HOSOO Group – Corporate Policy

1. Public Purpose

We weave people and nature, the past and the future, through craftsmanship.
True beauty is that which can endure time and be handed down to future generations.

Grounded in more than 300 years of inherited craftsmanship, the HOSOO Group pursues manufacturing in which human skill exists in harmony with the natural environment.
For us, craftsmanship is not merely a technique or a product. It is a practice that accompanies time and nature, shaping human spirit and behavior, and questioning the very structure of society itself.

Rather than prioritizing short-term efficiency or mass production, we commit to creating value that accumulates and circulates over a long time horizon, in close relationship with time and nature.
This philosophy constitutes our reason for being and stands at the center of all management decisions.

2. Stakeholder Engagement Declaration

We respect our customers, business partners, local communities, employees, and the natural environment as stakeholders who collectively participate in value creation.

The HOSOO Group’s activities are sustained by a complex network of relationships: the aesthetic sensibilities of our customers, the skills of artisans, the expertise of our partners, cultures rooted in local communities, and the blessings of the natural environment. Without these, our craftsmanship could not exist.

Through continuous dialogue with our stakeholders, we seek not unilateral profit maximization, but the cultivation of mutually sustainable relationships.
We approach the natural environment not merely as an object of protection, but as a partner in shaping the future together.

Stakeholder Engagement Principles

Across all business activities and throughout our supply chain, we take human rights, environmental, and social impacts seriously, and act based on the following principles:

Human Rights

We respect the human rights of all individuals involved in our production and supply chains. When concerns arise, we assess impacts and determine countermeasures guided by the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work.

Environmental Responsibility

In sourcing raw materials and processing textiles, when environmental impacts are of concern, we assess impacts using methodologies such as Life Cycle Assessment (LCA), quantifying impacts wherever possible. Based on this, we develop both short- and long-term plans to reduce environmental burden, guided by respect for nature and responsibility toward future generations.

Diversity, Equity, and Inclusion

We respect diversity, equity, and inclusion among each employee and aim to maintain a safe, healthy, and supportive working environment.

Responsibility to Local Communities and Culture

Through our supply chains and business activities, we continuously contribute to the preservation and development of Nishijin weaving culture in Kyoto, traditional crafts throughout Japan centered on kimono culture, and the conservation of Japan’s unique natural environments.

Addressing Negative Impacts

We seek to avoid causing or contributing to negative impacts on any stakeholder. Should impacts occur, we respond promptly.
Our assessment is based on our materiality strategy and benchmarked against GRI standards and the B Corporation Benefit Impact Assessment, working in collaboration with key partners.

In responding, we prioritize:

• Potential and actual severity of negative impacts
• Scope of influence and control
• Whether impacts were directly caused or contributed to
• Time-bound prevention, mitigation, remediation, and correction
• Suspension of transactions where improvement proves unfeasible

Oversight is conducted at least twice annually by the Board of Directors, including the Representative Director, with guidance from external experts.

3. Material Issues for Sustainability and Management Policy

We prioritize decisions that avoid irreversible impacts over short-term efficiency.
Sustainability is not a constraint, but a precondition for creativity and growth.

The HOSOO Group identifies material issues from a long-term perspective, recognizing the impacts of our business on society and the environment.
We adopt a preventive approach, guided by ethical and rational judgment, referencing international frameworks such as ILO, GRI, LCA, and Scope 1–3 emissions, while emphasizing implementation and continuous improvement over formality.

A. Principles for Planning, Procurement, and Production with Respect for Nature

We view nature not as something to be controlled, but as a partner in shaping the future.

Across all stages of planning, procurement, and production, environmental consideration is embedded as a prerequisite.

• Air (Climate Impact)
  We optimize energy use, expand renewable energy adoption,
  and continuously measure and reduce greenhouse gas emissions.
• Water and Soil
  We ensure responsible water use, wastewater management,
  and soil protection to coexist with local ecosystems.
• Biodiversity
  In sericulture, dye plants, and raw material procurement,
  we avoid irreversible ecosystem impacts and respect ecological resilience.
• Waste and Circularity
  We reduce waste, promote reuse and circular design,
  and manufacture with the principle of full material utilization.

