Material Issues

We have established “11 materialities (material issues)” with our customers, our employees, the environment, society, and governance as targets. These will serve as our benchmarks until 2030 for our business' growth and our work to achieve a sustainable society.

Customers

Maximize the value provided to customers

	Material issues	Concrete efforts toward the resolution of material issues	2030 KPIs	2030 Targets	FY2026 Results
①	Enhancement of customer experience value by pursuing personalization	Increasing of customer connections and learning from them to wow other customers	Increase in the number of customers with connections to the Wacoal Group	Number of active Wacoal members: 2.6 million members (approx. 45%)	2.2 million members (approx. 40%)
②	Endeavoring to expand business areas	Tackling challenges in new areas to support customers from every angle	Business growth and improved profitability	Net sales in new areas of existing businesses: ¥2,220 million	¥220 million
				Net sales from new businesses: ¥2,000 million	¥310 million
				E-commerce sales ratio: Japan 29%, U.S. 67%, Europe 45%, China 39%	Japan 21%, U.S. 50%, Europe 38%, China 25%
		Achievement of global growth to provide inspiration to customers around the world	Overseas business expansion	Revenue in major overseas countries: U.S. ¥39.6 billion, Europe ¥42.8 billion, China ¥8.6 billion	Japan 21%, U.S. 50%, Europe 38%, China 25%
③	Deepening of product quality and building of service quality	Pursuit of quality control systems and quality levels demanded by the times	Continuous monitoring of product quality and implementation of improvement activities	Maintain 100% of manufacturing-related departments implementing quality activities and continue activities to raise awareness of quality	100% implementation rate for quality activities; as part of quality assurance activities, the Quality Assurance Council met four times and the Quality Control Committee met 65 times last year; as part of educational activities, Quality Month was held once last year

Contribution to SDGs.

Employees

Achieve growth of each of our employees and establish a highly rewarding organization

	Material issues	Concrete efforts toward the resolution of material issues	2030 KPIs	2030 Targets	FY2026 Results
④	Growth into human resources who can expand their potential and have confidence, pride, and success	Growth into of human resources that proactively enhance self-proficiency and take on challenges with enthusiasm, regardless of generation or position	Nurturing of human resources and creation of an environment in which employees can take on challenges with enthusiasm	Percentage of positive answers in engagement survey results for "growth opportunities": 50% or higher	29.4%
⑤	Building of an organization that can demonstrate great results through co-creation and collaboration	Fostering of an organizational culture in which people from various positions can cooperate and achieve their missions	Development of a work environment in which people from diverse backgrounds can work together	Percentage of positive answers in engagement survey results for "cooperative structure": 80% or higher	66.9%
⑤			Increase in the number of employees who can act with clarity on what the Company should be and its mission	Percentage of positive answers in engagement survey results for "support of the Vision": 80% or higher	66.5%
⑥	Continuous improvement of employees' health and health awareness	Improvement of employees' mental and physical health	Improvement of employees’ productivity and mental and physical health	Total number of days absent due to illness: 20,000 days or less	27,368 days
⑥		Improvement of employees' mental and physical health	Improvement of health literacy	Percentage of people who intend to change their behaviors related to the improvement of their lifestyles: 80% or higher	71%

Contribution to SDGs.

Environment

Preserve the environment globally for future generations

	Material issues	Concrete efforts toward the resolution of material issues	2030 KPIs	2030 Targets	FY2026 Results
⑦	Promotion of business activities that reduce environmental impact	Achievement of a decarbonized society	Reduction in CO₂ emission	Own emissions (Scope 1 and 2): Reduce by 30% or more compared to FY2020 (Scope: Domestic locations, factories, and distribution centers)	23% reduction
		Achievement of a decarbonized society	Reduction in CO₂ emission	Supply chain emissions (Scope 3): Reduce by 20% compared to FY2020 (Scope: Wacoal business in Japan)	43% reduction
		Promotion of waste reduction	Reduction of product waste rate	Product waste: Zero (Scope: Wacoal Corp.)	0.5%
		Achievement of a society of recycling resources	Increase in rate of environment-friendly materials used	Ratio of environment-friendly materials used: 30% or more (Scope: Wacoal Corp.)	23%

Contribution to SDGs.

Society

Realize a society in which everyone plays an active role in their own way

	Material issues	Concrete efforts toward the resolution of material issues	2030 KPIs	2030 Targets	FY2026 Results
⑧	Promotion of co-creation innovation to solve social issues	Promotion of respect for human rights and CSR procurement activities	Establishment and implementation of human rights due diligence and promotion of human rights training	To steadily promote human rights due diligence activities, we will achieve: 100% of employees receiving human rights training	98.7%
⑧	Promotion of co-creation innovation to solve social issues		Expansion of scope of CSR procurement activities	Implement on-site CSR procurement audits of raw material manufacturers and dyehouses	Timing under consideration

Contribution to SDGs.

Governance

Enhance governance toward realization of sustainable growth

	Material issues	Concrete efforts toward the resolution of material issues	2030 KPIs	2030 Targets	FY2026 Results
⑨	Implementation of highly-transparent management	Maintenance and establishment of an optimal corporate governance system that will improve effectiveness	Demonstration of the Board of Directors’ functions and promotion of diversity	External officer ratio: 50% or higher	62%
⑩	Strengthening of the risk management system	Through compliance with laws and regulations and development of an organization with high ethical standards	Implement awareness activities to enhance compliance awareness	Percentage of employees who participated in an e-learning program: 100%	97.8%
⑪	Continuous improvement of profitability and capital efficiency	Execution of the management strategy and clarification of roles and authority	Execute business portfolio management to achieve growth	ROIC target: 6.5% or higher	5.9%
⑪			Execute business portfolio management to achieve growth	Target business profit ratio: 6.0%	-0.3%

Contribution to SDGs.