Biodiversity Assessment Report
Biodiversity Policy
ASICS recognizes the significant impacts of the apparel and footwear industry on biodiversity and its critical dependencies on natural capital. To mitigate these impacts and reduce dependencies, we are focusing on developing products that incorporate recycled materials, such as recycled polyester, adopt water-efficient dyeing technologies, and utilize recycled paper for packaging and labeling. In order to mitigate the impact on biodiversity through raw material sourcing, we have joined the Leather Working Group (LWG) and express support for its goal of sourcing 100% deforestation-free and conversion-free leather by 2030.
Analysis Aligned with the LEAP Approach
Regarding raw materials, ASICS primarily operates in the footwear business, and most of our procurement consists of synthetic raw materials, including synthetic rubber, synthetic resin, polyurethane, and polyester. While the procurement of materials with high biodiversity impact - such as cotton and leather - remains limited, we conducted a LEAP** analysis in 2025, guided by the “TNFD* Recommendations” issued by the Taskforce on Nature-related Financial Disclosures (TNFD), to assess our impacts and dependencies on nature.
*The TNFD is a global initiative that provides guidance to organizations for identifying, assessing, and disclosing nature-related dependencies, impacts, risks, and opportunities. Through this framework, companies are aligning their strategies with nature conservation and restoration as well as biodiversity responses.
**The LEAP approach is an analytical framework recommended by TNFD. It consists of four phases: Locate, Evaluate, Assess, and Prepare.
Summary of the LEAP Analysis Results at ASICS
Scoping
Scope of the Assessment
We conducted an assessment covering nearly all raw materials sourced by our company, focusing on the upstream* of the value chain (Tier 1 to Tier 4) **. Natural rubber, non-ferrous metals, and virgin paper were excluded from this assessment due to their very limited procurement volumes.
Target Raw Materials: ①Synthetic rubber・Synthetic resin, ②Polyurethane, ③Polyester, ④Natural leather, ⑤Recycled paper, ⑥Cotton
Primary Uses of Each Material
Raw Material | Primary Uses |
|---|---|
Synthetic rubber | Outsoles for footwear products |
Synthetic resin | Midsoles and insoles for footwear products |
Polyurethane | Insoles for footwear products |
Polyester | Upper materials for footwear products |
Natural leather | Upper materials for certain footwear products |
Recycled paper | Shoe boxes |
Cotton | Apparel materials |
* The ENCORE analysis revealed that dependencies and impacts on nature are most significant in the upstream value chain—particularly at Tier 4—relative to our own operations and downstream activities. Consequently, the assessment focused exclusively on the upstream value chain.
** Tier 1: Product manufacturing factories, Tier 2: Materials suppliers, Tier 3・Tier 4: Raw materials suppliers.
Reference: ENCORE Assessment
* Shown in the above table
- Includes Synthetic rubber/ Synthetic resin/ Polyurethane/ Polyester
- For raw material production, traceability and engagement are difficul, so these are excluded from analysis.
Tools and Data used for Analysis
Throughout the LEAP approach, we utilized tools such as ENCORE and the Materials Impact Explorer, as well as open data sources provided by the Natural History Museum, AQUEDUCT, and others.
Reference Tools & Data:
ENCORE, Materials Impact Explorer, Natural History Museum “Biodiversity Intactness Index”, AQUEDUCT” Baseline Water Stress”, Mair et.al, 2021 ”STARt, STARr”, Yoo et.al, 2025 “industrial land”, FAO “GLW4”, Tan et.al, 2024 “CROPGRIDS”
Locate
Given that nature-related challenges vary considerably across regions, the TNFD recommendations underscore the critical importance of identifying the precise location of business activities and incorporating regional context into the assessment process. Accordingly, we identified material locations where our company faces significant nature-related dependencies, impacts, risks, and opportunities, as well as sensitive locations within our value chain where business activities interact with nature and warrant particular attention. These were designated as priority areas.
Identification of Business Activity Location
As geographic location data for the upstream of the value chain related to the target raw materials is currently limited, we supplemented directly obtained primary information with secondary data estimated from external sources.
