Under the theme of “Moving goods from where they are no longer needed to where they are needed,” the GEO Group is working to realize a sustainable society through a variety of recycling-oriented businesses.
To facilitate long-term value creation and sustainable growth amid ever-changing social issues and surrounding environment, the GEO Group has identified 17 ESG issues and among those, the Group’s six most important issues.
＜The GEO Group’s six most important issues＞
E: Realization and promotion of a recycling-oriented society
E: Responding to climate change, saving resources, and reducing waste
S: Promoting diversity and inclusion
S: Promoting specialist training and talent management
G: Promoting fair trade and sound corporate culture
G: Strengthening corporate governance
(E:Environment S:Social G:Governance)
(E:Environment S:Social G:Governance)
STEP1. Issues identified
As part of identifying these issues, we conducted a wide range of surveys and verification of candidate issues and initiatives from other companies based on global standards for evaluation items of ESG rating organizations (MSCI, FTSE, SASB, GRI, etc.), identifying candidate issues based on the opinions of management and GEO Group key divisions.
STEP2.Selection and Prioritization of Issues
The department in charge of sustainability, heads of key divisions, and management deliberated on the potential issues selected. Based on the principle of double materiality, they analyzed and prioritized these issues from the dual perspectives of “importance to stakeholders” (impact of our activities on the environment and society) and “importance to the GEO Group” (financial impact of environmental and social issues on the group).
STEP3. Identification of materiality issues
The 17 selected ESG issues and the materiality map were deliberated on and approved by the Board of Directors, and officially identified as the GEO Group’s materiality.
■ Materiality Map
The Geo Group has set a vision and KGI for the critical issues we have identified. By proactively and continuously focusing on these issues, we aim to contribute to a sustainable society and improve our corporate value in the medium to long term.
| As of June 24, 2026 | |||||||
| Category | Top Priority Issues | Vision | KGI | Major KPIs | |||
|---|---|---|---|---|---|---|---|
| Target Fiscal Year | Targets | FY2025 Results | |||||
E(Environment) | Climate change measures | Realization and promotion of a recycling-oriented society | Identify new value to bring joy to the everyday lives of our customers via recycling | 2035 | Consolidated net sales of 1 trillion yen *1 | 523,450 million yen | Number of stores in reuse related businesses |
| Sales of reuse related products | |||||||
| Number of off-price products sold *2 | |||||||
| Responding to climate change, saving resources, and reducing waste | Achieve a sustainable society by reducing environmental impact | 2035 | GHG reduction contribution from reuse business activities (Avoided Emissions) 102,649t-CO2e | 61,647 t-CO2e | Weight of reuse related clothing sold | ||
| Rate of stores adopting eco purchasing *3 | |||||||
| Number of excess products sold overseas *4 | |||||||
| Amount of industrial waste reduced | |||||||
| 2035 | GHG emission reduction through reduction and reuse of electricity and resources 38,780t-CO2e（50% reduction compared to FY2019） *5 | 76,525 t-CO2e | |||||
| GHG emission reduction through optimized electricity use | |||||||
| GHG emission reduction through energy-efficient equipment | |||||||
S(Social) | Workstyle measures | Promoting diversity and inclusion | Recognize the diverse values of diverse people to create a corporation where individuals can work without discrimination | 2028 | Employee engagement Total score of 70 or higher | 66 | Percentage of female managers |
| Employment rate of people with disabilities | |||||||
| Percentage of male employees taking childcare leave | |||||||
| Promoting specialist training and talent management *6 | Achieve continuous growth for individuals and organizations with specialist employee development via education and training both inside and outside the company | 2030 | Number of specialists Increase by 200 (compared to FY2023) | Increase of 116 | Number of staff members relocated with job rotation education | ||
| Training hours per person | |||||||
G(Governance) | Governance measures | Promoting fair trade and sound corporate culture | Achieve a trusted Geo Group by conducting business fairly and ensuring compliance | Every year | All our companies comply with the law and internal regulations Zero administrative penalties | 0 penalties *7 | Establishment of fair and reliable trading infrastructure |
| Adoption of education system for all Group employees | |||||||
| Enhancement of personal information management system | |||||||
| Implementation rate of domestic and overseas IT governance assessments | |||||||
| Security standard coverage for domestic and overseas subsidiaries (monitoring and education systems) | |||||||
| Strengthening corporate governance | Establish corporate governance that is highly diverse, sound, transparent, and efficient, in order to maximize our corporate value | Every year | Effectiveness evaluation of Board of Directors and related agencies 100% rate of achievement | 100% | Rate of evaluating Board of Directors effectiveness | ||
| Implementation of executive training | |||||||
| Rate of implementing risk management | |||||||
*1 viviON Group regards NMV (Net Merchandise Value) as net sales
*2 Off-price refers to the business of selling at discounted prices discontinued products and clearance products purchased from a manufacturer
*3 Eco purchasing refers to an initiative for purchasing clothing that cannot be easily sold in Japan at the price of one yen per garment and exporting them overseas
*4 Excess products refer to secondhand clothing and accessories that cannot be resold in Japan, including those scheduled for disposal
*5 Covers the following four major domestic businesses of the GEO Group used as benchmarks at the time of target setting:
GEO HOLDINGS CORPORATION, GEO CORPORATION, GEO STORE CORPORATION, and 2ND STREET CORPORATION
*6 Specialists: Employees corresponding to Grade S or Grade M under the Company’s grading system
*7 On June 11, 2026, subsequent to the end of this reporting period, the Company received an administrative order for action from the Consumer Affairs Agency pursuant to Article 5, Paragraph 2 of the Act against Unjustifiable Premiums and Misleading Representations, regarding the purchase prices displayed for mobile devices from May to November 2025.