SUSTAINABILITY REPORT 2018 - Asics
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SUSTAINABILITY REPORT 2018
OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
MOVING
Overview 15 I MOVE ME SMARTER
3 About this report 17 Our approach to climate change
4 A message from top management 18 Our approach to creating products and services
BODY AND
5 ASICS at a glance 24 Our approach to managing operations
6 ASICS sustainability framework
7 Governance 32 I MOVE ME STRONGER
8 Material issues 34 Our approach to health and wellbeing
9 Value chain analysis 35 Our approach to our supply chain
MIND TO
10 Stakeholder engagement 41 Our approach to communities (our people)
11 2020 targets and progress 44 Our approach to communities (community involvement)
46 Independent Practitioner’s Assurance Report
CREATE A
STRONGER
WORLD. MOVING CONNECTS THE
I AND THE ME. TOGETHER
THEY BECOME UNSTOPPABLE.
#IMOVEME
www.asics.com/gb/en-gb/imoveme
2
OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
ABOUT THIS REPORT
Moving changes you for the better, External recognition Further information
which changes everyone you play,
work, live and love with. Which
changes the city you live in, so
it changes the whole planet too.
Dow Jones Sustainability Asia/Pacific Index CDP (formerly Carbon Disclosure Project)
But it all starts with me. I MOVE ME™ (DJSI) – included for the fourth year running. – rated a B-level company for the third year running.
I MOVE ME™ is the global movement that
reimagines our vision for a new generation.
I MOVE ME™ shows that there are no winners
or losers in the world of ASICS – just people
who move, and people we want to help
FTSE4Good Index Series MSCI Global Sustainability Index Find out more about ASICS and our approach to
start moving. – included for the third year running. – included for the fourth year running. sustainability, including previous reports and our GRI index
In this report, you’ll find out how we move FTSE Blossom Japan Index MSCI Japan ESG Select Leaders Index https://corp.asics.com/en/csr
smarter, contributing to a healthier planet – included for the second year running. – included for the second year running.
through product and service innovation, as
well as by actively switching to renewable
energy in our operations.
You’ll also see how we’re engaging people
to help them move stronger – in our RobecoSAM’s Sustainability Yearbook 2018 S&P/JPX Carbon Efficient Index
– included for the third year running. – included in 2018 for the first time.
workplaces, in our supply chain and
in our local communities.
The inclusion of ASICS corporation in any MSCI Index, and the use of MSCI logos, trademarks, service marks or index names herein,
do not constitute a sponsorship, endorsement or promotion of ASICS corporation by MSCI or any of its affiliates. The MSCI indexes are
the exclusive property of MSCI. MSCI and the MSCI Index names and logos are trademarks or service marks of MSCI or its affiliates. 3
OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
A MESSAGE FROM
TOP MANAGEMENT
ASICS was founded in 1949 to help people 2018 was a remarkable year for ASICS, during associations, we joined the Commitment to
move more and feel healthy in both mind which we made significant progress on Responsible Recruitment initiative to address
and body. We summed up that purpose with sustainability in several areas. potential forced labor risks for migrant workers
the words “Anima Sana in Corpore Sano” in our global supply chain.
(a sound mind in a sound body). Seventy On August 1, 2018, our targets to
We’re continuing to support initiatives to
years later, we’ve refreshed that message reduce CO2 emissions by 2030 were transform lives through sport, with a special
for a contemporary audience with our new officially approved by the Science focus on children and young people from
global movement I MOVE ME™. Since then,
Based Targets initiative (SBTi). disadvantaged backgrounds. One outstanding
our sustainability vision has remained the same.
example in 2018 was Project Lebanon.
To inspire more people now We’re also continuing to introduce
technological innovations to improve both An initiative supporting Syrian
and in the future, to move body and
product sustainability and functionality. For refugee children and their families
mind, to create a stronger world.
example, in 2018, we launched the first-ever living in Lebanon, launched with
shoe to feature cellulose nanofiber – a our long-term charity partner
Recent years have seen a growing worldwide
next-generation industrial material made from Right To Play.
shift toward sustainability, following the launch
plant biomass that not only improves strength
of the UN’s Sustainable Development Goals
and durability, but also reduces our carbon While we’re proud of our achievements in 2018
(SDGs) and the Paris Agreement in 2015.
footprint. we know we have more to do. Planned for 2019
In parallel to this, our stakeholders’ awareness
of sustainability issues is increasing. More is an exciting new campaign inspiring people
Safeguarding human rights within our supply
consumers, especially young consumers, to recycle used clothing and footwear, as
chain is a responsibility we take very seriously.
are showing a preference for brands that are part of our efforts to reduce our products’
Motoi Oyama Yasuhito Hirota In 2018, an NGO found that a factory used by
Chairman and CEO, President and COO, contributing to sustainability. We are focused environmental impacts across their life cycle.
ASICS as a Tier 1 supplier employed migrant
Representative Director Representative Director on the young generations to expand our workers under conditions that indicated a risk Thanks to all our partners and stakeholders
consumer base. To maintain our long-term of forced labor. We met with the NGO to
growth, it’s vital that we respond to these for your support in 2018. We look forward to
understand the issues and promptly started continuing our sustainability journey with all
trends, ensuring that sustainability remains corrective actions with the factory. Following
at the heart of our business strategy. of you in 2019.
this, together with other brands and industry
4
OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
ASICS AT A GLANCE 9,283
Other Group businesses
27,155
Oceania
ASICS is one of the world’s top ASICS worldwide FY2018
53,358 90,295
386,662
sports performance and lifestyle (as of December 31, 2018)
East Asia Americas
8,823
brands. We operate 54 businesses
in 33 countries. Our reach extends
further through our supply chain Net sales (millions of yen)
-20,327
Employees
business partners, sponsored
55
events and connections to other
stakeholders worldwide.
Net income (millions of yen)
Find out more Global businesses Net sales by region
(millions of yen)
33
http://corp.asics.com/en/investor_relations
Net sales by product (millions of yen)
Countries where we have
Footwear: 83.3%, 322,229
businesses established
Apparel: 11.7%, 45,212
899
Accessories: 5.0%, 19,220
Retail stores
22
118,250 105,683
Japan EMEA
Sourcing countries
Adjustments to the total regional sales
are 17,364 millions of yen. Subtracting
adjustments from the total regional sales
result in our consolidated net sales.
