#Carbon Neutrality #Japan #Shibuya, Tokyo #United Arrows #SARROWS

United Arrows' Sustainability Journey Under SARROWS Initiative

United Arrows, a prominent fashion retailer in Japan, has been actively pursuing sustainability through its initiative known as SARROWS, an acronym that combines 'Sustainability' and 'ARROWS.' Launched in August 2022, this initiative sets ambitious goals for 2030, emphasizing Circularity, Carbon Neutrality, and Humanity. As of April 2024 to March 2025, the company has made significant headway toward achieving these objectives.

1. Achievements in Circularity

One of the primary goals of SARROWS is to enhance Circularity in the fashion industry. This reporting period has seen notable metrics:

• - Textile Waste Rate: Reduced from 0.03% in 2023 to 0.01% in 2024.
• - Product Waste Rate: Increased slightly from 0.08% to 0.10%.
• - Eco-friendly Product Ratio: Improved from 7.6% to 8.8%.

While the textile waste rate is nearing the zero-waste target set for 2030, the slight increase in the product waste rate signals challenges, particularly with non-fabric materials like leather and synthetic leather, which are harder to recycle. Still, the goal of limiting product waste to 0.10% has been achieved.

To further these efforts, United Arrows is exploring innovative technologies in material separation and collaborating with recycling partners for long-term improvements. Notably, the proportion of eco-friendly products has risen, indicating the company's commitment to integrating sustainable materials across its operations.

Key Strategies for Circularity:

• - Minimizing Waste: A four-pillar approach involving on-site responses, quality control, optimized distribution, and product reuse.
• - KPI Management: Setting and monitoring KPIs for textile and overall product waste.
• - Quality Control Enhancements: Engaging in regular discussions with suppliers to improve product quality and reduce defects.
• - Reprocessing Unsold Goods: Working closely with external partners to recycle unsold items rather than disposing of them immediately.

2. Progress in Carbon Neutrality

United Arrows has also made strides in pursuing Carbon Neutrality. During this reporting period:

• - CO2 Emissions Reduction (Scope 1 & 2): Improved from -13.4% in 2023 to -32.5% in 2024.
• - CO2 Emissions Reduction (Scope 3): Shifted from -13.1% to +2.8%.
• - Renewable Energy Proportion: Rose from 12.5% to 24.6%.

The reduction in Scope 1 & 2 emissions is attributed to the shift toward greener power sources in the commercial facilities where United Arrows operates. In 2024, 34 new locations incorporated renewable energy, nearly doubling the previous year’s usage.

However, Scope 3 emissions reduction has not progressed as expected. In response, United Arrows is expanding the use of organic and recycled materials while refining its methodologies for estimating emissions.

Key Strategies for Carbon Neutrality:

• - Energy Assessments: Conducting surveys on the energy use of commercial facilities and discussing pathways to integrate renewable energy.
• - CDP Ratings: United Arrows achieved a 'B' rating in climate change and 'A-' in water security from the CDP, reflecting its commitment to environmental impact reduction.

3. Advancements in Humanity

Lastly, the Humanity component focuses on fostering a healthy working environment. Key metrics include:

• - Compliance Agreement Acquisition Rate: Increased from 74.4% to 77.2%.
• - Employee Engagement Score (eNPS): Declined from -42.0 to -45.6.
• - Positive Response Rate in Employee Surveys: Slightly decreased from 74.5% to 73.8%.

With the increase in compliance agreement acquisition, the aim is to reach 100% compliance swiftly. Despite the decline in engagement scores, the firm noted improvements among younger employees. Going forward, initiatives will focus on upskilling middle-tier staff and offering tailored support avenues for employees’ lifestyles and career development.

Key Strategies for Humanity:

• - Ongoing Audits: Conducting practical audits of domestic partner factories to enhance supply chain transparency.
• - Employee Engagement Initiatives: Annual employee feedback surveys to drive improvements based on staff input. In 2024, attention will be directed towards career visibility and expanding training opportunities.

Conclusion

United Arrows' SARROWS initiative represents a comprehensive approach to sustainability in the fashion industry, addressing environmental and social dimensions effectively. The firm's commitment to transparency, innovation, and environmental responsibility sets a commendable example in the retail sector. By continuing to track progress and adapt its strategies, United Arrows stands poised to lead in sustainable fashion, contributing significantly toward a greener future.

For more information about these efforts and detailed reports, visit SARROWS Official Page.