Professional Documents
Culture Documents
REPORT
2016
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
CONTENTS
OVERVIEW
About this report 1
A message from our CEO 2
ASICS at a glance 3
Our approach to sustainability 4
Guiding principles 4
Governance 5
Materiality issues and boundaries 6
Value chain analysis 7
Stakeholder engagement 8
Supporting the UN’s sustainability agenda 9
2020 targets and progress 10
External recognition 13
External assurance report 47
14 29 38
1
The Science Based Targets initiative is a global partnership between CDP, the UN Global
Compact, WRI and WWF that helps companies set emissions targets based on climate science.
For more, visit sciencebasedtargets.org.
During 2016, we have been finalizing or specifying still, some In 2016, we launched a cross-functional project at our
parts of this growth plan and subsequent sustainability strategy. headquarters to drive sustainable product development and
At the same time, we began gearing up for our new targets, innovation. And to strengthen our CO2 reduction targets for 2020,
achieving our first milestones in our journey toward 2020. we committed ourselves to the Science Based Targets initiative.
Carbon reduction targets are considered science-based when
ASICS Group has taken major strides forward compared they are in line with what scientific evidence has proved is
to where we were at the beginning of our previous five-year necessary to prevent the worst impacts of climate change.
roadmap for 2010-2015. Group turnover and employee numbers
have both grown significantly since then, as has the scope of Despite our growth and many organizational changes over the
our business operations. past year, we have maintained our unique corporate culture and
our commitment to supporting every employee. Throughout
The world has also changed since 2010. Today, we face a range 2016, we carried out engagement surveys, training programs and
of new social and environmental challenges. In order to make diversity projects to make ASICS an even better place to work, and
sure we adapt to this rapid pace of change, we ensure to prepare contribute to a working environment where everybody is respected
ourselves for the future. Our continuous materiality program tracks and can be themselves.
and reflects these changes as well as the views of our stakeholders.
I’m proud of our achievements in 2016. However, our new five-year
journey has only just begun. Today, as we look towards our 2020
targets, we’re committed to striving harder than ever to keep
improving our sustainability performance in everything we do.
Motoi Oyama
Chairman, President and CEO
ASICS
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 3
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
ASICS AT A GLANCE
ASICS is one of the world’s top five sports performance and lifestyle brands. We operate
54 businesses in 33 countries. Our reach extends further through our supply chain
business partners, sponsored events and connections to other stakeholders worldwide.
ASICS WORLDWIDE
7,864 EMPLOYEES
WORLDWIDE 54 GLOBAL
BUSINESSES 33 COUNTRIES WHERE WE HAVE
BUSINESSES ESTABLISHED
Net Sales
EMEA region:
107,601
millions of yen
Net Sales
East Asia region:
43,474
millions of yen
Net Sales
Other Group
businesses:
Net Sales
Americas region: 9,163 Net Sales
millions of yen
112,913 Japan region:
millions of yen Net Sales 119,989
Oceania region: millions of yen
24,039
millions of yen
399,107
Net Sales (millions of yen)
15,566
Net Income (millions of yen)
399,107
Sports footwear
82.6%, 329,649
Sports apparel
12.8%, 51,166
Sports accessories
4.6%, 18,291
Adjustments to the total regional sales are 18,075 millions of yen. Subtracting
adjustments from the total regional sales result in our consolidated net sales.
1 CREATING PRODUCTS
AND SERVICES 2 PARTNERING WITH OUR
SUPPLY CHAIN 3 INVESTING IN PEOPLE
AND COMMUNITIES
See page: 29
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 5
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
Product
safety and
quality
Ethical
Material
workplace
and product
standards
Fair traceability
Corporate
compensation governance
and and
performance disclosure Workplace
IMPORTANCE TO STAKEHOLDERS
health
Energy and
efficiency safety
Water and CO2
efficiency emissions Innovative
and water and efficient
pollution product Physical
design inactivity and
inclusion
Resource
scarcity
Diversity
LOW
LOW HIGH
STRATEGIC IMPORTANCE TO ASICS
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 7
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
Raw, unprocessed Companies Companies that A supplying All entities within Businesses and The people who The final stage
materials or processing (raw) carry out part of partner to the the ASICS Group; customers of use our ASICS of our products’
feedstock that as materials and/ the larger set of ASICS Group our sales offices, ASICS that sell products and existence where
basic materials are or supplying manufacturing involved in the sourcing/ our products to services; our they no longer
used to produce materials or trims processes of our manufacturing production consumers, footwear, meet the quality
finished products that form the ASICS products, of our footwear, management e.g. via sport sports apparel, expectations or
or materials that main components either as a partner accessories or offices, specialist shops, accessories, other needs of
are processed into of our products specialized in apparel products. distribution department our training our customers.
products as part of (such as yarn specific centers, Institute stores, online etc. plans and other
a manufacturing suppliers, fabric technologies or of Sport Science services.
process. mills, trim contracted with and affiliate
suppliers). our permission by companies.
one of our product
manufacturing
partners.
