ESGActions for the Environment

Recognition as a CDP 2022 Supplier Engagement Leader

The Group believes that it bears a responsibility as a company to protect the global environment during the course of its

CDP is an international nonprofit organization that conducts research and analyses on the initiatives of companies andorganizations around the world to address climate change and other environmental issues and discloses the results of theseassessments. The CDP’s Supplier Engagement Rating assesses how companies work effectively with suppliers to resolve theissue of climate change. The Group engaged in CDP’s climate change questionnaire and was selected as a “B list” company.

global business activities. We are expanding our disclosure of environmental information while promoting initiatives toaddress climate change and realize a sound material-cycle society.

Response to Climate Change
In order to move forward with measures to realize a carbon-free society and firmly ensure the reduction of greenhouse gas (GHG) emissions along the supply
chain, we began calculating GHG emissions for the entire supply chain (Scope 3) of the Wacoal Business (Domestic) in 2021. Moreover, in addition todisclosing reduction targets for Scope 1 and Scope 2 GHG emissions from our operating bases in Japan in pursuit of our 2030 nonfinancial goals, in June
2022 the Company disclosed reduction targets for the aforementioned Scope 3 GHG emissions of the Wacoal Business (Domestic).

Governance

Strategy

The Group established the Sustainability Committee in April 2022 to promote sustainability management and achieve both solvingsocial issues and sustainable growth through our business activities. We have also established four subcommittees under theSustainability Committee in order to strengthen our response to important sustainability issues.
In order to reduce the environmental impact and environmental risk of Wacoal Group’s business activities and to promote
voluntary and active environmental preservation activities, the Subcommittee for Carbon-Neutral will deliberate on activity policies
and initiatives related to environmental issues, such as climate change measures and reducing the environmental load of backoffices, and strategic investment projects related to environmental preservation, and monitor progress.
The Group conducted a scenario analysis on climate change during the fiscal year ended March 31, 2023. In the scenario
analysis, we examined countermeasures and identification of risks and opportunities for Wacoal Corp., which has the highest
percentage of overall sales in the Group, in two hypothetical scenarios in which the global temperature increased by 2°C and 4°C.
The scenario analysis showed that while a rise of 2°C had some positive impacts, such as gaining support from environmentallyconscious consumers, transition risks, such as the introduction of carbon taxes, could have a negative impact on business. Inaddition, it was found that a rise of 4°C may lead to physical risks, such as storms, floods, and other extreme weather, that could
have a negative impact on business.

Risks:We believe that the major risks affecting the Group’s business, strategy, financial plans, etc. include, among 25 others, the intensification of extreme
weather, such as storms and floods, and increases in carbon pricing.
Opportunities: The Group is promoting environmentally friendly activities, such as building a manufacturing and sales system in which few products are discarded. In
the future, we will continue to promote business activities with a low environmental impact, aiming to achieve the “Environmental Goals for 2030”. As
environmental awareness is growing among consumers and society, we believe that business activities like these will be an opportunity to boost sales
for the Group.

With respect to risks related to sustainability issues of the Group, the Sustainability Committee and its subcommittees examine
the impact on the entire supply chain, including direct operations and certain upstream and downstream operations, from ashort-, medium-, and long-term perspective. The results are reported to the Board of Directors, the upper decision-making
body, which ultimately identifies and evaluates risks. Risks are also managed through monitoring and evaluation of achievementby the Sustainability Committee and each subcommittee.

Indicatorsand goals

The Group has set its own environmental goals for 2030 to promote efforts to solve increasingly serious climate change issues
and realize a carbon-free society.
Note: For overseas business operations, we will start by calculating our own emissions (Scope 1 and 2) and plan to disclose the targets by the end ofMarch 2025.

Environmental data
https://www.wacoalholdings.jp/sustainability/environment/activities/#data

In fiscal 2022, greenhouse gas emissions in the supply chain of Wacoal Business (Domestic) decreased by approximately 12% compared to fiscal 2020 amid
cutbacks in the use of raw materials due to sluggish sales.
FY2022 Results
In-house emissions (Scope 1 and 2*)

Target: Domestic offices

Supply chain emissions (Scope 3)

Target: Wacoal Business (domestic)

Product disposal rate
Rate of environment-friendly materials used

55 ■ WACOAL HOLDINGS

Compared to FY2020(base year)Initiatives for Reducing Our own Greenhouse Gas Emissions
In order to reduce greenhouse gas emissions at our domestic business sites, in fiscal
2024, we investigated the CO₂ emission reduction potential of our headquarters anddistribution centers, and established detailed reduction programs. From fiscal 2025
onward, we plan to implement specific measures in line with our reduction roadmap.
In addition to Wacoal Distribution Corp. (Moriyama City, Shiga Prefecture) and theShin-Kyoto Building, Wacoal Manufacturing Japan Corp. has decided to introduce anew solar power generation system at its Nagasaki Plant.
Wacoal Distribution Corp.

Initiatives for Reducing Greenhouse Gas Emissions in Our Supply Chain in Japan
Collaboration with suppliers is vital to reducing emissions in our supply chain. In fiscal 2024, we explained the Group’s environmental policy to suppliers andshared plans for our future initiatives, and conducted research activities to formulate reduction scenarios in collaboration with a third-party organization. Fromfiscal 2025 onwards, we plan to continue conducting research activities and refining our calculation methods.

Initiatives for Reducing Greenhouse Gas Emissions in Our Overseas Operations
In order to reduce greenhouse gas emissions in our overseas operations, we have determined that our own garment factories, which account for more than
80% of the total electricity consumption, are subject to boundaries and have calculated their greenhouse gas emissions. In fiscal 2025, we plan to formulate areduction program and consider medium- to long-term reduction targets.

Achieving a Resource-Circulating Society

Riskmanagement

Results in the Fiscal 2022

Initiatives in Fiscal 2024 andPlan for Fiscal 2025

Target for 2030

6,105 t-3%Neutral

294,512 t-12％20% reduction

Target: Wacoal Corp.

1.6%

―0%

Target: Wacoal Corp.

12%―50%

At Wacoal, we are constantly developing and expanding our line of environment-friendly products and materials in order to address the needs of consumers
for more products that respect the environment and to contribute to the realization of a sustainable global environment. The Subcommittee for Resource
Circulation, which falls under the Sustainability Committee, deliberates on standards for environmentally friendly materials and monitors the progress of waste
reduction in production and procurement activities in order to promote the sustainable use of resources and materials in the supply chain and the reduction
and recycling of waste toward the realization of a resource-circulating society.

TOPICS

Development and introduction of recycled hangers reduces the use of virgin plastics by half

Wacoal Corp. jointly developed a circular recycled hanger made fromrecovered plastic hangers with Nippon Copack Inc., and has been using themsteadily for products sold mainly at chain stores since July 2023. We expect touse 13 million recycled hangers annually in the future.
In the past, after use as a display hanger at chain stores, we collected
hangers at the store’s point of sale (POS), and recycled them into solid fueland plastic products for apparel after collection. This newly developed
circular recycled hanger is made by combining recycled materials aftercollection and virgin plastic raw materials into a new hanger that is usedagain for product displays.
By using 50% recycled materials, this circular recycled hanger can reduce
the amount of virgin plastic raw materials used by around 75 tons per year.

Hanger manufacturing plant

Salesfloor (Wacoal)(Nippon Copack Inc.)Collected at thePOS after use indisplays on thesalesfloor

Recycleshangers anddelivers themto Wacoal

Circular
Recycling
Remanufacturing plant(Nippon Copack Inc.)

Collected at the POS after
use in displays on thesalesfloor

INTEGRATED REPORT 2023

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