For the following sites, we obtained primary location information based on their official addresses and defined an analysis area consisting of a grid of approximately 10 km by 10 km centered on each site.
・ Footwear/Apparel product manufacturing factories (Tier1)
・ Some raw material processing factories that supply the above subcontractors (Tier2)
・ Natural leather tanning factories (LWG certified suppliers)
For the raw materials for which primary data could not be identified, we utilized external sources to estimate production locations within known producing countries or major import countries of the supplier’s location. These estimated locations were then included as regions for analysis.
・Synthetic raw materials (Primary foam production)
・ Natural leather (Cattle ranching)
・ Cotton (Cotton cultivation & Cotton spinning and processing)
・ Recycled paper (Recycled pulp production)
Identification of Areas with Potential Nature-related Impacts or Dependencies
To identify locations within the upstream regions of the value chain where potential impacts or dependencies on nature may be of concern, we conducted an analysis using GIS (Geographic Information Systems) at an approximate 5 km grid scale. The analysis focused on the following indicators defined in the TNFD recommendations for identifying sensitive locations.
・Biodiversity importance
STARr ≥ High:
Areas where conservation efforts for threatened species would be more effective
STARt ≥ High:
Areas with a high concentration of threatened species, including critically endangered ones
・Ecosystem integrity
Current BII ≥ 90%:
Areas with high ecosystem integrity at present
BII decline ≥ 10% over the past 20 years:
Areas where ecosystem integrity has rapidly decreased
・Water physical risks
AQUEDUCT water stress ≥ High:
Areas where water demand is under significant pressure relative to supply
Identification of Priority Areas
By overlaying the location data of our business activities with areas identified as having potential impacts or dependencies on nature, we analyzed and identified the following countries and raw materials as priority areas. It should be noted that these results are based on estimates derived from secondary information and do not indicate that raw materials from these countries are actually used in our operations.
・Synthetic raw materials (Primary foam production) : Thailand, Malaysia, Indonesia, Taiwan, Vietnam
・ Natural leather (Cattle ranching) : Brazil, USA
・ Cotton (Cotton cultivation) : Pakistan, Australia
・ Cotton (Cotton spinning and processing) : Sri Lanka, Vietnam
・ Recycled paper (Recycled pulp production) : Sri Lanka, Vietnam
For footwear products manufacturing factories and leather tanning facilities where analysis was conducted using primary location data, we have determined - based on evaluations such as ENCORE and LWG certification - that these sites do not currently fall within the designated priority areas. However, we remain committed to continuously monitoring and reducing environmental impacts across the entire supply chain.
Evaluate ＆ Assess
For each priority area identified through Locate, we compiled a list of nature-related dependencies and impacts rated ‘High’ or above in ENCORE for the raw material production processes. We then conducted a comprehensive evaluation of these dependencies and impacts, taking into account the assessment results from the Materials Impact Explorer, the thresholds applied to narrow down priority regions, and the level of stakeholder interest. As a result, cotton cultivation in arid regions was assessed as particularly significant in terms of dependency, due to its reliance on water supply and the associated physical risks. With respect to impacts, key issues identified include deforestation driven by cotton cultivation and cattle ranching; water quality degradation in river basins associated with dyeing processes during cotton spinning, weaving, and finishing; and water and air pollution resulting from the primary manufacturing of synthetic raw materials. Based on the assessment, recycled paper was determined to have no material dependencies or significant environmental impacts.
Integration of Analysis Results into Strategy
As a priority, we will focus on synthetic raw materials with the highest procurement volumes and continue to collaborate with stakeholders to ensure proper chemical management and waste disposal practices. In addition, we will implement measures such as inventory optimization, responsible use of raw materials, procurement of certified materials, and enhancement of product longevity.
For cotton and natural leather- despite their relatively limited procurement volumes- we will continue to strengthen traceability and adopt measures including sourcing certified materials and water-efficient dyeing technologies to address the risks identified in this assessment.
Furthermore, since some regions were identified using secondary data in this assessment, we will work to enhance raw material traceability and consider setting more detailed targets, action plans, and timelines.