Progress of Initiatives for the Materiality and the Individual Issues (FY2021)

Themes1.Enhancement of business competitiveness and R&D capabilities

Create new products and services that solve issues

surrounding babies who need special support (such as NICU
Develop products and services to help solve

social issues

hospitalization) and their families

Enhance activities to solve issues surrounding babies andtheir families

Increase productivity with AI and IoT
Improve productivity by streamlining theproduct development process

Maintain and improve product quality

environmental vision

・ Developed "Disposable Bottle for Breast Milk Storage and Pasteurization" for safer and more hygienic storage of donor milk [Japan] *Received theGood Design Award in 2021

・ Held an event to mark the first anniversary of the opening of the Nihonbashi Breast Milk Bank, which was established at Pigeon's headquarters.
[Japan]・ Published a booklet for the families of late preterm babies (A total of 7,500 copies were distributed to hospitals and government agencies.）・ Supported 11,005 lactation lounges in 23 countries (As of December 31, 2021)
・ Provided information on breastfeeding and general childcare to pre-mothers and mothers through webinars and official SNS

・ Launch of the "Baby Friendly Future Project," an initiative that encourages the entire society to think and act together to realize a baby-friendlyfuture.

・ Launched an educational program for junior high school students, "Lessons to Know About Babies - For a Baby-Friendly Future," and provided
free educational materials to about 130 schools for teachers to conduct the lessons. [Japan]
・ 80% of inquiries resolved by AI Chatbots [China]

Promote the use of IT tools

・ Expand the scope of utilization of RPA tools for system infrastructure operations [Japan]

Review product development process

・ Provided guidance on management principles to each business unit and delegated some authority for the development process.

Continue quality improvement activities

2.Sustainable reduction of environmental impact
Articulate environmental policy and

FY2021 Initiatives

Target for FY2022

Articulate environmental policy and environmental vision

・ Introduction of Chatbot for internal inquiries [Japan]・ "Chemical Management" Web page newly opened

・ Continuous quality improvement activities at each factory based on the principles of quality management
・ Three Sustainability Committee meetings held to discuss the environmental vision (to be completed by the end of 2022)
・ Formulated Sustainable Development Policy
・ Reduced CO2 emission intensity by 11.7% compared with FY2018
・ Reduced CO2 emissions by 16.6% compared with FY2018

・ Percentage of total energy used that is generated from renewable energy sources 9%

Respond to global warming

Reduce CO2 emission intensity by 10% compared with FY2018 ・ Endorsement of TCFD Recommendations and Initiation of analysis of climate-related risks and opportunities for disclosure in accordance with
* Scope 1 and 2 *Per unit of sales

・ Purchased renewable energy
Reduce supply chain emissions

Develop environment-friendly products andpackaging

Reduce plastics

Create new environmentally-friendly products and packages

Reduction of petroleum-based plastics and virgin raw
materials

Consider plastic recycling system
Prevent pollution

Share knowledge on reduction ofenvironmental impact

Introduce an environmental management
systemReduce industrial waste volume intensity by 1% or more per
year *Per unit of sales

Share knowledge on reduction of environmental impact
Acquire ISO 14001 certification for all production sites

Coping with environmental measure costs

Promote environmental protection initiatives at each site

Promote CSR procurement

Formulate CSR Procurement Policy

3.Enhancement of stakeholder responsivenessRespond in a responsible manner toconsumers

TCFD

・ New solar panel installation [Thailand], expansion [Indonesia]

Enhance VOC (Voice of Customer) activities

・ Promoted the use of LEDs
・ Commencement of Scope 3 calculations for Japan BU [Japan]

・ Set Scope 3 reduction targets for Lansinoh BU（2030 target: 69% reduction from FY 2019）[Lansinoh]
・ Number of products meeting Pigeon's Eco-label standards (cumulative)：181SKU [Japan]
・ Number of packages using certified forest paper (cumulative)：111SKU [Japan]
・ Promoted the use of plant-derived raw materials and forest certified paper・ Launch of products eligible for RSPO credits [Japan & Singapore]
・ Number of packages using biomass plastics (cumulative)：12SKU [Japan]
・ Number of packages using recycled plastics (cumulative)：27SKU [Japan]

・ Joined as a member of the platform for accelerating innovation in Public-Private Partnerships to solve the marine plastic litter problem "CLOMA(Japan Clean Ocean Material Alliance)" [Japan]・ Implemented nursing bottle recycling campaign (Collected about 17,800 bottles*) *PPSU 160ml weight equivalent [Singapore]・ Started collecting PPSU nursing bottles online and offline (30 baby stores) in December [China]
・ Reduced industrial waste volume intensity by 35.0% compared with 2020
・ Improvement of the production yield・ Sharing knowledge of ESG activities throughout the Group・ All production sites acquired ISO 14001 (Achieved by 2020)

・ Environmental protection initiatives are in process at each site.