5
OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
ASICS SUSTAINABILITY
FRAMEWORK
Our sustainability framework is
based on our founding philosophy SMARTER STRONGER
“a sound mind in a sound body”, I respect the ground I play When I move, I feel stronger,
and its contemporary expression
I MOVE ME™. It has two pillars:
sport on and enable future
generations to move too. ER happier and sharper.
I Move Me Smarter for Planet and
I Move Me Stronger for People. Products RT Health and wellbeing
We help people improve their
le
A
We innovate and educate physical fitness and mental health.
p
SM
Supporting the UN’s to develop the best products
and services using less.
o Read page 34
Sustainability Agenda
Pe
Read page 16
ASICS supports the UN’s Sustainable Supply chain
Development Goals (SDGs), and our Operations
We build transparent, fair and
ethical partnerships, and empower
sustainability activities align with
t
We are committed to continuously the people in our value chain.
ne
them. In particular, our activities
R
a
Pl
improving the efficiency of our own Read page 35
GE
support goals 3, 6, 8, 12 and 13. buildings, resource use, materials
and distribution network.
Communities
RO
N
Read pages 17 & 24
For an overview of the priority We support our employees and
sustainability topics that our
activities cover, see our materiality ST communities so that they can
fulfill their potential.
Read pages 33 & 41
program on pages 8 and 9 of
this report. Planet People
I MOVE ME SMARTER I MOVE ME STRONGER
We’ll empower future generations We’ll create a world in which people
to move by contributing to the become physically and mentally
sustainability of the environment. stronger through movement.
6
OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
GOVERNANCE
Sustainability is a shared responsibility ASICS Group has operated a CSR and Our Policy of Engagement sets out the Find out more about our corporate governance
Sustainability department since 2004. requirements regarding human rights, labor https//:corp.asics.com/en/investor_relations/
at ASICS. It involves all company management_policy/corporate_governance
Composed of a global team and designated standards, occupational health and safety,
divisions and colleagues at every staff at a regional level, the department is and environmental practices for any ASICS
level. As well as initiating sustainability responsible for implementing sustainability business partner.
Find out more about our system of sustainability
governance and policies
projects and ideas in our daily activities and driving performance, managing https//:corp.asics.com/en/csr/our-approach/
Our Global Policy on Environment sets out
operations from the bottom up, we progress against targets and engaging with
our approach to managing environmental governance-and-policies
also manage and integrate them into internal and external stakeholders.
impacts in our own operations as well as
our organization from the top down. Earning trust, ensuring compliance in our value chain.
To uphold the trust of all our stakeholders
Our Board of Directors has overall responsibility In addition to these formal policies, we
we maintain a highly transparent system
for sustainability oversight. Management have a range of guidelines and manuals that
of corporate governance.
is responsible for integrating and prioritizing translate our policies into operational practice.
sustainability in our corporate objectives. We seek to continually improve the audit They help our colleagues and suppliers make
In addition, each core department incorporates functions and internal controls of our the right decisions in areas such as chemicals
sustainability into their department targets corporate management. Our aim is to create management and safety, fire and emergency
and KPIs, thereby ensuring that sustainability a management approach that goes beyond procedures, materials selection, and
is integrated throughout the organization. compliance and reflects our company values procurement and sourcing.
and the perspectives of our stakeholders.
We encourage employees and business
CSR and sustainability policies partners to report code or policy violations
The ASICS Global Code of Conduct sets out using our confidential, anonymous
the basic standards we expect our colleagues whistleblowing service. This allows us to
to uphold in everything they do. These apply detect the first signs of wrongdoing and
to all ASICS Group companies. carry out corrective measures promptly.
7
OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
MATERIAL ISSUES
We run a continuous materiality As we make progress in addressing Materiality matrix
program aligned with international certain issues over the years, their strategic
importance to our business may decrease,
standards. Through this program, we and other issues may be given higher priority.
identify and evaluate the sustainability
Product
High
safety &
issues that are most relevant to our The materiality matrix on this page shows quality
the 12 sustainability issues identified as most
stakeholders and to our own business. material to our business, as of 2019. It was
Energy
efficiency Ethical
and CO2 workplace
developed through consultation with internal emission standards
This program has two main elements: our Material
Corporate
stakeholders across the entire global ASICS and product
governance
materiality matrix, which helps us prioritize traceability
and
organization, as well as with external disclosure Workplace
sustainability issues, and our value chain
Importance to stakeholders
health &
stakeholders. safety
analysis, which shows us where material
Water Innovative
issues occur in our value chain. Together, Since ASICS is a product-driven organization, efficiency Fair and efficient
these elements help us focus on the issues product safety and quality remains our top
and water
pollution
compensation
and
product
design
and areas that matter most to our stakeholders priority. Because ASICS depends on a global performance
and our business. supply chain and works with a wide range of Resource
suppliers, ethical workplace standards are scarcity
Materiality matrix Physical
another responsibility we take very seriously. Diversity
inactivity
Our materiality matrix maps out the and
sustainability issues identified by internal Over the past year, consumers have shown
inclusion
and external stakeholders according to an increasing interest in material and product
their level of priority. The matrix is based on traceability. Climate change, water and
analysis of our consultations with stakeholders, resource scarcity are also areas of growing
international frameworks, our business concern for many of our stakeholders. As a
Low
priorities and our sustainability performance. result, these issues have increased in priority
compared to last year.
We update the matrix regularly to reflect
changes in the priorities of our stakeholders Low Strategic importance to ASICS High
and the strategic priorities of our company.
