CSR REPORT 2024
Giving greater happiness to a greater number
through beauty & healthIwase Cosfa Co., Ltd. CSR REPORT 2024

Corporate Philosophy

Giving greater happiness to a greater number through beauty & healthAs a creator of new values, we will continue to help enrich the lives of people around the world.
Iwase Cosfa has been dealing with raw materials for cosmetics and health foods for about 90 years since first opening for business, and has developed and proposed original raw materials in cooperation with ourbusiness partners.
We will continue to contribute to the global chemical industry by leveraging the technology and experience we have accumulated to date.
Responding to new trends focused on sustainability and the SDGs, we will embody the spirit of Sanpo-Yoshi (good for the seller, buyer, and society) and promote management that creates beauty and health forpeople.

Corporate Social Responsibility Policy
1. To our customers

3. To employees

5. Social and community contribution activities• We firmly comply with all laws and regulations.
• We fully protect customer and personal information.
• We provide accurate product information.
• We work to improve our knowledge and technology to meet the needs ofour customers and partners.

• We will prioritize workplace safety and create a comfortable working
environment that provides a sense of fulfillment.
• We will emphasize communication and aim to build a transparent
organization.
• We will support women’s advancement in the workplace.

• As a member of the community, we value interaction with the communityand society.
• We proactively take part in social and community contribution activities.

2. To our partners

4. Caring for the environment• We conduct business in an honest, fair, and equitable manner with a senseof integrity.
• We comply with international standards and treaties advocated by theUnited Nations and the International Labor Organization (ILO), as well as
the Japanese Labor Standards Act of 1947.
We do not engage in any form of forced labor or harmful and dangerous
child labor, nor do we allow our business partners to do so.We do not purchase raw materials and products produced by such labor.

• We will promote environmental conservation measures.
• We will emphasize products that have smaller ecological footprints.

6. Reporting• In light of our aspirations above, we publish an annual CSR report topublicize our efforts both inside and outside the Company.

1

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Company Information

Company Profile
Company nameDate of foundation
Date of establishment
Head office location

Business Overview
Iwase Cosfa Co., Ltd.
September 15, 1931
July 29, 1948
1-7-11 Dosho-machi, Chuo-ku Osaka
541-0045
Tel. 06-6231-3456
Fax. 06-6231-8109

・Sales and import/export of cosmetic raw materials, pharmaceuticalraw materials, house hold goods raw materials, industrial raw
materials and electronic materials
・Sales, import, export, and contract manufacturing of foods withfunctional claims, foods with nutrient function claims, and foodadditives
・Contract pre-clinical testing

Affiliated Companies

Organizational Chart
General Shareholders
Meeting

Board of Directors

Auditors

Representative
Director

Corporate Planning/
New Business Development OfficePublic Relations/Secretariat Office
CSR Promotion OfficeCompliance Promotion Office

Overseas subsidiaries

ISO Promotion Office• Cosfa International Trading (Shanghai) Co., Ltd.

Representative

President Yoshinori Iwase

CapitalJPY 100,000,000

Number of employees*

Non-consolidated: 214 (including
temporary workers)
Consolidated: 348• Cosfa International Trading (Guangzhou) Co., Ltd.

Tokyo Pharmaceutical Department

BIOX Group• Iwase Cosfa Europe S.A.S.

Osaka Pharmaceutical Department

Kyushu Sales Office• Iwase Cosfa Vietnam Co., Ltd.

Supply-chain Support Department• Iwase Cosfa Korea Co., Ltd.
• Iwase Cosfa USA Inc.

Promotion Group
Global Promotion Group• Iwase Cosfa (Thailand) Co., Ltd.
• PT. Iwase Cosfa Indonesia

Wellness Division
Karatsu Wellness Farm

Sales*

JPY 34,196 million

Net profit*

JPY 1,221 million*Number of employees, sales, and net profit are as of December 31, 2023.

Domestic affiliated company• Dainihon Kasei Co., Ltd.

Management Department

Tsukuba Distribution Center

Other affiliated companies*

DX Promotion Department

Karatsu Logistics• Toyo Beauty Co., Ltd.

General Affairs Department• BHN Co., Ltd.
For more information please visit our official website :https://www.cosfa.co.jp/company/history.html

R&D Department*Not subject to reporting in this CSR Report2

Iwase Cosfa Co., Ltd. CSR REPORT 2024

3

Company Information
CHINA
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD.
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD., Beijing Subsidiary

Global Network

COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD.

KOREA
IWASE COSFA KOREA CO.,LTD.

EUROPE
IWASE COSFA EUROPE S.A.S

JAPAN
IWASE COSFA CO.,LTD. OSAKA HQ
IWASE COSFA CO.,LTD. TOKYO HQ
IWASE COSFA CO.,LTD. Kyushu Sales Office

AMERICAIWASE COSFA USA INC.

S.E ASIAIWASE COSFA VIETNAM CO.,LTD.
IWASE COSFA (Thailand) CO.,LTD.
PT. IWASE COSFA INDONESIA

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Highlights

Financial Indicators
Sales

Ordinary Profit

Net Profit

Net Assets(JPY 1 million)(JPY 1 million)(JPY 1 million)(JPY 1 million)

40,00030,00029,95727,086

28,84732,0952,000

34,1961,500

30,000

1,221

1,597
1,500

20,0001,000

10,000

500

1,092

1,406
1,208

1,182

1,000

987

856
721

21,045

2019

2020

2021

2022

0

2023

2019

2020

2021

2022

2023

0

24,09525,241

20,000

844

500

0

21,322 22,145

10,000

2019

2020

2021

2022

2023

0

2019

2020

2021

2022

2023

Non-Financial Indicators
Number of employees (by gender) and ratioof female managers

Number of industrial accidents and averagemonthly overtime

Number of compliance violations*1 andinformation security breaches

GHG emissions (Scope 1+2)

(persons)(%)(cases)(hours)(cases)(tCO2e)

600

400

30

16
153

17

17

168

177

200

127
0

30

8

41

2019

138
10

135
10

48

48

2020

2021

Number of employees (left axis)
Number of managers (left axis)
Ratio of female managers (right axis)

30

4

3

196

150
149
20
21
47

2022

48

2023

Male Female
Male Female

3.65

3.44

2

500

6

3

4

2

1

1

0

2

0

0

2019

2020

2021

Number of industrial accidents (left axis)
Average monthly overtime (right axis)

384.94

0

0

2022

2023

400

338.56357.14 356.5 322.90

300

1

10

0

4

3

5.55

5.1

20

198

8

6.83

0

200

1

1

0

100

0 0

0

2019

2020

※2

0
※2

2021
※2

0

0 0

2022

2023

Number of compliance violations Number of information security breaches*1: Misconduct based on Article 14 of the Compliance Promotion Regulations: Level 1 and Level 2*2: The data covers Iwase Cosfa on a non-consolidated basis; expanded to include the groupcompanies in fiscal 2021.

0

64.58

52.19

60.36

2019

2020

2021

Scope 1 Scope 2

74.33

96.21

2022

2023

4

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Editorial Policy

This report describes the initiatives that Iwase Cosfa is implementing to create new value and contribute to greater happiness.
Table ofContents

We will continue to fulfill our accountability to our stakeholders through this report.

Reporting Period
Fiscal 2023 (January 1, 2023 to December 31, 2023)*Some activities and achievements beyond the above reporting period are also described.

Guidelines Consulted

1

Corporate Philosophy/
Corporate Social Responsibility Policy

2Company Information

3

Global Network

4

Highlights

7

Editorial Policy

7

Message from the President

8

CSR Management

The Global Reporting Initiative’s Sustainability ReportingStandards (GRI), ISO 26000 and other guidelines were consulted
while preparing the reported information.

Organizations Covered by the Report
In this report, “Iwase Cosfa” means eight companies in the Iwase

Date of Issue

Cosfa Group and one affiliated company. If it is necessary to specify

Issued:July 28, 2024 (Next issue scheduled for: June 2025)

the coverage, the name of the relevant organization will be stated

Previously issued:

May 2, 2023

individually.

Contact
Iwase Cosfa Co., Ltd. and its group companies

CSR Promotion Office, Iwase Cosfa Co., Ltd.

Iwase Cosfa Co., Ltd.

cosfa-csr@cosfa.co.jp

Seven overseas subsidiaries
Cosfa International Trading (Shanghai) Co., Ltd.

8

Approaches to Sustainability

Cosfa International Trading (Guangzhou) Co., Ltd.

8

Collaboration with Stakeholders

Iwase Cosfa Europe S.A.S.

11 Materiality Identification Process

Iwase Cosfa Vietnam Co., Ltd.

14 M ateriality at Iwase Cosfa

Iwase Cosfa Korea Co., Ltd.
Iwase Cosfa USA Inc.
Iwase Cosfa (Thailand) Co., Ltd.
One domestic affiliated company
Dainihon Kasei Co., Ltd.
*PT. Iwase Cosfa Indonesia, established in November, 2023, is not included in thereporting scope.

15

Materiality Report
15 Corporate Governance and Ethics
20 Labor and Human Rights
26 Environment
32 Sustainable Procurement

5Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report

Message from the President

Daring opportunities for all employeesWith altruism, gratitude, sincerity, a challenging spirit, and humbleness,
we will help enrich the lives of our employees and make society better
The spirit of “pay it forward” learned from mygrandfather
Iwase Cosfa Co., Ltd. was founded in Osaka in 1931 by Kenjiro

To enrich lives of our employees
In light of this, what is my own mission? How should I take what
has been built up so far, and pass it onto the next generation? It

Iwase, in line with the traditional management philosophy ofgoes without saying that one part of my mission is to develop

Omi merchants called “Sanpo-Yoshi” (good for the seller, buyer,

the company further. However, I believe that one goal of utmost

and society). We have been developing and marketing cosmetic

importance is to enrich the daily lives of each and every employee

materials, functional food, and health food ingredients for 90 years

who has joined the company, so that they can enjoy fulfilled lives

under the corporate philosophy of “Giving greater happiness to awithout any regrets. It is up to each individual to choose what

greater number through beauty & health.”experiences to have and how to enrich his or her life, but I believe

Kenjiro Iwase, the first president and my grandfather, would oftenthat it is my role as the leader of the company to provide employees

say,“pay it forward tenfold.”According to his philosophy, many people

with as many opportunities as possible when they are ready to takehelp us out whenever we encountered a crisis, and it is thanks to

on a new challenge.

their assistance that we are where we are today. If someone does us aBoth the founder and second president of the company valued

favor, we should return the favor tenfold. However, if someone wants

the spirit of “give it a try,” and I too try to keep this in mind. I want

to return a favor to us, we should ask them pay it forward to someone

employees to take on a wide range of challenges on their own

else in need. My grandfather often mentioned this philosophy, andinitiative. I will take full responsibility for them as president, so I want

indeed, he always acted for the benefit of others without asking forthem to try whatever they want to do, without fear of failure. We haveanything in return. This attitude has saved him and his company

established a system called the “Ichi-Go Project” as one way to create

many times.

more opportunities. This system helps employees take on challenges,

These beliefs were passed on to my father, Kenji Iwase, whosuch as studying and obtaining qualifications in their favorite subject

was the second president of the company. I truly feel that myin order to improve themselves and broaden their knowledge andgrandfather’s approach has built a large amount of trust thatexperience, regardless of their current responsibilities in work. The

continues to support Iwase Cosfa today.

only requirement for using this system is to give a speech lasting one

Yoshinori Iwase
President andRepresentative Director
Iwase Cosfa Co., Ltd.

6

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report

Message from the President(ichi in Japanese) to five (go in Japanese) minutes after completing

gratitude, sincerity, a challenging spirit, and humbleness. By

that their work is useful to the world, as well as to feel a sense

the program to share what they have learned with other teampracticing these five concepts, people naturally develop a yesof pride. There are many ways to achieve “Sanpo-Yoshi,” but wemembers in their department. Things that may not seem to bemindset. This makes them loved by those around them, which

believe it is important not to decline any opportunity for making

directly related to business operations may in fact have connections

thereby allows them to succeed in their work. This is something I

contributions to society.

with beauty and health in one way or another. We started this projectstrongly felt when observing my grandfather and father. I believe*We are participating in the Cosme Bank Project from Bank for Smiles as an operatingwith the hope to discover a whole new world through what eachthat a company can also grow significantly through “lucky” peoplecommittee.

employee has learned.

who embody these elements.

Since I became president, I have conducted over 300 individualinterviews with all employees, including those at group companies,

Contribute to solving social issues

as I felt I needed to get to know them in order to help them live

On the other hand, if we look at the external environment,a fulfilling life. The interviews take at least one hour per person

we can see that the cosmetics industry in which we operate is

and sometimes cover not only work-related topics but also

growing rapidly aware of social issues such as the need to reduce

private matters including family and romantic relationships. These

environmental impact, respect human rights, and promoteindividual interviews give me the opportunity to see areas that needsustainable procurement. We strongly recognize we have an

improvement with regard to the office and the company as a whole,

important responsibility to further accelerate our activities that help

while also serving as opportunities for discovery and reflection about

address these issues.

myself. I intend to continue holding these individual interviews in the
future.
In addition, we provide a variety of opportunities for employees

As part of these efforts, we have started to support the Cosme
Bank Project*, which takes cosmetics that can no longer be resold
due to renewal, and delivers them to families who are encountering

to learn about diverse topics. For example, there is a monthly

financial hardship. Food loss is one of several social issues that havestudy group for managers, including myself, called the Early

been attracting considerable attention in recent years. The reduction

Morning Study Group. I want each employee to take on challengesof loss is also an urgent issue in the cosmetics industry, and we wouldthat they are interested in, and to absorb whatever they can,like to actively drive efforts forward in any way we can.

thereby enriching their work and lives.
One thing that I expect from the people working at thisWe have expanded our activities in many other areas, suchas providing support for higher education to children who werecompany is that they should be "lucky" people. I want employeesorphaned in the Great East Japan Earthquake, and giving sports

with a “yes mindset,” who think first about how to achieve

support for children in the Philippines. We feel that by returning

something, rather than just giving up before even trying. I believe

profits earned through our business to society, we will help ourthe crucial elements for developing a yes mindset are altruism,

employees recognize that they are contributing to society andhttps://cosmebank.jp/committee-company/

As a Creator of new values
The year 2023 marked the third year of our 9th medium-termManagement Plan. As the Covid-19 pandemic came to an end,
economic activity finally resumed and Japan experienced a mild
recovery, coupled with an increase in inbound consumption as
foreign visitors returned. Our business performance also exceeded
our targets with both sales and profits increasing.
In 2024, we will continue to work on strengthening ourbusiness structure to further expand our cosmetics, overseas andwelness businesses, while responding to environmental changes,
aiming to realize the vision of our medium-term Management
Plan. Through ESG management, we will also continue to takeenvironmental and social concerns into consideration, build asolid management system, invest in human capital, and strive tofurther enhance corporate value.

7

Message from the President

CSR Management > Approaches to Sustainability

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report

CSR Management

Approaches to Sustainability

Dialogue with Stakeholders

Iwase Cosfa aims to contribute to society through business

Iwase Cosfa will promote social responsibility initiatives and provide new value through active communication with our stakeholders.

activities based on our corporate philosophy, “Giving greater
happiness to a greater number through beauty & health.”
In our medium-term management plan, we have set forth our

Stakeholders

Our responsibilities• Provide safe, reliable, high-quality products• Build relationships of trust• Brochures for each product• Safety Data Sheets (SDS)• Web seminars (13 times)• Newsletter distribution (12 newsletters)• Communication through sales activities• Exhibiting at trade shows (5 cases)

Employees• Provide a pleasant and rewarding work environment• Enhance employee training to maximize individual
abilities• Internal reporting system
• Distribution of internal newsletters (99 newsletters)• East-West Conference (once)• Employee representative roundtable meetings(twice)• Labor-management agreements
• Health and Safety Committee (once a month)• Various interviews and training programs• In-house events

Suppliers, business
partners• Ensure fair and impartial transactions• Build relationships of trust• Communication through purchasing activities• Cosfa meeting (supplier report meeting) (held once)• CSR questionnaire survey (54 cases)• Supplier Code of Ethics (40 cases)

Local communities• Contribute to regional development• Active relationships with local governments• Active participation in industry associations(9 organizations)

medium- to long-term vision, “As the most trusted professional
trading company in the field of beauty and health, we aim to
keep helping to enrich people’s lives around the world.” We willproactively conduct activities that contribute to local communities
and help solve social issues, and based on our CSR Policy.
In addition, by working on our corporate social responsibility
throughout the entire supply chain and providing high-quality
services, we strive to embody the spirit of Sanpo-Yoshi (good forthe seller, buyer, and society) and promote management thatgenerates beauty and health.

