SANYO SHOKAI Selected as 'Supplier Engagement Leader', the Highest Rating in CDP 2025 'Supplier Engagement Rating', for 2nd Consecutive Year

SANYO SHOKAI Ltd. (Headquarters: Shinjuku-ku, Tokyo, President & COO: Shinji Oe) has been recognized as a "Supplier Engagement Leader," the highest rating in the "Supplier Engagement Rating" survey conducted by CDP (*) in 2025. This marks the second consecutive year, following 2024, that the company has been selected as a "Supplier Engagement Leader."

CDP's "Supplier Engagement Rating" evaluates a company's efforts to address climate change issues within its supply chain. Specifically, it assesses five categories: "Targets," "Supplier Engagement," "Scope 3 Emissions," "Risk Management Processes," and "Governance." Companies that achieve the highest rating of A, out of an 8-point scale (A, A-, B, B-, C, C-, D, D-), are selected as "Supplier Engagement Leaders."

Furthermore, the company has been awarded an "A-" score, a leadership level, in the climate change area of the 2025 CDP questionnaire.

Society's evaluation of SANYO SHOKAI's sustainability:

https://www.sanyo-shokai.co.jp/sustainability/evaluation/

*CDP: CDP is an international environmental non-profit organization that investigates and analyzes the efforts of companies and organizations worldwide regarding environmental issues, and publishes the evaluation results. CDP's environmental disclosure system and its evaluation process are widely recognized as the global standard for corporate environmental reporting. (Official website: https://cdp.net/en)

SANYO SHOKAI's Initiatives

Greenhouse Gas Emission Reduction Targets

Since 2023, SANYO SHOKAI has positioned "Contribution to a Sustainable Global Environment" as one of its materialities, and is working on climate change countermeasures by reducing greenhouse gas (GHG) emissions associated with its business activities. Specifically, the company aims to reduce Scope 1 and 2 GHG emissions by 52% compared to FY2019 levels, reduce Scope 3 (categories 1, 3, 4, 12) by 30% by FY2030, and further achieve net-zero for Scope 1 and 2 GHG emissions by FY2050.

Additionally, regarding the FY2030 GHG emission reduction target, the company obtained SBT (Science Based Targets) validation by the international initiative "SBTi" in March 2025.

Modeling Own Factories Aimed at GHG Emission Reduction

As an effort across the entire supply chain to achieve Scope 3 targets, the company regularly conducts equipment inspections at its own sewing factories, SANYO Sewing Aomori Factory and Fukushima Factory, and quantitatively manages GHG emissions. By sharing issues with factory managers, formulating GHG emission reduction plans, and executing monitoring, the company is working on modeling its own factories that can contribute to solving environmental issues. In 2023, information sharing sessions were held for all factory employees, and efforts are being promoted alongside the frontline to achieve further energy savings leading to minimized costs and resource volumes, operational efficiency improvements, digitalization, switching to zero CO2 emission factor electricity plans, and waste reduction.

Initiatives Across the Entire Supply Chain

Aiming to create a sustainable mechanism that leads to problem-solving by verifying the results of activities in modeling its own factories and sharing information across the entire supply chain, the company began dialogues toward GHG reduction with major suppliers in FY2024.

Furthermore, based on the "SANYO Code of Conduct," the company evaluates suppliers through third-party audits. This evaluation includes compliance with environmental laws and REACH regulations, as well as cooperation in GHG reduction. Based on the evaluation results, the company also provides guidance for improvement to elevate suppliers to its proprietary "A rank" standard.

Climate Change Countermeasures Through Collaboration with Industry Associations

As a representative company of the Japan Apparel Fashion Industry Council (JAFIC), the company participated in the formulation of the "Sector-Specific Commentary on Basic Guidelines for Calculating Greenhouse Gas Emissions Through the Supply Chain (Fashion Industry) (2) Concept and Rough Estimation Methods for Greenhouse Gas Reduction." This commentary was formulated by JAFIC in collaboration with the Japan Sustainable Fashion Alliance (JSFA) and the Kansai Fashion Federation (KanFA), with support from the Ministry of the Environment's "FY2024 Model Project for Promoting Decarbonization Across the Value Chain," demonstrating concepts for reduction and rough estimation methods for reduction amounts and rates.

Additionally, the company participates in "CicroMate," a new resource circulation platform for apparel logistics. "CicroMate" is an apparel delivery