Most material issues High prority issues Movement from last year’s position
8
OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
VALUE CHAIN ANALYSIS
Value chain analysis is the second Raw materials Materials Product ASICS Retailers Consumer End of life (disposal/
component of our materiality (Tier 3 and suppliers manufacturing reuse/recycle)
beyond) (Tier 2) factories (Tier 1)
program. Material issues may occur
at different stages of our product Raw, unprocessed Companies A supplying partner All entities within the Business customers People who buy and The final stage
materials or supplying finished to the ASICS Group ASICS Group. These of ASICS that sell use ASICS products of our products’
life cycles. Some may be directly feedstock that are materials (such as involved in the include our sales our products to and services, existence where
influenced by ASICS’ operations while used to produce yarn, fabric or trims) manufacturing offices, sourcing/ consumers, such as including our they no longer
finished products that are the main of our footwear, production specialist sports footwear, sports meet the quality
others occur elsewhere in the value or materials. components of accessories or management shops, department apparel, accessories, expectations
chain of our products. The diagram our products. apparel products. offices, distribution stores and online and training plans. or other needs
centers, Institute of retailers. of our customers.
on the right shows where material Sport Science and
issues occur in our value chain. affiliate companies.
The light blue bars show the issues that are
considered to be of high priority to ASICS and Product safety and quality
our stakeholders, in line with the materiality Innovative and efficient product design
matrix on page 8.
Energy efficiency and CO2 emissions
Resource scarcity
Water efficiency and water pollution
Material and product traceability
Fair compensation and performance
Workplace health and safety
Ethical workplace standards
Diversity and inclusion
Physical inactivity
Corporate governance and disclosure
9
OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
STAKEHOLDER ENGAGEMENT
The priorities and concerns of our Stakeholders Engagement principles Activities and interaction
stakeholders play a critical role in
Consumers We aim to provide products and services that add value We engage consumers in social and environmental programs such as charity
our sustainability plans. for our consumers and contribute to a healthy society. donations and product take-back programs.
We engage consumers to share and solve social and Sustainability-related questions from consumers are logged in order to ensure
environmental issues together. a timely and satisfactory response, and to track trends in subjects and interests.
Increasing interest received on material and product sustainability and traceability.
Shareholders We believe in transparency in business operations Shareholder meetings, Annual Report, ESG (environmental, social, governance)
and investors throughout the ASICS Group. We will provide and disclose investment fund surveys and inquiries.
relevant information in a timely, appropriate, accurate and Increasing interest received on climate change and water.
clear manner to shareholders and investors.
Employees We believe in treating one another with respect and dignity. Employee surveys, periodic meetings, sustainability projects and business
We strive toward a corporate culture of discipline, creativity division updates.
and ambition where personal development and corporate
growth go hand in hand.
Business We are partners with our customers, suppliers and other Periodic supplier business alignment meetings, supplier audit and training
partners business partners in our value chain. Sustainability sessions. Exploring new areas of sustainability collaboration around
improvements depend on collaboration and commitment manufacturing, recycling and innovation.
from all. We engage our business partners to share and Increasing interest received on material and product sustainability and traceability
solve social and environmental issues together. from customers.
NGOs We maintain an open dialogue with international and local Collaboration in local disputes between factory workers and their management,
nongovernmental organizations (NGOs) and non-profit collaboration with surveys and other review/research of NGOs regarding subjects
organizations (NPOs), remain aware of CSR-related topics of their interest.
and engage in collaborative efforts to solve sustainability Migrant workers’ forced labor risk was raised by the NGO Transparentem in 2018.
challenges within our industry. Please see more detail on page 39.
Regulators All our corporate operations comply with relevant laws and Direct interaction or via industry collaborations regarding upcoming legislation.
regulations. We adopt processes, systems and structures
to support appropriate and efficient operations and
decision-making.
10OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
STAKEHOLDER ENGAGEMENT
CONTINUED
We engage in regular, ongoing Stakeholders Engagement principles Activities and interaction
consultation with all of our
Academic Our involvement with universities and other knowledge Collaboration around Life Cycle Analysis of our products, our supply chains
stakeholders in order to understand partners centers increases awareness and promotes the development and exploring other, new areas of sustainability research and innovation.
their concerns, and how they change of improved and more sustainable products and services.
over time. We use these insights as
Industry We maintain memberships with several industry associations, Founding member of the Sustainable Apparel Coalition (SAC).
the basis of our materiality matrix, associations globally and locally. Collaboration and discussion with other Member of World Federation of Sporting Goods Industry (WFSGI) – active CR
which in turn guides our short- and companies and stakeholders will result in better solutions Committee member.
to common challenges in our industry and value chain.
long-term sustainability strategy. Partner with ILO Better Work.
Member of Apparel & Footwear International RSL Management Group (AFIRM).
bluesign® System Partner
Member of American Apparel & Footwear Association (AAFA).
Communities While we encourage sports participation, promote health Employee volunteering, support of communities via financial donations or in kind,
and contribute to a healthy society, we aim to fulfill our social collaborations with existing and potential new partner organizations.
responsibility and help improve conditions for communities
around the world.
11OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
2020 TARGETS AND PROGRESS
The 2018 fiscal year was the third Category Target Progress FY2018 Plan for FY2019
year of our 2016-2020 Strategic
Planet
ASICS Growth Plan. I MOVE ME SMARTER
The plan sets out a series of five-year Products Continue to assess footwear and apparel ›› Conducted LCA of one of our running ›› Keep involved in the process of SAC
sustainability targets, prioritizing six key areas: products with sustainability indicators shoes to assess and analyze its Higg Product Module ahead of its
and criteria aligning with the science-based environmental impacts. We shifted expected launch in 2019 (see page 18).
1. Sustainability of products and services targets and other product and material our assessment of products to focusing ›› Implement the action plan to achieve
2. Management of product chemical safety targets.1 on materials-related indicators. our polyester and cotton targets.
Progress: On track ›› Set new targets to achieve our 2030
and traceability CO2 reduction commitment, such as
3. Operational eco-efficiency and switching 100% of polyester used in
management systems our products to recycled polyester.
4. Safe and ethical workplace standards ›› Set a target to sourcing 100%
sustainable cotton for apparel and
and sustainable practices at Tier 1 accessories by 2025.
and Tier 2 suppliers
5. Sound governance and disclosure, 10% reduction of CO2 emissions per ›› CO2 emissions decreased by 15.9% ›› Actively engage with our suppliers
organizational efficiency and developing item related to footwear manufacturing for every pair of shoes manufactured to implement action plan to exceed
an engaged workforce (Scope 3, 2015 baseline). (compared to 2015 baseline levels). key targets.
