Materiality

Key Issues
of the 2nd RETAILING Group

At the 2nd RETAILING Group, we work to achieve a sustainable society via various recycling-oriented businesses based on the idea of bringing things from where they are not needed to where they are needed.
As social issues and the environment around us continue to change, we have identified 17 ESG issues for achieving long-term value creation and sustainable growth, and selected six of these as key materiality issues.

The 2nd RETAILING Group’s
Six Top Priority Issues

Realization and promotion
of a recycling-oriented society

Identify new value to bring joy to the everyday lives of our customers via recycling

Responding to climate change,
saving resources, and reducing waste

Achieve a sustainable society by reducing environmental impact

Promoting diversity and inclusion

Recognize the diverse values of diverse people to create a corporation where individuals can work without discrimination

Promoting specialist training and
talent management

Achieve continuous growth for individuals and organizations with specialist employee development via education and training both inside and outside the company

Promoting fair trade and
sound corporate culture

Achieve a trusted 2nd RETAILING Group by conducting business fairly and ensuring compliance

Strengthening corporate governance

Establish corporate governance that is highly diverse, sound, transparent, and efficient, in order to maximize our corporate value

Identification of Materiality

Materiality Identification Process

Step 1: Identify Issues

When identifying issues, we first conducted wide-ranging investigation and verification regarding candidate issues and the initiatives of other companies, based on the evaluation items of ESG standards institutions (such as MSCI, FTSE, SASB, and GRI). The candidate issues were then identified based on the opinions of top management and the main departments of the 2nd RETAILING Group.

Step 2: Select and Prioritize Issues

The identified issues were then discussed by the general manager of main departments and the department in charge of sustainability, as well as top management, and analyzed based on the principle of double materiality, according to their importance to stakeholders (the impact that our corporate activities have on the environment and society) and their importance to the 2nd RETAILING Group (the financial impact that environmental and social issues have on the company). Their priority was also evaluated.
As a result, we identified 17 ESG issues and created a materiality map.

Step 3: Identify Materiality

The 17 ESG issues that we selected and our materiality map were discussed and approved at Board of Directors meetings and became the official materiality of the 2nd RETAILING Group.

Materiality Map

Materiality map showing 17 ESG issues plotted based on their importance to stakeholders and their importance to the 2nd RETAILING Group.

Vision and KGI
for Top Priority Issues

The 2nd RETAILING Group has set a vision and KGI for the critical issues we have identified. By proactively and continuously focusing on these issues, we aim to contribute to a sustainable society and improve our corporate value in the medium to long term.

As of June 24, 2026

Category Top Priority Issues Vision KGI Major KPIs
Large Small Target Fiscal Year Targets FY2026 Results
E (Environment) Climate change measures Realization and promotion of a recycling-oriented society Identify new value to bring joy to the everyday lives of our customers via recycling 2036 Consolidated net sales of 1 trillion yen *1 523,450 million yen Number of stores in reuse related businesses
Sales of reuse related products
Number of off-price products sold *2
Responding to climate change, saving resources, and reducing waste Achieve a sustainable society by reducing environmental impact 2036 GHG reduction contribution from reuse business activities (Avoided Emissions) 102,649t-CO2e 61,647 t-CO2e Weight of reuse related clothing sold
Rate of stores adopting eco purchasing *3
Number of excess products sold overseas *4
Amount of industrial waste reduced
2036 GHG emission reduction through reduction and reuse of electricity and resources 38,780t-CO2e（50% reduction compared to FY2020）*5 76,525 t-CO2e GHG emission reduction through optimized electricity use
GHG Emission Reduction through Energy-efficient Equipment
S (Social) Workstyle measures Promoting diversity and inclusion Recognize the diverse values of diverse people to create a corporation where individuals can work without discrimination 2029 Employee engagement Total score of 70 or higher 66 Percentage of female managers
Employment rate of people with disabilities
Percentage of male employees taking childcare leave
Promoting specialist training and talent management *6 Achieve continuous growth for individuals and organizations with specialist employee development via education and training both inside and outside the company 2031 Number of specialists Increase by 200 (compared to FY2024) Increase of 116 Number of staff members relocated with job rotation education
Training hours per person
G (Governance) Governance measures Promoting fair trade and sound corporate culture Achieve a trusted 2nd RETAILING Group by conducting business fairly and ensuring compliance Every year All our companies comply with the law and internal regulations Zero administrative penalties 0 penalties *7 Establishment of fair and reliable trading infrastructure
Adoption of education system for all Group employees
Enhancement of personal information management system
Implementation rate of domestic and overseas IT governance assessments
Security standard coverage for domestic and overseas subsidiaries (monitoring and education systems)
Strengthening corporate governance Establish corporate governance that is highly diverse, sound, transparent, and efficient, in order to maximize our corporate value Every year Effectiveness evaluation of Board of Directors and related agencies 100% rate of achievement 100% Rate of evaluating Board of Directors effectiveness
Implementation of executive training
Rate of implementing risk management
*1viviON Group regards NMV (Net Merchandise Value) as net sales
*2Off-price refers to the business of selling at discounted prices discontinued products and clearance products purchased from a manufacturer
*3Eco purchasing refers to an initiative for purchasing clothing that cannot be easily sold in Japan at the price of one yen per garment and exporting them overseas
*4Excess products refer to secondhand clothing and accessories that cannot be resold in Japan, including those scheduled for disposal
*5Covers the following four major domestic businesses of the 2nd RETAILING Group used as benchmarks at the time of target setting: 2nd RETAILING Co., Ltd., GEO CORPORATION, GEO STORE CORPORATION, and 2ND STREET CORPORATION
*6Specialists: Employees corresponding to Grade S or Grade M under the Company's grading system
*7On June 11, 2026, subsequent to the end of this reporting period, the Company received an administrative order for action from the Consumer Affairs Agency pursuant to Article 5, Paragraph 2 of the Act against Unjustifiable Premiums and Misleading Representations, regarding the purchase prices displayed for mobile devices from May to November 2025.