Resource scarcity
Diversity
Customers Our main aim as a company is to provide products and Sustainability-related questions from customers are
services that add value for our customers and contribute logged in order to ensure a timely and satisfactory
to a healthy society. response, and to track trends in subjects and interests.
Shareholders We believe in transparency in business operations Shareholder meetings, sustainable investment fund
and investors throughout the ASICS Group. We will provide and disclose surveys and inquiries.
relevant information in a timely, appropriate, accurate and
clear manner to shareholders and investors.
Employees We believe in treating one another with respect and Employee surveys, periodic meetings, sustainability
dignity. We strive towards a corporate culture of discipline, committees and business division updates.
creativity and ambition where personal development and
corporate growth go hand in hand.
Business We are partners with our suppliers and other business Periodic supplier business alignment meetings, supplier
partners partners in our value chain. Sustainability improvements audit and training sessions. Exploring new areas of
depend on collaboration with and commitment from all. sustainability collaboration around manufacturing,
recycling and innovation.
NGOs We maintain an open dialogue with international and local Collaboration as part of local disputes betweeen factory
non-governmental organizations (NGOs) and non-profit workers and their management, collaboration with
organizations (NPOs), remain aware of CSR-related topics surveys and other review/research of NGOs regarding
and engage in collaborative efforts to solve sustainability subjects of their interest.
challenges within our industry.
Regulators All our corporate operations comply with relevant laws and Direct interaction or via industry collaborations regarding
ordinances. We adopt processes, systems and structures upcoming legislation.
to support appropriate and efficient operations and
decision-making.
Academic Our involvement with universities and other knowledge Collaboration around Life Cycle Analysis of our products,
partners centers increases awareness and promotes the our supply chains and exploring other, new areas of
development of improved and more sustainable sustainability research and innovation.
products and services.
Industry We maintain memberships with several industry • Founding member of the Sustainable Apparel
associations associations, globally and locally. Collaboration and Coalition (SAC).
discussion with other companies and stakeholders will • Member World Federation of the Sporting Goods
result in better solutions to common challenges in our Industry (WFSGI) – active CR Committee member.
industry and value chain.
• Member American Apparel & Footwear Association (AAFA).
• Member Federation of the European Sports Industry
(FESI) – active Sustainability Committee participant.
• Partner with ILO Better Work.
• Member of Apparel & Footwear International
RSL Management Group (AFIRM).
Communities While we encourage sports participation, promote health Employee volunteering, support of communities via
and contribute to a healthy society, we aim to fulfill our financial donations or in kind, discussions with existing
social responsibility and to help improve conditions for and potential new partner organizations.
communities around the world.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 9
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
AFFORDABLE AND DECENT WORK AND INDUSTRY, INNOVATION REDUCED SUSTAINABLE CITIES RESPONSIBLE
CLEAN ENERGY ECONOMIC GROWTH AND INFRASTRUCTURE INEQUALITIES AND COMMUNITIES CONSUMPTION
AND PRODUCTION
CATEGORY FY2020 TARGET PROGRESS FY2016 PLAN FOR FY2017 READ MORE
Creating Products Define new product • Defined new product • Define product criteria Page 16
and Services sustainability criteria for sustainability criteria for Apparel.
Apparel & Footwear products for footwear. • Set target based on
by end 2016.1 • Assessed 387 footwear the new criteria.
items through the new • Actively explore and
criteria. apply innovative and
• Updated CO2 emissions sustainable materials
reduction target of our and manufacturing
footwear supply chain to technologies.
include material sourcing • Actively explore and test
stage, in addition to technologies to close the
manufacturing. loop of our products.
1
Aligned with the SAC Higg Index Product Module.
2
Sites that are able to measure and report their waste.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 11
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
Creating Products Establish global ASICS • The Distribution Center • Focus on strengthening Page 23
and Services Environmental Management in the UK was certified in the recently certified
(continued) System (including ISO 14001 early 2016. systems and aligning
at all key locations). • The central Distribution the systems in different
Centers in Germany and regions to work towards
France will be certified by one global Environmental
the time of publication of Management System.
this report.
10% Reduction of CO2 • Applied sustainable design • Actively explore and apply Page 35
emissions per item related practices to products innovative and sustainable
to footwear manufacturing manufactured in 2016 to material and manufacturing
and material.3 reduce environmental technologies to reduce
impacts in our supply environmental impacts in
chain. our supply chain.
• CO2 emissions decreased • Create new environmental
by 16.2% for every pair guideline to support
of shoes manufactured suppliers to reduce
(compared to 2015 environmental impacts.
baseline levels).
Partnering with All Tier 1 Supplier Factories • 86% of our Tier 1 factories • 90% of our Tier 1 factories Page 32
our Supply Chain to meet ASICS C-Level met level C or above. In to meet level C or above.
or above. 2016, the business division
consolidated the factories.
All Tier 1 Strategic Partner • In 2016, we have clearly • We have submitted 100% Page 32
Factories to meet ASICS defined strategy and strategy and nominated
B-Level or above, and nominated business Tier 1 suppliers to proceed
self-report via Higg Index partners. We submitted with the roll-out of SAC
Facility Social Module. around 122 factories to facility module. The
adopt SAC facility module baseline would be expected
and get general to meet 70 up to 80 scoring.
performance levels.