Progress: Achieved −− reduce energy use per product
6. Contributing to healthier communities manufactured at our Tier 1 suppliers
through movement and sport by 30% by 2030
55% reduction of CO2 emissions per ›› CO2 emissions decreased by 4.5%
−− switch 100% of polyester used in our
The tables on page 12 to 14 show our progress product manufactured from our supply for every item manufactured
products to recycled polyester by 2030
chain2 by 2030 (Scope 3, 2015 baseline). (compared to 2015 baseline levels).
against our 2020 targets. They also include two ›› Set key targets to achieve the target.
Progress: On track
new longer-term targets for 2030, set in 2018.
Source 80% of the leather by volume we ›› In 2018, 88% sourced from LWG ›› Continue to source more from LWG
use for ASICS, ASICSTIGER and Onitsuka medal-rated suppliers. medal-rated suppliers toward 2020.
Tiger branded footwear from Leather
Working Group (LWG) medal-rated suppliers.
Progress: Achieved
1 Aligned indicators with the SAC Higg Product Tools.
2 Target scope is ‘purchased goods and services’ and ‘end-of-life treatment of sold products’.
12OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
2020 TARGETS AND PROGRESS
CONTINUED
Category Target Progress FY2018 Plan for FY2019
Planet
I MOVE ME SMARTER
Operations 5% absolute CO2 emissions reduction from direct operations ›› CO2 emissions decreased 19.2% (compared to 2015 ›› Actively switch to renewable energy where possible.
(Scope 1 & 2, 2015 baseline). baseline year).
Progress: Achieved ›› Set key target to switch 60% of energy use in our own
operations to renewable energy to achieve our 2030
CO2 reduction target.
33% absolute CO2 emissions reduction from direct operations
by 2030 (Scope 1 & 2, 2015 baseline).
Progress: On track
98% waste recovered or recycled at our direct operations.3 In 2018, ASICS diverted 91.4% of its waste from landfill. ›› In 2019 we will continue to work with the key locations
Progress: On track We decreased the total waste volume and compared to reduce the waste going to landfill and improve recycling
to 2017 we also increased the percentage of waste that rates further.
is recovered or recycled. ›› We will continue our efforts to expand the number of sites
reporting waste data.
Establish global ASICS Environmental Management In 2018, the existing systems in Japan and Europe were In 2019 the existing system in Europe will be further aligned
System (including ISO 14001 at all key locations). largely consolidated and aligned to facilitate expansion with the updated system in Japan. We will also start building
Progress: On track of the scope in future years. the framework for application of this system to other offices
and operations.
90% Tier 1 strategic partner factories improve their SAC Analysed the FEM 2017 modules of the Tier 1 strategic Based on the analysis of the Higg FEM modules, lagging
Higg Facility Environmental Module (Higg FEM) Score partner factories that responded to our request. performance was identified. We will collaborate with these
compared to baseline. The scores were compared within our suppliers suppliers to develop improvement plans.
Progress: partial progress and with the industry benchmark.
90% of all nominated Tier 2 suppliers improve their SAC Analysed the FEM 2017 modules of the Nominated Tier 2 Based on the analysis of the Higg FEM modules, lagging
Higg FEM Score compared to baseline. suppliers who responded to our request. The scores performance was identified. We will collaborate with these
Progress: partial progress were compared within our suppliers and with the suppliers to develop improvement plans.
industry benchmark.
10% reduction of water and waste impact per item Water consumption decreased by 17.6% and waste emissions Roll out the new environmental guidelines to support suppliers
produced by Tier 1 footwear factories. doubled for every pair of shoes manufactured. to further reduce environmental impacts.
Progress: Achieved & partial progress
13
3 Sites that are able to measure and report their waste.OVERVIEW • I MOVE ME™
SUSTAINABILITY REPORT 2018
2020 TARGETS AND PROGRESS
CONTINUED
Category Target Progress FY2018 Plan for FY2019
Planet
I MOVE ME STRONGER
Supply chain All Tier 1 supplier factories to meet ASICS C-Level or above. ›› 91% of our Tier 1 supplier factories rated C-Level or above 95% of our Tier 1 supplier factories to meet C-Level or above.
Progress: On track on ASICS’ supplier rating scale.
›› In 2018, the business division continued to consolidate
the suppliers.
All Tier 1 strategic partner factories to meet ASICS B-Level 62% of footwear and 70% apparel Tier 1 strategic partner ›› 90% of Tier 1 strategic partner factories meet B-Level
or above, and self-report via Higg Facility Social Labor factories rated B-level or above. or above.
Module (Higg FSLM). ›› Set the baseline level of the Higg Facility Environment
Progress: partial progress Module (FEM) and Facility Social Labor Module (FSLM)
Tier 1 ASICS A- and B-Level factories trained in self- In 2018, 29% of our Tier 1 suppliers rated A- and B-Levels 100% of Tier 1 factories rated A- and B-Level trained in
governance on CSR in combination with ASICS and/or on ASICS’ supplier rating scale. self-governance in combination with ASICS and/or third-
third-party verification. Audit period of Tier 1 factories rated A- and B-Level party verification.
Progress: partial progress changed from once a year to biennial.
All nominated Tier 2 suppliers meet ASICS C-Level or above. 75% of footwear nominated Tier 2 suppliers rated C-Level 100% of nominated Tier 2 suppliers meet ASICS C-Level
Progress: On track or above. or above.
Communities Establish global ASICS HR systems and work environment. In order to realize a more sustainable leadership pipeline, The scope of the TM Cycle will expand to almost all regions
Progress: On track the Talent Management (TM) Cycle was implemented at globally in 2019. The HRIS platform will be used to store
ASICS headquarters in 2018. The initiative enabled us to and track talent pool data, including employee career
identify, select and develop future leaders more strategically. development plans, to ensure higher quality.
Female managers appointed in all business divisions Female representation at management level increased Continue to strengthen programs and develop training
of ASICS Headquarters and ASICS Japan Corporation. to 9.4%, up from 8% in 2016. to leverage diversity and support the career development
Ratio of females in manager and senior positions >15%. plans of female employees.