・ Conducted CSR procurement assessment (223 companies responded, 94.9% response rate)
・ Disclosed assessment survey results on our website

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

・ Received the Minister of State Commendation at the 2021 Selection of Consumer-Oriented Companies for Best Practice held by Japan’sConsumer Affairs Agency.[Japan]

・ Enhanced knowledge management of customer's voice and feedback [China]

・ Support for premature babies (Gold sponsor of Japan Human Milk Bank Association [Japan], A main partner of Cunmiao Foundation [China],
Provision of pasteurizers to human milk banks [Indonesia])・ Support for children with cleft lip and palate (donation of specially designed feeding bottles and support through collaboration with NGOs)
Engage in social contribution activities

Promote social contribution activities

・ Supported 11,005 lactation lounges in 23 countries (As of December 31, 2021)
・ Held tree planting campaign

・ Support for safety education in schools [Thailand]・ Cleanup activities around the office・ Donations to maternity hospital to support group

Engage in dialogue with shareholders andinvestors in a responsible manner
4.Improvement in quality of human resources
Articulate HR development policyPromote HR development and hiring on aglobal basis

Reinforce expertise of each department

5.Creation of an ideal working environment

Promote diversity

More than 300 IR meetings per year

Formulate HR Development Policy
Create global human resource development program
Develop an education system that strengthens expertise

Promote diversity
Increase the ratio of female managers

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

Take initiatives toward diverse working styles
Promote work-life balance

6.Establishment of a solid management base

Implement systems to promote diverse working stylesPaid leave acquisition rate 70% or more [Pigeon]
Promote health management

・ Start company-led volunteer programs (19 employees participated, totaling 75 volunteer hours) [Japan]
・ 370 IR meetings (Total for FY2021)

・ Formulated a Personnel Development Policy with five key points: “We will provide each and every member of the company with thedevelopment opportunities they need to contribute as autonomous professionals through highly specialized skills and knowledge, continuously
raising their value as human resources.” [Pigeon]・ Selection of "globally competent personnel candidates" to contribute to the Group's global expansion and to continuously develop humanresources to drive the business forward. Provided business skill improvement and language training. [Pigeon]

・ Professional skills and education systems are being developed to match the changed roles and functions of the organization as a result of the2021 reorganization. [Pigeon]

・・

Received "Forbes JAPAN WOMEN AWARD 2021" as a company that actively create work environments that are more welcoming to women.
[Pigeon]Return-to-work rate from childcare leave: 100% [Pigeon]

・ FY2019/1 16.9％, FY2019/12 19.7％, FY2020/12 21.3％, FY2021/12 23.9% [Pigeon]・ Continue to acquire 100% of eligible employees from FY2016 (FY2021: 14 employees in total) [Pigeon]・ Telecommuting systems have taken root, with flexible work schedules and staggered work hours being utilized. [Pigeon]
・ Number of taking "Life Design Leave and Temporary Retirement": 1 employee [Pigeon]

・ Number of taking "Nursing Care Leave": 1 employee [Pigeon]
・ Paid leave acquisition rate 70.2% (FY2020: 63.6%) [Pigeon]

・ Formulated Occupational Health Management Policy [Pigeon]

Introduce a new personnel system

Introduce a new personnel system

・ Started a new HR system with grades, evaluations, and rewards commensurate with the role definitions required for each role [Pigeon]

Put risk management in place

Strengthen risk response capabilities

・ Reviewed and updated risk maps and scenarios for the entire Pigeon GroupStrengthen compliance

Implementation of measures to enhance compliance

Strengthen brand power

Enhance ESG responsivenessImplement actions to strengthen Corporate brand

Promote ESG initiatives

・ Implemented risk reduction measures at each business unit

・ Held a Group Risk Management Committee meeting to identify priority risks and discuss how to manage them across the Group.
・ Formulated Compliance Policy (“Anti-bribery and Corruption”, “Antitrust Compliance” and “Information Management”)

・ Based on the results of the compliance monitoring conducted in the previous fiscal year for all Pigeon Group employees, implementedcompliance training, reviewed the design of the whistleblower system, and provided guidance on the current system, etc.

・ Conducted planning and execution of various inner and outer branding projects and supported actions in each business unit
・ Reflected the new brand concepts and visual-identity elements in various contents and items as well as company buildings
・ Conducted regular meetings with group companies to share branded actions and related information

・ Communicate the brand promise to Group employees through the Group's internal newsletter, along with the president's message.
・ Held four Sustainability Committee meetings
・ Set non-financial KPIs and implemented PDCA to resolve issues

・ Awarded as a winner of the Tokyo Financial Award in the ESG Investment Category (SDGs Category)・ Enhanced disclosure of non-financial information on the website (23 articles on the "Our Sustainable Actions" page introducing Group-wideinitiatives)・ To promote ESG awareness among employees, published a monthly ESG-themed internal newsletters to all Group employees.