Material Issues to be Addressed by 2030We have established “11 material issues” with our customers, our employees, the environment, society, and governanceas targets. These will serve as our benchmarks until 2030 for our business’ growth and our work to achieve asustainable society.

EnvironmentIdentification ProcessPreserve the environment globally for future generationsIn order to realize VISION 2030—the Group’s medium- toSTEP 1long-term management strategy framework—while evolvingour long cultivated strengths, such as research, planning, andsales, we conducted an analysis of material issues based onsocial and environmental issues to be addressed, as well asbusiness growth. As a result, we identified five targets and 11material issues. We arrived at this decision by gaining insightinto the business challenges and social and environmentalissues we expect to face by 2030, while taking into accountCreation of a list of issues to be addressedbased on dialogue with and requests fromstakeholdersSTEP 2Discussions between management andoutside expertsSTEP 3Discussions with the next generation ofmanagement candidatesSTEP 4Discussions with young employeesSTEP 5Identification of material issuesmacro trends and the requests of various stakeholders.

Material issues

7Promotion of businessactivities that reduceenvironmental impactConcrete efforts towardthe resolution of material issuesKPIs (by 2030)Fostering of environmental awarenessamong both employees and consumersVisualization of ecological activities in business activitiesAchievement of a decarbonized societyRealization of a decarbonized society and reduction inCO2 emissionsPromotion of waste reductionReduction of product disposal rateAchievement of a society of thatrecycles resourcesIncrease in rate of environment-friendly materials usedRealize a society in which everyone plays an active role in their own wayCustomersMaterial issuesConcrete efforts towardthe resolution of material issuesMaximize the value provided to customers1

2Enhancement ofcustomer experiencevalue by pursuingpersonalizationEndeavoringto expandbusiness areasConcrete efforts towardthe resolution of material issuesIncreasing of customer connectionsand learning from them to wowother customersCreation of products thatexceed expectations and are lovedTackling of challenges innew areas to support customersfrom every angleDeepening of productquality and building ofservice qualityPursuit of quality control systems andquality levels demanded by the timesKPIs (by 2030)Contribution to the improvementof women’s QOLTargetsIncrease in the number of people experiencing Wacoal’sunique services that enhance the customer experience

8Promotion ofco-creation innovationto solve social issuesRevitalization of the innerwear business by promotingthe development of new products and servicesthat utilize customer dataIncrease in growth and profitability in businesses otherthan women’s innerwearCreation of new business to contribute to well-beingPromotion of in-house enlightenment activities to fosteran understanding of diversity-related issues such as genderPromotion of diversity and inclusionPromotion of respect for human rightsand CSR procurement activitiesTo be considered in November 2023in response to the revisedmedium-term management plan andannounced during fiscal 2025Promotion of dialogue and co-creation activities withexternal stakeholders to foster an understanding ofdiversity-related issues such as genderExpansion of scope of CSR procurement activitiesGovernanceContinuous monitoring of product quality andimplementation of improvement activitiesEnhance governance toward realization of sustainable growthMaintenance and improvement of the quality of digitaland over-the-counter servicesMaterial issuesConcrete efforts towardthe resolution of material issuesTo be considered in November 2023in response to the revisedmedium-term management plan andannounced during fiscal 2025Establishment and implementation of human rightsdue diligence and promotion of human rights trainingOverseas business expansionKPIs (by 2030)TargetsImplementation of Japan’s Corporate Governance CodeAchieve the growth of each of our employees and establisha highly rewarding organizationMaterial issuesConcrete efforts towardthe resolution of material issuesGrowth into humanresources who canexpand their potentialand have confidence,pride, and successGrowth into of human resourcesthat proactively enhance self-proficiencyand take on challenges with enthusiasm,regardless of generation or positionKPIs (by 2030)5

6Continuous improvementof employees’ healthand health awarenessImprovement of employees’ productivity and mentaland physical healthIncrease in the number of employees who can act withclarity on what the Company should be and its missionImprovement of health literacyImplementation ofhighly transparentmanagementMaintenance and establishment ofan optimal corporate governancesystem that will improve effectivenessDemonstration of the Board of Directors’ functions andpromotion of diversityOngoing improvement of the system for the compensationof officers to increase corporate valueEstablishment of fair and motivating evaluation andcompensation systemsTargets

10Nurturing of human resources and creation of anenvironment in which employees can take on challengeswith enthusiasmDevelopment of a work environment in which peoplefrom diverse backgrounds can work togetherImprovement of employees’ mentaland physical health

9Enhancement of initiatives geared toward self-motivatedcareer design and skill improvementBuilding of an organizationFostering of an organizational culturethat can demonstrate great in which people from various positionsresults through co-creation can cooperate and achieve their missionsand collaboration29 ■ WACOAL HOLDINGSTargetsFulfillment of needs through products and servicesand development of ideas that contribute to improvingwomen’s quality of lifeContribution to women’s quality of life through ongoingdialogue with stakeholdersIncrease in the number of customers with connectionsto the Wacoal GroupEmployees

4KPIs (by 2030)Promotion of breast care activitiesExpansion of internal resources into new fieldsAchievement of global growth toprovide inspiration to customersaround the world31) Zero in-house emissions (Scope 1 and 2)(domestic businesses)2) Zero product waste (Wacoal Corp.)3) Rate of environment-friendly materials used of50% (Wacoal Corp.)4) 20% reduction in supply chain emissions(Scope 3) (Wacoal Business (Domestic))
Note: For our overseas business, we plan tostart by tracking our own emissions(Scope 1 and 2) and disclose our targetsby the fiscal year ending March 31, 2025.

SocietyMaterial IssuesMaterial issuesTargetsTo be considered in November 2023in response to the revisedmedium-term management plan andannounced during fiscal 202511Strengthening ofthe risk managementsystemContinuous improvementof profitability andcapital efficiencyThorough compliance with laws andregulations and development ofan organization with high ethical standardsPrevention of inappropriate behavior in corporateactivities and enhancement of compliance awarenessamong all officers and employeesStrengthening of organizational resilienceby steadily responding to business riskReview of selection methods and response policies for majorrisks, promotion of information security measures for digitaltransformation and communication technology operations,and enhancement of the business continuity planTo be considered in November 2023in response to the revisedmedium-term management plan andannounced during fiscal 2025Strengthened management of key performance indicatorsand verification of cost-effectiveness to improve theeffectiveness of medium- to long-term strategiesExecution of the management strategyand clarification of roles and authorityImplementation of business portfolio managementto realize growthEstablishment of an executive structure for timely andappropriate decision-makingINTEGRATED REPORT 2023■ 30