Tier 1 ASICS A- and • In 2016, 26 Tier 1 factories • 100% of Tier 1 ASICS Page 17, 32
B-Level Factories trained were evaluated at Factories rated A- and
in self governance on compliance levels B and A. B-Level trained in self
CSR in combination with governance in combination
ASICS and/or third-party with ASICS and/or
verification. third-party verification.
90% Tier 1 strategic • From 2015 to 2016, around • 80 up to 90% of Tier 1 Page 17, 32
Partner Factories improve 120 suppliers have been strategic Partner Factories
their SAC. Higg Index adopting SAC Facility improve their SAC Higg
Facility Environment Score module. The return rate Index Facility Environment
compared to baseline. showed great performance Score compared to
particularly on strategic baseline.
Tier 1 suppliers.
3
The target is also related to “Partnering with our Supply Chain” category.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 12
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AND SERVICES SUPPLY CHAIN COMMUNITIES
Partnering with All Nominated Tier 2 • Since 2015, global apparel, • 100% nominated apparel Page 33
our Supply Chain suppliers meet ASICS equipment and accessories Tier 2 mill and dye house
(continued) C-Level or above. division nominated 20 Tier to be trained on new ASICS
2 factories to be included environmental guideline
in our compliance self- and to conduct self-
assessment evaluations. assessment through SAC
This represents about 60% Higg Index and new
of our Tier 2 supply volume. tooling system.
80% suppliers met ASICS’
basic compliance levels.
Investing in People Establish global ASICS • Further rolled out • Continue to establish Page 40
and Communities HR systems and work SuccessFactors system the system globally to
environment. and integrated performance increase the efficiency and
management and recruiting effectiveness of our HR
processes. operations, and to utilize
and analyze the data from
the system for future human
resource strategy.
CDP
CDP, formerly the Carbon Disclosure Project, is an internationally
FTSE4Good Global Index recognized organization that assesses corporate action on
In 2016, ASICS was included for the first time in the FTSE4Good climate change. In 2016, CDP changed its scoring methodology,
Global Index. This is a globally-recognized SRI index created by with companies being rated from D- to A depending on their
FTSE Russell, a global provider of benchmarking, analytics and progress towards leadership. In 2016, ASICS achieved a
data solutions for investors worldwide. performance level of B.
To assess eligibility for inclusion in the index, a company’s
sustainability is evaluated from three perspectives: environment,
society and governance.
CREATING
PRODUCTS
AND SERVICES
WE ARE
INSPIRED
Corporate Philosophy
Provide valuable products and services
through sport to all our customers
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 15
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
• We are committed to set • We conducted 11 research • We continued to support • In early 2016, we adopted the
‘Science-Based Targets’ projects to develop innovative the creation of the SAC AFIRM Restricted Substances
for CO2 reduction. and sustainable materials and Product Higg Index. In 2016, List (RSL) as one of the first
> Go to page 24 manufacturing technologies. we assessed 387 footwear brands to do so. We conducted
> Go to page 17 items through product 65 trainings to deploy the
sustainability indicators. AFIRM RSL and improved
> Go to page 17 chemical management.
> Go to page 20
• 42% reduction of CO2 • We produced over 36,000 • We tagged with • 93% of waste recovered
emissions from our road event apparel items containing FitnessKeeper and their or recycled at our direct
freight in Europe, US and sustainable materials such as Runkeeper application to operations.
Japan by shifting to a more recycled and bio-based. further support fun and > Go to page 27
efficient transportation route. > Go to page 18 healthy lifestyles through
> Go to page 26 digital technology.
> Go to page 21
387
FOOTWEAR ITEMS ASSESSED WITH THE HIGG
42%
REDUCTION OF CO2 EMISSIONS FROM
INDEX’S PRODUCT SUSTAINABILITY INDICATORS ROAD FREIGHT IN EUROPE, USA AND JAPAN
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 16
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
We want to make products and services Our first major LCA in 2011 assessed the GEL-KAYANO 17 running
shoe, focusing on reducing its carbon footprint. In 2015, we carried
that are better for people, society and the out a social LCA scan of our GEL-KAYANO 21 running shoe to get
environment. To achieve this, we seek a clearer picture of the risks involved and improve our management
practices. The research was the first of its kind in our industry, and
to understand and manage the impacts covered the assessment of auditing topics such as labor conditions,
as well as broader community issues like governance, human rights
of products throughout their entire life and infrastructure.
cycle, from the sourcing of materials all In 2016, we took further action based on the findings by including
the way to recycling or disposal. them in our product sustainability indicators assessment. We will
consider updating the research to gain insights for shaping our
future product sustainability strategy in following years.
