Sustainability Operations Structure

At Mizuno Group, we have strengthened our sustainability management structure to enhance corporate value from a sustainability perspective. The President (CEO) holds ultimate responsibility for management decisions related to sustainability issues. Matters encompassing sustainability are discussed in the "Sustainability Operations Council (Internal name: MIZUNO CREW21 Council)", chaired by the Executive Officer in charge of Human Resources and General Affairs, with the Executive Officer in charge of Product Development serving as the Vice-Chair. (Meetings are generally held four times a year)
The Council plays a central role in our Group’s management of social responsibility and global sustainability. This includes the identification and discussion of policies, the formulation of specific initiatives and our execution plans, setting of goals, and the monitoring of progress. Important issues identified and discussed by the Sustainability Operations Council are presented to the Board of Directors and are rolled out to all divisions and business bases of the Group after a resolution by the Board of Directors. Sustainability reports are deliberated and approved by the Sustainability Operations Council and are reported to the Board of Directors. The identification of ESG impacts and risk opportunities is also reported to the Board of Directors via the Sustainability Operations Council. The Board of Directors supervises the progress of sustainability activities based on these reports.

Among the six key issues (materiality) identified in relation to social responsibility and sustainability, cross-departmental issues are managed by the CREW21 Environment Committee and the CREW21 Product Committee, which are subcommittees under the Sustainability Operations Council. Additionally, we also have the Risk Management Committee and the Cross-departmental Products Committee. Each of these committees, under our Sustainability Operations Structure, holds regular meetings to formulate more specific action plans, set goals, and manage progress. As necessary, they report and present their results to the Board of Directors.

For the review of the risk management process related to ESG, deliberations are conducted by the Risk Management Committee, and the review results are reported to the Board of Directors via the Sustainability Operations Council.

In FY 2022, Mizuno Group streamlined the committee structure and reorganized the operation system to facilitate faster decision-making and smoother execution of sustainability strategies.

The Sustainability Operations Council has been established to integrate Mizuno Group’s efforts towards social responsibility, encompassing economic, societal, and environmental aspects, with our management strategy. This Council is chaired by the Executive Officer responsible for Human Resources and General Affairs and comprises members from a wide range of roles, including the Executive Officer for Product Development, the Executive Officer for Strategic Planning, the Executive Officer for Finance and Legal Affairs, as well as other members closely related to sustainability such as the head of Legal Affairs and the head of Quality Assurance. Notably, neither non-voting employees nor external stakeholders have been appointed to the council.

The Sustainability Operations Council leads discussions on Mizuno’s sustainability strategy, formulates action plans and sets targets for specific issues, with critical matters being presented to the Board of Directors. After approval by the Board, these initiatives are deployed across all divisions and business bases of the Group. The Council also acts as a superior committee, deliberating on reports regarding important issues discussed by its subcommittees, such as the CREW21 Environment Committee and the CREW21 Product Committee.

In FY 2022, the secretariat of the Sustainability Operations Council and project members at the core of the task force were in charge of operational tasks related to the disclosure of comprehensive sustainability information. Specifically, we focused on significant individual themes like "human capital disclosure" and "engagement". The details of their activities were reported to the Board of Directors on six occasions.

Based on the recognition that all of our corporate activities have an impact on the environment, we launched the "CREW21＊ Project", aimed at contributing to the global environment and its conservation, in September 1991. We established the CREW21 Environment Committee, which discusses important policies, measures, and issues related to environmental conservation activities in the Mizuno Group. As of 2022, more than 30 years have passed since its inception.

This committee consists of the executive officers responsible for human resources and general affairs, product development, as well as general managers from key departments such as product planning, development, facility services, logistics, retail, quality assurance, legal affairs, manufacturing, and others. The committee discusses the formulation and revision of environmental policies, the establishment of short-, medium-, and long-term environmental goals, and the development of specific measures to achieve these targets. We have not appointed committee members who do not have speaking rights or external stakeholders. The CREW21 Environment Committee has been meeting every two months, amounting to six times a year. From the perspective of reducing environmental impacts, such as decreasing greenhouse gas emissions, and providing environmentally considerate products and services, it has been positioned as a forum to facilitate cross-company communication on the orientation and planning of environmentally friendly products and climate-change-related items.

Moreover, to promote environmental conservation activities throughout the Group, we have established an environmental management system (EMS), headed by an executive officer in charge of legal affairs. The CREW21 Environment Committee receives regular reports on our progress and facilitates information sharing on our environmental conservation activities.

In line with the reorganization of our company structure on June 22, 2022, we renamed the committee to the "CREW21 Environment Committee".

＊ CREW21 stands for Conservation of Resources and Environmental Wave21.

In February 2022, to unify the direction of sustainability products launched globally, we established the "CREW 21 Product Committee." The Managing Executive Officer serves as the chairman, with representatives from the apparel, footwear, and equipment product departments, as well as the marketing and public relations departments participating. We have not appointed committee members who do not have speaking rights or external stakeholders.

After defining the direction of the sustainability products, the committee regularly convenes to discuss the formulation of global communication strategies and the development of specific plans in conjunction with the marketing of each product.

The Risk Management Committee has been established as an advisory body to the Board of Directors based on the Risk Management Regulations. Chaired by the President (CEO), it consists of three Executive Officers and the heads of five divisions that oversee internal control. We have not appointed members without speaking rights or external stakeholders to the committee.

The committee supervises risk management across the entirety of Mizuno Group’s operations, which includes all divisions of Mizuno Corporation and its subsidiaries. It plays a pivotal role in identifying various types of risks, such as natural disasters, human-caused incidents, data leaks, product accidents, and internal fraud. The committee is also responsible for devising preventive measures, implementing strategies to stop these risks from recurring, and establishing and executing Business Continuity Plans (BCP). From FY 2021, the Risk Management Committee began discussing risks related to climate change in depth for the short, medium, and long term.

Moreover, by routinely exchanging information with various departments and bases and through training and education, the committee ensures that the philosophy of risk management is understood throughout the group. When a specific business risk arises, the Risk Management Committee takes the lead in setting up a crisis management headquarters to address the issue promptly and prevent recurrence.

Mizuno has established the "Cross-departmental Products Committee," chaired by the Managing Executive Officer. This committee convenes representatives from various product departments, including research and development, apparel, footwear, and equipment, for regular meetings. We engage in activities directed towards realizing a sustainable future, discussing perspectives on R & D, future directions, and concrete plan formulation.
Recognizing the impact of our manufacturing activities on people working in our factories and the local community, we have promoted CSR procurement activities since 2004 to secure the appropriateness of human rights protection, occupational safety and health, and environmental conservation at Mizuno product suppliers from the perspective of international standards.

Following the organizational restructuring on June 22, 2022, discussions on the promotion of compliance with the Mizuno CSR Procurement Code of Conduct and the implementation of CSR procurement audits are held within the Cross-departmental Products Committee. Topics related to CSR procurement are discussed, in principle, four times a year. We do not appoint committee members without speaking rights or external stakeholders.