The Forefront of Sustainable E-Commerce Driven by Sustainability and ESG Management

20121007mail
Aug 14
2 min read

1. Market Growth and Trends in Sustainable E-Commerce

In 2025, Japan’s sustainability and ESG service market is projected to reach ¥273.5 billion, a 15.6% year-on-year increase. By 2029, the market is expected to grow to ¥496.2 billion. With a compound annual growth rate (CAGR) of 16.0% between 2024 and 2029, the industry is rapidly expanding.

Rakuten’s “EARTH MALL with Rakuten” offers about 120,000 sustainable products. From 2020 to 2021, transaction volume increased approximately 4.1 times, and page views grew by 4.8 times. In 2022, transaction volume rose by 211% year-on-year, indicating growing consumer interest in eco-conscious purchasing.

Other platforms such as Yahoo! Shopping and Amazon Japan have also added “eco” or “sustainable” filters and labeling features. In particular, Yahoo! Shopping introduced the “Green Shopping Day” initiative to promote ethical consumption.

2. Case Studies of ESG-Driven E-Commerce Initiatives

2.1. Felissimo

Felissimo's “Kraso” brand promotes sustainable apparel using organic cotton and natural dyes. Through the “One Earth Project,” Felissimo donates part of its proceeds to environmental conservation. As of 2024, it has contributed over ¥60 million.

Felissimo also applies ESG principles internally by:

Switching 100% of domestic logistics to renewable energy
Reducing over 50% of packaging materials
Disclosing sustainability reports on its corporate site

2.2. Mujirushi Ryohin (MUJI)

MUJI has established the “Resource Recycling Platform” to collect and recycle used apparel. As of 2025, it collects over 1,200 tons of used clothing annually and reuses more than 90% of it through donations or recycling.

Additionally, MUJI's “environmental labeling” on e-commerce product pages clearly communicates CO₂ emissions, recycled materials, and biodegradability.

2.3. Lush Japan

Lush's “Naked Products” initiative reduces packaging by over 60% compared to conventional products. It also utilizes locally sourced ingredients and maintains supply chain transparency via blockchain-like tracking systems.

In collaboration with NGOs, Lush promotes ocean plastic recovery and biodiversity protection, further enhancing its ESG profile.

3. Technological Innovations Supporting Sustainable EC

AI for Demand Forecasting: Helps reduce overproduction and optimize logistics.
Blockchain: Enables transparent traceability of supply chains, especially for fair-trade or organic-certified products.
Carbon Footprint Calculators: Allow consumers to assess product lifecycle emissions before purchase.
3D Fitting: Minimizes product returns and waste in apparel EC.

4. ESG Disclosure and Data Transparency

Major platforms are beginning to require ESG data submission from sellers. Some examples include:

Company	Disclosure Format	Key Metrics
ZOZOTOWN	CO₂ per item	Carbon offset partnerships
Rakuten	Third-party audit reports	Water usage, packaging volume
Amazon Japan	Product Impact Label (trial)	Environmental and ethical sourcing data

These disclosures enhance credibility with ESG-conscious consumers and institutional investors.

5. Challenges and Future Outlook

Ensuring reliable third-party ESG verification
Balancing cost competitiveness with sustainable sourcing
Adapting to evolving international standards (e.g., EU CBAM)

Looking ahead, sustainable EC is expected to evolve from “ethical purchasing” to “default behavior.” This will require stronger collaboration across industries, academic institutions, and regulators.

6. Summary

Sustainable e-commerce, driven by ESG management and consumer values, is no longer a niche but a mainstream trend. Companies that actively disclose ESG data, invest in traceable supply chains, and offer real consumer value will lead the next era of digital commerce.