We support the development of industry
tools and aligned approaches to solving VALUE CHAIN
sustainability challenges through various
industrial and multi-stakeholder partnerships, We actively search for more
sustainable materials, such
such as the Sustainable Apparel Coalition RAW MATERIALS
as recycled and bio-based
TIER 1
We apply design improvements to
reduce environmental impact during
manufacturing processes
PRODUCT MANUFACTURE
Personally, I had a wonderful experience taking this course. DEVELOPING AND IMPLEMENTING THE HIGG INDEX
My key learnings were to understand each process and the Developed by the Sustainable Apparel Coalition (SAC), the Higg
sustainable choices we can make as a group. I hope that we’ll Index consists of various modules that allow for sustainability
have more initiatives for more teams to get involved and learn assessments to be carried out on a product, facilities or brand level.
more about what we can do to have less negative impact and As a founding member of SAC, we have been involved in developing
still deliver high quality products.” the product level Higg Index tools, and using those indicators to
Apparel Design Director ASICS America Corporation assess sustainability of our materials and products. As the product
Participant in the Sustainable Fashion Academy Spring 2016 level Higg Index tools are developed, we are planning to fully adopt
it into our product development process.
In 2016, we took part in the Higg Index Product Design and
A SCIENTIFIC APPROACH TO Development Module (DDM) pilot. This involved testing the tool
with various types of footwear products from sports performance,
SUSTAINABILITY IMPROVEMENT
lifestyle and business categories. Our footwear developers
For ASICS, scientific research is the starting point for sustainable
provided feedback about the tool’s user interface, scoring
product development. At the ASICS Institute of Sport Science, we
structure and assessment method.
carry out continuous research and development in our pursuit of
innovative and sustainable materials and manufacturing technologies. We also continued to use the indicators of the Higg Material
Some of the areas we focused on during 2016 included improving Sustainability Index (MSI) and the Higg DDM to carry out regular
product durability, bonding technology, and prototyping in order to sustainability assessments of our key apparel and footwear
conserve resources and reduce environmental impacts. materials, and all categories of footwear products.
-10% 36,000
ITEMS MADE FROM RECYCLED
100%
BIO-BASED
REDUCTION IN CO2 EMISSIONS FOR OR BIO-BASED FABRIC SUPPLIED TO POLYESTER SHIRTS
EACH PAIR OF DYNAFLYTE RUNNING ASICS-SUPPORTED EVENTS IN EUROPE
SHOES’ MIDSOLE MATERIAL
* ASICS is a gold partner (sporting goods) of the Japanese Olympic and Paralympic Delegation.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 19
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AND SERVICES SUPPLY CHAIN COMMUNITIES
PVC
• ASICS continues to actively phase out the use of PVC. A small
number of items in specific markets currently still contain PVC
as alternatives are not available for all product applications
and functions.
• Screen print inks used for ASICS products shall not contain PVC.
• “ASICS”, “ASICS Tiger” and “Onitsuka Tiger” branded products
shall not contain PVC. By now, more than 99% of all ASICS
products are free from PVC.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 20
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
Data from 2012 and 2013 tracked as per Japanese fiscal year (April 1st till March
31st the next year). Data on 2014 tracked from April 1st till December 31st 2014.
2015 and 2016 data is based on calendar year.
contribute to a health-conscious society. Runkeeper is a vibrant online running community that keeps
users motivated and helps them achieve their fitness goals. It offers
By integrating sustainability into the development of service and ways to record, manage and analyze fitness activities, and share
store concepts, we limit the environmental impact of our operations achievements and milestones with friends. The app has more than
and aim to engage consumers in our sustainability journey. 33 million registered users in the US and worldwide.
ENGAGING CONSUMERS ON OUR The addition of FitnessKeeper into the ASICS Group supports
our commitment to engaging our customers with sports through
SUSTAINABILITY JOURNEY
digital technology. We plan to use the resources of both ASICS and
By integrating sustainability in the development of services and
FitnessKeeper to provide high value added products, services and
store design concepts and operations, we aim to reduce the impact
content to even more customers in the future.
of our business operations. Our retail and other interactions with
consumers also form a good opportunity to engage consumers and
facilitate them to make better, more sustainable lifestyle decisions.
ASICS America continued their partnership with Give Back Box.
The partnership allows our US e-Comm customers to donate clothes,
shoes and other unwanted household items and ship them free of
charge to participating charities, using the same boxes in which they
received their ASICS purchases. The charities use these items to raise
funds to fulfill their mission. In this way, the scheme helps customers
contribute to disadvantage communities, reduce environmental impact
by reusing packaging materials, keeping unwanted items out of
landfill and enabling their prolonged life cycle. For more information,
see: http://www.asics.com/us/en-us/givebackbox.
In Japan, ASICS took back unnecessary clothes and shoes from
our employees in our offices in collaboration with the Japanese
organization JEPLAN, INC., to test the take back program trial for
consumers planned in two of our Japanese retail stores in early
2017. More than one million tonnes of clothing are thrown away each
year in Japan and 90% of these are currently being incinerated.