Collaboration with Stakeholders
Iwase Cosfa conducts business in consideration of our
stakeholders (customers, employees, suppliers, business partners,
local communities, and other organizations) and the global
environment. We strive to enhance our corporate value by creating
economic and social value and contributing to the developmentof a sustainable society.

Customers
Local communities

Employees

Our company

Business partners

Suppliers

Approach and results achieved in FY2023

Customers

8

Message from the President

CSR Management > Approaches to Sustainability

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report

CSR Management

Endorsing and participating in third-party initiatives• Sedex (Supplier Ethical Data Exchange) and SMETA Audit (Sedex•U nited Nations, Sustainable Development Goals (SDGs)

Members Ethical Trade Audit)

Iwase Cosfa, as an entire group, supports the Sustainable

We received a four-area audit on November 14, 2023 and report•P arenthood charter
Based on the corporate parenthood observatory established in
2008, Iwase Cosfa Europe has established the Iwase Cosfa Europe

Development Goals (SDGs) and matches its priority themes withthe audit results on Sedex.

Childcare Policy together with its employees. We are committed to

the SDGs. We always promote our business with an awareness*Sedex: https://www.sedex.com/

creating a working environment in which employees raising childrenof our contribution to the SDGs

*SMETA audit: https://www.sedex.com/solutions/can work while maintaining a good work-life balance without

and strive to disseminate themthroughout the Group.
* SDGs: https://sdgs.un.org/goals

smeta-audit/• EcoVadis
Our activities have been evaluated by EcoVadis every year since2017. In the 2023 Sustainability Survey we•U nited Nations Global Compact
We joined the United Nations Global
Compact in November 2019, and express our

Network Japan:
https://www.ungcjn.org/gcnj/about.html•C harter of Corporate Behavior and Biodiversity Declaration

Biodiversity Declaration Initiative promoted by Keidanren (Japanles-signataires/?search=COSFA&select_region=0&select_secteur=0&select_taille=0#no*EcoVadis: https://ecovadis.com/

Health Declaration and Certification as an Excellent Corporationfor Health Management 2023 (SMEs category)•R oundtable on Sustainable Palm Oil (RSPO)
We have joined the RSPO to promote sustainable procurement

To promote employee health, Iwase Cosfa
is working to create an environment in which

activities. We support the NDPE principles and aim to procure

employees can work comfortably in good

based on them.

health through continuous improvement*RSPO: https://rspo.org/

of work styles, a medical insurance systemwith a full range of benefits, reimbursement• Carbon Disclosure Project (CDP)
We received a B- rating in CDP’s Climate Change category infiscal 2023, and will continue to make improvements.

to fulfill our social and environmental*CDP: https://www.cdp.net/en*Keidanren (Japan Business Federation) Charter of Corporate

https://www.observatoire-qvt.com/charte-de-la-parentalite/

Third-party certifications

Business Federation). We will continue
responsibilities through it.

*Iwase Cosfa Europe’s Childcare Policy:

consecutive year.

Initiative, Keidanren (Japan Business Federation)
Iwase Cosfa supports the Charter of Corporate Behavior andparenting by both male and female employees.

were awarded a Gold Medal for the third

commitment to it in this CSR report.
*The United Nations Global Compact and Global Compact

being treated unfavorably, and to supporting equal participation infor optional examinations at medical
checkups, free distribution of masks, andHealth Declaration to internally and externally communicate ourcommitment to health management. As a result of these activities,
we were certified as "2023 Excellent

Behavior:

Corporations for Health Management" (inhttp://www.keidanren.or.jp/policy/cgcb/charter2022.html

the small- and medium-sized corporations

Keidanren (Japan Business Federation) Biodiversity Declaration Initiative:

category) in 2023.

https://www.keidanren.or.jp/policy/2023/082.html

Our Health Declaration

other measures. In October 2022, we made a9Message from the President

CSR Management > Approaches to Sustainability

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report

CSR Management•S upport for raising children
Based on the Act on Advancement of Measures to Support
Raising the Next Generation of Children stipulated by the Ministry

Contribution to society
Sponsorship of Osaka Kansai Expo 2025
At the 2025 Japan International Expo (Osaka Kansai Expo

Donation and Disaster Relief Activities
We made a financial donation through the "Emergency
Assistance for the Maui Fire in Hawai" Program run by Japanof Health, Labour and Welfare, Iwase Cosfa has formulated an2025), we will be supporting “Future of Life,” one of the signature

Platform, an emergency humanitarian aid organization, following

action plan as a general business operator. In May 2021, we were

pavilions produced by Hiroshi Ishiguro, as a partner. We will work

the Maui fire in Hawai in 2023.We also made donations throughawarded the Kurumin Mark as proof that we have met thesewith all co-sponsors to help create a better life 50 years from now

Ishikawa Prefecture after the Noto Peninsula Earthquake, thatstandards and have been certified as a company that supports

through aiming to contribute to the enriched lives and greater joy

occured on New Year's Day, 2024, to contribute to the region'schild-raising. We will continue to provide a work environment inof people all over the world.

recovery and help those affected by the disaster. .

which employees can achieve and maintaina good work-life balance, and in which they*Osaka Kansai Expo 2025:
https://www.expo2025.or.jp/

We are making efforts to nurture the next generation who

can work comfortably both physically andmentally.

Sponsorship of the Cosme Bank Project
We are participating in the Cosme Bank Project run by Bank for•E ruboshi certification
On October 7, 2022, we received theFostering the next generation

Smiles, a general incorporated association.
We collect products that have no quality problems but arewill lead the development of the cosmetic industry, notably bydispatching our employees to Mokogawa Women's University
Cosmetology class to provide practical assistance to the university
students.
Our employees participated in the "Cosmetics Industry

third level of the Eruboshi certification, the highest level, from thedifficult to resell, such as products that have become obsolete

Minister of Health, Labour and Welfare based on the Act on thedue to updates or unopened products that have been returned

In-Depth Seminar" hosted by the Saga Prefecture Initiative Office

Promotion of Women’s Active Engagement in Professional Life,

from stores. Then, we distribute them free of charge to those who(part of the Saga Prefecture Innovation center), and supported byin recognition of our outstanding efforts to promote women’sneed cosmetics but cannot afford them due to financial hardship

Saga University, Japan Cosmetic Center, and Karatsu City, where

activities.

or other reasons. We aim to solve societal problems from thethe collaborative seminar was held. The seminar is designed

By creating an environment where women can play an active

perspective of women, companies, and the global environment

to raise awareness of cosmetics companies and interest in therole, we support all female employees in balancing their work withby delivering cosmetics that would otherwise go to waste to thosecosmetic industry, and to promote the development of skilledlife events unique to women and ensure their career continuity on

who need them.

human resources in the cosmetics industry.

a long-term basis. Aiming to be a company where each and every*Cosme Bank Project:

employee shines, we strive to create a

https://cosmebank.jp/

more comfortable working environmentand by developing a workplace where all
employees, not just women, feel safe andsecure and respect each oher.

We also sponsor "THE ROYAL JUNIOR" organized by Nippon
Kabaya Ohayo Holdings Co., Ltd. We share common interestin their player development plan ("Developing world-famous
athletes"), and through this project, we support Japanesehigh school students to have the opportunities to competeinternationally and become talented professionals with global
persepectives.

10

Message from the President

CSR Management > Materiality Identification Process

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report

CSR Management

Iwase Cosfa Materiality
Based on our corporate philosophy and medium-term management plan, we have selected material topics that we should focus on to create new value, such as solving social, environmental, andsupply-chain issues.
Material topics identification process
1. Identification of social issues
We identified 30 social issues to consider and investigate
when identifying material topics, taking into account not only
the Group’s CSR policy, but also the GRI Standard, ISO 26000, anditems surveyed by CSR evaluation organizations.

Identified material topics
Categories

Sustainability key issues

Corporate governance andethicsDialogue with stakeholders / Data privacy & security / Compliance / Corruption prevention / Fair businesspractices

Labor and human rights

Respect for human rights / Working conditions / Employee health & safety / Career management & training

Environment

Reduction of energy consumption & GHG / Sales of sustainable materials / Waste reduction

Sustainable procurement

Supplier practices / Sustainable materials sourcing

2. Interviews on our key initiatives
We conducted interviews and free discussions with our
executives and stakeholders (customers, suppliers, employees, local
communities, NPOs, NGOs, etc.) on our key initiatives.

Iwase Cosfa’s materiality matrix
Corporate governance & business ethics

Labor & human rights

Environment

Sustainable procurement

High
Compliance3. Preparing a draft on material items
the selected 30 social issues on a five-point scale, with two axes:
importance to stakeholders and importance to our business. Basedon the importance rating of each, we selected 14 priority issues (total
score of 7 or higher) for the group as a whole, taking into account theimportance of each issue from an overall perspective.

4. Approval of materiality
The materiality was reported to the Board of Directors andSales of sustainable materials

Importance to the stakeholders

Based on each stakeholder’s expectations, we rated each of

Corruption prevention

Employee health & safety

Supplier practices

Fair business practices
Waste reduction

Energy consumption & GHG
Respect for
Data privacy & security
human rights
Dialogue with stakeholders
Working conditions
Sustainable materials sourcing

Career management & training

approved.
MediumImportance to Iwase Cosfa

High

11

Message from the President

CSR Management > Materiality at Iwase Cosfa

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report

CSR Management

Iwase Cosfa Medium- to long-term goals
We integrated the medium- and long-term targets of the 9th medium-term management plan and the single-year targets managed by the operational management chart, and organized thembased on our materiality items in fiscal year 2022. In 2023, we promoted waste inventory reduction to reduce our environmental impact. As a first step toward better supplier and supplychain
management, we also focused on communication with our suppliers by holding dedicated CSR opinion exchange meetings.
In 2024, over and above continuing to work on each target, we plan to continue to ask all suppliers to sign our Code of Ethics and complete a self-assessment questionnaire.
By continuing to adress each of these goals, we will contribute to the promotion of CSR activities throughout our supply chain.

Material Topics, KPIs, and Operational control list
Material topics

Commitment

Sustainability key issues

Medium- to long-term targets(2021–2025)

Items implemented in
FY2023 and resulting targets

KPI

Dialogue withstakeholders ain a high level of trustGfrom our stakeholders

CSR policy, Crisis
management
policyCorporate
governanceand ethics

Compliance
Code

—

—

Data privacy &securityCompliance

Corruption
prevention

Fair businesspractices im for zero information
A
leakage incidents(incident level 3)

Basic conceptof human
resources

Respect for humanrights reate new value andCpromote innovation
through diverse humanresources umber of complianceNviolations

S tatus of human rights
education
 Employment rate ofpeople with disabilities Increase in the ratio of
women in management
positionsLabor andhuman rights umber of informationN
security breaches

 im for zero complianceAviolations (level 1)
E nhance the soundnessof corporate activities
through legal complianceand ethical behavior rovide explanations to stakeholders
Pthrough the General Meeting of
Shareholders, East-West Conference, Cosfa
meetings, etc.
 se external CSR platforms (EcoVadis,U
Sedex)
Implement information security training ppropriatelymanageandprotectpersonalA
information
 onduct yearly compliance education forC
employees

Items to be implemented in
FY2024










Responsible department

 repare the CSR report, provide
P
explanations to stakeholders through the
General Meeting of Shareholders, EastWest Conference, Cosfa meetings, etc.

CSR Promotion
Office se external CSR platforms (EcoVadis,U
Sedex)CSR Promotion
OfficeImplement information security training

DX Promotion
Department

 ppropriately manage and protectA
personal information

General Affairs
Department

 onduct yearly compliance education forC
employees

Compliance
Promotion OfficeConduct yearly anti-bribery education

Conduct yearly anti-bribery education

Compliance
Promotion OfficeReport gifts yearlyReport gifts yearlyCompliance
Promotion Office rovide education on workers’ basicPhuman rights

CSR Promotion
Office, General
Affairs Department

 ctively promote women’s participationAin professional life, and continue topromote of the employment of people
with disabilities

CSR Promotion
Office, General
Affairs Department rovide education on workers’basic humanPrights dvocate for the Act on the Promotion ofA
Women’s Active Engagement in ProfessionalLife (acquired Eruboshi certification) andemployment of people with disabilities





12

Message from the President

CSR Management > Materiality at Iwase Cosfa

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report

CSR Management

Material items

Commitment

Medium- to long-term targets (2021–2025*1)

Sustainability key issues

Items implemented in
FY2023 and resulting targets

KPI

Working conditions

I mprove employee engagement and theretention rate vertime work
O
Absenteeism rate

Labor andhuman rights

Basic conceptof human
resources im to reduce the number of occupationalA
accidents to zero
 Aim to reduce work-related stress in
employees


Employee health &safety esign an organizational plan andD
employment in line with the new mediumterm management plan strategy
 Establish human resource development
plans by position and job type

Career management& training

 educe CO2 emissions by 70% by 2030
R
(Scopes 1 & 2)*2
 Procure 50% of electricity from renewableenergy sources


Reduction of energy
consumption & GHG
Environment

Environment
policySales of sustainable
materials

Waste reduction

S et an annual target for sales of eco-friendly
products, with an objective of 30% or moreof total sales
 aintain the amount of generated wasteM
at 1% or less of the sales volume toward2030*1

 btain signatures on the Code of Ethics
Ofrom 70% of major suppliers by 2025 Conduct a questionnaire survey on CSR
awareness among major suppliers by 2025
to enhance their CSR awareness umber ofN
occupational
accidents

 atio of male toRfemale employees Wage monitoring Training hours
Electricity
consumption CO2 emissions GHG emissionsS ales of eco-friendly
products
 mount of wasteA
generatedEfforts to reform work styles
I ncrease the number of female
managers
 onduct PDCA operation of crisisCmanagement projects, training on
how to contact in case of a disaster,and round-table meetings with
employees and Directors
 onduct annual stress checks forC
employees and provide high-risk
employees with the opportunity to
see an occupational physicianE stablish training plans by positionand job type
 Secure an average of 6 hours of
training per person per year








 eview the environmental policyRand continue to participate in the
Carbon Disclosure Project (CDP) ake at least 30% of the sales
M
volume of priority sales items
eco-friendly products
Reduce defective inventory

Sustainableprocurement

Sustainableprocurement
policySustainable materials
sourcing se raw materials derived from RSPOU
certified palm oil and palm kernel oil at aratio of 100% by 2030

Responsible department

Efforts to reform workstyles

CSR Promotion
Office, General
Affairs DepartmentI ncrease the number of female
managers

Management

 onduct PDCA operation of crisisCmanagement projects, training on
how to contact in case of a disaster,and round-table meetings with
employees and Directors

Crisis Management
Committee, CSR
Promotion Office onduct annual stress checks forC
employees and provide high-risk
employees with the opportunity to
see an occupational physician

General Affairs
Department

E stablish training plans by positionand job type
 Revise average hours of training
per person per year target

General Affairs
Department

 ontinue to participate in the
C
Carbon Disclosure Project (CDP),
scrutinize the basis for calculating
Scope 3

ISO Promotion
Office, CSR
Promotion Office ake at least 30% of the sales
M
volume of priority sales items
eco-friendly products

Sales Department

Reduce defective inventory

Administrative
DepartmentR equest all suppliers to agree to the
Supplier Code of Ethics, conduct aquestionnaire survey of suppliers
and hold discussions with themon improvement where risks are
identified

Sales Department,
CSR Promotion
Office rovide support for RSPO-certifiedP
raw materials

Sales Department,
CSR Promotion
Office





















Supplier practices

Items to be implemented in
FY2024 atio of suppliers thatR
have signed the Codeof Ethics
 atio of procurement
Rof RSPO-certified raw
materials*1: Environmental issues should be addressed by 2030. *2: Base year is 2019.



 ontinue to request endorsement
Cof the Supplier Code of Ethics andsignatures on it rovide support for RSPO-certifiedP
raw materials13Message from the President

CSR Management > Materiality at Iwase Cosfa

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report

CSR Management

SDGs Comparison table
Materiality items

Dialogue with stakeholders

Corporate
governanceand ethics

Data privacy & security Prepare the CSR report, provide explanations to stakeholders
through the General Meeting of Shareholders, East-West
Conference, Cosfa meetings, etc.

