Sustainability

JAPANESE

SUSTAINABILITY

YAGI TSUSHO LIMITED focuses on the ever-changing lifestyles of consumers and aims to contribute to the transformation of consumer lifestyles through fashion. We have worked to identify the real needs of potential consumers, identify and nurture brands, and support the potential of these brands and products, while understanding both the technical skills and characteristics of the producers, as we believe this is the way to sustainable social and economic development.
Workers’ human rights and animal protection related to animal-derived raw materials in manufacturing are global headline issues. The YAGI TSUSHO Group, working with many stakeholders around the world, believes it is vital to address these issues through building partnerships with the supply chains involved.
We will continue to work with our stakeholders to further strengthen our commitment to the most important SDG topics, particularly from the Environmental, Social and Governance (ESG) perspective.

Environment

– Effective use of resources
– Climate change
– Environmental /
– biological protection
– Pollution prevention and
– resource circulation
Social

– Respect for human rights
– Labor practices
– Diversified work styles
– Human resource
– development
– Responsibilities to
– customers and quality
– management
– Corporate social
– responsibility in VC/SC
– Participation in the
– community
– Social investment
Governance

– Governance structure
– Compliance and risk
– management
– Information security

　
- - ESG Task
    
    Initiative
E
- - Effective use of resources
    
    Paperless system promotion
  - Adaptation to climate change
    
    Cool Biz/Warm Biz
  - Environmental protection
    
    Development and promotion of eco-fur
    Reuse of goose down
  - Pollution control and resource circulation
    
    Prevention of dye-related pollution
S
- - Respect for human rights
    
    Basic Human Rights Policy
    Harassment Response system
    Dialogue with stakeholders
- - Diversity Initiatives
    
    Maternity/childcare/caregiving leave
    Promotion of paternity leave
    Employment of people with disabilities
    Facilitating return from leave
- - Labor practices
    
    Evaluation system
    Promotion of taking paid leave/refreshment leave
    Extending employment after standard retirement age
    Employee health check assistance
    Availability to consult with an industrial physician/health nurse
    Mental stress checks
    No overtime day (reduction of long working hours)
    Staggered/flexible working hours
    Covid response system (Working style that proactively responds to any situation)
- - Female employees’ activity
    
    Participation and activities in the “Women’s Empowerment in Fashion” (WEF) program
    Support for returning from maternity/childcare leave
- - Human Resource Development
    
    Management training
    Sales staff training
    Active overseas transfer for young employees
  - Dialogue with employees
    
    Communication with and between employees
- - Quality management
    
    Product management in compliance with Act against Unjustifiable premiums and misleading representations
    Quality leveling by unannounced inspection
    Evaluation by local inspection agencies
    Regular quality inspections at the institute of science(KAKEN)
- - Responsibilities to customers
    
    Product quality management at the time of manufacturing and before delivery
    Establishment of customer center and complaint response section
    After sales-service
    Strict centralized management of customer information (store/EC)
- - Corporate social responsibility in the value chain
    
    Compliance with subcontractor-related laws/acts
    Internal audit of transactions
    SC Code of Conduct (next page)
    Inspection of local factory
  - Community involvement
    
    Local employment
  - Social investment
    
    Social contribution and cultural support activities
G
- - Governance structure
    
    Board of directors
    Audit committee
  - Internal controls function
    
    Accounting audit
    Audit & supervisory board members
  - Compliance
    
    Compliance guidelines
    Compliance manual
    Compliance committee
    Whistleblower system
  - Tax affairs
  - Information security system

Suppliers’ Code of Conduct

To All Suppliers:

YAGI TSUSHO LIMITED and YAGI TSUSHO Group companies aim to be evaluated as having an excellent global reputation with professional and ethical methods, especially in the fashion industry. By promoting efficiency and strengthening environmental/social contributions, we have an obligation to manage the environment, society and governance (ESG management) points that are part of the Sustainable Development Goals (SDG’s). We also expect our affiliated suppliers and representatives from around the world to comply with local laws, and work together with us in our efforts.

This Supplier Code is a compilation of international standards for environmental responsibility, social responsibility, health/safety/welfare, management system, and management responsibility. The Code is aimed not only for us, but to all of our business partners and their related suppliers, who are requested to comply with it as well.

Therefore, we ask our suppliers and representatives of our group company around the world to implement the following code of conduct.

1. Environmental responsibility
Implement proactive processes to achieve sustainable solutions by addressing all relevant environmental issues (i.e. energy, emissions, materials, recycling, reusable production, services, logistics, etc.)

2. Social responsibility
As a minimum obligation, we will comply with and carry out the following principles.

A) Consideration for human rights
Under all circumstances, working conditions in a favorable environment according to the labor law shall be guaranteed.

B) Unreasonable low wages/wage reductions, prohibition of excessive overtime work
Observing the minimum wage and working hours based on the laws and regulations of each country and region, and without unreasonable reductions of wages taking place.
Complying with the law on holiday and vacation leave; having employees working overtime without their consent must not happen. In addition, designated overtime wages shall be provided for any exceeding working hours.

C) Prohibition of child labor
No employment of people who are under the working age stated in the law.

D) Prohibition of forced labor
No forced labor or human trafficking. Respecting the will of employees regarding transfers and resignation.

E) Prohibition of discrimination and inhumane treatment
Employees must be treated with respect and dignity. Discrimination on employees’ promotion/demotion, dismissal, retirement, etc., based on race, gender, age, disability, nationality, marital status, sexuality, religion, political opinion, or union membership shall not occur.

F) Prohibition of abuse and harassment
No abuse or harassment of employees for any reason or in any situation. If these cases are confirmed, remedies will be taken with regard for the workers.

3. Health/safety/welfare
Employees must be provided with an appropriate working environment for health, safety and welfare.
Ensuring health and safety, proper lighting, ventilation in the workplace, and adequate breaks during working hours.
In all cases, clear instructions, information and appropriate training will be provided.
To achieve accident-free workplaces, discussions about health and safety with employees will be conducted, and necessary actions taken.

4. Management system
In order to continue to comply with the Supplier Code of Conduct, this Code will be announced and made known to each partner in the business.
Internally, the management system necessary for the implementation of this code of conduct and the promotion mechanism will be established, and the implementation will take place.
After regular investigation of the actual situation, measures to prevent recurrence will be created based on identifying issues and corrections to the situation.
In case of receiving a request for an explanation on the Supplier Code of Conduct, compliance status, or any related issues, information provision and sharing will be done promptly.
* In the unlikely event such as finding a violation, YAGI TSUSHO will request improvement measures and recurrence prevention measures.

5. Business responsibility
YAGI TSUSHO conducts the business in compliance with the laws and related rules of the countries and regions where we conduct the business. We will not carry out any unethical act, and ask our business partners to equally comply – thus we endeavor to develop better relationships together.
We will comply with both quality standards and labeling standards set by the country of origin and the country of sale; and will provide products and services that satisfy our customers in fair, transparent, free competition, and appropriate business dealings.
We will protect and pay attention to intellectual property rights owned or attributed to our company from infringement by third parties.
In addition, we will not disclose confidential information of our business partners to third parties without receiving prior written consent.
We will protect individuals’ personal information and will not use it for purposes other than those specified when the information is collected, unless written consent is received.