Mercari, Inc. (“Mercari”) has published its FY2023.6 Impact Report, a report consolidating information on the efforts Mercari made to promote ESG in FY2023.6 and the results of those efforts.
https://merc.li/M32Y2q9Aa
*Updated on December 15th, 2023, 4:00 PM: We have changed the link of the 2023 Impact Report due to the following revisions to the report. The updated report can be found here: https://merc.li/M32Y2q9Aa
Details of revision—Page 55: Edited the explanation related to the Corporate Governance Structure Chart.
*Updated on October 27, 2023, 11:30 AM: We have changed the link of the 2023 Impact Report due to the following revisions to the report.
Details of revision—Page 24: Edited the graph for this year’s reduction data. Page 51: Edited a number of values that were incorrect. Page 59: Edited the chart related to the Information Security Management System.
Mercari strives to be a planet-positive company that contributes to solving environmental and societal issues through its business activities, working to help realize a society in which all forms of value—not just physical goods and money—circulate seamlessly. The company first published a report containing this information in 2020.
Starting this year, we have changed the name of this report from the “Sustainability Report” to the “Impact Report.” The name “Impact Report” is meant to convey Mercari’s determination to achieve the new Mercari Group Mission announced upon the company’s tenth anniversary in February 2023: “Circulate all forms of value to unleash the potential in people.” The name also communicates the company’s resolve to generate positive impact on society through its business.
Mercari has also updated the five material topics that represent the five areas on which the company will focus alongside the Mercari Group mission.
Five Material Topics
- Empowerment of Individuals and Society
- Creating a World That Circulates All Forms of Value
- Creating a New User Experience Through Technology
- Building Long-Term Public Trust
- Unleashing the Potential in Diverse Talent Worldwide
The FY2023.6 Impact Report summarizes the actions Mercari has taken to address each material topic, including calculations demonstrating the positive impact Mercari has had on the environment through its business (“avoided emissions”) and data on the gender pay gap at Mercari—disclosed this year for the first time.
Highlights from the FY2023.6 Impact Report
ESG Highlights
Positive impact generated through business: Through transactions concluded on the service Mercari, the company avoided approximately 530,000 tons of greenhouse gas emissions annually
In our calculations, we found that approximately 530,000 tons of greenhouse gas emissions were avoided in one year by transactions in select categories on the Mercari services operating in Japan and the US. This is equivalent to approximately 220 covered baseball stadiums. In Japan alone, users avoided approximately 43,000 tons of apparel waste (by weight) by listing items they no longer needed on Mercari. This is equivalent to approximately 9% of the total 480,000 tons of apparel thrown away annually in Japan.
The company found that selling or buying one item of clothing on Mercari helps avoid approximately 9.3 kg of greenhouse gas emissions while also extending the lifespan of each clothing item by 3.2 years, thereby eliminating the need to replace old clothing with new. 1
1. For more details, see the press release here: https://about.mercari.com/press/news/articles/20230808_u-tokyo_positiveimpact/ (only available in Japanese)
Unleashing the potential in diverse talent worldwide: Hiring professional talent from approximately 50 different countries
Mercari is most heavily focused on investing in people, aiming to become an organization that unleashes the potential in diverse talent worldwide in pursuit of its mission. Mercari follows a policy of acquiring professional talent from around the world at market-competitive compensation and further developing that talent through continuous learning. Based on this policy, Mercari has attracted a current workforce hailing from approximately 50 different countries, with non-Japanese employees comprising more than 50% of its engineering division in Japan.
Corrective measures to address the gender pay gap: Shrunk the unexplained pay gap (pay gap not attributable to differences in role, grade, or job type) from 7% to 2.5%
Aware of the fact that the gender pay gap only shows the average difference in pay between men and women within an organization, Mercari also calculated for “unexplained pay gap,” which is the gap not due to differences in things such as role, grade, or job type, in order to ascertain the situation of the gender pay gap at the company more accurately. Results showed a gender pay gap of 37.5%, with 7% comprising this “unexplained pay gap.” The company implemented corrective measures to address this unexplained pay gap and adjust compensation, ultimately shrinking the gap to 2.5%. Mercari will continue working to address the gender pay gap by conducting regular monitoring of the wage gap using regression analysis and revising hiring practices so that new hires do not carry over the wage gap they experienced prior to joining Mercari.
Through its business and corporate activities, Mercari will continue to contribute to realizing a society where all forms of value can be circulated and the potential of all people can be unleashed.
Mercari Group’s Sustainability Strategy
Mercari strives to be a planet-positive company that contributes to solving environmental and societal issues through its business activities by realizing a society in which all forms of value circulate seamlessly. In 2023, a report calculating the positive impact of Mercari’s business on carbon emissions revealed that an annual total of 530,000 tons of greenhouse gas emissions were avoided across Japan and the US through Mercari Group’s combined business activities in both countries. In Japan alone, users avoided approximately 43,000 tons of apparel waste (by weight) by listing items they no longer needed on Mercari. This is equivalent to approximately 9% of the total 480,000 tons of apparel thrown away annually in Japan. Going forward, Mercari will strive to do its part in creating a circular economy. We will continue to take action to promote reuse and provide alternatives to throwing items away.
*Reference: Mercari Works with the University of Tokyo to Calculate Greenhouse Gas Emissions Avoided through Transactions on Mercari
https://about.mercari.com/press/news/articles/20230808_u-tokyo_positiveimpact/ (only available in Japanese)