● Use external CSR platforms (EcoVadis, Sedex)● Implement information security training● Appropriately manage and protect personal information

●

●

●

●

Corruption prevention

 Conduct yearly anti-bribery education●

Fair business practices Report gifts yearly●Labor andhuman rights
Employee health & safety

Career management & training Provide education on workers’ basic human rights● Actively promote women’s participation in professional life, andcontinue to promote of the employment of people with disabilities●● Efforts to reform workstyles

●

●

●

●

 Increase the number of female managers
 Conduct PDCA operation of crisis management projects, training
on how to contact in case of a disaster, and round-table meetings
with employees and Directors● Conduct annual stress checks for employees and provide high-risk
employees with the opportunity to see an occupational physician● Establish training plans by position and job type●

 Secure an average of 6 hours of training per person per year●● Conduct yearly compliance education for employees

Working conditions

Sustainableprocurement

FY2023 and resulting targets

Compliance

Respect for human rights

Environment

Items to be implemented in

CSR key issues●●

Reduction of energy consumption& GHG

 Continue to participate in the Carbon Disclosure Project (CDP),
scrutinize the basis for calculating Scope 3

Sales of sustainable materials Make at least 30% of the sales volume of priority sales items ecofriendly products

Waste reduction

 Reduce defective inventory

Supplier practices

R equest all suppliers to agree to the Supplier Code of Ethics, conduct
a questionnaire survey of suppliers and hold discussions with them on
improvement where risks are identified●

Sustainable materials sourcing

 Provide support for RSPO-certified raw materials

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

14

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Corporate Governance and Ethics

Corporate Governance and Ethics

Iwase Cosfa considers the establishment of a fair andtransparent corporate governance system to be a
key issue. As a global company, we not only comply
with laws and regulations, but also ensure that every
employee has high ethical standards in order to meetthe expectations of our stakeholders.

Basic Approach

Crisis Management Policy

Iwase Cosfa considers communication with all stakeholders andWe have established a crisis management policy to fulfill our social

maintaining corporate transparency to be important issues for the

responsibilities and protect the interests of our employees and theCompany. We have established and are operating a governance

Company, and have declared that we will respond effectively to riskssystem that is fair, impartial, and well prepared for risks by balancing aas they arise.

system that promptly makes appropriate management decisions with

1. We will establish a crisis management system that includes crisis

a system that supervises and audits management and execution.

prevention as well as response and communication when a crisis

In addition, our CSR policy clarifies our responsibilities to eachstakeholder, and our Compliance Code defines the basic rules for all
officers and employees of the Company to follow. We provide our
employees with training opportunities so that they can maintain ahigh level of corporate and social ethics and act responsibly, and carryout our business operations with the highest priority on complianceand respect for human rights. We have defined basic matters in our
Crisis Management Policy to ensure the safety of our employees,
continuity of our business activities, and fulfillment of our social

occurs.
2. When a crisis occurs, we will not respond in a manner that conflicts
with our social responsibility.
3. When a crisis occurs, we will give top priority to the safety of ouremployees and take prompt and effective action.
4. When a crisis occurs, we will strive to continue or resume business
operations as soon as possible.
5. We will conduct education and training to raise employees’
awareness of crisis management.

responsibilities when a crisis arises at our Company. Furthermore, we

6. We will evaluate the results of crisis management activities annually

strive to reduce risks through security training and compliance training,

and improve the effectiveness of such activities continuously.

as well as analyze risks and opportunities from a medium- to long-term
perspective to maintain and protect the interests of our employees

Compliance Codeand our Company, thereby ensuring appropriate risk management.

Iwase Cosfa has defined in the Compliance Code the importantMoreover, we strive to achieve sustainable growth and enhance ourmatters to abide by in the execution of our business operations, andcorporate value so we can earn the full trust of all of our stakeholders.

distributed a handbook on it to all employees.

CSR Policy
Through our business activities, Iwase Cosfa will develop activities
that can address social issues and meet social expectations, and promotemanagement that can contribute to the beauty and health of the people.
* CSR Policy:
https://www.cosfa.co.jp/company/society.html*Compliance Code:https://www.cosfa.co.jp/company/pdf/compliance-charter-en.pdf

15

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Corporate Governance and Ethics

Corporate Governance and Ethics

Corporate Governance System Chart
General Shareholders Meetings
Nomination / Dismissal

Decision-making / Business Supervision Functions

Board of Directors
Directors

Business execution based on
decision-making

Auditors

Audit

Direction,
Supervision

Selection

Supervision

ReportBusiness Execution Function
Representative Director

Agenda and Report

Overseas subsidiaries

CSR Committee

Compliance
Committee

CSR Promotion
OfficeCompliance
Promotion Office

China(Shanghai, Guangzhou)

FranceISO Promotion
OfficeVietnamInternal
audit

Corporate Planning/ New Business
Development OfficePublic Relations /Secretariat Office

Korea
SupportUSA

Supervision

GlobalPromotion
Group

Supply-chain
SupportDepartment

Tokyo
Pharmaceutical
Department

Osaka
Pharmaceutical
Department

BIOX GroupKyushu Sales
OfficeWellness
Division

Karatsu
Wellness Farm

R&D
Department

Promotion
Group

Management
Department

DX Promotion
Department

Tsukuba
Distribution Center

Karatsu
Logistics

General Affairs
Department

ThailandIndonesia**Representative office

As of January 1, 2023

Corporate lawyers

Management Meeting
Crisis Management
Committee

16

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Corporate Governance and Ethics

Corporate Governance and Ethics

Corporate Governance System
Internal control
To ensure the soundness and appropriateness of its operations

Compliance Committee

Risk management system

The Compliance Committee is organized by members appointed

In accordance with our Crisis Management Policy, we have definedby the Board of Directors, and meets twice a year. The Committee

risk factors that could affect the safety of our customers, businessand to maintain and improve its corporate value, Iwase Cosfa has

is responsible for formulating and promoting compliancepartners, employees, and the continuity of our business operations inestablished committees and regulations for the following items tomeasures, employee education, revising or abolishing rules andthe event of an emergency. Based on the assumed risks, we set targets

define its internal control system.

regulations, and responding immediately if misconduct occurs.

and measures to be implemented for a single fiscal year, and check the

The committee reports its activities to Directors.

progress quarterly.

• Establishment of compliance codes and compliance committees• Formulation of a basic policy on information security and of rules
for responding to information security incidents

CSR Committee
The Committee is chaired by the Representative Director and•Establishment of Crisis Management Policies, implementation

composed of other members, including Directors, in a cross-of risk analysis, and establishment of a Crisis Management

departmental manner. Committee meetings take place once a

Committee

year. The Committee manages the progress of the Company’s CSR
activities, determines prioritized issues, and promotes awarenessAs a general rule, we hold a Board of Directors meeting andof the Company’s CSR activities.

a management meeting once a month to develop a system formaking prompt decisions on important management issues basedon relevant laws and regulations and the Articles of Incorporation.

Crisis Management Committee
The Committee identifies crises or formulates and implements[Major risks]• Bankruptcy of an important business partner• Compliance violations• Serious crimes committed by officers and employees• Information leakage, system failure• Injury or death of executives or employees due to accidents• Environmental pollution• Losses due to natural disasters including earthquakes,
windstorms, floods, etc.
• Fires• Bad management reputation• Executives or employees visited by disaster or abduction• Important damage due to accidents/robbery• Third party-related vandalism/business disruption

initiatives to respond to major crises. In the event of an

Board of Directors
Board of Directors meetings are attended by all Directors,

emergency, the Committee gathers information, examines
response measures, and implements the measures.

Iwase Cosfa conducts internal audits and management

including two Outside Directors and two Corporate Auditors.
The Board of Directors meets once a month, in principle, tomeetings are held prior to Board of Directors meetings to improvetheir executive functions, thereby strengthening the functionsof each meeting and ensuring that operations are carried out
appropriately.

organizations (JQA). The ISO Promotion Office is the auditing
department, and qualified internal auditors perform audits of other

Top Management

meetings are held as necessary. The Corporate Auditors fulfill thefunction of monitoring and auditing management. Management

reviews once a year, and undergoes external audits by third-party

Crisis management system (FY2023)

make management decisions. Extraordinary Board of Directors

divisions. Internal audits are conducted and reported in the Internal

Head of Crisis Management

Audit Report to determine whether in-house operations are being

Crisis Management Committee
Parties involvedInternal and external audits

executed correctly, with the aim of ensuring the appropriatenessHeads of departments

Employeesof business operations and internal controls and eliminating risks
including corruption and bribery. The results are conveyed to
management in management reviews.

17

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Corporate Governance and Ethics

Corporate Governance and Ethics

Targets, KPIs, and Achievements

Information Security and Privacy

Iwase Cosfa has established the following KPIs and is promoting

Iwase Cosfa recognizes the importance of ensuring information

3. Compliance with laws, regulations, and contractual
requirements

them in order to build a strong governance system and maintainsecurity to earn the trust of customers. To guard against cyber risks

Our employees comply with all applicable laws, regulations,high ethical standards.

that have been increasing in recent years, we are committed tonorms, and security requirements stipulated by agreements withmaintaining zero information security breaches through annual

our customers, related to the information assets we use in our

employee training, review and dissemination of security policies, andbusiness activities.

information sharing on security risks and cyber-attack cases both

4. Employees’ initiatives

Dialogue with stakeholders
We value opportunities to communicate with our stakeholders.
Even during the corona pandemic, we were endeavoring to create

internally and externally.

as many opportunities for dialogue as possible.

Our employees acquire the knowledge and skills necessary
to maintain and improve information security to ensure our

Basic Policy on Information Security
Compliance, anti-corruption, and fair trade

We have been responding to the needs of our customers

commitment to information security.
5. Response to violations and incidents

In order to earn the trust of society, all employees are required tounder the management philosophy of “Giving greater happinessWe have developed a system for responding to violations of laws,

abide by the Compliance Code. We have continuously achieved ourto a greater number through beauty & health.” The Company’s

regulations, norms, contracts with our customers, and information

goal by conducting education and raising awareness to keep thebasic policy on information security has been established so wesecurity incidents so we can reduce the impact of any violations

number of violations at zero.

can continuously provide better products and services to ourand incidents.

customers, protect information assets in our advanced information
KPI

Number of complianceviolations (cases)

FY2030TargetFY2023
TargetFY2023Results000society from threats such as accidents, disasters, and crimes, andsatisfy the trust of our customers and society. The basic policy

Iwase Cosfa provides annual information security training toon information security serves as a guideline in our initiatives forall officers and employees using an external training system, andinformation security.

conducts a test to verify their knowledge of information security.

Information security and privacy

In fiscal year 2023, we educated 140 employees.

We aim for zero information security breaches to prevent fraud
and serious information leaks.

1. Development of the internal system and Information Security
PolicyWe have established the management system necessary to

KPI

Number of information
security breaches (cases)

Information security education

FY2030TargetFY2023
TargetFY2023Results000maintain and improve security, and have defined the necessary
information security measures as our formal rules.
2. Leadership responsibility and continuous improvement
Our management is responsible for ensuring that information
assets of the Company and its customers are properly managed
by adhering to the Information Security Policy.

18

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Corporate Governance and Ethics

Corporate Governance and Ethics

Compliance, Anti-Corruption, and Fair Trade
We have established a Compliance Code in order to be acompany that society trusts in conducting our business. We provide

In addition, we will maintain the anonymity and confidentiality
appropriate measures in accordance with the Rules of Employment

a compliance handbook to all employees and require them toof Employees in the event that the Company determines there arecomply with the codes. To prevent fraud, we hold study sessions forfacts subject to reporting.

all officers and employees and conduct periodic surveys on theirawareness of compliance.

The whistleblower desk is open to the public through our
website and is available to external stakeholders, enabling them toprovide information and report wrongdoing, possible wrongdoing,

Anti-bribery training and survey on awareness on corruption

complaints, etc. on an anonymous basis.

and bribery*Whistleblower desk:

We run anti-corruption and bribery workshops for all
employees and conduct periodic surveys to assess theirhttps://www.cosfa.co.jp/info/whistle-blowing.html

SAG
E

Unresolved

General Manager, Information System, DX
Promotion Department

Notification

provide better products and services to our customers as
Compliance Committee

accept consultations from employees regarding legal violations andfax, interview, or in writing, and are not subject to any adverse

Mitsuyuki Yoshimura

External contact

We have established our information security policy to

Based on the internal rules for whistleblower protection, we

compliance. Employees are allowed to consult by telephone, e-mail,60

ESInternal contact(Compliance Promotion Office)whistleblowers under the Act.

detection and correction of misconduct etc., thereby reinforcing

Other reporting and consultation• Violation of laws and regulations (insider trading,violation of the anti-monopoly law, involvement inbid rigging, etc.)• Illegal approach through gifts and businessreception• Leakage of personal information• Infringement of intellectual property rights

Report (by e-mail, telephone, etc.)

Cosfa has a whistleblower desk and internal rules for protecting

other matters. The aim of establishing this system is to act on early

40

Whistleblower

information to ensure that inappropriate gifts are not offered.

In accordance with the Whistleblower Protection Act, Iwase

Ratio (%)

Notification and consultation processprocedures for gifts, and we centrally manage and monitor all

Whistleblower desks and internal notification system

Details of reporting/consultation

Various acts of harassment (including customer
harassment)M

understanding and awareness. The Company has defined approval

Details of reporting/consultation and ratiosof the reports received, conduct necessary investigations, and takewell as to protect the information assets we manage from

Unresolved
Resolved

Board of Directors

Resolved

Resolved

Completion of investigation

treatment on the basis of a report or consultation.
• Anonymity will be ensured in consideration of the protection of
the informant’s privacy.
• The informant will not incur any disadvantage.
• Investigations and decisions will impartial.

accidents, disasters, crimes, and other threats, thereby helping
us earn trust from our customers and society in general. In
accordance with this policy, we are working to strengthen
information security by responding to information security
incidents, monitoring the security status of each department,
and providing employees with regular training. These
efforts are reported at the Management Meeting for further
enhancements.

19

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Labor and Human Rights

Labor and Human Rights

Iwase Cosfa believes that we can contribute to society
by enabling all of our employees to demonstrate theirindividual abilities. To this end, one of our primary
missions is to respect the human rights of all people
and provide a safe and secure working environment
for all employees.

Basic Concept
Based on our Basic Concept of Human Resources, we aim to be a

Recruiting for overseas subsidiaries
To continue to grow sustainably together with our businesscompany where everyone can shine by providing opportunities forpartners and local communities, Iwase Cosfa employs local staff

growth that enable all employees to demonstrate their individual

at our overseas subsidiaries (currently 9 subsidiaries). While weabilities.

have 205 employees in Japan, we have as many as 131 employees,
mostly locally hired, at our overseas subsidiaries (as of December

Under the corporate philosophy of “Giving greater happinessto a greater number through beauty & health,” Iwase Cosfa aims to

31, 2023). We will continue to actively recruit locally for employees
at overseas subsidiaries.

become One Team throughout the organization and help to create
healthy and rich lifestyles for our people. To this end, we believe

Conducting an employee satisfaction survey and applying thethat personal growth is essential and aim to be a company inresults to modify the human resource management system

which every employee shines, based on the following concepts.

We conduct an employee satisfaction survey once a year, and apply
the results to resolve each issue. In addition, we have specified the• Recruitment and personnel systems that do not discriminate on theitems requested frequently by employees to revise the personnel

basis of race, creed, gender, sexual orientation, social status, religion,

system, resulting in a system that is simple, clear, and morenationality, age, or mental or physical disability based in accordance

rewarding to individual efforts. As for fiscal 2023, we conducted awith the “My Human Rights Declaration”

survey in January and have provide feedback on the results to each• Optimal personnel allocation to maximize individual andemployee.

organizational strengths by taking a close look at each individual’sabilities and characteristics

Toward realizing a rewarding and pleasant work environment• Compensation based on merit that can reward individualAs part of our efforts to reform the way we work, we hold a meeting

performance based on clear identification of the results and actions

once a year between employee representatives and our executives,

required of each employee

including the President. People from the CSR Promotion Officealso attend the meeting as observers. They discuss problems andWe value each other’s individuality, care for each other, andsolutions to improve the workplace environment. We start with themobilize our individual strengths to create a corporate culture thatproblems that can be solved and reflect the improvements in thewill enable us to continue taking on new challenges without fear,

working environment.

even in the midst of ever-changing times.
*Basic Concept of Human Resources:
https://www.cosfa.co.jp/company/pdf/recruit-policy.pdf

20

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Labor and Human Rights

Labor and Human Rights

Targets, KPIs, and Achievements

Employee health & safety

Iwase Cosfa recognizes that creating a safe working

To foster this environment, we strive to respect the human

Iwase Cosfa aims to provide a safe and pleasant work environment

rights of all people, including those in the entire supply chain,environment and respecting human rights are crucial for being

to maintain the health of our employees. Since monitoring began in

and work to create a more comfortable working environment by

a company where every employee can shine. We will continue to2017, the number of work-related accidents has been zero every year,

focusing on human rights education, employment of people with

monitor every indicator for maintenance and improvement.

except for one in 2021.

disabilities, and promotion of women to management positions.

