MODERN SLAVERY STATEMENT (FY 2023)
This statement is published in accordance with section 54 of the 2015 UK Modern Slavery Act. It sets out
the initiatives taken by Iwase Cosfa Co., Ltd. (hereafter also referred to as “The Company”) and its
subsidiaries in FY2023 to prevent the occurrence of slavery and human trafficking in its business operations
and supply chain.
1. Business overview, Organization and Supply Chain
Iwase Cosfa, since its founding in 1931, is a specialized trading company that supplies raw materials to awide range of industries and fields, from pharmaceuticals and cosmetics to health foods.
The Iwase Cosfa Group consists of 3 main offices located in Japan and of 8 subsidiaries located around theworld, including Iwase Cosfa Europe SAS, which regularly conducts business with the UK. Iwase Cosfa
employed 345 employees as of December 31, 2023.
Please click on the link below for more details.
Iwase Cosfa : https://www.cosfa.co.jp/english/
Regarding the sourcing of raw materials, the Iwase Cosfa Group procures and sells raw materials forcosmetics and health foods from various suppliers, both in Japan and overseas. In addition, Iwase Cosfa hasestablished working cooperative relationships with external contractors in order to provide turnkey OEM
solutions for health foods as well as out-sourced safety tests and is expended its business globally. (Numberof suppliers as of the end of FY2023: approx. 600 companies)
2. Iwase Cosfa’s policies in relation to slave labor and human trafficking
Iwase Cosfa fulfills its responsibilities as a member of society by advocating its corporate philosophy of“Giving greater happiness to a greater number through beauty and health”. The Iwase Cosfa Group entirely
opposes the use of slave labor and human trafficking throughout its business operations and supply chain.
In January 2017, the company joined the Japan Business Federation (Nippon Keidanren) a n d declared its
commitment to abide by its Charter of Corporate Behavior, which obliges signatories to respect humanrights and require them to comply with various international norms.
In July 2021, Iwase Cosfa also endorsed and announced its commitment to the “My Human Rights
Declaration” project, an initiative of the Japanese Ministry of Justice aimed at building a society in which
everyone respects human rights.
The company has also declared its support to and signed the UN Global Compact (UNGC), an international
initiative advocated by the United Nations. The company is committed to defend human rights, by"supporting and respecting the protection of internationally proclaimed human rights" and by "ensuring that
it is not itself complicit in human rights abuses."
Additionally, t h e Iwase Cosfa Group has established a “Compliance Charter”, stipulating that all executives
and employees of the company must respect and observe human rights. It also specifically states theCompany’s support for and compliance with laws and regulations prohibiting forced, compulsory, and childlabor.
Iwase Cosfa Compliance Charter:
https://www.cosfa.co.jp/english/company/pdf/compliance-charter-en.pdf
Furthermore, to reaffirm the company’s commitment to respecting human rights in all aspects of its business
operations and to make it clear that the company do not tolerate discrimination of any kind, Iwase Cosfa’sapproach and philosophy on this subject has been published on its official website and is publicly available.
Please click on the link below for more details.
1 / 3

Iwase Cosfa approach and vision regarding human resources:
https://www.cosfa.co.jp/company/pdf/recruit-policy.pdf (Japanese)
3. Risk Assessment and Due Diligence
Iwase Cosfa recognizes that its supply chain may be at risk of human rights violations. Thus, as part of its
efforts to identify risk and ensure supplier adherence to its values, the company has taken the following
actions across the Group.
The company has established a “Supplier Code of Ethics” in order to ensure appropriate business operations
and to increase its supply chain’s values.
The Iwase Cosfa Supplier Code of Ethics requires Suppliers to agree to the following:◼ Prohibit all forms of discrimination and human rights violations, including child labor, slave labor, forcedlabor, abuse and human trafficking;◼ Promote responsible procurement and, as a general rule, refrain from using any conflict minerals.
Iwase Cosfa believes such practices will enable it to mitigate the risk of slavery and human trafficking
throughout its supply chain.
Iwase Cosfa Supplier Code of Ethics:
https://www.cosfa.co.jp/english/company/pdf/SupplierCodeofEthics-en.pdf
In 2023, Iwase Cosfa carried out a CSR survey of all its suppliers (approx. 600 companies) and requested
they endorse the company’s Supplier Code of Ethics. More than 59.3% of the company’s suppliers,accounting for more than 71% of the company’s total materials purchases during the year, responded to thesurvey and agreed to conduct their business activities in accordance with Iwase Cosfa’s Code of Ethics. Thecompany is working to increase the percentage of suppliers endorsing its Supplier Code of Ethics to 80% of
its total materials purchases by 2025. Iwase Cosfa will also continue to conduct a CSR survey annually toensure that its suppliers fully understand the company’s policies and practices as well as to strengthen thecooperation with suppliers to fulfill its social responsibility.
As a direct approach to raw material sourcing, the company joined in 2017 the Roundtable on Sustainable
Palm Oil (RSPO), an international non-profit organization. Recognizing the latent human rights risks
associated with the palm oil handled by the Iwase Cosfa Group, the company will work to expand the useof certified sustainable raw materials, aiming to make 100% of sourced palm oil and palm kernel oil derived
raw materials RSPO certified by 2030.
4. Monitoring Framework
At Iwase Cosfa, risks are evaluated and controlled by the Compliance Committee established inaccordance with the Group Compliance Promotion Regulations. Modern slavery and other risks to humanrights will be evaluated and controlled under this framework.
Iwase Cosfa has established a whistle-blowing system, allowing the confidential reporting of any
suspicions of wrongdoing (which extends to human-rights violations) or compliance violations throughinternal and external hotlines.
In addition, the company also conducts surveys of all the companies in its supply chain to measure progressin terms of CSR actions, including respect for human rights, and to keep abreast of the latest initiatives takenby its partners. Iwase Cosfa requests improvements from suppliers that do not meet basic criteria regarding
respect for human rights or posing potential risks.
To date, the Group has not received any information concerning any issue of forced labor, slavery or humantrafficking.

2 / 3

5. Trainings
Iwase Cosfa conducts compliance-related trainings to ensure that all employees are familiar and fullycomply with the company’s Compliance Charter. In addition, a Compliance Handbook containing theCompliance Charter has been distributed to all executives and employees to ensure thorough awareness andto make the Charter easily accessible.
Since 2020 the company has also been conducting trainings on Corporate Social Responsibility (CSR) forall employees to educate them on the importance of risk management.
6. Trainings
In FY2024, Iwase Cosfa will revise its Supplier Code of Ethics and ask all its suppliers to endorse thisrevised Code. The company will also conduct a new survey on the CSR actions implemented by its suppliers,
with the aim of identifying potential risks and how to mitigate them. In addition, and based on the results ofthe survey, the company will request suppliers identified as “posing a potential risk” to formulate actionplans for improvements and to cooperate with the company to improve their activities.
Iwase Cosfa considers the promotion of respect for human rights as an important issue in sustainability.
Iwase Cosfa will continue to implement ongoing measures to prevent the occurrence of modern-day slavery,
labor issues and human trafficking on an ongoing basis.
This statement has been approved by the Board of Directors of Iwase Cosfa, and is signed by Iwase Cosfa's
President and Representative Director.
January 1, 2024
Iwase Cosfa Co., Ltd.
President and Representative Director
Yoshinori Iwase

3 / 3