JEPLAN’s vision is to create a circular economy by creating the
infrastructure for upcycling and recycling unwanted items. JEPLAN
has also developed a recycling technology that creates the source
material for polyester fabric which has the same high quality
characteristics and performance as virgin polyester but with a
much lower environmental footprint. Both individually, and together
with our partners, we will continue to work towards a circular
economy in coming years.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 22
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Indoor plants
are known to help:
LED lighting
• reduce stress and
uses less energy
create a feeling
compared to
of wellbeing
conventional light
bulbs and thereby • improve air quality
improves energy > reduce CO2
efficiency > increase humidity
> temperature
> LED bulbs use
regulation
up to 90% less
> reduce air
energy than
pollutants
conventional bulbs
> LEDs produce very
little heat and
thereby reduce
cooling costs
Based Targets (SBT) initiative. 2 million kWh to renewable electricity, which would save a further
620 tonnes of CO2.
SBT aims to encourage companies to pursue bolder carbon targets In addition, we changed the electricity suppliers of our headquarters
by helping them determine the level by which they must cut emissions and other locations in Japan to the supplier who offers electricity
to help prevent the worst impacts of climate change. Emissions with lower carbon intensity and reduced the electricity costs.
reductions targets are considered science-based if they are aligned
with the level of decarbonization required to keep global temperature In 2017, we expect to double our current total use of renewable
increase below 2ºC, compared with pre-industrial temperatures. electricity in Europe. The outcome of this project will lead to 10%
of ASICS’ total global electricity use being shifted to renewable
Our 2020 target is to reduce by 5% absolute CO2 emissions from electricity. Also in 2017, we are planning to conduct energy
our direct operations (Scope 1 & 2, 2015 baseline), including retail efficiency audits in our most energy-intensive locations,
operations. We aim to achieve the CO2 reduction target together implementing efficiency improvements where necessary.
with our business target to increase our sales by over 70% from
2015 to 2020. CO2 EMISSIONS FROM OUR LOCATIONS/DIRECT OPERATIONS (TONNES)
In 2016, although we continued a number of specific energy-
efficiency projects, CO2 emissions increased 6.5% from the
baseline year due to the significant increase in the number of our
own retail stores from 444 to 867, almost doubling our number of
retail locations. This is partly explained by the fact that our stores in
Korea have changed from partnered stores (out of scope) to 20,392 23,293
Scope 2: Electricity
ASICS-owned stores (in scope).
12,502 Scope 1: Natural gas,
Comparing our total emissions to our business revenue also shows gasoline, diesel,
9,861 LP gas, kerosene
a decrease in our efficiency. The CO2 emissions intensity per unit
revenue has increased by 14% since 2015. It is clear that in 2017 we
5,644 5,389
need to accelerate our energy-efficiency projects to both increase 4,439 4,115
efficiency and reduce the absolute emissions.
2015 2016 2015 2016
Including retail Excluding retail
444 867
The left side data applies to ASICS Group locations including offices, retail locations,
distribution centers and wholly owned factories globally. The right side data applies
to ASICS Group locations including offices, distribution centers and wholly owned
RETAIL STORES IN 2015 RETAIL STORES IN 2016 factories globally excluding owned retail locations. Company/lease car impacts are
also included in both. Figures of Scope 1 are calculated according to factors based
on “2006 IPCC Guidelines (Commercial Institutional)”. Company/lease car impacts
in Brazil are calculated with factors using 2015 DEFRA data. Figures of Scope 2 are
300,000 kWh
calculated according to factors based on “CO2 Emissions from Fuel Combustion
2016-Year 2014” of IEA. The following formula is used when the amount of energy
consumption for CO2 emissions is not available for any sites: (energy consumptions
per square meter estimated for each type of site) X (area of site) X (CO2 emission factor).
BY UPDATING AND CENTRALIZING ELECTRICITY PROCUREMENT CONTRACT BY ASICS The 2015 data is restated due to updated data and factors and improved estimates.
EUROPE GROUP, ELECTRICITY WAS SHIFTED TO RENEWABLE RESOURCES ORIGIN The 2016 emissions data are verified by Deloitte Tohmatsu Sustainability Co., Ltd.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 25
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
12%
In 2016, we continued to work with our footwear product suppliers
to improve energy efficiency and support the transition to more
renewable energy sources. We also continue to measure our Scope
REDUCTION IN CO2 EMISSIONS 3 CO2 emissions across global operations in order to assess the
impact of changes in business operations.
For more about our work to reduce carbon emissions in our
SCOPE 3 CO2 EMISSIONS 2016: supply chain, see page 35.
1. Purchased goods and services 469,233 82.3 Global footwear manufacturing CO2 data (Tier 1) and ASICS
Group companies’ purchases of apparel, equipment, marketing
and sales. (Calculation method 1)
4. Upstream transportation and distribution 41,491 7.3 Category 4 includes air and sea freight of footwear-related
logistics, air freight of apparel related logistics for Japan, rail
and road freight of ‘port to DC’ in Europe, US and Japan,
and road freight of ‘DC to customers’ in Japan.
12. End-of-life treatment of sold products 15,030 2.6 ASICS Group companies in Japan.
The Category 1 (Purchased goods and services) CO2 emissions data of Scope 3 are verified by Deloitte Tohmatsu Sustainability Co., Ltd.