Respect for human rights

KPI

Iwase Cosfa promotes fair hiring and gender-free promotion,
where the ratio of female managers has been increasing. We also

Number of work-related
accidents (cases)

FY2030TargetFY2023
TargetFY2023Results000

focus on human rights education to create a work environment

KPI

FY2023
TargetFY2023Results

https://www.jinken-library.jp/

aptitudes and career plans of employees regardless of gender. We

my-jinken/company_detail.
php?p=MDAwMDAwMDA2NA==

have confirmed that there is no disparity in gender in terms of hiring

Number of conducted humanrights training sessions for theentire company (times)

1

Ratio of employees withdisabilities (%)

2.3

Ratio of female managers (%)

45

1

1

and wage between men and women, and provide training programsin accordance with plans.

1.80

1.67

32

30

IwaseCosfaconsiderswork-lifebalanceimportant,andhasestablisheda work environment that respects the wishes of our employees. As aresult, we have achieved our targets for five consecutive years.
FY2030TargetAverage overtime work(hours/month)

Less than
10 hours

Absenteeism rate (%)

Less than1%

FY2023
Target100.50

FY2023Results

3.65
0.40

Iwase Cosfa’s My Human Rights Declaration

Employment of people with disabilities
Iwase Cosfa endeavors to create a workplace environment thatFY2025
TargetFY2023
TargetFY2023Results

Ratio of male to female
employees (male:female)

5:5

5:5

9:8

Ratio of the average wage of male
employees to that of female employees

1.00

0.95

0.93

Average training hours per
employee (hours/year, person)

6

6

24.54

KPI

Working conditions

KPI

Declaration proposed by Keidanren*My Human Rights Declaration:

Iwase Cosfa provides growth opportunities based on the
FY2025
TargetIn 2021, we endorsed and declared the My Human Rights(Japan Business Federation).

Career management & training

where employees respect each other.

Endorsement of the My Human Rights Declarationis pleasant to work in regardless of whether an employee has adisability or not. These efforts have resulted in an employment rateof people with disabilities in fiscal 2023 reaching 1.63%. We utilize
the Job Coach Support Service provided by the Ministry of Health,Labour and Welfare and, as their employer, receive professional
advice for employees who need help in their work. This has led to

Respect for Human Rights
Iwase Cosfa actively recruits a variety of human resources withthe aim of contributing to the development of the Company. We
value innovation and creation of new value that comes from mutual
respect among employees with diverse backgrounds.

better understanding and promotion of stable employment.

Gender equality
Iwase Cosfa promotes gender equality in order to deepen mutual
understanding among employees and to create an organizationthat continues to produce results. Due to these efforts, the ratio of
female managers reached 30.43% in 2023

21

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Labor and Human Rights

Labor and Human Rights

Prohibition of discrimination and harassment

Working Conditions

System for reflecting the voice of employees

Iwase Cosfa’s Compliance Code clearly states the importanceAll Iwase Cosfa executives and employees will comply with all

Iwase Cosfa's Code of Conduct clearly states that all employeesof protecting employees from sexual harassment and workplace

domestic and international laws and regulations as well as internal

are guaranteed the right to organise (freedom of association) andbullying. Our employees must adhere and follow principles

regulations, strive to ensure the appropriateness of corporatecollective bargaining. Through a formal process in accordance

written on the Compliance Code below.

management, and carry out their duties with compliance as a top

with the Labor Standards Act, employee representatives are*Compliance Code:priority. In addition, we will promote decent work in accordance

elected by majority support for each business unit and they

https://www.cosfa.co.jp/company/pdf/compliance-charter-en.pdf

with the ETI Base Code based on the convention of the International

conclude a labor management agreement.

Labour Organization (ILO) and the four principles of the United
Iwase Cosfa conducts annual training on harassment for
managers. We have employees of various nationalities (China, France,
Korea, and Russia), and are fostering human resources who support
global business development and promote mutual understanding ofdiverse cultures.

Compliance with the UK Modern Slavery Act
Iwase Cosfa has published a statement on the UK Modern Slavery
Act. We have not been involved in any cases of child labor or forcedlabor to date, and will continue to comply with the Modern Slavery
Act, ensure compliance with laws and regulations in each country,
and conduct regular monitoring.
*FY2024 Iwase Cosfa’s Group Statement on Slavery Labor and Human Trafficking:https://www.cosfa.co.jp/company/pdf/SlaveryStatementFY-jp.pdf

To reflect employees’ opinions, executives and employee

Nations Global Compact, aiming to attain a good work-life balance

representatives hold regular meetings. Employee representatives

for employees and improve their engagement.

notify all employees of the holding of meetings in advance andhear a wide range of proposals for improvement to realize a better

Toward improving employee engagement
Iwase Cosfa believes that the growth of each employee leads towork environment. These proposals can include topics related
to working conditions and the working environment but also

the growth of the organization and strives to improve employee

career development, eduction systems, and diversity initatives.

engagement. Specifically, to reflect the voices of our employees

After each meeting, the Company discusses the proposals raisedin management, we run an annual employee satisfaction survey

in it, examines the feasibility of the proposals, and actually

among all employees. A third-party organization conducts survey,

works toward improvement. A meeting with representatives ofand the results are reported to management on an anonymous

employees was conducted in November 2023.

basis. Through this survey, we aim to develop a more pleasant work
environment and increase employee engagement.
We are also implementing other measures aimed at creating aManaging working hours and reducing overtime
Based on the labor-management agreement, Iwase Cosfa

more employee-friendly work environment. These include a systemmonitors overtime hours to avoid overwork. The average overtime

that directly reflects employees’ voices, initiatives that emphasize

work per employee in fiscal 2023 was 3.65 hours per month,work-life balance, and work-style reforms that align with current

which is below the target of 10 hours per month. This is due

trends.

to establishing no-overtime days and thorough awareness on
preventing long working hours. Nevertheless, the correction of
uneven working hours among employees is still a problem thatremains to be solved.

22

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Labor and Human Rights

Labor and Human Rights

Minimum wages and living wages
Iwase Cosfa complies with the minimum wage system

employee. The system has been changed to allow employees to

Support for raising children

continue working for the us after retirement until they reach 67

We revised our Child Care Leave Regulations and Nursing

stipulated under the Minimum Wage Act and pays wages above

years of age if they request it, and to allow them to enter into

Care Leave Regulations in accordance with the Act on Childcare

the legal minimum. Using the living wage database provided byindividual contracts after that age upon consultation.

Leave, Caregiver Leave, and Other Measures for the Welfare of

the Wage Indicator Foundation. we ensure that we meet the living*Re-employment of prospective employees in fiscal 2023: 100%

Workers Caring for Children or Other Family Members, which waswage standards in every countries where we do business. We also
manage minimum wages and working hours, pay living wages,
and monitor them regularly in accordance with local labor laws
and regulations. In addition to the various allowances, we have

implemented step by step in April and October 2022 and held

Leave systems

in-house explanatory meetings for all employees. To achieve a

In addition to paid holidays, Iwase Cosfa has a variety of otherleave systems.

requirements for taking childcare and nursing care leave to create

established retirement regulations and a definite contribution
pension system to support employees’ post-retirement lives.

Introduction of home-officing

a workplace environment that makes it easier for employees to
Leave systemgovernment’s basic response policy, as a member of Keidanren

Upon request, female employees can be granted a dayof leave if they suffer from menstrual pain.

Childcare leave

Upon request, employees who have an infant under
the age of one can be granted leave for a certain
period of time when needed and can apply for
restriction of overtime work. Those raising a child who
has not yet entered elementary school can choose
to not do overtime hours or late night work, and canshorten their working hours.

(Japan Business Federation), Iwase Cosfa also recommended
telecommuting and introduced a telework system. The rate ofhome-officing in fiscal 2023 was 28.60%*. This has helped to
improve the work-life balance of employees, and we will continue
to proactively utilize home-officing.
*Rate of home-officing: Annual average of (number of people working at home/all
employees) by month × 100

Reemployment system: Integrating senior employees
In light of our comittment to an employment system that takes
into account the increasing , we have raised the retirement age
to 62 years old. Iwase Cosfa has Re-employment Regulations inplace to ensure employment opportunities even after retirement
at age 62 and to broaden the range of options available to each

Details

MenstrualleaveHome-officing and telecommuting rapidly spread around theworld due to the recent coronavirus pandemic. Founded on thebalance between childcare, nursing care, and work, we revised the

Additional restfor child care(shortening ofwork hours)

Upon request, employees who have an infant under
the age of one can be granted 30 minutes of additional
rest twice a day.

Child nursing
leave

Employees who have a child who has not yet enteredelementary school can be granted leave for a certain
number of days in order to receive medical check-ups
or vaccinations.

Nursing care
leave

Employees who need to take care of a family memberin need of nursing care may request leave for familycare, reduction of working hours, restriction of
overtime work and exemption from late night work.

Volunteerleave

Employees can use special holidays for volunteer
activities to participate in social contribution activities
on a paid basis.

take such leave. We also provided a seminar on taking childcare
leave and parental leave after childbirth, and established aconsultation desk.

In-house circle activities
Iwase Cosfa established rules for the management of circle
activities, and has been promoting in-house circle activities
designed to foster workplace friendships. At present, there areeight different clubs established by volunteers, including golf,
futsal, health mahjong, tennis, and more.

Employee Health & Safety
As a company that deals in health and beauty, Iwase Cosfa
considers the health of our employees to be paramount. In
accordance with the Labor Standards Act, the Industrial Safety
and Health Act, and the Working Regulations, we have establishedthe Safety and Health Management Regulations to enhance theCompany’s safety and health activities. We have clarified the basic
items necessary to prevent occupational accidents with the goalof zero occupational accidents, and will continue to ensure the23Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Labor and Human Rights

Labor and Human Rights

Stress checks

safety and physical health of our employees and improve theirtransporting chemical substances. Iwase Cosfa requires its

mental health, which leads to the development of a pleasant work

suppliers to prepare SDSs for all products we purchase, and checks

In accordance with the Industrial Safety and Health Act,environment.

whether their employees thoroughly implement these measures

Iwase Cosfa conducts an annual stress check for the purpose of

and adhere to the safety precautions.

managing employees’ health. In checking the results of the check,

Safety and Health Management Regulations
Iwase Cosfa’s Safety and Health Management Regulations stipulate theappointment of a safety manager and a health manager, the formation of

we aim to further improve our employees’ self-care and help to

SMETA 4 Pillars Audit
The SMETA Audit consists of 4 areas:"Labor Standards", "Healtha health and safety management system, including the appointment ofand Safety", "Environment" and "Business Ethics", based on

an industrial physician, and the establishment of a Health Committee in

the International Labor Organization (ILO) International Labor

accordance with laws and regulations. The regulations also provide for healthStandards and the Ethical Trading Initiative (ETI) Base Code, andand safety education on the job, improvement of the work environment,

deisgned to protect workers.

medical examinations, measures to maintain and promote health, and the like.

Health Committee

Iwase Cosfa conducts this external audit on a regular basis inmeetings and provide information to employees.

in the workplace.

Health and safety of customers
At Iwase Cosfa, we are just as concerned about the health andsafety of all stakeholders as we are about that of our employees.
Our efforts toward this comprise compliance with laws,

order to identify issues within the company and to provide a safer

regulations, codes and standards, and provision of stable, high-and fairer working environment for our employees.

quality products. Furthermore, we have established a response

Iwase Cosfa has established a Health Committee in accordancewith the Industrial Safety and Health Act. We hold regular monthly

form a pleasant working environment by identifying stress factors

procedure to promptly address any safety issues that may arise

Employee medical examination and industrial physician systemand built an information collection system, which was reported to

In addition to mandatory annual medical checkups for all

the Consumer Affairs Agency. There were no reports of any safety

employees, we subsidize the cost of inspections for employees

Safe and secure storage and management of raw materials

who have undergone a required re-examination. Our employees

issues in fiscal year 2023.

Partnership with employent support facilities

Iwase Cosfa’s biggest safety risk lays in its warehouse, where

are covered by medical insurance at a rate of 100%. In fiscal 2023,

raw materials are stocked. The warehouse is divided into different

the rate of medical checkups received was 100%. An industrial

At our Karatsu Wellness farm, located in Karatsu City, Saga

storage spaces based on the chemical characteristics of raw

physician visits the Company once a month, and employees

Prefecture, we cultivate mushrooms in partnership with local

materials, thus reducing fire risks and product degradation. Annual

can freely use the health consultation service to speak with this

employment support facilities and special needs schools. Throughsafety training is provided to those in charge of administrative

physician.

these activities, we provide places and opportunities for people

operations. In March 2023, 13 employees participated the training.
Safety Data Sheets (SDSs) are information documents produced

In addition, the company supports for the maintenance andwith disabilities and difficulties to work and play a role in creatingpromotion of the health of employees and their families by

employment in the region. We also support the lives of local

in accordance with international standards that detail physicaloffering subsidies for flu vaccinations for staff and their family

people by providing harvested mushrooms to a local children's

restrictions, health and environmental hazards, protective

members, and by providing financial assistance for "N-NOSE®"

cafeteria. We will continue our efforts to create employment

measures, and safety precautions for handling, storing, andnematode cancer screening tests.

oppotunities, aiming for a society where everyone can live andshine.

24

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Labor and Human Rights

Labor and Human Rights

Career Management & Training
Aiming to be a company in which all employees shine, Iwase

Introduction of the Idea Basket System

for all Group employees on the reasons why we fulfill our corporate

In April 2022, Iwase Cosfa introduced the Idea Basket System tosocial responsibilities.All training and growth opportunities are

Cosfa has established a Basic Concept of Human Resources.

encourage employees to tackle on new challenges. The Idea Basket

provided regardless of gender. In fiscal 2023, the training hours

We disclose the recruitment process on our website andSystem is one through which we collect new business ideas, introduce

averaged 24.54 hours per person. We confirmed that there is noundertake recruitment activities that ensure transparency. In addition,

innovative business improvements, etc. from our employees that leadgender disparity in evaluations and wages due to the introduction

based on the My Human Rights Declaration, we have introduced ato new business opportunities, and award them for their good ideasof a fair and equitable personnel system. The wage gap between

recruitment and personnel system that does not discriminate against

after conducting votes by our employees and various reviews.

male and female employees in fiscal year 2023 was 1 to 0.93.

anyone for any reason, an optimal personnel allocation system that

We will continue to provide appropriate opportunities for skill

respects individuals and maximizes the power of individuals andRecruitment and development of global human resource

organizations, and a merit-based evaluation system that clarifies

Iwase Cosfa is hiring various personnel domestically andwithout fear even in these changing times.

contribute to the creation of jobs by hiring most of the employees*Basic Concept of Human Resources:

locally. In addition, we have introduced an online English conversation

https://www.cosfa.co.jp/company/pdf/recruit-policy.pdf

system, a language certification system, and an overseas training
system through in-house recruitment to foster global human resources

Human resources needed at Iwase Cosfa

who can play an active role in the world.

Edevelopment and stability of the Group. Our overseas subsidiaries alsoGother’s individuality while continuing to take on new challengesSAsustainable growth in our overseas business and contributing to theESinternationally regardless of their nationality with the aim of achieving

performance. We aim to create a corporate culture that values eachchallenges, which leads to enhancement of our corporate value.
M

actions and results required of individuals and rewards individual

development and growth, encourage each employee to take on new

Yoshitaka Ishino
Director; General Manager,
General Affairs Department; Compliance
Promotion Office

To help our employees become their ideal version of

Iwase Cosfa has formulated a recruitment plan in the medium-

themselves regardless of gender, we have established job

term management plan. We believe this will enable us to foster

Providing opportunities for skill development and growth

human resources and manage job rotation from a long-term

Iwase Cosfa has introduced a variety of external training

perspective, which will lead to the maximum utilization ofprograms to provide employees with opportunities for further

individual aptitudes and abilities. We also focus on overseas

growth. We are also conducting internal training programs. In

business, which is one of our key business pillars, and havefiscal 2023, we held training sessions on Labor Management andintroduced various training programs to develop global humanLeadership and Management for employees in management

create a rewarding workplace while paying careful attention

resources who will play an active role in the world. We prioritize

positions.In addition, training for new employees includes not only

to occupational safety. To this end, the department in charge

diversity in our hiring, and the hiring ratio of males to females inthe details of each department’s operations, but also the basicsof these efforts monitors the status of human risk and makes

fiscal year 2023 was 1 to 1.32. We encourage our employees toof being a working member of society, computer skills, as well asreports and recommendations at meetings. Recently, we

think and act on their own and take on challenges with the spirit

education on CSR. With the aim of increasing awareness on CSR

of “Give it a try” that has been with us since our foundation.

among our employees, since 2020 we have been providing trainingclassifications based on the duties involved, clarified thetypes of human resources that we are seeking, and provided
opportunities for skill development that will support
the growth of our employees. In addition, to enable our
employees to fully demonstrate their abilities, we aim tohave conducted training for managers on topics such as labor
management and harassment prevention.