Progress: On track Analyze the barriers to leverage potential female managers
in each division and implement action plans to remove them.
Alignment on all global community engagement activities Right To Play was chosen as our priority charity partner. Continue Project Lebanon into its second year in collaboration
by the end of 2016. ASICS and Right To Play launched a Project Lebanon, with Right To Play.
Progress: Achieved an initiative to provide sport and play programs and Encourage more regions and countries to be active in our
empower Syrian refugee children in Lebanon. community activities. 14I MOVE ME™ SMARTER
SUSTAINABILITY REPORT 2018
SMARTER
55% 33% 100%
At ASICS, we care for the resources that enable
current and future generations to MOVE – in
the design of our products, our materials and
we’ll reduce our CO2 we’ll reduce CO2 we’ll replace polyester
manufacturing processes, and in the way we emissions by 55% per emissions from our materials in shoe
manage our offices, distribution centers and product manufactured, direct operations uppers and sportswear
retail locations. We make smarter decisions in line with science- by 33% in line with products with 100%
for the planet. And we engage our supply chain based targets* science-based targets* recycled polyester*
and consumers to help them do the same.
* Target year for all commitments: 2030.
15I MOVE ME™ SMARTER
SUSTAINABILITY REPORT 2018
FEATURED STORY FOR
CREATING PRODUCTS
AND SERVICES
We innovate and educate to ›› Compared to the original FlyteFoam,
develop the best products and FlyteFoam™Lyte enhances strength by
approximately 20% and durability by
services using less. approximately 7%, while still remaining
lightweight. It also reduces CO2 emissions
Our aim is to make the best products and
in production by 27%, compared to
services in our industry. For us, that means
traditional midsole material.
products that support healthy lifestyles by
›› We are currently expanding the use of CNF
helping our customers move, enjoy sport
to other ASICS shoe models, including our
and improve their sporting performance.
DynaFlyte series (left image). We will continue
It also means products developed in a way
to pursue technology innovation to improve
that considers environmental impact at every
both product sustainability and functionality.
stage of their life cycle, including design,
production processes and business operations.
“The first commercial application
Cellulose nanofiber (CNF)
›› Launched in 2018, the GEL-KAYANO™ 25 of CNF reinforced resin material
is the world’s first running shoe to feature is taking advantage of CNF
cellulose nanofiber (CNF). features and is indeed a big step
›› CNF is a nano-sized ultra-fine fiber made
from plant biomass that is one-fifth the weight
in the development and usage
of steel but five times stronger. As well as of CNF material. We hope this
improving lightness and strength, it also will mark the start of more and
reduces the shoe’s overall carbon footprint.
varied uses of CNF reinforcing
›› The midsole for the shoe features
ASICS’s new foam material FlyteFoam™Lyte, resin material in the future”.
reinforced with CNF. As a result, the GEL-
KAYANO™ 25 has improved both durability Hiroyuki Yano, Professor,
and stability for runners, without Research Institute for Sustainable
compromising on weight. Humanosphere at Kyoto University
16I MOVE ME™ SMARTER » PRODUCTS
SUSTAINABILITY REPORT 2018
OUR APPROACH TO Operations Products
CLIMATE CHANGE
Addressing climate change We will actively engage our supply chain
Climate change is a serious threat to the partners, consumers and other stakeholders CO2 emissions reduction targets for 2030
environment and economies around the on these issues and work toward achieving
world. Rising global temperatures are affecting our targets together. Scope 1 and 2: Scope 3:
33% 55%
weather patterns and causing extreme weather
For more about what we’re doing
conditions, leading to food shortages and water to achieve our targets
scarcity; they also affect our ability to move see pages 19, 20, 25, 26 and 30.
and play sports, as well as the places where Reduction in absolute CO2 emissions Reduction in CO2 emissions from our
we do this. Climate change is also a direct from our direct operations supply chain per product manufactured
threat to our business, impacting production (2015 baseline) (2015 baseline)*
sites and logistical routes in our supply chain.
Climate change is caused by a build-up
of greenhouse gases in our atmosphere,
released in part by businesses such as ours.
We know that we contribute to global CO2 Science Based Targets initiative (SBTi)
Action 1 Action 2 Action 3
emissions both through our manufacturing The SBTi was established in 2015 and is
60% 30% 100%
and distribution processes and our direct a collaboration between CDP, the United
operations. The materials we use to make Nations Global Compact, World Resources
our products can also contribute to our Institute (WRI) and the World Wide Fund
overall emissions. For example, polyester for Nature (WWF). The initiative champions Or above boost Reduction to the amount Recycled polyester
and polyurethane are derived from fossil fuels, science-based target setting as a way to to the ratio of energy our Tier 1 to replace standard
and release CO2 when the products containing boost companies’ competitive advantage of renewable supplier factories use polyester materials
carbon are incinerated at the end of their life. in the transition to the low-carbon energy in our to manufacture each in shoe uppers and
For these reasons, we see climate change as economy. Targets adopted by companies business facilities of our products sportswear products
a crucial issue for our business. to reduce carbon emissions are considered
“science-based” if they are in line with the
We’re committed to reducing our carbon level of decarbonization required to keep
* Target scope is ‘purchased goods and services’ and ‘end-of-life treatment of sold products’.
footprint by setting science-based carbon global temperature increase below 2ºC
reduction targets in line with the goal of the compared to pre-industrial temperatures.