1
Calculation method of Category 1 Footwear: [(energy consumptions at footwear Tier1 suppliers) X (percentage of ASICS production at footwear Tier1 suppliers) X (emission
factor of each energy type)] + Apparel, equipment, marketing and sales: [(price of purchased goods and services ) X (emission factor of each purchased goods and services 3)]
2
[5] Inter-industry relations table based emission factors of Emission factors database for greenhouse gas emissions accounting throughout the supply chain
(ver.2.2 as of March, 2015) published by Japanese Ministry of the Environment.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 26
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
42%
ESTIMATED REDUCTION IN CO2
EMISSIONS FROM ROAD FREIGHT
1%
17%
Road and rail freight include data of ‘port to DC’ in US, Europe and Japan, and
‘DC to customers’ in Japan. Sea freight is data of footwear business. Air freight is data
of footwear business globally and apparel business in Japan. The emissions factors
provided by the GHG Protocol are used.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 27
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374 350
629
77 243
264
483
Recycled
4,235 4,316 Recovered
3,812
3,180 Waste/landfill
2,864 2012 2013 1 2014 2 2015 3 2016 4
1
26 sites
2
27 sites
3
25 sites
4
73 sites
2012 2013 1 2014 2 2015 3 2016 4
1
Data applies to 19 companies in ASICS Group
7.6%
2
Data applies to 16 companies in ASICS Group
3
Data applies to 17 companies in ASICS Group
4
Data applies to 20 companies in ASICS Group
REDUCED WATER CONSUMPTION
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2016
COST CATEGORY KEY ACTIVITY AND OUTCOME INVESTMENT COST ESTIMATED ANNUAL SAVINGS
7. Other 0 0 0
WE ARE
CONNECTED
Corporate Philosophy
Fulfill our social responsibility and help
improve conditions for communities
around the world.
Share profits brought by our sound
services with our shareholders,
communities and employees.
Maintain a spirit of freedom, fairness and
discipline, respectful of all individuals.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 30
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
• 100% of our Tier 1 supply • 88% of our Tier 1 suppliers • 89% of our contracted Tier 1 • Training and capacity building
base manufacturing apparel, rated level C and above on suppliers audited in 2016. provided to 198 participants
accessories and footwear ASICS’ supplier rating scale. > Go to page 32 from 109 suppliers in Shanghai
for the ASICS Group is > Go to page 32 and GuangDong, China,
under a supply chain Vietnam and Indonesia.
management program. > Go to page 36
> Go to page 32
• Expanded our monitoring • Audited 16 of our contracted • 21,130 tonnes waste recycled • 443 participants in total taking
scope to also cover Tier 2 Tier 2 footwear suppliers since or recovered at Footwear part in 65 CSR meetings with
supply base manufacturing 2015 and visited 10 fabric mills Tier 1 suppliers since 2015. suppliers held regarding
fabrics and materials used in China and Taiwan. > Go to page 35 chemical management, RSL
in ASICS’ products. > Go to page 33 compliance and labor standards.
> Go to page 33 > Go to page 20, 33
100%
OF OUR TIER 1 SUPPLY BASE IS UNDER OUR
198
PARTICIPANTS FROM 109 SUPPLIERS RECEIVING
SUPPLY CHAIN MANAGEMENT PROGRAM TRAINING AND CAPACITY BUILDING
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 31
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
direct and indirect influence. At ASICS, we are aware of the influential role we play in our supply
chain, and we recognize that this role and responsibility extends
even to the areas where we have no direct relationship. Through
COMPLIANCE AND COMMITMENT our partnership approach, we aim to help improve standards
Our supply chain management program is based on the principle not just among our direct suppliers, but in all areas where our
of compliance when needed, commitment where possible. This business has influence.
means that, as a minimum, our suppliers must comply with our
own codes and policies as well as all relevant local and international
150+ 21
regulations. But where possible, we encourage our suppliers to
move beyond compliance and commit to continually raising
standards through training and capacity building, in ongoing,
open partnership with ASICS, labor organizations and other TIER 1 SUPPLIERS TIER 1 (SOURCING) COUNTRIES
industry stakeholders.
The program consists of four building blocks: Monitoring and
Risk Management; Governance and Transparency; Training
and Capacity Building; and Stakeholder Engagement.
COMPLIANCE COMMITMENT
1
MONITORING AND
2
GOVERNANCE AND
3
TRAINING AND
4
STAKEHOLDER
RISK MANAGEMENT TRANSPARENCY CAPACITY BUILDING ENGAGEMENT
is otherwise difficult to obtain through an internal audit, for example D rated: 9.1%
Partner audits
These are audits conducted with ASICS’ suppliers as part of our
collaboration with multi-stakeholder initiatives. Since January 2014,
ASICS has been an official partner of ILO Better Work, and this RESPONDING TO NON-COMPLIANCE
organization has conducted our partner audits and improvement When our assessments find issues of non-compliance, we
plan follow-ups from that time. Before that, partner audits were categorize them as major or minor according to the severity
carried out by our previous official partner, the Fair Labor of the violation and the level of risk to workers.
Association (FLA).