25

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Environment

Environment

As an enterprise that trades in cosmetics andhealth food ingredients, Iwase Cosfa considers thatconserving the global environment in connection
with producing raw materials is of utmost importance.
We recognize the impact of our activities on theenvironment and strive to conserve it.

Basic Concept• Of the electricity we procure, 50% of it will be from renewable

Iwase Cosfa recognizes the impact it has on the environment andenergy sources.

strives to reduce it by regularly monitoring environmental data basedon the following environmental policy.

Waste management

Environmental Policyof waste in consideration of the environment.

We are committed to the effective use of resources and reduction
Recognizing that global environmental issues are one of the mostimportant concerns common to all humans, Iwase Cosfa establishes• We will keep waste emissions below 1% of sales volume toward2030.

sustainable goals in consideration of global environmental
conservation and works to realize such goals. We will contribute tosociety by fulfilling our responsibility as a global corporate citizen

Reduction of water consumption
We continuously manage water consumption and wastewater

through promoting the sustainable use of resources that are adischarge to minimize our environmental impact, reducing water

blessing from the Earth and reducing our environmental impact

consumption through circulative use. To use limited water resourcesin terms of raw material procurement and sales. In all aspects of its

sustainably, we will continue to make further efforts to conservebusiness activities, Iwase Cosfa complies with environmental laws

water resources.

and regulations and fulfils our commitments. We are also aware of• We aim to achieve reduction of 1% of total water consumption

the environmental effects of our business activities and continuously

per year as a single-year target. The director of Iwase Cosfa’s CSR

strive to be environmentally friendly and prevent pollution.

Promotion Office reviews this environmental policy every year, andWe will strive to achieve the following goals by 2030.

discloses the results to our stakeholders through our CSR report andwebsite.

Global warming
On October 26, 2020, then Prime Minister Suga declared in his

Biodiversity

policy speech that Japan would reduce its overall greenhouse gas

We recognize that the production of ingredients for cosmetics andemissions to net-zero by the year 2050, drawing increased attention

health foods depends on the benefits of biodiversity, and that our businessto the carbon neutrality in Japan. Iwase Cosfa will cooperate inactivities can have a wide range of impacts on ecosystems. To help realize

contributing to carbon neutrality.

a sustainable society, we will continue to emphasize the importance of• We aim to reduce CO2 emissions by 70% (Scopes 1 and 2).
*Base year: 2019*

biodiversity, minimize our impact on it, and contribute to activities thatlead to conserving and restoring biodiversity related to our business incooperation with our stakeholders. We are also making preparations to beable to provide nature-related financial disclosures in the future.

26

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Environment

Environment

Local environment
As a member of the local community, we will comply with all laws

Reduction of Energy Consumption & GHG

Reduction of energy consumption & GHG
Iwase Cosfa strives to reduce energy consumption and

Iwase Cosfa strives to reduce energy consumption andand ordinances in order to protect the surrounding environment from air,greenhouse gas emissions. In fiscal 2023, even though it increased

greenhouse gas emissions. For greenhouse gas (GHG) emissions,water, and soil pollution, as well as from noise pollution, etc. We will strive

overall, we were able to reduce the electric consumption of ourwe are monitoring only the CO2 that we emit. Due to a change into collaborate and coexist with the surrounding community to conserve

new business, Karatsu Wellness Farm.

the calculation method in 2023, there are differences in items andthe natural environment and help create a recycling-oriented society.
The above targets apply to Iwase Cosfa Co., Ltd. and its sevensubsidiaries.

KPI

FY2030 Target

FY2022
Results

Electricity consumption (kWh)Underinvestigation

502,774 706,532

Scope 1-2 emissions (tCO2e)

135

399

FY2023Results

435

Promotion System
Iwase Cosfa operates a unified environmental management

Sales of sustainable materials
Iwase Cosfa is dedicated to sales of sustainable raw materials

14001 certification for three domestic sites (Osaka Head Office, Tokyoand has set annual sales targets. In 2023, we fell short of our sales

Head Office, Kyushu Sales Office and Karatsu Logistics).

target with 92.75% of the target value.

We have also established an ISO Promotion Office to confirm
through internal audits, external inspections, and quarterly PDCA
meetings. In addition, we regularly conduct trainings, and ensure

KPI

Sales of eco-friendly
products (kg)

employees' understanding of the EMS.

FY2030TargetFY2023
TargetFY2023Results*

1,285,800

1,192,613*See Medium- and Long-term Targets on page 12.

Waste reduction

Targets, KPIs, and Achievements
Iwase Cosfa regards environmental conservation as animportant issue and monitors its own environmental activities.

To reduce waste materials, we have reviewed our warehouseinventory management system and strive to reduce emissions
through proper management.

The environmental impact brought by our Company increased infiscal 2022 due to our new business, Karatsu Wellness Farm. We
are continuing to monitor the situation and to work on reducing
energy consumption.

some values were recalculated using the latest calculation
method.

Greenhouse gas (GHG) emissions
FY2021Results

FY2022
Results

FY2023Results

Scope 1 (tCO2e)

60

74

96

Scope 2 (tCO2e)

356

*325

339

Scope 3 (tCO2e)49,996,860

40,96747,63949,982,891

38,81645,523

Capital goods

13

156

62

Fuel- and energy-related
activities (not included inscopes 1 or scope 2)

23

68

70

Upstream transportationand distribution

1,158

*984

976

Waste generated inoperations

11,282

87

26.25

Business travel

4137

127.19

Employee commuting

294

76

89

Upstream transportationand distribution

ー

ー

ー

KPI

system (EMS) throughout the Company. In 2003, we obtained ISO

the implementation status and progress of each department

figures from those of previous years. To ensure data continuity,

KPI

Waste emissions (t)FY2030TargetFY2022
Results

FY2023Results*

49

23*See Medium- and Long-term Targets on page 12.

Purchased goods andservices*Values recalculated with new calculation methodology

27トップメッセージ

CSRマネジメント

マテリアリティ報告 > 環境

岩瀬コスファ株式会社

CSR REPORT 2023

環境

Reduction of energy consumption and GHG

GHG Emissions Reduction (Scope 1＆2) - Roadmap to Zero Emissions（tCO2e）― ベースイヤ2019年

Scope 1＆2 Emissions Reduction

Current Phase
500

384.94

Transition Phase

In 2023, Scope 1 increased significantly due to a rise infuel consumption. In order to reduce emissions from travel by- 11％
3３８.56400

Carbon Neutral Phase

Renewable
Energies- ４０％company vehicles, we will promote prioritizing online meetings
whenever possible and replacing company vehicles with electricor hybrid vehicles. In addition, in 2024, we expect to reduce

Fuel Reduction
Policyapproximately 40％ of our Scope 2 emissions by introducing
electricity from renewable energy sources to our Karatsu Wellness

300

1.5C Scenario

205.33

200

- 5％

＋32％

100

0

64.58

96.21

91.40

2019

2023

2025

Farm.

- 58％
- 45％ 84.86

Toward Carbon
NeutralScope 3 Emissions Reduction
With regards to our indirect emissions associated with our
logistic and distribution activities, we are working hard to reduce

５0

0

2030

20５0

■Scope 1 ■Scope 2*1.5℃ Scenario Data Source：IEA (International Energy Agency)

Toward more ambitious Reduction Targets
Iwase Cosfa is commited to reduce the impacts of our business activities on the environment, especially carbon dioxide emissions, in orderto prevent global warming. Through the procurement of electricity from renewable sources and the formulation of fuel reduction policies,
we will help achieve our goal of reducing Scope 1 and 2 emissions to 135tCO2e or less by 2030, and align with a 1.5℃ Scenario.

them, by improving whenever possible our transportation
practices, notably by switching to less GHG-emitting modes oftransport for good shipments (e.g. by shifting from air freight tosea freight) and by reducing transport distances by consolidating
shipments and storage locations. Not only does this help reduce
GHG emissions, but also certain volatile organic compounds(VOCs), sulfur oxides (SOx), nitrogen oxides (NOx), and other fineparticles contributing to air quality degradation.
In 2023, the consolidation of external warehouses allowed us

In 2023, we improved our emissions calculations to better reflect our actual emissions, for example by taking into account the actual

to reduce the distance of deliveries and travel by side-haul trucks,

distance of employee's commuting routes. In 2024, we will continue to focus on refining our emissions calculation methodologym aiming

thereby reducing emissions associated with our logistics activities.

for third-party assurance in the coming years.

Moreover, with the start of joint deliveries in some regions in

In addition, as climate change worsens, we feel the need to set more ambitious target, and will strive to set SBTs (Science-Based Targets), ,Japan, we are working to futher reduce our CO2 emissions by

including targets for Scope 3, in the near future.

reducing the number of product shipments. In the future, wewill work to expand this initiative.

28

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Environment

Environment

Waste Reduction

In addition, by recycling damaged plastic pallets used for

Iwase Cosfa believes that the best solution to reduce wastes is totransportation, which originally had to be disposed of, andInternal environmental initiatives
We promote a variety of environmental initiative within our

prevent generating wastes. and has implemented a comprehensive

by reusing resources, we are contributing to CO2 emissions.

company to protect the environment and recycle resources.

waste management strategy based of the "5Rs"Principle to reduce

By choosing to recycle these materials, instead of choosing

Although these are rather small initiatives, we are committed

our environmental impacts.

standard waste treatment methods, we avoided the emission of

to raising awareness of environmental protection, recycling ofapproximately 28.754 tCO2.

resources, and reduction and utilization of wastes through steadyefforts.



再生利用

断る

By consolidating external warehouses used in addition to

5R

our own distribution centers and logistics, we are reducing CO2



emissions during transportation between warehouses, and in

発生抑制

some areas, we are implementing joint deliveries to reduce energy•Elimination of paper cups
•Switching to recycled PP for clear files and other office supplies•Recycling of acrylic partitions used during the Covid Pandemic•Donation of unneedeed tablewareM

consumption for transportation as much as possible.

ES
SA
G

修理



E



再使用

Reduction of packaging materials through the use of dunnage
Dunnage is a system in which goods are stacked and packaged※5Rs Principle

and transported as is, with sheets molded into the shape of the

Kenichi Nakamuraload. This leads to using less packing materials and other materials

Adressing avoidable waste
In order to earn the trust of our customers, it is essential to provide
a prompt and stable supply of raw materials, and we believe it isour consumption of packaging materials by utilizing used dunnage
to pack cans.

Cosfa Inventory System (CIS) is now fully operational,
effectively reducing travel time by 15%. We have continued
discount sales of products with minor dents/damages andnecessary to have our own inventory for this purpose.Iwase Cosfa
generates a large amount of waste mainly due to quality assurance

General Manager, Administration Department

in conventional transportation. Iwase Cosfa is working to reduce

Leading Tenant Action Policy

products nearing their warranty expiration dates (85.1%

expiration, but we are working to reduce it. To do so, we are

We support the "Leading Tenant Action Policy" promoted byof the previous year's sales were achieved). In addition wereviewing our warehouse inventory management system to ensure

the Ministry of the Environment to promote decarbonization of

implemented a paperless system in reponse to the Invoiceproper inventory control, thereby preventing warranty expirations

buildings we occupy as tenants. We will continue our efforts toand Electronic Bookkeeping Law.

and selling products that are about to expire at discounted prices,

reduce our direct environmental impacts and energy consumption

after confirming their safety, to cut the amount of waste.

within our company.

In 2024, we plan to start durability tests to eplacesmall containers with recyclable polyethylene containers.

In FY2023, we avoided the disposal or removal of approximately

Moreover, we will promote the digital transformation (DX)

3MT of merchandise, which accounted for approximately 0.5% ofof each operation with the goal of reducing the workload of

total inventory volume.

employees.

29Message from the President

CSR Management

Materiality Report > Environment

Environment

Sales of Sustainable Materials[Definition of Sustainable materials (eco-friendly products)]

Iwase Cosfa recognizes the issue of global warming resulting①Materials (or raw materials) that can directly or indirectlyfrom CO2 and other greenhouse gas emissions as one of the mostparticipate to reducing environmental impacts or risks, such as theimportant issues we face. The Group has been implementing

following:

various measures to respond to issues caused by climate change.
Iwase Cosfa sets sales targets regarding raw materials that candirectly or indirectly reduce environmental impacts or risks every
year, which contributes to expanding sales of sustainable materials.
In fiscal 2023, we worked hard to increase sales of sustainable raw
materials, but failed to reach our target due to supply shortages
and the time required to evaluate their adoption.

Plant-based raw
materials (kg)FY2021

FY2022

1,167,447 1,187,909③-3 Materials whose use allows for a shorter
manufacturing processenvironmental risks, such as the following:•Materials manufactured according to the principles of
FY2023Comparison
with theFY2023target1,188,10893％

definition, have a low environmental impact

1,247

311％

In the future, we intend to make use of LCA (life cycle assessment)

Raw materials that
do not include aheating process at
the time of use (kg)80

Raw materials thatcan shorten the
production process
(kg)

1,150

1,960

1,600

74％

Raw materials thatcan potentiallyreduce and prevent
environmental risks
(kg)

3,821

219

1,648

60％

Total

1,172,498 1,190,188

1,192,613

93％

100

②-2 Materials whose manufacturing or transformation
does not involve any heating process②Raw materials whose use is likely to prevent or reduce

Sales results of eco-friendly products
Eco-friendly products①-1 Materials of plant origin

Green Chemistry•Materials that
•Materials of 100% natural origin and/or materials that, byand other approaches to provide materials that can contributeto further reduction of environmental impacts at all stages of the
product life cycle, from raw material procurement to disposal andrecycling after use.

Iwase Cosfa Co., Ltd. CSR REPORT 2024

30

Message from the President

CSR Management

Materiality Report > Environment

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Environment

Other Environmental Activities
Efforts to reduce water consumption and wastewater volume
Iwase Cosfa continuously conducts monitoring and strives forappropriate management and reduction of water consumption
and wastewater discharge to conserve limited water resources.
In 2022, water consumption drastically increased due to theexpension of our Karatsu Wellness Farm business. In 2023, we wereable to reduce water consumption by more than 3％.

Utilization of fungus beds
As part of the beauty and health business, we operate our own
farm, Karatsu Wellness Farm, in Karatsu City, Saga Prefecture, where
we grow and sell kikurage (cloud ear mushroom). We are making
effective use of resources and contribute to the local community
by providing fungus beds usually discarded
after

cultivation

to

local

agricultural

cooperatives to be turned into compost,
Cosfa International Trading (Guangzhou) employees

which are then used as fuel at bio-power
plant. We also offer to nearby kindergartens

Tree planting activities

beetles raised on waste fungus beds free ofcharge.

White kikurage wecultivate

Environmental Protection Activities
Through the "Keidanren Nature Conservation Fund", wedonate to conservation activities for the preservation of nature indeveloping regions, mainly in the Asia-Pacific region, and for theconservation of Japan's outstanding natural environments, as wellas to grant projects that make sustainable use of the environment.
Please check our official website to learn more about our otherenvironmental and social contributions.

In celebration of the "National Tree Planting Day" in China, employees of Cosfa International Trading (Guangzhou) plant saplings
every year in March to contribute to environmental protection. In addition to supporting the achievement of the SDGs, this initiative
also helps raising awareness of CSR within the company and improving employee communication. We will continue to conduct thisinitiative at least once a year. In 2024, Cosfa International Trading (Shanghai) will also start tree-planting activities.
Iwase Cosfa works hard to further raise awareness of the importance of preserving the local environment throughout the entire Iwase
Cosfa Group and strives to provide opportunities for each and every employee to get involved in such local initiatives.

31

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Sustainable Procurement

Sustainable Procurement

Iwase Cosfa recognizes that promoting sustainableprocurement activities throughout the entire supply
chain is crucial. We strive not to procure or purchasematerials that may lead to human rights violations andenvironmental destruction.

Basic Approach
Iwase Cosfa recognizes the importance of addressing issues• Sustainable raw material procurement
Iwase Cosfa strives to procure sustainable raw materials. As partsuch as human rights violations, environmental destruction, andof efforts to protect the environment in areas that produce palm

proper working conditions, throughout the supply chain. Under ouroil and to consider the human rights of plantation workers, Iwase

sustainable procurement policy, we promote the procurement of

Cosfa joined the Roundtable on Sustainable Palm Oil (RSPO), an

certified materials and engage in education and awareness-raisinginternational NPO, in 2017.

on CSR for our employees, suppliers, and business partners.