Paris Agreement to keep global temperature
increases below 2ºC. Our new targets were set Find out more about Science
in 2018, and officially approved by the Science Based Targets initiative
https://www.sciencebasedtargets.org
Based Targets initiative (SBTi) in the same year. 17I MOVE ME™ SMARTER » PRODUCTS
SUSTAINABILITY REPORT 2018
OUR APPROACH TO CREATING Products
PRODUCTS AND SERVICES
Life Cycle Assessments Value chain Developing and implementing
Through Life Cycle Assessments (LCAs), we the Higg Index
continuously investigate the environmental and Developed by the Sustainable Apparel Coalition
Raw materials
social impacts of our products at each stage We are committed to switching to more sustainable materials, such (SAC), the Higg Index is a suite of tools that
of their life cycle, from the sourcing of materials as recycled polyester, bio-based and more sustainable cotton. allows brands, retailers and manufacturing
all the way to recycling or disposal. We then use See pages 16, 20 and 21 facilities to measure the sustainability
the findings of these assessments to improve performance of their products and facilities
Material processing (Tier 2)
our approach to design and development. accurately. As a founding member of SAC, we
We committed to meeting our quality and safety standards,
and reducing impacts in the dyeing process. have been actively involved in developing the
In 2018, we conducted an LCA on our GEL-
See pages 19, 22 and 23 Higg Index product-level tools, and using them
KAYANO™ 25 running shoes, and compared
to assess the sustainability of our materials and
the results with the LCA on the previous Product manufacturing (Tier 1) products. As these tools are developed and
GEL-KAYANO™ 17 model. The analysis showed We engage with our suppliers to reduce environmental impacts
during the manufacturing processes.
launched, we integrate them into our product
that we have reduced CO2 emissions per pair
development process.
by around 24% compared with the previous See pages 19, 30 and 31
model. This result was achieved by reducing In 2018, we contributed to the development
Distribution to market
the number of materials used on the shoe We work with our logistics providers to transport our products of the Higg Product Module (Higg PM) by
uppers, using bio-based materials in the to our various markets in the most efficient way. providing input related to the footwear
midsole, and switching to less carbon- See pages 28 manufacturing processes and related
intensive energy for the manufacturing environmental data. To support our sustainable
process. Retail materials targets, we shifted from focusing on
Our own retail stores are designed to use energy efficiently
and to maximize the reuse of store fittings. whole products to assessing materials-related
See pages 28 indicators in our product assessments. In 2019
we will continue to support the development
Product use phase
of the Higg PM ahead of its expected launch
We help consumers reduce their environmental impact in the middle of the year, for example by
through care label advice. providing data and feedback.
End of life and recycling
We investigate partnerships and engage consumers
in programs to support a circular economy.
See pages 20
18I MOVE ME™ SMARTER » PRODUCTS
SUSTAINABILITY REPORT 2018
OUR APPROACH TO CREATING Products
PRODUCTS AND SERVICES
CONTINUED
A scientific approach to sustainable Solution dyeing Apparel: Apparel collection with
product development As part of our shift to more sustainable waterless dyeing technology
For ASICS, scientific research is the starting manufacturing processes, we’re increasingly
point for sustainable product development. using solution dyeing, a process that uses
We continuously research new sustainable around 50% less water than conventional
materials and manufacturing processes dyeing methods. Instead of introducing dyes
through the ASICS Institute of Sport Science, by dipping and washing of fabrics, the new
and in collaboration with external partners. process adds color to the synthetic fiber
When we develop more durable or lightweight components in their liquid state before
materials, we actively apply them in our the fiber is actually produced.
footwear products to improve both their
Our new training apparel collection,
functionality and sustainability.
launched in 2018, is produced using the
Automated shoe production solution dyeing process.
50%
In 2018, we launched a new automated shoe Industrial robot bonding shoe upper and sole
production system using industrial robots.
Used mainly in the process of bonding shoe The machinery will be introduced at the Sanin
uppers and soles, the automated system ASICS Industry Corporation, one of ASICS’s less water used to dye
is expected to double production efficiency, shoe production bases in Japan, where it will our apparel collection
as well as reducing the negative impact of be used to make lifestyle and walking shoes.
adhesives on factory workers’ health and
We are researching other areas where
safety and on the environment (see page 23).
technology has the potential to enhance
Researched and designed by the ASICS our processes and reduce our environmental
Institute of Sport Science, the automated impact. For example, we are currently examining
process uses machinery made by YASKAWA the potential of AI and IoT technologies to
Electric Corporation, one of the world’s leading better meet consumer needs and reduce
companies in its field. CO2 emissions from transportation.
19I MOVE ME™ SMARTER » PRODUCTS
SUSTAINABILITY REPORT 2018
OUR APPROACH TO CREATING Products
PRODUCTS AND SERVICES
CONTINUED
2
Selecting more sustainable Closing the loop: collecting 1
materials and processes and recycling used products 3
Shifting to sustainable materials is at the heart To reduce our CO2 emissions and use
of our sustainability strategy. To help us realize resources efficiently, we’re committed to
this ambition, we’re working with industry supporting a circular economic model where
partners (see pages 21 to 22 for examples) resources are reused and recycled rather than
to enable us to switch to more sustainable being sent to landfill. During 2018, we’ve been
materials and processes during manufacturing. working in partnership with others on a number
of projects to reclaim and reuse clothing and
Examples of sustainable materials currently
shoes of any brand at the end of their life.
used in ASICS products include recycled 4
polyester, sustainable cotton and bio-based In Japan, we worked to launch the ASICS
materials. Solution dyeing (see previous page), REBORN WEAR PROJECT (ARWPJ) in early 2019 Campaign poster featuring donated DynaFlyte 3 Sound
which uses less water and energy than to offer a way to cheer for Japan Team for sportswear from retired wrestler
Saori Yoshida, the three-time 1 Heel: 50% recycled polyester
conventional methods, is a good example Olympic and Paralympic Games Tokyo 2020 by Olympic gold medalist
of a more sustainable manufacturing process gathering sportswear rich with memories from 2 Tongue: 25% recycled polyester
increasingly used by ASICS. people across the country and giving it new life the country. The project will launch in the 3 Upper: 45% recycled polyester
as Tokyo 2020 Japan Team official sportswear1. second quarter of 2019.