We impose sanctions of varying severity depending on the
In addition to the audits, suppliers and their subcontractors category of the non-compliance. These range from terminating
can demonstrate compliance levels through self-assessments. the business relationship in the case of serious and persistent
Information from these feed into our other assessment forms violations, to reviews of future orders, third-party investigations
and risk analysis. Self-assessments increase supplier awareness and formal warnings. On a number of issue areas (child labor
of supply chain issues and ASICS’ standards. and juvenile workers, forced labor, abuse and harassment,
discrimination, hours of work and wages) we operate a zero
In future, we will link supplier self-assessments to commitment-
tolerance policy.
based self management using industry collaborative tools such
as the SAC Higg Index, in combination with external validation When minor non-compliance issues are identified, we begin a
of data. In 2016, 122 Tier 1 suppliers have been nominated remediation period of three months, during which the relevant
to submit data and adopt the SAC’s Higg Index facility module. supplier is expected to take corrective measures. When necessary,
ASICS’ staff or partners support this remediation process, for
example by providing training and resources.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 33
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
21,130 tonnes
WASTE RECYCLED OR RECOVERED AT
FOOTWEAR TIER 1 SUPPLIERS SINCE 2015
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 36
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
Our supply chain monitoring and rating system identifies training Through the audit conducted by ASICS, workers’
needs in the different regions where our products are manufactured. understanding of personal protective equipment and
We carry out training in collaboration and consultation with workplace ergonomics has also improved.
independent stakeholder partners such as ILO Better Work.
We hope such training will be held regularly.”
In 2016, ASICS provided 4 capacity building sessions for suppliers. Training participant at Freewell Co., LTD. a footwear factory
The training covered a wide range of subjects including supervisory in Vietnam supplying ASICS
skills, fire safety, compensation and benefits, social compliance,
and the rights and responsibilities of workers and unions. Additional
capacity building sessions were also available to suppliers as part
of their participation to the ILO Better Factories Cambodia program
or ILO Better Work (Vietnam, Indonesia).
Shanghai and Guangzhou, China Ho Chi Minh City, Vietnam Jakarta, Indonesia
– Occupational health and safety – Update on latest Vietnamese – Grievance systems management
– Latest China labor law updates labor law changes – Occupational health and safety
– Chemical safety and environmental – Wages, benefits and compensation – Management, worker and workers
management – Grievance communication representatives relations
– ASICS Compliance Guideline Training
96 66
PARTICIPANTS SUPPLIERS
68 33
PARTICIPANTS SUPPLIERS
34 10
PARTICIPANTS SUPPLIERS
ATTENDED ATTENDED ATTENDED
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 37
PRODUCTS WITH OUR PEOPLE AND
AND SERVICES SUPPLY CHAIN COMMUNITIES
standards throughout our industry, ASICS Collaboration ranges from close partnerships on raising supplier
standards and conduct training and capacity building to working
engages and partners with a wide range together on integration of Human Rights responsibilities into the
organization of large sports events. We partner with other brands in
of NGOs and other industry stakeholders. industry associations around industry alignment and joint standard
development and keep in close contact with labor unions and
NGO’s in manufacturing regions.
NGOS INTERACTIONS
Caux Round Table (CRT) CRT is a global network of business leaders working to realize a fair, free and transparent society through sustainable
and socially responsible business. In 2016, CRT Japan invited ASICS as one of their speakers and to share our
approach to building effective grievance mechanisms during the annual Business and Human Rights conference.
ILO Better The Better Work Programme is a unique partnership between the International Labour Organization (ILO)
Work Program/ and the International Finance Corporation (IFC) and founded to improve labour standards and competitiveness in
global supply chains. Since 2014, ASICS is a partner of Better Work (BW) and Better Factories Cambodia (BFC),
Better Factories
collaborating on the continuous improvement in our supplier factories in Cambodia, Vietnam and Indonesia.
Cambodia
In 2016, we participated in addition to our factory level work to several ILO activities such as a regional buyer forum,
country buyer forum and exchanged thoughts and experiences regarding human right efforts in industry level.
The Sporting Towards Tokyo 2020, ASICS has been invited and involved on discussions with various international NGO, EU/UN
Change Forum government officers. During ‘The Sporting Chance Forum: Collective Action on Mega-Sporting Events and Human
Rights’ organized in Washington DC USA in October 2016, a wide variety of stakeholder groups gathered to
discuss human rights issues, impacts and strategies to prevent, mitigate, and remedy abuses of human rights and
labor standards associated with the life cycle of major international sporting events.
Oxfam ASICS has been a signatory of the Freedom Of Association (FOA) protocol in Indonesia since 2011. As part of
this we continue to update and communicate with Oxfam in the region. In 2016 ASICS was part of the stakeholder
meeting held by Oxfam in Jakarta. Brands, suppliers, union committees, trade union organization and various
NGOs reviewed the five years since implementation of protocol.
Sustainable Apparel As a founding member of SAC, we have been closely involved in the organization’s efforts to align industry
Coalition (SAC) sustainability standards at a global level. In 2016, ASICS continued to contribute as part of its working group on
the SAC Social/Labor Convergence Project to help develop tools and improve stakeholder engagement to align
supply chain standards.