• Iwase Cosfa aims to switch 100% of palm oil and palm kernel oilderived raw materials to RSPO-certified raw materials by 2030.

Sustainable Procurement Policy
Iwase Cosfa is committed to complying with laws, regulations, and• Raising CSR awareness of employees involved in purchasing

rules as well as promoting sustainable procurement to realize a better

activities

society, protect the environment, and develop local communities. To

Iwase Cosfa complies with its own purchasing management rules

realize these commitments, we endeavor to achieve the following

and promotes fair trade. As for forming fair and sound relationships

goals.

with our business partners and compliance with laws andregulations, we provide employees involved in purchasing activities• Raising the CSR awareness of our suppliers
We are committed to raising the CSR awareness of our supplierswith training opportunities to learn about social and environmental
issues in the supply chain, which leads to enhancement of awarenessbecause we want to do business with companies that are committed

on our CSR activities.

to CSR. To this end, we strive to raise our suppliers’ awareness of our• We will strive to ensure that employees involved in purchasing

Supplier Code of Conduct. We will focus on reducing the likelihood

activities receive annual training on fair trade.

of suppliers breaching local environmental and social laws andconsequently disrupting the supply chain.

This sustainable procurement policy is reviewed annually by Iwase• By 2025, we aim to obtain signatures on our Supplier Code of Ethics

Cosfa’s CSR Promotion Office Director and is made available to allfrom 70% of our major suppliers*.

stakeholders through this CSR Report.

• By 2025, we will assess the level of CSR awareness of our major
suppliers* and work to improve their CSR awareness throughtraining and one-on-one advice.
*Definition of major suppliers: suppliers accounting for more than 50% of purchases amount(32 suppliers).

32

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Sustainable Procurement

Sustainable Procurement

Targets, KPIs, and Achievements

Supplier Practices

Iwase Cosfa recognizes the most important factor in our

Iwase Cosfa conducted a questionnaire survey on CSR

CSR Opinion Exchange Meetings
Iwase Cosfa believes that a sustainable supply chain can only

sustainable procurement activities is to strengthen cooperation

activities for all suppliers as the next step to deepen CSR activities

be achieved through the active participation and cooperation ofwith our suppliers. We are advocating for CSR procurement by

throughout the entire supply chain. Based on the results of thisall parties involved in the supply chain.

having our suppliers agree to our Supplier Code of Ethics and by

survey, we will upgrade education for suppliers and further

conducting questionnaire surveys among our suppliers.

strengthen collaboration, including initiatives to sell sustainable

understanding between our suppliers and our company on the

raw materials beyond the companies’ own borders.

topic of sustainability. We have been holding dedicated CSR

Supplier practices

Therefore, we are commited toward improving mutual

Opinion Exchange Meetings since the latter half of FY2023 to

We obtained agreement on the Supplier Code of Conduct from
71% of our suppliers and achieved our medium- to long-term

Supplier Code of Ethics
Iwase Cosfa established the Supplier Code of Ethics in 2019 totarget, set for 2025. In order to further encourage agreement, we

specify the approach to raw material procurement, and revised

will continue to provide explanations to our suppliers regarding

it again in fiscal 2023. In addition to asking the consent of all our

our Code of Ethics and fullfill our responsabilities.

suppliers to this Code of Ethics, we have made it available to our

KPI

FY2025
TargetFY2023
TargetFY2023Results

Ratio of suppliers that havesigned the Code of Conduct
(%)

70

60

71

stakeholders through our website.

provide opportunities to exchange views with our suppliers onsustainability initiatives and other topics. This initiative has 3 main
objectives :• Identifiy and better understand the challenges faced byour suppliers• Share best practices• Explore possibilities for collaboration in resolving CSRrelated issues

Sustainable raw material procurement

Overview of the Iwase Cosfa Group Code of Ethics

We will continue to promote this initative in order to

1. CSR Promotion / Social Contribution / Organizational

provide more appropriate and effective support to suppliers andGovernanceWe strive to sell certified raw materials that respect humanrights and the environment. In fiscal 2023, we strived to procureand sell certified raw materials that respect human rights and the

2. Legal Compliance / Fair Trade / Corporate Ethics
3. Respect for Human Rights / Safety and Healthachieve a more sutainable raw material procurement.

Supplier assessment questionnaire
Iwase Cosfa also conducts a questionnaire survey based on ourenvironment, and the procurement rate of RSPO-certified raw

4. Environmental Protection

Code of Ethics among our suppliers. We request that suppliers whosematerials was approximately 60%. We will continue our efforts to

5. Quality and Safety Assurance

responses indicate risks make improvements. We may not continue toexpand sales of certified raw materials.

6. Confidentiality and Information Security Measures /do business with suppliers who do not comply with laws on human

KPI

Procurement rate of RSPOcertified raw materials (%)

FY2030Target100

FY2023
Target55

FY2023Results

59.67

Intellectual Property Protection
7. Information Disclosure / Communication / Local Communities*For the full text of the Supplier Code of Ethics, please see below.
https://www.cosfa.co.jp/company/pdf/SupplierCodeofEthics-jp.pdf

rights, labor, environment or other sustainability regulations.
We sent a questionnaire to all suppliers in April 2023 to confirm
their CSR activities in fiscal 2022. This survey, which covered 580 of our
suppliers, will deepen their understanding of our CSR activities andserve as an important indicator in our future supplychain management.

33

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Sustainable Procurement

Sustainable Procurement

Sustainable Raw Material Procurement
Iwase Cosfa promotes sustainable procurement activities
throughout the entire supply chain to help attain a sustainable

Deforestation-free procurement"Toward Zero Deforestation" Roadmap

Iwase Cosfa recognizes that palm cultivation is a leading causeof deforestation in the world.

society. To prevent procurement of raw materials that lead to

It has becoming increasingly clear that forests and natural

human rights violations and environmental destruction, we

ecosystems play an important role in mitigating climate change

have acquired RSPO certification at all of our overseas bases

and conserving biodiversity, and that urgent action must be taken

and strive to procure and sell sustainable raw materials andto adress the situation.

Declaration of Commitment to “Zero Deforestation”
202４

varioouus Human Rights issues, particularly the exploitation of

RSPO (Roundtable on Sustainable Palm Oil)＋Deﬁnition：Scope・Objectives and targets (cutoﬀ dates)

Application

202６

Indigenous Peoples and Child and Forced Labor.

Iwase Cosfa has been a member of the RSPO since 2017 andTherefore, we regard the procurement of palm-based andis committed to procuring certified raw materials that respectpalm-derived raw materials as having the potential to seriously

environmental conservation and human rights in palm

affect our business activities, and we are committed to mitigating

oil-producing regions. As of 2023, we have obtained RSPO

the risks associated with such procurement.

Establishement of an eﬀective
due diligence system fornon-certiﬁed materials

Procurement ofcertiﬁed materials

certification at all of our overseas bases, and also support the
NDPE (No Deforestation, No Peat, No Exploitation) principle

Formulation of a Zero Deforestation Policy
Initial assessment

We are also aware that palm cultivation is associated withcertified raw materials.

Commitment

2022

With the aim of achieving raw material procurement free ofMaterial traceability(RSPO IP, ...) that

Supplychain assessment(FPIC, HCV, HCSA)

traceablewith the aim of procuring based on it.

deforestation, Iwase Cosfa has estiblished a roadmap , and aims

Monitoring

We aim to switch 100% of ourto achieve zero deforestation in line with the 12 principles pf the

Risk mitigation

can be easily

Accountability Framework Initative (AFi).

palm oil- and palm kernel oil-derived

2030

Reporting and performance disclosure

raw materials to RSPO-certified raw

As the first step of this roadmap, we announced publicly ourmaterials by 2030. In 2023, 59.67% ofcommitment to support the NDPE (No Deforestation, No peat,

the palm-based materials supplied by

No Exploitation) principles and to achieve procurement based

1.Protection of forests and othernatural ecosystems

Iwase Cosfa were RSPO-certified.

on these principles, in our 2022. CSR Report We have also have

3.Speciﬁcations of commitments

4.Company systems to drive eﬀective
implementation

5.SC assessment and traceability

6.Managing for SC compliance2-0751-17-100-00

included these principles in our Supplier Code of Ethics.
In 2024, we will conduct an initial assessment of our supply
chain and work to develop a strong Zero-Deforestation Policy.

AFi
12 CorePrinciples

7.Site establishment
9.Remediation and environmental
restauration
11.Monitoring and veriﬁcation

2.Respect for human rights

8.Site management andlong-term protection

10.Collaboration for landscape andsectoral sustainability
12.Reporting, disclosure and claims*Iwase Cosfa complies with the law and strives to be EUDR(European Union Deforestation Regulation) compliant for products
sold in the EU market.

34

Message from the President

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Materiality Report > Sustainable Procurement

Sustainable Procurement

Conflict minerals

Procurement and sales of certified materials

The White Logistics promotion initiative is one to improve

Iwase Cosfa is not involved in inhumane acts in conflict zones

Iwase Cosfa is committed to making the supply chain moreproductivity and logistics efficiency in truck transportation andor transactions that could fund anti-government organizations. To

sustainable by obtaining sustainable products and maintaining theto create a “white” working environment that is friendly to female

avoid purchasing conflict minerals in violation of the regulations, we

related certifications. We handle raw materials that have obtained

drivers, drivers in their 60s, and others, thereby ensuring a stableobtain conflict-free certificates for raw materials from all applicablethe following certifications.

logistics supply chain. We aims to help solve logistics problems
through using pallet transportation and enhancing collaboration

suppliers and advocate for responsible mineral procurement. We• RSPO-certified materials

among suppliers, including promotion joint deliveries, as well as• Letter on conflict minerals (to attest that a product does not come•
REACH compliant materials (when more than one ton of ahelping to reduce the environmental impacts of logistics.

from the use of conflict minerals) (Number of target companies: 4chemical substance with potential environmental impact is usedcompanies / 4) = 100%per year, in Europe)M

may not continue to do business with uncertified suppliers.

ES
SA
G
E

• Ecocert/Cosmos -certified materials
In 2024, we will update and improve the way we manage the• Halal/Vegan -certified materials

supply of mineral-derived products and work with all stakeholders
to further reduce risks associated with mineral procurement in our

Other Environmental Activities

supply chain.

White Logistics

Following the OECD Due Diligence Guidance for Responsible

Iwase Cosfa endorses the White Logistics promotion initiative*

Business Conduct and Due Diligence Guidance for Supply Chainsproposed by the Ministry of Land, Infrastructure, Transport andof Minerals from Conflict and High-Risk Areas, we will redefine our

Tourism, the Ministry of Economy, Trade and Industry, and theSustainable Procurement Policy and strive to conduct our business

Ministry of Agriculture, Forestry and Fisheries in 2022, and has

activities using a risk-based approach ("identify", "adress", andsubmitted a declaration of voluntary action regarding six items to"mitigate" risks).

be implemented.

Yoko Serizawa
General Manager, CSR Promotion Office

We recognize that sustainable raw material procurement
is essential for us to fulfil our responsibility to theenvironment and society, and we view this initiative
as a part of our commitment to the efficient use ofresources, environmental protection, and corporate social
responsibility. In a rapidly evolving regulatory environment,
we are aware of our responsibility toward all stakeholders
to identify and mitigate risks in our supply chain, as well as
increasing its transparency.This also helps us earn stronger
trust from our customers and suppliers.
We look at the entire supply chain and place emphasis on

Declaration of voluntary action on the White Logistics promotion initiative*White Logistics promotion initiative: https://white-logistics-movement.jp/list/

social and environmental perspectives in the procurementof raw materials. We will continue to actively engage inthese efforts.

35

CSR REPORT 2024
AppendixMessage from the President

Appendix

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

Number of employees and gender ratio (as of December 31st 2023)
Subsidiary Name

2018
Total
248

Total**

M
121

2019
Total

F
127

M
127

280

F
153

2020
Total
306

M
138

F
168

2021
Total
313

M
135

F
177

2022
Total
348

M
150

F
198

2023
Total
345

M
149

F
196

100.0% 49.0% 51.0% 100.0% 45.0% 55.0% 100.0% 45.0% 55.0% 100.0% 43.0% 57.0% 100.0% 43.1% 56.9% 100.0% 43.1% 56.9%
IWASE COSFA CORPORATION (JAPAN)

160

80

80

86

184

65.0% 50.0% 50.0% 66.0%
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD

25

12

13

26

10.0% 48.0% 52.0% 9.0%
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD
DAINIHON KASEI CO., LTD

91

106

200

89

111

214

95

119

205

85

120

46.0% 54.0% 64.0%

45.0% 56.0% 61.5%

44.4% 55.6% 59.4%

41.5% 58.5%

12

9

12

12

14

14

23

14

30

18

30

18

30

16

46.0% 54.0% 8.0%

39.0% 61.0% 10.0%

40.0% 60.0% 8.6%

40.0% 60.0% 8.7%

46.7% 53.3%

11

11

12

13

15

10

9.0%

43.0% 57.0% 9.0%

46.0% 54.0% 8.0%

46.0% 54.0% 9.0%

44.0% 56.0% 8.0%

46.4% 53.6% 10.6%

41.7% 58.3%

9

6

11

4

17

6

18

6

22

10

26

12

4.0%

67.0% 33.0%

4.0%

36.0% 64.0%

6.0%

35.0% 65.0%

6.0%

33.0% 67.0%

6.3%

45.5% 54.5%

7.5%

46.2% 53.8%

15

5

17

6

18

6

19

7

22

6

20

10

6.0%

33.0% 67.0% 6.0%

35.0% 65.0% 6.0%

33.0% 67.0% 6.0%

37.0% 63.0% 6.3%

27.3% 72.7% 5.8%

50.0% 50.0%

5

3

2

2

2

3

2

2.0%

60.0% 40.0% 1.0%

50.0% 50.0% 1.0%

67.0% 33.0% 1.0%

50.0% 50.0% 2.0%

42.9% 57.1% 1.4%

40.0% 60.0%

2

1

2

2

3

2

2

1.0%

50.0% 50.0% 1.0%

67.0% 33.0% 1.0%

67.0% 33.0% 1.0%

75.0% 25.0% 1.1%

50.0% 50.0% 1.4%

40.0% 60.0%

9

4

4

4

4

4

4

4.0%

44.0% 56.0% 3.0%ー**including temporary workers / ー : No available data

197

23

ー

ー
ー

13

98

47.0% 53.0% 64.0%

24

3
10
2

4

1

3

5

9

ー

ー

ー

24

7
11
2
1
5

3
3
11

13
11
12
1
1
7

27

4
4
10

15
12
12
2
1
6

28

7
4
11

15
12
16
4
2
7

36

5
5
9

44.0% 56.0% 4.0%

36.0% 64.0% 3.0%

40.0% 60.0% 3.2%

36.4% 63.6% 2.6%

ー

25.0%

17.0%

50.0%

ー

ー

13

Work accident

ー
ー

4

1.0%

1

4

6

100.0% 2.0%

1

5

83.0%

10

2.9%

5

5

50.0%

21
14
10
3
3
5

44.4% 55.6%

9

5

4

2.6%

55.6%

44.4%

Employment of disabled people (Japan)

Indicator
Work accident number*

2017
0

2018
0

2019

2020

2021

2022

2023

0

0
0

0
0

1
0

0
0

0
0

Frequency rate of work
accident **Intensity rate of work
accidents ***

0
0

0

0

0

0

0

0

*WorkAccident: injuries,illnesses,disabilities,ordeaths of worker in the course of work.
**Frequencyrate of WorkAccidentofdirectlyhiredemployees=Work accident number / totalnumberofworkinghoursx1,000,000***Intensity rate of WorkAccidentofdirectlyhired employees=totalnumberofworkinghourslost/total number of working hoursx1,000

Indicator% of employees withdisabilities

2018

2019

2020

0.63%

0.54%

1.03%

2021
1.76%

2022
1.70%

2023
1.63%

37

Message from the President

Appendix

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

Gender equality: Number of male and female leaders (as of December 31st 2023)
Subsidiary Name
Total*IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

