooperation
with suppliers andreduce procurement costs.

RISK●Due to the introduction of various tax□We will promote efforts to reduce

systems, including a carbon tax, and theenergy consumption by improving

promotion of low-carbon

transportation efficiency bytransportation, transportation energy

strengthening cooperation withcosts and in-house renewable energy

logistics companies and by investing inprocurement costs will increase.

energy saving in our own
warehouses.

RISK●If the impact of carbon taxes,□Reduce the impact of the carbon tax

etc. affects product prices, there is aon our company by promoting energy

possibility that customer support will besaving and actively utilizing

affected.

renewable energy.

●Demands for information disclosure□Promote appropriate disclosure by

related to climate change

establishing a system for responding toinformation

are increasing, and inadequate

external disclosure requests such as

disclosure

disclosure may affect bank borrowings

information disclosure in accordancefrom outside

and issuance of corporate bonds.

with TCFD and responses to CDP

Growing demand

Difficult accessfor

to capital markets

RISK

questionnaires.

Improving

Changes

OPPORTUNITY

environmental

in customer values●There is a possibility that□Promote further development of an

our MOUSSY denim and other eco

environmentally friendly production

awareness-friendly products will match thesystem.

of stakeholders

growing ethical orientation of＜＜Examples of current efforts＞＞

consumers and increase our support.

・Reducing water usage
・Reducing use ofchemical substances
・Sewage discharge control, etc.

Improving

Changes

OPPORTUNITY

environmental

in customer values●As consumers become more□We will focus on developing andenvironmentally conscious, demand for

selling products that use recycle

awareness

products that actively use recycledmaterials and environmentallyof stakeholders

and environmentally friendlyfriendly materials.

materials is expected to grow.

・Organic cotton
・Recycled fiber
・Regenerated fiber, etc.

Strengthening

Stricterdecarbonization

occupancy

RISK●Developers' demand for□We will further promote initiatives toconditions from an

decarbonization of tenants is

reduce the environmental impact within

efforts

environmental point

gradually increasing, but if it is

our stores.

by developersof view

included in the occupancy conditions in・Reuse of materials and active use

the future, it may affect our storeof environmentally friendly

opening strategy.

materials
・Switching plastic shoppers topaper/recycled paper, etc.

Strengthening

OPPORTUNITY●Attention to environmental□We will grow businesses such as theefforts toconsiderations is increasing, such as thegreen business “Shelter Green” and the

reduceemergence of commercial

ethical brand “M_” toenvironmental

facilities specializing in tenants

further promote our sustainability

impactworking to reduce environmental

efforts.

impact.
●Promoting environmentallyfriendly initiatives may lead to store
openings and the acquisition of newcustomers.

scenariocausechangeRISK/

Impact on us

Our measures●Due to the increased risk of drought in□Promote disaster countermeasures atour own logistics bases.

CHANCE4℃

Intensification

Increased riskofof supply

cotton production regions, one ofchain disruption

the main raw materials for ourweather

disasters

RISK

products, there are concerns that□Strengthen cooperation withproduction volume will decline andsuppliers regarding disasterprices will rise.

countermeasures, develop newsuppliers, consider decentralization,●In addition, if suppliers or our bases are and develop a stable procurement
damaged, the supply chain may bedisrupted, making it difficult toprocure raw materials and products
stably.

system.

Intensification

RISKof flood●The impact on store operations is□In addition to promoting disaster

expected due to the increase in store

countermeasures at each store, we willinundation due to flooding and thestrengthen the system for more

expansion of damage.

smoothly collecting information andplanning countermeasures.

【Status of efforts toward “Our measures”】① Increase in procurement costs due to introduction of carbon tax
After calculating CO₂ emissions and setting specific reduction targets (see 4. METRICS & TARGETS), we are promoting the use of LED lighting in storesand headquarters, and the conversion of electricity used in headquarters, warehouses, and stores to renewable energy.

Specifically, at our flagship store,

SHL'TTER TOKYO, we have converted 100% of the store's lighting to LEDs, and we have converted power supply for Higashi-matsuyama DC, which is oneof our main warehouses, to 100% renewable energy.
② Growing demand for information disclosure from outside
We have established a system to respond to external disclosure requests, such as information disclosure in accordance with the TCFD and responses to CDPquestionnaires, and are implementing appropriate disclosure. (This year, we have disclosed our CO2 emissions calculation results including SCOPE3 andreduction targets,)③ Changes in customer values
We have set a numerical target for the percentage of clothing made from environmentally friendly materials (see 4. METRICS & TARGETS). From now on,each division will carry out product planning and development with goals in mind.

