Efforts Regarding
Climate Change

At the 2nd RETAILING Group, through the circulation of various goods from our business activities, we are reducing greenhouse gas emissions, improving energy efficiency, and implementing initiatives to build a sustainable society. We will address climate change and other environmental problems, so that our businesses lead to a better future.
Furthermore, based on the belief that our Group’s business is to rediscover the value of goods while at the same time reducing the impact on the environment and promoting a circular economy, we established the “2nd RETAILING Group Environmental Policy” in February 2025. This policy sets forth a number of goals including promoting and realizing a circular society as well as addressing climate change, and we are striving to implement measures through our businesses.

The Group established a Sustainability Committee in August 2024. The Sustainability Committee has the function of helping realize our corporate philosophy of “Fill Everyday Life With Joy and Possibility” and is tasked with advancing the Group’s efforts to help realize a sustainable society.
The purpose of this committee is to promote sustainable business activities within our Group. In addition to establishing a code of conduct that sets forth various principles, such as environmental and social responsibility and respect for diversity, the committee is chaired by the Representative Director, President, and consists of full-time directors, operating officers, and members appointed by the chairperson.
This committee meets four times a year, in principle, and functions as the decision-making body for the Group’s sustainability initiatives, including monitoring progress toward materiality targets (KGI and KPI) and assessing the level of environmental risks.
The committee also cooperates closely with the Board of Directors to support management’s decision-making by discussing, reporting on, and submitting key issues related to our Group’s sustainability management.
Moreover, several subcommittees have been established as subordinate organizations to this committee, and the secretariat formulates policies and indicators related to environmental, social, and governance issues, compiles the results on monitoring the initiatives tackled by each department, and carries out regular reporting and progress management.
In addition, our subsidiaries and affiliates have established a comprehensive sustainability framework by performing flexible management in accordance with the risk characteristics of the entire Group.

To identify climate change-related risks and opportunities that may affect the Group’s fiscal performance, we analyzed two potential climate-related scenarios based on data from the International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC): (1) the 1.5°C temperature increase scenario under which progress is made in decarbonizing and (2) the 4°C temperature increase scenario in which global warming progresses. The analysis focuses on the major climate change-related risks and opportunities the impact of which are likely to become more apparent under each scenario. In the 1.5°C temperature increase scenario, the assessment focuses on transition risks and opportunities associated with changes in policy and the market, whereas the assessment of the 4°C temperature increase scenario is based on the assumption that the impact of transition risks will be limited or nil.

Target period:
Envisioning a global scenario focusing on 2035

Scope:
The 2nd RETAILING Group’s major operating companies
2nd RETAILING Co., Ltd., GEO CORPORATION,
2ND STREET CORPORATION, GEO STORE CORPORATION,
OKURA HOLDINGS CORPORATION, OKURA Co.,Ltd., BANK OKURA Co.,Ltd.

Reference scenario:
IEA NZE, IPCC RCP1.9, etc. for 1.5°C temperature rise
IEA STEPS, IPCC RCP8.5, etc. for 4°C temperature rise

Based on the results of this scenario analysis, the 2nd RETAILING Group recognizes the identified significant risks and opportunities and will pursue the following countermeasures.

Responding to rising energy costs
We recognize that the rise in the unit price of energy associated with the transition to decarbonization under the 1.5°C scenario as well as the increase in demand for air conditioning resulting from rising temperatures under the 4°C scenario are significant risks common to our Group, which operates a store-based business. To address these risks, our Group will gradually install LED lighting in our stores, introduce high-efficiency air conditioning equipment, and adopt insulation measures to improve thermal performance, thereby accelerating our energy-saving investments in facilities. Furthermore, we will promote the optimization of air conditioning settings, the fostering of a strong culture of energy conservation, and other operational initiatives while striving to maximize energy efficiency through both hardware and software measures.
Additionally, by expanding the scope of stores covered by the on-site and off-site PPAs, which we began introducing to some locations in 2024, we aim to balance business growth with greenhouse gas emissions reductions while mitigating the risk of power price fluctuations.

Growing the business and strengthening trust
The transition to a circular economy, which is accelerating primarily under the 1.5°C scenario, represents a major growth opportunity for our Group, which operates in the second-hand and off-price sectors. We will improve our strategic communications about the strong affinity between our business model and the circular economy; specifically how our business activities, which give new value to unwanted things and put them back into circulation, directly contribute to reducing greenhouse gas emissions across society as a whole, and proactively work to raise awareness of this.
Moving forward, in addition to expanding our customer base through the promotion of reuse, we will raise our brand recognition and brand power as a second-hand goods company by communicating our unique environmental contributions, thereby leading to sustainable business growth.
At the same time, we will promote the proactive disclosure of and obtain assurances from third-party organizations in regard to non-financial information, and secure external certifications to build a management system that has high objectivity and transparency, thereby earning even greater social trust from our stakeholders.

The Environmental Subcommittee, a subordinate organization of the Sustainability Committee, will assess risks and opportunities related to climate change and monitor the initiatives tackled by each department. This subcommittee will regularly assess whether it is necessary to review environmental risks and opportunities, such as those related to climate change and legal regulations, and, based on the results, share its findings and discuss response strategies. Furthermore, we will analyze and evaluate the degree of impact on our business and the timing of occurrence to identify risks. In principle, this subcommittee meets four times a year with the Secretariat compiling action plans and targets formulated for the key topics discussed, as well as the results of monitoring the initiatives undertaken by each department, and reports them to the Sustainability Committee. The Sustainability Committee approves the Subcommittee’s action plans and assesses their deliberations, progress, and achievements pertaining to the key themes before reporting/submitting their findings to the Board of Directors. Based on these findings, the Board of Directors makes the final decision on the Group-wide sustainability policy.

Based on the determined policy, each operating company continuously manages identified sustainability-related risks and opportunities using both bottom-up and top-down approaches tailored to the characteristics of its business.

Furthermore, moving forward, we will integrate and link the assessment and management of these sustainability-related risks with the Group’s company-wide risk management processes, and we will work to build a more comprehensive and centralized management system that oversees all risk management activities.

Our Group contributes to reducing society’s overall greenhouse gas emissions through circular economy initiatives, such as our second-hand business, and to mitigate the impact of our own business activities on climate change, we have set and manage greenhouse gas emission reduction as a key performance indicator.

In keeping with addressing climate change as a key management priority, the 2nd RETAILING Group declares its intent to achieve net zero greenhouse gas emissions by the year 2050. As milestones toward this long-term goal, we have set the following interim targets with a deadline of FY2036, and the entire Group is working to achieve these reductions.

To manage our progress in addressing climate change, we disclose the actual trends of our most recent greenhouse gas emissions (Scope 1, Scope 2, and Scope 3) on our website.

2nd RETAILING Group ESG Data:

https://2nd-rtl.com/en/sustainability/esg/