Unions ASICS manages close communication with several unions as part of our supply chain management work and
being an employer of almost 8,000 employees worldwide. UA ZENSEN (UAZ), which is the largest industrial union
in Japan, represents 1.64 million members from 2,448 affiliates (as of September 2016). Together with UAZ, we
have joined several meetings held by UAZ. Our CSR & Sustainability team has provided continuous updates
on status of management work, issue resolution and sharing views.
The World Federation ASICS is a gold member of the WFSGI, the authoritative global body for the sporting goods industry. As an
of the Sporting Goods active participant to its sustainability committee we joined several of its committee meetings and the WFSGI
Industry (WFSGI) Manufacturing Forum where sustainability in manufacturing is a big focus area. In the course of 2016 and early
2017 we contributed our input on several of the sustainability position papers published by the WFSGI.
We would like to express our gratitude for your great contribution to the
Business and Human Rights conference in Tokyo.
We believe that your sharing was well-delivered to the participants, and became valuable
assets for them to enhance their activities in the area of business and human rights.”
Caux Round Table (CRT) Japan
From appreciation letter received after ASICS’ contribution to CRT
Business and Human Rights Conference held in September 2016
INVESTING IN
PEOPLE AND
COMMUNITIES
WE ARE
ONE Corporate Philosophy
Fulfill our social responsibility and help
improve conditions for communities
around the world. Maintain a spirit
of freedom, fairness and discipline,
respectful of all individuals.
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 39
PRODUCTS WITH PEOPLE AND
AND SERVICES SUPPLIERS COMMUNITIES
AND WORKERS
• Further roll-out globally of • Second organization-wide • Investing $693,078 in • In total 5,370 employees
SuccessFactors system engagement survey community contributions participated in various
for integrated performance launched. and further donations training programs across
in kind of $1,302,139.
management and > Go to page 40 our headquarters in Kobe
recruiting processes. > Go to page 43 and the Japan region.
> Go to page 40 > Go to page 41
50,000
PAIRS OF RUNNING SHOES DONATED TO
7,864
EMPLOYEES WORLDWIDE
Japan
Americas
EMEA
Oceania
2,949
1,813
1,572
323
East Asia 1,207
GIRLS ON THE RUN THROUGH THE ASICS
AMERICA EXTRA MILE CAMPAIGN
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 40
PRODUCTS WITH PEOPLE AND
AND SERVICES SUPPLIERS COMMUNITIES
AND WORKERS
EMEA:
700 kg US:
962
OF FRUIT PROVIDED FOR FREE AND CONSUMED
BY EMPLOYEES AT ASICS EMEA REGIONAL
824
HEADQUARTERS EVERY MONTH
Japan:
One Team
違いを活かす、高め合う。
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 43
PRODUCTS WITH PEOPLE AND
AND SERVICES SUPPLIERS COMMUNITIES
AND WORKERS
693,078 USD
MONETARY DONATIONS
earthquake mobilized colleagues to collect footwear, apparel and
socks for donation and a special sales and funding activity was
organized at the internal store at the Cuneo office, raising funds
among colleagues, family and friends of employees. The amount
generated was doubled by the region’s EMEA head office of ASICS
Europe BV and donated to the local Red Cross organization.
1,302,139 USD
DONATIONS IN KIND
843 HOURS
THE TIME OF VOLUNTEER ACTIVITIES DURING PAID
WORKING HOURS BY STAFF OF ASICS
HEADQUARTERS, ASICS CORPORATION JAPAN, ASICS
AMERICA CORPORATION AND ASICS EUROPE BV
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 44
PRODUCTS WITH PEOPLE AND
AND SERVICES SUPPLIERS COMMUNITIES
AND WORKERS
50,000
PAIRS OF RUNNING SHOES DONATED TO
GIRLS ON THE RUN THROUGH THE ASICS
AMERICA EXTRA MILE CAMPAIGN
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 45
PRODUCTS WITH PEOPLE AND
AND SERVICES SUPPLIERS COMMUNITIES
AND WORKERS
2,620
CHILDREN FROM DISADVANTAGED COMMUNITIES IN SOUTH AFRICA It has changed the way
BENEFITTED THE TAG RUGBY ADOPT A SCHOOL PROGRAM THROUGH
ASICS’ SUPPORT (1.696 BOYS AND 924 GIRLS).
I see the world, I now know
that I can accomplish anything.”
OVERVIEW CREATING PARTNERING INVESTING IN ASICS Sustainability Report 2016 46
PRODUCTS WITH PEOPLE AND
AND SERVICES SUPPLIERS COMMUNITIES
AND WORKERS
3,432
CHILDREN ABLE TO BENEFIT FROM RIGHT TO PLAY PROGRAMMES
THROUGH THE SUPPORT OF OUR CUSTOMERS’ CONTRIBUTIONS
Find out more
You can find out more about ASICS
and our approach to sustainability –
read previous reports and download
our GRI index on our corporate website
VISIT CORP.ASICS.COM/EN