A-1. Climate Impact (GHG Reduction)

As climate crisis intensifies globally, responsibility extends to both organizations and individuals.
In accordance with the GHG Protocol, all HOSOO facilities transitioned to 100% renewable energy by 2025.
We aim to achieve zero emissions (Scope 1 and 2) by 2030, and net-zero emissions across the full lifecycle (Scope 3) by 2040, with assessments based primarily on LCA.

A-2. Water, Soil, and Chemical Impacts (Dyeing)

HOSOO positions environmentally low-impact dyeing as a core strategy.
In 2021, we established the Ancient Dyeing Research Institute in Nishijin, Kyoto, to revive dyeing methods from Japan’s Nara and Heian periods, using native plants such as Japanese purple gromwell and madder.

Natural ash mordants and circular water reuse systems significantly reduce environmental burden compared to conventional chemical dyes.
While recognizing current industry reliance on chemical dyes, we comply with REACH regulations and avoid azo dyes, while progressively transitioning toward ancient dyeing methods.
Our interim target is to apply ancient dyeing to 10% of all textile products by 2035.

A-3. Biodiversity

a. Protection of Endangered Species

We aim to restore endangered native dye plants and remove them from the Red List by 2050 through responsible cultivation and scaling.

b. Sericulture

True productivity for us is not volume maximization, but the creation of silk textiles cherished across generations.
Through DNA research, partnerships with Japanese sericulture farms, and revival of heritage silkworm breeds, we pursue ethical, slow, and high-quality silk production.
Our targets are 50% adoption of ethical silk by 2035 and 100% by 2045, alongside carbon neutrality through mulberry planting and carbon offsets.

c. Revival of Indigenous Plant Fibers

Beyond silk and dyes, we seek to revive indigenous fibers such as hemp, expanding our perspective upstream to raw material production and delivering universal value to all stakeholders.

A-4. Waste

Pre-consumer Waste

Textile production remnants are collected and upcycled, aiming for zero incineration-related GHG emissions by 2035.

Operational Waste

Waste is properly sorted and recycled in collaboration with local waste management partners, contributing to a circular society.

B. Procurement and Sales Principles Linking Business Growth with Social and Regional Value

We regard relationships with customers, partners, and communities as partnerships for co-creation.

B-1. Contribution through Kimono Business

We curate and communicate regional textile cultures across Japan, preserving sustainable craft ecosystems that are currently at risk due to structural challenges in the supply chain.

B-2. Contribution through Textile Business

By expanding Nishijin weaving through innovations such as 150cm-wide looms, we enable global markets while preserving regional production ecosystems.
We prioritize local procurement, maintain over 50% domestic sourcing, and ensure transparent, ethical supply chains.

C. Employee Well-being and Human Capital

Employees are co-creators of value. Craft sustainability depends on human dignity and growth.

Recruitment, Employment, and Compensation

We ensure fair, non-discriminatory practices and focus on stable income and youth employment in traditional crafts.

Anti-Harassment Policy

We do not tolerate harassment in any form.

Education and Training

We provide free learning opportunities at least annually through publications, exhibitions, and training programs.

4. Quality and Craftsmanship

Quality is defined not only by metrics,
but by material choice, design, technique, use, and longevity—today and 100 years from now.
We integrate craftsmanship and modern technology to create enduring value.

5. Disclosure, Consultation, and Whistleblowing

Transparency is the foundation of trust.
We disclose information appropriately, respond sincerely to concerns, and maintain independent reporting channels.

Contact:
HOSOO Group Ethics Hotline
E-mail：ethics@hosoo.co.jp

All cases are reviewed at least annually by the Board, and outcomes are disclosed within appropriate scope.