Additionally, we continue to focus on reducing water usage in denim

production, and approximately 40,000 products have been produced by reusing purified wastewater during the washing process.
④ Strengthening decarbonization efforts by developers
As part of our efforts to reduce the environmental impact within our stores, when renovating our flagship store, SHL'TTER TOKYO, we used paint made fromrecycled eggshells on the painted walls, and also renovated some of the existing floors and fixtures. We are promoting the reuse of materials and the active
use of environmentally friendly materials.
``SHEL'TTER GREEN''.

Additionally, we have launched ``TUIN greenery'' as a concept shop/flagship store for our green business３．Risk management〇 As part of the climate change risk management process, we conduct an annual review of climate change-related risks/opportunities from the perspectives of"current regulations," "new regulations," "technology," "market," and "reputation," etc. And through the Sustainability Committee, we will analyze climatechange risks, formulate and promote countermeasures, and manage progress. (Although we conducted a review of climate-related risks/opportunities again
this year, no new risks/opportunities were identified.)〇 Details analyzed and considered by the Sustainability Committee are reported to the Board of Directors, and integrated risk management is carried outcompany-wide.

４．METRICS & TARGETS〇 The calculation results of our company's CO₂ emissions for FY2021 and FY2022 are as follows.

CO₂ Emissions
SCOPE/CATEGORYSCOPE1+2+3※

FY2022

FY2021

Proportion [％]Emmitions[ｔ-CO2]

Scope3

Scope1,2,3

Proportion [％]Emmitions[ｔ-CO2]

Scope3

Scope1,2,3

Change[ｔ-CO2]

100,917100.0%

105,963100.0%-5,0462160.2%

216

0.2%

02.6%

2,823

2.7%

-154

SCOPE1(Direct Emmition)

SCOPE2(Indirect emissions associated with energy use)

2,670

Category1

Purchased products/services

87,384

89.1%

86.6%

93,624

91.0%

88.4%

-6,239Category2

Capital goods

3,232

3.3%

3.2%

1,824

1.8%

1.7%

1,408

Category3

Fuel and energy related activities not included in
Scope 1 and 2

496

0.5%

0.5%

496

0.5%

0.5%

0

Category4

Transportation, delivery (upstream)

2,497

2.5%

2.5%

2,559

2.5%

2.4%

-62

Category5

Waste from business

347

0.4%

0.3%

395

0.4%

0.4%

-48

Category6

Business trip

332

0.3%

0.3%

102

0.1%

0.1%

230

Category7

Employer's commute

466

0.5%

0.5%

464

0.5%

0.4%

2

Category8

Lease assets (upstream)

Category9

Transportation, delivery (downstream)

2

0.0%

0.0%

2

0.0%

0.0%

0

Category10

Processing of sold products

Category11

Use of sold products

Category12

Disposal of sold products

1,643

1.7%

1.6%

1,714

1.7%

1.6%

-71

Category13

Leased assets (downstream)

Category14

Franchise

1,632

1.7%

1.6%

1,745

1.7%

1.6%

-113

Category15

Investment

SCOPE3（Indirect emissions from the value chain）

98,031100.0%

97.1%

102,924100.0%

97.1%-4,893

Scope of calculation: Baroque Japan Limited (non-consolidated)
Emission coefficient: Emission intensity database for calculating greenhouse gas emissions, etc. of an organization through the supply chain (Ver.3.3)
LCI database IDEA Version 2.3 and 3.1 Research Laboratory for IDEA, AIST
It may change depending on the calculation and analysis methods required by the market and future refinement.

〇 Based on the calculation results of CO2 emissions, we have set the following sustainability-related Targets.
(1) Manufacturing without over-producing
・Zero final remaining inventory disposal, zero incineration (FY2030)(2) Reduction of CO₂ emissions
・SCOPE 1, 2

: Reduce CO₂ emissions by 50% by 2030 (compared to FY2021)

・SCOPE 3: Reduce CO₂ emissions per item of clothing by 20% by 2030 (compared to FY2021)(3) Effective use and reuse of resources/realization of earth-friendly production
・Raise the proportion of clothing made from environmentally friendly materials to 50% or more by FY2030 (number of products)