Progress of Initiatives for the Materiality and the Individual Issues (FY2020)

ThemesCreate new products and services that solve issues

surrounding babies who need special support (such asDevelop products and services to help NICU hospitalization) and their families
solve social issues

Enhance activities to solve issues surrounding babies andtheir families

Increase productivity with AI and IoT
Improve productivity by streamlining
the product development process

Promote the use of IT tools
Review product development process

Maintain and improve product quality Continue quality improvement activities

2.Sustainable reduction of environmental impact
Articulate environmental policy andenvironmental vision

Respond to global warming

Articulate environmental policy and environmental vision
Reduce CO2 emission intensity by 10% compared with
FY2018 * Scope 1 and 2 *Per unit of sales
Reduce supply chain emissions

Develop environment-friendly
products and packaging
Reduce plastics
Prevent pollution

Share knowledge on reduction ofenvironmental impact

Introduce an environmental
management system

Earmark funds for environmental
costs

Create new environmentally-friendly products andpackages

Respond in a responsible manner toconsumers

Engage in social contribution
activities

Engage in dialogue with shareholders

and investors in a responsible manner
Articulate HR development policy

on a global basis
Reinforce expertise of eachTake initiatives toward diverse
working styles

Promote work-life balance

・ Published a booklet for the families of late preterm babies (A total of 5,978 copies were distributed to hospitals
and government agencies.）・ Supported 9,465 lactation lounges in 21 countries (As of December 31, 2020)

・ Provided information on breastfeeding and general childcare to pre-mothers and mothers through webinars
and official SNS・ 78% of inquiries resolved by AI chatbots [China]

・ Realization of partial automation of system infrastructure operation tasks by using RPA tools
・ Implemented verification of AI inspection equipment

・ Partial delegation of authority in the development process to each business unit・ "Quality and Safety Initiatives" Web page newly released・ Continued to implement quality improvement activities at each plant based on the principles of quality control
・ Formulated environmental policy

・ Started examining long-term environmental vision

・ Reduced CO2 emission intensity by 3% compared with FY2018
・ Installed new solar panels [Indonesia]

・ Purchased new renewable energy (hydroelectric power) [Japan]

・ Promoted the use of LEDs
・ Calculation of supply chain emissions in the Lansinoh Group, setting of reduction targets certified by SBT[Lansinoh]
・ Number of packages using certified forest paper: 14 SKU [Japan]

・ Formulated Pigeon's Eco-label and will be displayed on new products from 2021. [Japan]
・ Promoted the use of plant-derived materials and certified forest paper・ Implemented nursing bottle recycling campaign (Collected about 9,000 bottles) [Singapore]

Reduce industrial waste volume intensity by 1% or more
per year *Per unit of sales

・ Number of packages using recycled plastics: 15 SKU [Japan]

・ Reduced industrial waste volume intensity by 45.8% compared with 2019

Share knowledge on reduction of environmental impact

・ Sharing knowledge of ESG activities throughout the GroupAcquire ISO 14001 certification for all production sites

・ All production sites acquired ISO 14001

Promote environmental protection initiatives at each site

・ Environmental protection initiatives are in process at each site.

Formulate CSR Procurement Policy
Enhance VOC (Voice of Customer) activities

Promote social contribution activities

More than 300 IR meetings per year

Formulate HR Development Policy

Create global human resource development program

Promote diversity

Increase the ratio of female managers

Maintain 100% of men and women taking childcare leave
for at least one month [Pigeon]

Implement systems to promote diverse working styles
Paid leave acquisition rate 70% or more [Pigeon]

Promote health management

6.Establishment of a solid management base
Introduce a new personnel system

Introduce a new personnel system

Put risk management in place

Strengthen risk response capabilitiesStrengthen compliance

Implementation of measures to enhance compliance

Strengthen brand power(Opening of the Nihonbashi Human Milk Bank at Pigeon Head Office in September 2020)

Consider plastic recycling system

materials

Develop an education system that strengthens expertise
department
5.Creation of an ideal working environment
Promote diversity

・ Full support for the opening of Japan's second Human Milk Bank [Japan]

Reduction of petroleum-based plastics and virgin raw

4.Improvement in quality of human resources
Promote HR development and hiring

・ Development of dedicated products is in progress

・ Became an ordinary member of RSPO・ Number of packages using biomass plastics: 10 SKU [Japan]

3.Enhancement of stakeholder responsivenessPromote CSR procurement

FY2020 Initiatives

Target for FY2022

1.Enhancement of business competitiveness and R&D capabilities

Implement actions to strengthen Corporate brand・ Formulated CSR Procurement Policy

・ Preparing for Supplier Engagement [Japan]

・ Disclosure of the status of activities based on consumer-focused voluntary declaration [Japan]・ Support for premature babies

・ Supported 9,465 breastfeeding/pumping rooms in 21 countries (As of December 31, 2020)
・ Held tree planting campaign

・ Support for safety education in schools
・ Cleanup activities around the office・ Donations to maternity hospital to support group・ 424 IR meetings（Total for FY2020）

・ Established education program tied to career path and each grade [Pigeon]・ Creating global human resource development program (in progress) [Pigeon]
・Developing the specialized skills required by each department and the education system for those skills (inprogress) [Pigeon]

・ Two participants in an external organization (J-Win) for raising women's awareness [Pigeon]・ Held online meetings for mothers returning to work in 2020 (8 returning mothers participated) [Pigeon]
・ FY2019/1 16.9% → FY2019/12 19.7% → FY2020/12 21.3% [Pigeon]・ Continue to acquire 100% of eligible employees from FY2016 (FY2020: 16 employees in total) [Pigeon]・ Relaxing the requirements for using the telework system, which had been in operation since 2019, anddeveloping a teleworking system [Pigeon]

・ Number of taking "Life Design Leave and Temporary Retirement": 2 employees [Pigeon]
・ Paid leave acquisition rate 63.6 (FY2019: 69.5%) [Pigeon]・ Message from the president to employees regarding health management
・ Established a new HR system that defines the roles required for each role and provides grades, evaluations, andrewards commensurate with those roles (January 16, 2021) [Pigeon)

・ Implemented risk reduction measures at each business unit

・ Reviewed or created and updated risk maps and scenarios for the entire Pigeon Group・ Conducted compliance education using the Corporate Ethics Guidelines throughout the Pigeon Group・ Conducted compliance monitoring checks for all employees and identified compliance-related issues acrossthe Pigeon Group・ Promote internal penetration of the newly defined brand concept by creating various branding tools andconducting group-wide workshopson the new brand・ Beginning with the renewal of the head office showroom, the new brand was reflected in all company
buildings, websites, and various materials

・ Established Sustainability Committee
Enhance ESG responsivenessPromote ESG initiatives

・ Set non-financial KPIs and implement PDCA to resolve issues

・ Strengthen disclosure of non-financial information on website

・ Sending out a monthly internal ESG-themed newsletter to all Group employees to promote ESG awarenessamong employees