Risks related to product requirements and raw material costs associated with addressing sustainability
First written in FY2020. 2 of 4 entries say "Worsened", first in FY2021. Latest entry: FY2024.
No other company in this theme has enough history to compare yet.
- FY2024RestatedAnnual report
「However, recycled and plant-based raw materials are currently less stable to procure and more expensive than conventional synthetic-fiber materials, and the various measures needed to build a sustainable society present challenges that conflict with maintaining earnings and strengthening cost competitiveness. For the time being, the Group will begin by gradually reviewing its raw materials and supplies, monitor future industry trends, and work to resolve these issues, including through measures in the manufacturing process.」
The Company continues to recognize the unstable supply and high cost of environmentally friendly raw materials as challenges that conflict with maintaining earnings and cost competitiveness, and describes the gradual review of raw materials and supplies and measures in the manufacturing process. - FY2022WorsenedAnnual report
「Specific initiatives currently under consideration include reducing apparel waste, promoting reuse, and reviewing materials in favor of those that help prevent resource depletion or are more environmentally friendly. For sewing thread, an essential apparel component, the ability to supply products that support these initiatives, as well as the Company's commitment to reducing its environmental impact, is expected to have a significant effect on maintaining and expanding its market share.」
The response to sustainability issues is emerging as a specific risk that could affect the maintenance and expansion of sales share through the availability of environmentally friendly products and the Company's stance. - FY2021WorsenedAnnual report
「At present, raw materials such as recycled and plant-based materials are less stable in supply and more expensive to procure than conventional synthetic-fiber materials. Various measures to help build a sustainable society therefore present challenges that conflict with maintaining profitability and strengthening cost competitiveness.」
For recycled and plant-based materials required to address sustainability, the Company identified supply instability as an additional risk alongside their already high procurement prices. - FY2020First statedAnnual report
「At present, raw materials such as recycled and plant-based materials are more expensive to procure than conventional synthetic-fiber materials. Various measures to help build a sustainable society therefore present challenges that conflict with restoring profitability and strengthening cost competitiveness.」
The Company first explicitly identified the higher procurement prices of recycled and plant-based materials, which are required to address sustainability, as a risk that conflicts with restoring profitability and strengthening cost competitiveness.