Having proactively addressed environmental issues, the Group recognizes that people’s growing concern for the environment and the transition to a decarbonized society of the future represent major business opportunities for the Group. To that end, we believe that generating social value by “achieving household carbon neutrality” will in turn enhance our corporate value.

 

Initiatives to encourage households to replace appliances with environmentally friendly ones and to promote the adoption of EcoCute systems, energyefficient windows, and EV charging stations have become an important pillar in securing earnings in our business operations, and Joshin will continue to strengthen these efforts moving forward.

1.Accelerating the decarbonization of the Group’s business sites and building next-generation ecofriendly stores

The Group’s decarbonization efforts in its business operations are yielding steady results. In FY2025, Joshin completed the following initiatives as scheduled: installing solar power generation facilities under on-site PPAs at business sites where the Company contracts directly with power suppliers; installing battery storage systems at six stores and solar carports at two stores; and introducing air-conditioning control systems (demand control) at ten stores. Furthermore, regarding “ZEB (Net Zero Energy Building)” certification, following the Joshin Nara Store, which obtained certification in the previous fiscal year, the Joshin Konosu Store, despite being an existing store, also achieved certification in FY2025. As a result of these initiatives, the self-generated renewable energy ratio at business sites where the Company contracts directly with power suppliers has reached 28.0%, and we now aim to achieve our FY2030 target of 30% ahead of schedule.

 

To accelerate this momentum, in FY2026, we aim to obtain ZEB certification for three existing stores, while continuing to promote the conversion of existing stores to ZEB standards when upgrading their facilities. With an eye toward the widespread adoption of EVs, we aim to install additional fast-charging stations at the 30 business sites that already have standard charging stations, with the goal of reducing the environmental impact of our entire store network and improving infrastructure.

2.Decarbonization of the entire value chain and the creation of new solution businesses

Going beyond reducing Joshin’s own GHG emissions, we are also strengthening our efforts across the entire supply chain. Starting in FY2026, we will launch initiatives among participating companies to collect primary GHG emissions data (data on GHG emissions from specific activities within the value chain).

 

In FY2026, we will raise our sustainable procurement rate, as measured by the supplier procurement questionnaire, from the current 70.5% to 80.0% and further deepen our collaboration with suppliers. At the same time, we will deploy new business initiatives to more robustly support the decarbonization of our customers’ homes, such as exploring entry into the retail electricity market and developing sales models for next-generation solar power generation systems.

3. Addressing resource recycling and natural capital, and enhancing ESG disclosure

Leveraging the high praise we have received both domestically and internationally for our disclosure efforts, Joshin will steer the Company toward further advancing sustainability management.

To date, we have consistently earned the highest rank in initiatives such as the CDP Climate Change Program and the Ministry of the Environment’s ESG Finance Awards Japan, thereby building a solid foundation of trust.

 

Going forward, we will not only maintain our ratings in major ESG assessments but also work toward obtaining certification for our SBT Net-Zero Goals and enhancing our disclosures in accordance with the TNFD, thereby advancing our compliance with global standards. Additionally, in the resource recycling sector, we will draw on our internal track record to explore business alliances in FY2026 aimed at expanding our reuse services.

As we mark this milestone with our change of corporate name in April 2026, we will continue to strive to enhance our corporate value over the medium to long term, and work together as one company to help achieve a prosperous society.