As well as using more recycled materials in 4 Midsole: FlyteFoam™Lyte: 40% bio-based using
We applied a circular production and waste products from sugarcane and organic
our main collections, we’re also applying them As part of our preparations, our team
development process to extract polyester from fibers from wood pulp (CNF)
in the manufacture of apparel for sponsored designed and created in-store materials
the donated items, use it to manufacture resin,
events. In 2018, 89,700 of our event shirts were and other supporting materials such as a web
thread and fabric, and then produce new
made entirely of recycled polyester and more page (www.asics.com/ico) to help consumers
sportswear and shoes2. ASICS will continue
sustainable cotton. understand our circular business model, and
to contribute to the success of Tokyo 2020
and to reducing environmental impacts. the purpose and goals of the project. Staff at
In addition to reducing waste and other
the selected stores received project training.
environmental impacts, switching to more
In the US, we are preparing for the upcoming
sustainable materials and manufacturing Consumers who donate clothes will be
launch of our partnership with I:CO, a global
technologies will play an important role in rewarded with a 15% discount coupon that
solutions provider for the collection, reuse and
helping us meet our new carbon reduction can be used to purchase a single item in a
recycling of used clothing and shoes. Through
targets (see page 17). future visit. Proceeds from the program will
the partnership, consumers will be able to
donate used apparel and footwear from any be donated to our non-profit partner, Right
brand at 22 selected ASICS outlet stores across To Play. (see page 33 about Right To Play). 1 ASICS is a Gold Partner (Sporting Goods)
of the Japan Olympic and Paralympic Team.
2 For shoes, the upper and the insole are made 20
with recycled materials.I MOVE ME™ SMARTER » PRODUCTS
SUSTAINABILITY REPORT 2018
OUR APPROACH TO CREATING Products
PRODUCTS AND SERVICES
CONTINUED
Guidance on sustainable material choices minerals such as tin, tungsten, tantalum and Leather Working Group: Better Cotton Initiative:
Our ASICS Materials Guideline gives guidance gold being applied in ASICS products is small, responsible leather sourcing responsible cotton sourcing
covering materials such as animal-based it’s important to have formal guidance to avoid Increasingly, consumers want to know more Cotton is one of the main natural materials
materials and PVC, and enables ethical, compliant using them in all products where metal is about the origin of branded products and used for ASICS apparel products. Cotton
and more sustainable choices in product applied, such as zippers, buttons or eyelets. materials, particularly natural materials. is known to use a large amount of water
development and sourcing. In 2018 we continued Although ASICS products mainly use synthetic before harvesting, as well as a large amount
In the exceptional case that the functionality
to update and expand the guideline, adding materials, leather is the most significant natural of chemical substances (pesticides and
of a product requires us to use one of these
specific guidance on the use of conflict minerals. material we use in terms of volume. fertilizers). It is also associated with a high risk
minerals, we now require our business partners
of human rights issues such as forced and
In conflict-affected and high-risk areas to source these from DRC-conflict-free To ensure the traceability of our leather
child labor.
including the Democratic Republic of the suppliers whose due-diligence practices were products and shift to source more sustainable
Congo (DRC), the minerals trade can be used validated by a third party audit program such leather, in February 2018 we joined the Leather In 2018, we made a group-wide commitment
to directly or indirectly finance armed groups, as the Responsible Minerals Initiative (RMI). We Working Group (LWG), a multi-stakeholder to source more sustainable cotton. We publicly
fuel forced labor and other human rights will review due diligence information received group promoting sustainable leather announced the commitment in early 2019,
abuses, and support corruption and money from business partners against our company’s manufacturing practices. ASICS is the as well as formalizing our partnership with the
laundering. Although the likeliness of conflict expectations to ensure they are conflict-free. first Japanese brand to join the group. Better Cotton Initiative (BCI). BCI works with a
diverse range of stakeholders across the cotton
We took part in the LWG Main Member Meeting
ASICS Materials Guideline Focus Subjects supply chain to promote measurable and
in Hong Kong and gained valuable information
continuing improvements for the environment,
about the leather industry and how to address
Materials of animal origin PVC farming communities and the economies
common challenges around leather sourcing.
of cotton-producing areas.
›› No use of endangered or exotic species. ›› ASICS continues to actively phase out the use of We set a target to source 80% of the total
›› Animal welfare to be respected and good animal PVC. A small number of items in specific markets leather used for ASICS, ASICSTIGER and By 2025, ASICS will source 100% more
husbandry shall be applied. currently still contain PVC as alternatives are not
Onitsuka Tiger branded footwear from LWG sustainable cotton in our apparel products
›› No use of fur. available for all product applications and functions.
›› All leather and skin shall be by-products ›› Screen print inks used for ASICS products shall medal-rated suppliers by 2020. In 2018, we and accessories. We consider cotton to be
of the meat industry. not contain PVC. sourced 88% from LWG medal-rated suppliers, more sustainable if it is one of the following:
›› No down and feathers obtained through live ›› ASICS, ASICSTIGER and Onitsuka Tiger branded reaching our target two years early.
plucking or from farms practicing forced feeding. products shall not contain PVC. Currently, more ›› Better Cotton Initiative (BCI) cotton
›› Wool shall originate from suppliers who do not than 99% of all ASICS products are free from PVC. ›› Organic cotton, Global Organic Textile
apply mulesing practices. Standard (GOTS) certified
Conflict minerals
›› Fairtrade cotton, Fairtrade certified
›› Recycled cotton. Global Recycle Standard
›› No use of conflict minerals (tin, tantalum, tungsten and gold). (GRS) certified
›› Cotton made in Africa (CmiA), traded
21
under CmiA licenseI MOVE ME™ SMARTER » PRODUCTS
SUSTAINABILITY REPORT 2018
OUR APPROACH TO CREATING Products
PRODUCTS AND SERVICES
CONTINUED
1st
AFIRM Group bluesign
When it comes to sustainability, businesses like bluesign® is an industry-wide system bringing
ours can achieve much more by working with together brands, manufacturers, converters
others in our industry than we can on our own. and chemical suppliers to collaborate on Japanese brand to become
For this reason, in 2013 we joined the Apparel chemical management. ASICS became the first a System Partner of bluesign®
and Footwear International RSL Management Japanese brand to become a System Partner
(AFIRM) Group – an organization providing of bluesign® in 2017, a system uniting every part
a forum for industry-wide collaboration to of the supply chain to improve the sustainability
reduce the use and impact of harmful chemical of textile and footwear production. In 2018 we
substances in the apparel and footwear supply began to develop a road map to plan the use
chain. ASICS has fully adopted the AFIRM of bluesign materials in our products. Our initial
Group’s restricted substances list (RSL) since focus is on our main global apparel collections,
it was first released in 2015. including our running, training, track and field
and tennis collections, which often guide the
In November 2018, the AFIRM Group organised
development of smaller and more regional
a supplier seminar on chemical management
collections.