2018
Total
47

M
41

F
6

100%

87%

36

49

M
41

F
8

2020
Total
58

M
48

F
10

2021
Total
58

M
48

F
10

2022
Total
67

M
47

F
20

2023
Total
69

M
49

13%

100%

84%

16%

100%

83%

17%

100%

83%

17%

100%

70%

30%

100%

69.6% 30.4%

33

3

39

33

6

35

30

5

35

29

6

37

30

7

35

26

77%

92%

8%

80%

85%

15%

60%

86%

14%

60%

83%

17%

60%

81%

19%

50.7%

74.3% 25.7%

1

1

0

1

1

0

1

1

0

4

2

2

5

2

3

5

2

2%

100%

0%

2%

100%

0%

2%

100%

0%

7%

50%

50%

7%

40%

60%

7.2%

40.0% 60.0%

1

1

0

1

1

0

1

1

0

4

2

2

6

3

3

6

3

3

2%

100%

0%

2%

100%

0%

2%

100%

0%

7%

50%

50%

7%

50%

50%

8.7%

50.0

50.0%

2

2

0

4

2

2

6

3

3

2

2

0

1

1

0

3

2

1

4%

100%

0%

8%

50%

50%

10%

50%

50%

3%

100%

0%

3%

100%

0%

4.3%

66.6% 33.3%

1

1

0

1

1

0

1

1

0

4

2

2

3

0

3

2

1

2%

100%

0%

2%

100%

0%

2%

100%

0%

7%

50%

50%

7%

0%

100%

2.9%

50.0% 50.0%

1

1

0

1

1

0

1

1

0

3

2

1

4

2

2

4

2

2%

100%

0%

2%

100%

0%

2%

100%

0%

5%

67%

33%

5%

50%

50%

5.8%

50.0% 50.0%

1

1

0

2

2

0

2

2

0

2

2

0

1

1

0

3

3

0

2%

100%

0%

4%

100%

0%

3%

100%

0%

3%

100%

0%

3%

100%

0%

4.3%

100%

0%

4

3

1

4

3

1

4

3

1

4

3

1

5

3

2

5

3

2

9%

75%

25%

8%

75%

25%

7%

75%

25%

7%

75%

25%

7%

60%

40%

7.2%

60%

40%

5

5

0

6

6

0

5

5

0

5

5

0

9%

100%

0%

10%

100%

0%

10%

100%

0%

7.2%

100%

0%

ー

DAINIHON KASEI CO., LTD

ー

ー
ー

ー
ー

2019
Total

ー
ー

ー
ー

ー
ー

*including company executives

Job separation rate (Japan)
Indicator

2021

M
Job separation 6.98
rate

2022

F
8.57

M
4.71

2023

F
17.12

M
10.23

F
13.79

F
21
9
3

1
2

38

Message from the President

CSR Management

Appendix

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

Working hours / Paid leave acquisition rate / Absenteeism rate
Indicator
Subsidiary Name
Average designated overtime
IWASE COSFA CORPORATION (JAPAN)
hours worked / month / employee COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

2017

2018

2019

2020

2021

2022

2023

5.71
5
5
0
3
16
7.96
ー
5.71
54.3%
80.0%
95.0%
73.1%
90.0%
70.0%
0.0%
ー
ー

5.31
5
5
0
3
16
23.42
0
5.31
55.5%
80.0%
97.0%
88.2%
90.0%
82.0%
36.0%
100.0%
ー

3.43
5
3
0
3
16
1.04
0
3.44
57.5%
100.0%
100.0%
76.0%
90.0%
95.0%
44.0%
100.0%
100.0%

5.3
1
0.5
0
3
163
0
0
5.55
69.8%
100.0%
98.0%
79.9%
90.0%
83.0%
50.0%
100.0%
100.0%

5.49
1
0.22
0
3
156
2.105
0
6.83
70.5%
100.0%
97.0%
87.6%
100.0%
86.0%
78.0%
69.0%
100.0%

5.50
1
0.72
0
0
4
3.22
0
3.65
70.2%
100.0%
99.0%
96.0%
5.0%
86.0%
69.0%
97.0%
100.0%

0.1%

0.1%
0.0%
0.0%
0.0%
5.0%
0.0%
0.0%
1.0%

0.2%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%

0.0%

0.0%

Paid leave acquisition rate (%)

IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD
DAINIHON KASEI CO., LTD

6.00
ー
ー
ー
ー
ー
ー
ー
6.00
56.8%
ー
ー
ー
ー
ー
ー
ー
ー

Absenteeism rate (%)

IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD
DAINIHON KASEI CO., LTD

ー
ー
ー
ー
ー
ー
ー
ー

IWASE COSFA GROUP TOTAL (Average)

ー : No available data

0.1%

ー

0.3%

ー

ー

0.0%
0.0%
0.0%
0.0%
0.0%

0.0%
0.0%
0.0%
0.0%
0.0%
0.0%

0.0%
0.0%
0.0%
0.0%
0.0%
0.0%

0.2%
0.0%
0.0%
1.4%
0.0%
0.0%
0.0%
0.0%

0.0%

0.0%

ー
ー

0.1%

ー

39

Message from the President

CSR Management

Appendix

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

Employees training
Indicator
Total training hours

Number of employees trained

Average training hours per employee

Subsidiary Name

2018

2019

2020

2021

2022

2023

IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD
IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD
IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

318.5
300
20
ー
600
180
0
ー
94
24
20
ー
5
3
0
ー

558.2
300
20
ー
720
180
0
ー
172
24
20
ー
7
4
0
ー

2448.8
300
384
649
830
218
24
13
187
26
24
14
7
3
3
5

3042.3
300
513
171
900
260
56
48
194
30
27
13
17
2
4
3

2302
300
298
54
1000
274.02
40
324
202
30
27
8
16
6
4
7

7531
37
298
137
72
230
24
64
205
30
27
24
3
56
6
4

2
13
1

3
12
1

12.5
11.5
16
38
46
73
8
1.3
5
23.48

15.7
10
19
13.15
53
130
14
16
3
30.43

11.40
10
11
6.75
63
45.67
10
29
18.5
22.81

36.74
1
11
5.8
24
46
4
7.1
18.5
17.13

ー

36
36
0

45
45
0

DAINIHON KASEI CO., LTD

ー
ー

ー
ー

IWASE COSFA GROUP (Average)

14.67

17.67

Calculation method: total annual training hours / employees at the end of the year

ー : No available dataー40

Message from the President

Appendix

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

AppendixTrainings on information security (Japan)
Indicator
Training name2020
Advanced course
on Information
Security

2021
Case study : thelatest threats to
information
Security

Number of times
held
Duration (hours)
Participants

1

1

1

1

Countermeasuresfor "Common"
Security Accidents
in the Workplace,Part I:Countermeasuresin case of Human
Mistakes
1

0.6
179

1.5
11

1.5
159

0.5
175

0.5
175

Threats andCounter measurescounter-measures against internal
against PC takeover improprieties andby targeted attacks information
leakage2022
Basic Knowledge on Targeted Attacks:
information Secu- Threats andrity Measures
Countermeasures

2023
Viruses and malInformation
wares: Threats and security regularCountermeasures training

1

2

1

1

1

0.5
175

1
218

2
140

2
140

2
140

Case study:
Information
leakage andaccident cases

Harassment related trainings (Japan)
Indicator
Training name2020
Promotion of
Women’s Activities and Prevention ofHarassment

2021
Next-generation Workshop:
Leader Training Human Rights(harassment,
copyright)

Number of times held
Duration (hours)
Participants

1
0.6
179

1
1.5
11

1
1.5
159

2022

2023

Workshop:
Copyrights

Workshop: About Workshop:
CSR
Bribery

About
Harassment in
the Work place

About
Harassment in
the Work place

Bribery and gifts Copyrights and Human Rights
image rights
education

1
0.5
175

1
0.5
175

2
1
218

1
2
140

1
2
140

1
0.5
175

1
2
140

Number of incidents
Indicator
Number of gift procedure violations

2017
0

2018
0

2019
0

2020
0

2021
0

2022
0

2023
0

Number of compliance violations
Number of regulatory penalties
Number of security breaches
Number of whistleblowing reports
Number of reported child labor and forced labor incidents

0
0
0
0
ー

1
0
0
2
ー

0
0
0
0
ー

0
0
1
0
ー

0
5
1
0
0

0
0
3
3
0

0
0
0
5
0

*Data from FY2017 to FY2020 are for IWASE COSFA (Japan only). We expanded the scope to include IWASE COSFA Group from FY2021.

ー : No available data

1
2
140

41

Message from the President

Appendix

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix2023 Supplier CSR Questionnaire - Results
Indicator
Survey period
Response rate (based on number ofsuppliers)
Response rate (based on sales)

Does your company have a CSR Policy and Management System?

April - July 3, 2023
59,3%

3%

71%

11%
Yes, a policy and a well-structured management system

19%

48%

There is a policy, but the management system is insuﬃcient.
Yes, there is a policy, but no management system
No, there is neither a policy nor measures implemented.
No answer

The Company is committed to conducting its businessactivities in accordance with the Code of Ethics of Iwase Cosfa:

19%

5%

95%

Do you disclose information on your company's Corporate Social Responsibility
in a CSR report or integrated report, etc.?

Have you received an Ecovadis rating ?

1%

4%

17%
No information is publically disclosed

3%

21%

NO

Yes, on an annual basis

No answer

I agree

22%

60%

YES

Disclosed on an as-needed and irregular basis

PLANNEDNo answer

NO ANSWER

72%*Number of responses / Number of respondents

42

Message from the President

Appendix

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

Environmental data performance summary
Indicator

Category

Petroleum consump- Gasoline
tion (L)DieselGas consumption(m3)

City Gas
LPG
Electricity Consumption (Kwh)
Water Consumption Municipal
(m3)
Water
Groundwater
Wastewater volume Sewage(m3)
Industrial
wastewaterIndustrial waste volume (t)Specific hazardous industrial waste
emissions (t)

2018

2019

2020

2021

2022

2023

23564.06
521.8995
81431,529.18
9232695.46
217.6785.76
52.7
577,814.84
71

22,543
24.8
108
85.9
602,224.08
73.18

26,325.0089
109.9
580,556.53
3191.98

32,077.139
0
806
66.3
702,.912779.6

40,718.25
0
702
43.8
706,532.72
2779.6

240
767
0

272
1129
0

345
1063.28
0

345
1140
0

2.362
1968
0

2.362
1968
0

25.12
0

38.99
0

22.97
0

30.0345048.761026.846
0

2022

2023

GHG emissions
Indicator

2019

2020

2021

Scope 1
64.58
52.19
60.36
74.33
96.21
Gasoline
64.12
51.48
60.02
72.33
94.52
Gas
0.46
0.71
0.34
2
1.57
Scope 2384.94357.14356.5
324.65338.56
Electricity
384.94357.14356.5
324.65338.56
Scope 333,414,596.62 53,645,097.15 49,996,860.07 40,966.83 47,638.84
Purchased goods and services
33,394,843.20 53,632,825.60 49,982,890.72 38,816.70 45,523.61
Capital goods
17.51
37.42
12.79
155.8061.71
Fuel-and energy-related activities (not
20.33
21.00
22.80
67.90
70.63
included in scope 1 or scope 2)
Upstream transportation and distribution
828.101,308.80
1,158.18
984.10976.01
Waste generated in operations
17,514.78
9,324.47
11,281.68
86.94
26.25
Business travel
350.20
39.79
41.46
37.31
127.19
Employee commuting
192.58294.2675.82
88.80
231.27
Downstream transportation and distribution 828.01
1,308.80
1,158.18
742.29764.64
Processing of sold products
Use of of sold products-

ー : No available data

Eco-friendly product sales and objectives
Indicator

Year
Plant-based raw
materials (kg)

2018
2019
2020
2021
2022
2023
2018
Raw materials
2019
Materials that can directly or that do notinclude a heating 2020
indirectly reduce environ- process at the2021
mental impacts or risks time of use (kg)
2022
2023
2018
Raw materials
that can shorten 2019
the production
2020
process (kg)
2021
2022
2023
Raw materials that can Materials with2018
potentially reduce and limited environ2019
prevent environmental mental impacts
risks (kg)

Total

2020
2021
2022
2023
2018
2019
2020
2021
2022
2023

Objective(kg)Results(kg)Realization
ratio

504,100
556,600
1,306,100
1,403,900
1,217,340
1,285,800
3,000
2,000
800
220
400
11,10021,300
4,000
3,200
1,040
2,150
2,500

519,847464,682
837,398
1,167,447
1,187,909
1,188,108
0
136
80
100
1,247
11,921
13,335
760
1,150
1,960
1,600
4,975
0
6,444
3,821
219

103.1283.49%
64.11%
83.16%
97.58%
92.80%
0.00%
6.80%
10.00%
45.45%
311.76%107.40%62.61%
19.00%
35.94%
188.46%74.42%
199.00%0.00%
59.94%
89.07%
100%
59.93%

300
10,750
4,290
4,290
2,750

520,700
580,200
1,320,850
1,412,190
1,218,820
1,285,800

1,648
536,743
478,153
844,602
1,172,498
1,190,188
1,192,613

103.08%82.41%
63.94%
83.00%
97.65%
92.75%

43

Message from the President

Appendix

CSR Management

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

Environmental data
Indicator

Category

Subsidiary Name

2018

2019

2020

2021

2022

2023

Petroleum consumption (L)Gasoline

IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

DieselIWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

City gas

IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

LPG

IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

11,034.0
5,000
5,000.0455.4
3,346.0
3,092.0
636.6
ー
23,564.1
0.0
0.0
0.0
521.9
0.0
0.0
0.0
ー
521.9
95.0
0.0
0.0
0.0
0.0
0.0
0.0
ー
95.0
81.0
0.0
0.0
0.0
0.0
0.0
0.0
ー
81.0

9,730.1
4,814.0
5,000.0
2,614.5
3,420.0
5,214.0
1,902.8
0.0
32,695.5
0.0
0.0
0.0
217.7
0.0
0.0
0.0
0.0
217.7
85.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
85.8
52.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
52.7

6,519.5
3,219.0
4,275.0
256.8
4,476.0
2,445.9
1,350.8
0.0
22,542.9
0.0
0.0
0
24.8
0.0
0.0
0.0
0.0
24.8
108.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
108.0
85.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
85.9

7,557.5
3,190.5
2,410.0
5,766.6
4,476.0
2,246.1
678.0
0.0
26,324.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
89.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
89.0
109.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
109.9

7,769.3
2,022.2
2,937.0
1,598.0
4,524.0
1,138.1
914.6
11,174.0
32,077.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
806.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
806.0
66.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
66.3

8,449.4
6,082.0
4,118.0
2,185.3
4,742.0
917.6
914.6
10,754.8
40,718.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
702.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
702.0
43.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
43.8

Gas consumption (m3)ー : No available data

44

Message from the President

CSR Management

Appendix

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

Indicator
Water consumption (m3)

Wastewater volume (m3)ー : No available data

Category
Municipal
Water

Subsidiary Name
IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

Groundwater

IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

SewageIWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

Industrial
wastewater

IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

2018

2019

2020

2021

2022

2023

767.0
ー
ー
ー
ー
92.0
ー

1,129.0
ー
ー
ー
ー
71.0
ー
ー
1200.0
ー
ー
ー
ー
272.0
ー
ー
ー
272.0
1,129.0
ー
ー
ー
ー
ー
ー
ー
1,129.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1,069.0
ー
ー
ー
ー
64.9
ー
ー
1133.9
ー
ー
ー
ー
345.0
ー
ー
ー
345.0
1,055.0
ー
ー
ー
ー
ー
ー
ー
1,063.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1,149.0
ー
ー
ー
ー
12.5
ー
ー
1,161.5
ー
ー
ー
0.0
345.0
ー
ー
ー
345.0
1,140.0
ー
ー
ー
ー
ー
ー
ー
1,140.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

2,383.0
ー
ー
ー
368.0
14.6
ー
14.0
2,779.6
0.0
ー
0.0
2.4
ー
0.0
ー
0.0
2.4
1,968.0
ー
ー
ー
ー
ー
ー
ー
1,968.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

2,258.0
ー
ー
ー
370.0
15.9
ー
40.0
2,683.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1,880.0
ー
ー
ー
ー
ー
ー
ー
1,880.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

859.0
ー
ー
ー
ー
240.0
ー
ー
ー
240.0
767.0
ー
ー
ー
ー
ー
ー
ー
767.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

45

Message from the President

CSR Management

Appendix

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

Indicator
Electricity consumption (Kwh)

Subsidiary
IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

2018392,705.0ー
10,993.0
1,679.2
23,063.0
3,089.0ーー
431,529.2

2019475,228.5
ー
13,800.0
1,971.3
28,111.0
3,904.0ー
54,800.0
577,814.8

2020
495,400.0
ー
4,275.0
8,932.1
32,789.0
7,358.0ー
53,470.0602,224.1

2021
519,615.5
ー
10,385.0ー
32,789.0
8,597.0ー
9,170.0580,556.5

2022
617,857.91
14,971.0
9,681.0
3,897.0
37,079.0
7,686.0ー
11,601.0
702,773.91

2023
589,142.
37,588.0
16,290.0
3,900.65
39,020.0
7,770.0ー
12,821.0
706,531.65

Indicator
Electricity consumption (Kwh)

