Three Businesses

Climate change should be considered as a climate crisis today. Recognizing addressing climate change as one of its most important management priorities, MARUI GROUP aims to limit the rise in the global temperature to below 1.5°C above pre-industrial levels, as presented in the Paris Agreement adopted in December 2015. MARUI GROUP is strengthening its corporate governance system to make active contributions to the realization of a low-carbon society based on the long-term targets of the Paris Agreement in accordance with the MARUI GROUP Environmental Policy, which was revised in April 2020. At the same time, the Company analyzes the potential impact of climate change on its business, capitalizes on climate change-related growth opportunities, and responds appropriately to relevant risks.

Endorsement of TCFD Recommendations and Related Disclosure

MARUI GROUP is developing green businesses that provide options for coexistence with the global environment. To ensure that the financial impacts of climate change are properly evaluated and verified in these businesses, MARUI GROUP became the first Japanese retailer to endorse the recommendations of the TCFD in November 2018. The TCFD's recommendations are also endorsed by the Government Pension Investment Fund (GPIF), the world's largest pension fund; the Ministry of the Environment; and a myriad of financial and non-financial firms, government and international institutions, and civil organizations. This rise in concern for the fight against climate change has also been seen in Japan, as indicated by the establishment of Japan's TCFD Consortium and the world-topping level of 306 Japanese companies and institutions endorsing the TCFD's recommendations (September 28, 2020).

The Company has been disclosing information based on the TCFD recommendations since its annual securities report for the fiscal year ended March 31, 2019. More extensive analyses were conducted when preparing the annual securities report for the fiscal year ended March 31, 2020, to enhance the level of disclosure of information on climate change-related opportunities and physical risks. As we continue to enhance information disclosure going forward, we will use the TCFD recommendations as a benchmark for judging the appropriateness of MARUI GROUP's responses to climate change while we promote co-creation sustainability management.