in Ho Chi Minh City, Vietnam. ASICS’ suppliers
were among 320 suppliers attending the While we are already working with many
seminar to connect with other suppliers and manufacturers that are bluesign system
brands, and improve their knowledge and skills. partners, in future we aim to buy our
Key topics discussed during the event included materials almost exclusively from bluesign
Vietnamese laws, RSL management and how system partner suppliers to increase our use
to phase out specific chemicals. Attendees of bluesign-approved fabrics in our global
also took part in case study exercises to apply apparel collections year on year. By using
their knowledge. AFIRM Group supplier seminar, Vietnam
bluesign-approved materials in these products,
we ensure that a large proportion of the
apparel fabrics we use are made in a way
that minimizes impacts on humans and
the environment.
22I MOVE ME™ SMARTER » PRODUCTS
SUSTAINABILITY REPORT 2018
OUR APPROACH TO CREATING Products
PRODUCTS AND SERVICES
CONTINUED
Managing quality and safety Product recalls Chemical safety Reducing Volatile Organic Compounds
At ASICS, we are committed to ensuring the We are committed to using chemicals safely (VOCs) in footwear manufacturing
quality and safety of our products. Throughout and appropriately and without harm to people The manufacture of shoes, especially high
our operations, we use a quality assurance and 2018 0 or the environment, in compliance with all performance sports shoes, involves the use
management system to ensure our products international and local laws and regulations. of adhesives to bond different parts together.
comply with all applicable global standards. 2017 2 Traditionally, adhesives based on solvents
To ensure compliance, we conduct random
We continuously improve this system to ensure containing VOCs have been used in the
inspections at our suppliers’ facilities. We also
our products and services continue to meet manufacture of athletic shoes. However, these
2016 2 carry out a variety of randomized tests on our
the requirements of our customers. solvents can have harmful impacts on people
products before they are shipped to customers.
and the environment. Since 2011, we have
Training is an integral part of our quality These include performance tests such as
2015 6 been applying a broad range of alternatives
assurance and management system. Besides durability and colorfastness, along with
to these adhesives. These include switching
training our own employees in our quality advanced chemical analyses. Tests are
to water-based adhesives and, more recently,
principles and objectives, we also train and 2014 1 conducted both within our own organization
adopting new production technologies and
certify staff within our suppliers’ facilities. and by accredited, independent, third-party
Total number of product recalls because of noncompliance design techniques that allow shoes to be made
We carry out product liability inspections that with regulations and voluntary codes concerning product laboratories.
and service quality, information or labeling.
with fewer parts and therefore less adhesive.
cover product safety, the application of quality
The ASICS Guideline for the Control and Use Together, these methods help us reduce our
improvement measures, and descriptions Data on 2014 tracked from April 1 to December 31, 2014.
of Chemicals defines the responsibilities of VOCs emissions while also ensuring that we
on product labels and promotional materials. 2015 to 2018 data is based on calendar year.
ASICS and its suppliers regarding the control continue to use energy and water efficiently.
and use of chemicals in our product design
In 2018, our VOCs emissions were 4,082 tonnes
and manufacturing processes. The guideline
in our strategic factories. Please note that this
ensures legal compliance and is aligned with
figure includes disposed adhesives volume
industry best practice in chemical management.
in each factory, therefore, a higher value than
All suppliers must comply with the requirements
actual emissions can be shown. We have a plan
of the guideline when manufacturing ASICS’
to calculate the amount of adhesives per pair
products.
of shoes once we receive further detailed
information from our suppliers.
23I MOVE ME™ SMARTER » OPERATIONS
SUSTAINABILITY REPORT 2018
OUR APPROACH TO Operations
MANAGING OPERATIONS
We aim to continuously improve the experience in both regions and operations, Tracking performance data ASICS has set approved science-based targets
environmental performance, resource making the systems more efficient and effective. We continue to use Schneider Electric’s for carbon emissions reductions, which include
Aligned systems will also allow us to expand EcoStruxure™ Resource Advisor (RA) platform Scope 3 (supply chain) targets as well as Scope
and materials used in our buildings the scope to other regions more easily. to track the environmental performance of 1 and 2 targets for our own operations. SAC’s
and distribution network. our offices, stores and distribution centers, Higg data collection tools such as FEM will be
In the US, our main distribution center in
as well as our Global Footwear Tier 1 suppliers. critical for tracking progress against our Scope
Beyond improving the sustainability of our Mississippi, BDC, earned the US Environmental
Gathering all environmental data in this 3 emissions targets.
products, we also aim to continuously improve Protection Agency’s ENERGY STAR award for
cloud-based performance management
the efficiency and reduce the environmental the fourth year in a row. The award recognizes As more brands and suppliers set science-
system allows us to analyse our impact and
impacts of our direct operations. This includes superior energy performance and low based targets, we believe that the Higg
learn where and when we have the highest
our offices, distribution centers and retail stores. greenhouse gas emissions compared platform has a vital role to play in tracking
impacts. The information feeds into our
to similar buildings across the nation. progress against them.
To manage our environmental and sustainability improvement programs, allowing us to focus
performance to the highest standards, we use our attention on improving energy, water
Environmental Management Systems accredited and waste efficiency where it’s needed most.
to the ISO14001 international standard in our We also use SAC’s Higg Facility Environmental
main office locations. In Japan this also includes Module (FEM) to collect performance data
our Institute of Sport Science research facility. from our supply chain. Launched in 2017,
In Europe, we have included our distribution this module allows us to collect standardized,
centers into the scope of our management comparable and detailed environmental
system. performance data from our suppliers in a
After updating our certifications to the new highly efficient way. See page 30 for more
version of the standard in 2017, in 2018 we about this tool.
focused on aligning the systems between
Japan and Europe. Because each of the
systems covered different operations, they
were developed in different ways and both
interpretations had strengths and weaknesses.
By aligning both systems, we were able to
optimise the systems, learning from the
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