Subsidiary

2018
ー
ー

2019
ー
ー

2020
ー
ー

2021
12,533.0
12,533.0

2022
ー
ー

2023
13,531.0
13,531.0

Indicator
Industrial Waste (t)Subsidiary
IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

Specially controlled industrial waste - Specified hazardous industrial
waste emissions (t)IWASE COSFA CORPORATION (JAPAN)
COSFA INTERNATIONAL TRADING (SHANGHAI) CO., LTD
COSFA INTERNATIONAL TRADING (GUANGZHOU) CO., LTD
IWASE COSFA EUROPE S.A.S.
IWASE COSFA VIETNAM CO., LTD
IWASE COSFA KOREA CO., LTD
IWASE COSFA USA INC.
IWASE COSFA (THAILAND) CO., LTD

2018
25.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
25.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

2019
39.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
39.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

2020
23.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
23.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

2021
30.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
30.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

2022
48.8
ー
ー
ー
ー
ー
ー
ー
48.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

2023
22.93
ー
ー
ー
3.828
ー
0.088
ー
27.05
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

ー : No available data

DAINIHON KASEI CO., LTD

46

Message from the President

CSR Management

Appendix

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

GRI content index
・Universal Standards
GRI 1 : Foundation 2021
Statement of use IWASE COSFA CO., LTD. has reported the information cited in this GRI content index for the period January 1st, 2023 - December 31st, 2023 with reference to the GRI
Standards
GRI 1 used GRI 1 Foundation 2021

GRI 2 : General Disclosures 2021
1. The organization and its reporting practices

Location

2-1
2-2
2-3
2-4
2-5

P2「Company Information」
P2「Compnay Information」
P5「Editorial Policy」
P27「Environment ＞ Reduction of Energy Consumption & GHG」
IWASE COSFA Mangement System (Japanese)
https://www.cosfa.co.jp/company/environment.html

Organizational details
Entities included in the organization's sustainability reporting
Reporting period, frequency and contact point
Restatements of information
External assurance

2. Activities and workers

Location

2-6

Activities, value chain and other business relationships

2-7
2-8

Employees
Workers who are not employees

Business Overview
https://www.cosfa.co.jp/english/business/index.html
P37「Number of employees and gender ratio」
Not applicable (due to our business profile or structure)

3. Governance

Location

2-9
2-10
2-11
2-12

P15-18「Corporate Governance and Ethics ＞ Promotion System」
Not disclosed
Not disclosed
Not disclosed

2-13
2-14
2-15
2-16
2-17
2-18

Governance structure and composition
Nomination and selection of the highest governance body
Chair of the highest governance bodyRole of the highest governance body in overseeing the management of
impacts
Delegation of responsibility for managing impacts
Role of the highest governance body in sustainability reporting
Conflicts of interest
Communication of critical concerns
Collective knowledge of the highest governance body
Evaluation of the performance of the highest governance bodyNot disclosed
Not disclosed
Not disclosed
Not disclosed
Not disclosed
Not disclosed

47

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CSR Management

Appendix

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

2-19
2-20
2-21

Remuneration policies
Process to determine remuneration
Annual total compensation ratio

Not disclosed
Not disclosed
Not disclosed

4. Strategy, policies and practices

Location

2-22
2-23

Statement on sustainable development strategy
Policy commitments

2-24

Embedding policy commitments

2-25
2-26
2-27

Processes to remediate negative impacts
Mechanisms for seeking advice and raising concerns
Compliance with laws and regulations

2-28
2-27

Membership associations
Compliance with laws and regulations

2-28

Membership associations

P6-7「Message from the President」
P6-7「Message from the President」
P8「Corporate Governance and Ethics ＞ Dialogue with Stakeholders」
P11「CSR Management ＞ Materiality at Iwase Cosfa」
P6-7「Message from the President」
P11「CSR Management ＞ Materiality at Iwase Cosfa」
P19「Corporate Governance and Ethics ＞ Compliance, Anti-Corruption, and Fair Trade」
P19「Corporate Governance and Ethics ＞ Compliance, Anti-Corruption, and Fair Trade」
P14「Corporate Governance and Ethics ＞ Corporate Governance and Ethics」
P19「Corporate Governance and Ethics ＞ Compliance, Anti-Corruption, and Fair Trade」
P7「CSR Management ＞ Collaboration with Stakeholders」
P14「Corporate Governance and Ethics ＞ Corporate Governance and Ethics」
P19「Corporate Governance and Ethics ＞ Compliance, Anti-Corruption, and Fair Trade」
P8「CSR Management ＞ Collaboration with Stakeholders」

3. Stakeholder engagement

Location

2-29

Approach to stakeholder engagement

2-30

Collective bargaining agreements

P8「CSR Management ＞ Collaboration with Stakeholders」
P8「Corporate Governance and Ethics ＞ Dialogue with Stakeholders」
P11「CSR Management ト＞ Materiality Indentification Process」
P22「Labor and Human Rights ＞ Working Conditions」

GRI 3 : Material Topics 2021
Disclosure on material topics

Location

3-1
3-2

Process to determine material topics
List of material topics

3-3Management of material topics

P11「CSR Management ト＞ Materiality Indentification Process」
P11「CSR Management ト＞ Materiality Indentification Process」
P11「CSR Management ＞ Materiality at Iwase Cosfa」
P11「CSR Management ＞ Materiality at Iwase Cosfa」
P15-19「Corporate Governance and Ethics ＞ Basic Approach / Targets, KPIs, and Achievements」
P20-25「Labor and Human Rights ＞ Basic Approach / Targets, KPIs, and Achievements」
P26-31「Environment ＞ Basic Approach / Targets, KPIs, and Achievements」
P32-35「Sustainable Procurement ＞ Basic Approach / Targets, KPIs, and Achievements」

48

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Appendix

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

・Universal Standards
200 : Economic
GRI 202 : Market Presence 2016

Corresponding section

202-1
202-2

Information not available
P38「Appendix ＞ Gender equality: Number of male and female leaders」

Ratios of standard entry level wage by gender compared to local minimum wage
Proportion of senior management hired from the local community

GRI 203 : Indirect Economic Impacts 2016

Corresponding section

203-1

Infrastructure investments and services supported

Information not available

203-2

Significant indirect economic impacts

Information not available

GRI 204 : Procurement Practices 2016

Corresponding section

204-1

Information not available

Proportion of spending on local suppliers

GRI 205 : Anti-corruption 2016

Corresponding section

205-1
205-2

Operations assessed for risks related to corruption
Communication and training about anti-corruption policies and procedures

205-3

Confirmed incidents of corruption and actions taken

Not disclosed
P15-18「Corporate Governance and Ethics ＞ Basic Approach / Targets, KPIs, and Achievements」
P19「Corporate Governance and Ethics ＞ Compliance, Anti-Corruption, and Fair Trade」
P15-18「Corporate Governance and Ethics ＞ Basic Approach / Targets, KPIs, and Achievements」
P19「Corporate Governance and Ethics ＞ Compliance, Anti-Corruption, and Fair Trade」

GRI 206 : Anti-competitive Behavior 2016

Corresponding section

206-1

P15-18「Corporate Governance and Ethics ＞ Basic Approach / Targets, KPIs, and Achievements」
P19「Corporate Governance and Ethics ＞ Compliance, Anti-Corruption, and Fair Trade」

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

GRI 207 : Tax 2019

Corresponding section

207-1
207-2
207-3
207-4

Not disclosed
Not disclosed
Not disclosed
Not disclosed

Approach to tax
Tax governance, control, and risk management
Stakeholder engagement and management of concerns related to tax
Country-by-country reporting

300 : Environment
GRI 301 : Materials 2016

Corresponding section

301-1
301-2
301-3

Not applicable (due to our business profile or structure)
P30「Environment ＞ Sales of Sustainable Materials」
Not applicable (due to our business profile or structure)

Materials used by weight or volume
Recycled input materials used
Reclaimed products and their packaging materials

49

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CSR Management

Appendix

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

GRI 302 : Energy 2016

Corresponding section

302-1
302-2
302-3
302-4
302-5

P44-46「Appendix ＞ Environmental data」
P44-46「Appendix ＞ Environmental data」
Not disclosed
P44-46「Appendix ＞ Environmental data」
Not applicable (due to our business profile or structure)

Energy consumption within the organization
Energy consumption outside of the organization
Energy consumption outside of the organization
Reduction of energy consumption
Reductions in energy requirements of products and services

GRI 303 : Water and Effluents 2018

Corresponding section

303-1
303-2
303-3
303-4
303-5

P26「Environment ＞ Environmental Policy」
Not disclosed
P44-46「Appendix ＞ Environmental data」
P44-46「Appendix ＞ Environmental data」
P44-46「Appendix ＞ Environmental data」

Interactions with water as a shared resource
Management of water dischargerelated impacts
Water withdrawal
Water discharge
Water consumption

GRI 304 : Biodiversity 2016
304-1
304-2
304-3
304-4

Corresponding section

Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of Information not available
high biodiversity value outside protected areas
Significant impacts of activities, products and services on biodiversity
Information not available
Habitats protected or restored
Information not available
IUCN Red List species and national conservation list species with habitats in areas affected Information not available
by operations

GRI 305 : Emissions 2016

Corresponding section

305-1

Direct (Scope 1) GHG emissions

305-2

Energy indirect (Scope 2) GHG emissions

305-3

Other indirect (Scope 3) GHG emissions

305-4
305-5

GHG emissions intensity
Reduction of GHG emissions

305-6
305-7

Emissions of ozone-depleting substances (ODS)
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

P43「Appendix ＞ GHG emissions」
P27「Environment ＞ Reduction of Energy Consumption & GHG」
P43「Appendix ＞ GHG emissions」
P27「Environment ＞ Reduction of Energy Consumption & GHG」
P43「Appendix ＞ GHG emissions」
P27「Environment ＞ Reduction of Energy Consumption & GHG」
Not disclosed
P43「Appendix ＞ GHG emissions」
P27「Environment ＞ Reduction of Energy Consumption & GHG」
Information not available
Information not available

50Message from the President

CSR Management

Appendix

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

GRI 306 : Waste 2020

Corresponding section

306-1
306-2
306-3
306-4
306-5

P26「Environment ＞ Environmental Policy」
P26-27「Environment ＞ Environmental Policy / Targets, KPIs, and Achievements」
P44-46「Appendix ＞ Environmental data」
P44-46「Appendix ＞ Environmental data」
P44-46「Appendix ＞ Environmental data」

Waste generation and significant waste-related impacts
Management of significant wasterelated impacts
Waste generated
Waste diverted from disposal
Waste directed to disposal

400：Social
GRI 401 : Employment 2016
401-1
401-2
401-3

Corresponding section

New employee hires and employee turnoverP38「Appendix ＞ Job separation rate」
Benefits provided to full-time employees that are not provided to temporary or parttime No difference in benefits based on employment status
employees
Parental leave
Not disclosed

GRI 402 : Labor/Management Relations 2016

Corresponding section

402-1

P22「Labor and Human Rights ＞ Working Conditions」

Minimum notice periods regarding operational changes

GRI 403 : Occupational Health and Safety 2018

Corresponding section

403-1

Occupational health and safety management system403-2

Hazard identification, risk assessment, and incident investigation

403-3

Occupational health services

403-4

403-8
403-9

Worker participation, consultation, and communication on occupational health andsafetyWorker training on occupational health and safety
Promotion of worker healthPrevention and mitigation of occupational health and safety impacts directly linked bybusiness relationships
Workers covered by an occupational health and safety management system
Work-related injuries

403-10Work-related ill health

P22「Labor and Human Rights ＞ Working Conditions」
P23-24「Labor and Human Rights ＞ Employee Health & Safety」
PP22「Labor and Human Rights ＞ Working Conditions」
P23-24「Labor and Human Rights ＞ Employee Health & Safety」
P22「Labor and Human Rights ＞ Working Conditions」
P23-24「Labor and Human Rights ＞ Employee Health & Safety」
P22「Labor and Human Rights ＞ Working Conditions」
P23-24「Labor and Human Rights ＞ Employee Health & Safety」
P25「Labor and Human Rights ＞ Career Management and Training」
P23-24「Labor and Human Rights ＞ Employee Health & Safety」
P22「Labor and Human Rights ＞ Working Conditions」
P23-24「Labor and Human Rights ＞ Employee Health & Safety」
P23-24「Labor and Human Rights ＞ Employee Health & Safety」
P20-21「Labor and Human Rights ＞ Targets, KPIs, and Achievements」
P37「Appendix ＞ Work accident」
P20-21「Labor and Human Rights ＞ Targets, KPIs, and Achievements」
P37「Appendix ＞ Work accident」

403-5
403-6
403-7

51

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CSR Management

Appendix

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

GRI 404 : Training and Education 2016
404-1
404-2
404-3

Corresponding section

Average hours of training per year per employee

P20-21「Labor and Human Rights ＞ Targets, KPIs, and Achievements」
P41「Labor and Human Rights ＞ Employees training」
Programs for upgrading employee skills and transition assistance programs
P23「Labor and Human Rights ＞ Working Conditions ＞ Reemployment system: Integrating
senior employees」
P25「Labor and Human Rights ＞ Career Management and Training」
Percentage of employees receiving regular performance and career development reviews P25「Labor and Human Rights ＞ Career Management and Training」

GRI 405 : Diversity and Equal Opportunity 2016

Corresponding section

405-1
405-2

Not disclosed
Not disclosed

Diversity of governance bodies and employees
Ratio of basic salary and remuneration of women to men

GRI 406 : Non-discrimination 2016

Corresponding section

406-1

P19「Corporate Governance and Ethics ＞ Compliance, Anti-Corruption, and Fair Trade」

Incidents of discrimination and corrective actions taken

GRI 407 : Freedom of Association and Collective Bargaining 2016

Corresponding section

407-1

Not disclosed

Operations and suppliers in which the right to freedom of association and collective
bargaining may be at risk

GRI 408 : Child Labor 2016

Corresponding section

408-1

P22「Labor and Human Rights ＞ Respect for human Rights ＞ Compliance with the UK Modern
Slavery Act」

Operations and suppliers at significant risk for incidents of child labor

GRI 409 : Forced or Compulsory Labor 2016

Corresponding section

409-1

P22「Labor and Human Rights ＞ Respect for human Rights ＞ Compliance with the UK Modern
Slavery Act」

Operations and suppliers at significant risk for incidents of forced or compulsory labor

GRI 410 : Security Practices 2016

Corresponding section

410-1

Not applicable (due to our business profile or structure)

Security personnel trained in human rights policies or procedures

GRI 411 : Rights of Indigenous Peoples 2016

Corresponding section

411-1

Not applicable (due to our business profile or structure)

RIncidents of violations involving rights of indigenous peoples

GRI 413 : Local Communities 2016
413-1
413-2

Corresponding section

Operations with local community engagement, impact assessments, and development P8「Corporate Governance and Ethics ＞ Dialogue with Stakeholders」
programs
Operations with significant actual and potential negative impacts on local communities Information not available

52

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CSR Management

Appendix

Iwase Cosfa Co., Ltd. CSR REPORT 2024

Appendix

GRI 414 : Supplier Social Assessment 2016

Corresponding section

414-1
414-2

P33「Sustainable Procurement ＞ Supplier practices」
P33「Sustainable Procurement ＞ Supplier practices」

New suppliers that were screened using social criteria
Negative social impacts in the supply chain and actions taken

GRI 415 : Public Policy 2016

Corresponding section

415-1

Not disclosed

Political contributions

GRI 416 : Customer Health and Safety 2016

Corresponding section

416-1
416-2

P23-24「Labor and Human Rights ＞ Employee Health & Safety」
Not applicable (due to our business profile or structure)

Assessment of the health and safety impacts of product and service categories
Incidents of non-compliance concerning the health and safety impacts of products
and services

GRI 417 : Marketing and Labeling 2016

Corresponding section

417-1
417-2
417-3

Not applicable (due to our business profile or structure)
Not applicable (due to our business profile or structure)
Not applicable (due to our business profile or structure)

Requirements for product and service information and labeling
Incidents of non-compliance concerning product and service information and labeling
Incidents of non-compliance concerning marketing communications

GRI 418 : Customer Privacy 2016

Corresponding section

418-1

P15-18「Corporate Governance and Ethics ＞ Targets, KPIs, and Achievements」

Substantiated complaints concerning breaches of customer privacy and losses ofcustomer data

53

CSR REPORT 2024
CONTACT US
Iwase Cosfa CSR Promotion Officecosfa-csr@cosfa.co.jp