Today, I would like to focus on two topics: first, how we are reducing emissions across our supply chain; and second, how we are advancing circularity and resource reuse.

For the apparel industry,the greatest opportunity to reduce emissions lies in the supply chain.

Raw material production, fabric processing and garment manufacturing represent the largest share of emissions in our value chain. That is whyFast Retailing has made Scope 3 a core climate priority and set a science-based target to reduce related emissions by 30% by FY2030 compared with FY2019 levels.

We believe that real change does not come from placing pressure on suppliers. It comes from making the transition together.

We have therefore built long-term partnerships with our core manufacturing partners, supported by quarterly progress reviews, annual plan reviews, energy assessments and technical advice. To achieve our 30% emissions reduction goal, we are prioritizingcoal phase-out, renewable energy, and energy efficiency initiativesand advancing these measures together with our manufacturing partners.

We are also transforming the materials that go into our products.Decarbonization should not begin only at the factory. It should begin with product design and material selection.

We continue to expand recycled polyester, regenerative cotton and other lower-carbon materials. In FY2025, low-GHG materials accounted for19.4%of total material use, while recycled polyester represented46.4%of polyester use. By FY2030, we aim for recycled and low-carbon materials to reach approximately 50% of total material use.

Equally important,circularity is a critical pathway to long-term climate action.

We want customers to wear their clothes for as long as possible, and ultimately return them for collection and reuse. Through RE.UNIQLO, UNIQLO offers repair and remake services, and collects clothing that customers no longer wear at most stores worldwide for donation or reuse. In China, collection boxes are available in every store, and we also offer an online collection service.We believe the value of a garment should not end when it is sold; it should continue to circulate.Garment-to-garment recycling still faces various challenges and remains under development, but we aim to bring more recycled resources back into the supply chain and reduce our dependence on virgin materials.

Our progress is not only about lower emissions. More importantly, together with suppliers, partners and customers, we are building an industry that islower-carbon, more circular and more resilient.