MESSAGE
CEO Message

3

COO Message

5

Shiseido’s Sustainability

7

ENVIRONMENT

12

Reducing Our
Environmental Footprint

14

Reducing CO2 Emissions

15

Reducing Water Consumption

22

Reducing Waste

25

Developing
Sustainable Products

27

Formulas/Ingredients

28

Sustainable Packaging

32

Initiative to Build a Circular Model

36

Promoting Sustainable andResponsible Procurement

38

Biodiversity Initiatives andProcurement of Raw Materials

39

Supplier Management

43

SOCIETY

46

Advancing Gender Equality

48

Resolving the Gender Gap and
Empowering Women in Japan49

Supporting Women's and Girls' Education and
Financial Independence Worldwide

53

Empowering People Throughthe Power of Beauty

55

Cultivating Self-Efficacy
Through the Power of Beauty

56

Challenging the Unconscious Biases andPrejudices that Limit Individual Beauty

61

Promoting Respect for Human Rights
Respecting Human Rights

Diversity, Equity and Inclusion (DE&I) of
Employees at Shiseido

62
63

66

Promotion of Diversity,
Equity and Inclusion (DE&I)

67

Initiatives for Having Employees Work
with Good Health71

Social Contribution

GOVERNANCE

72

External Evaluations / Data
External Evaluations

77

Corporate Governance Policy

74

Sustainability Data

79

Corporate Governance System

74

Editorial Policy

84

Contents

CEO Message

Governance

BEAUTY INNOVATIONS FOR A BETTER WORLD. For this, we are contributing to building aSocietyhappiness through the power of beauty toward 2030, along with our corporate mission:

Environment● Shiseido’s Sustainability

At Shiseido, we aim to realize a sustainable world where everyone can enjoy a lifetime of

Top Message

Masahiko Uotani● COO Message

Director
Representative Corporate Executive Officer,
Chairman and CEO● CEO Message

We will create social value as a beauty company
and aim to realize a sustainable world
where everyone can enjoy a lifetime of happinessthrough the power of beauty.

society which is rich in diversity and where each one person is respected and anyone canparticipate actively, as well as rich global environment where people can enjoy beauty
Datawholeheartedly.
Beauty businesses as our main businesses are rooted in the desire to be beautiful, which isinherent in humans. Cosmetics have a role in the health, livelihood, and even life of a personand enrich one's mind. We are convinced of the possibilities and perpetuity of beauty. We
would like to create days filled with hopes, in which people in the world shine beautifully intheir own ways, by providing the rich value of cosmetics through our core businesses.
Beauty is founded on individuality, thrives on diversity, is free from discrimination, and has thepower to unite people. This principle is one of Shiseido‘s core values, which is why we believe
the Company should not only cultivate diversity within our organization, but also take the leadin promoting greater diversity in Japanese society as a whole. Based on this thinking, Shiseido
is focusing on diversity, equity & inclusion (DE&I) in the domain of society. Human resources
with diverse personal qualities including gender, age, nationality, race, lifestyle, career, andwork styles gather to demonstrate their capabilities to the full, which is our great strength.
As of January 2024, women hold 40% of management positions within Shiseido Group in
Japan. As of April 2024, women comprise 45% of the board of directors, and over 30% of theleadership team comprised of executive officers and regional CEOs are foreign nationals. We
aim to increase the percentage of women in management positions at Shiseido Group in
Japan to 50% by 2030 to fairly represent gender equality. For this purpose, we are advancing
women leaders, by involving their superiors and organizations in addition to aiming to reformthe awareness of women themselves.
These initiatives were highly evaluated by society as well, and in November 2023, Shiseido won
first place among approx. 1,900 companies in the Forbes JAPAN WOMEN AWARD 2023 Corporate
Ranking. This is one of Japan's largest award programs related to women, and is hosted by
Forbes JAPAN for the purpose of eliminating the gender gap and empowering women.

SUSTAINABILITY REPORT 2023

a number of initiatives, including the NEXT LEADERSHIP SESSION for WOMEN for developing3

Contents

To deliver these pieces of knowledge widely to the outside of the company, in February 2023
we established the Shiseido DE&I Lab, an internal research institution that conducts researchon active participation of diverse human resources and its relationship with corporate growth.

performance to find how diversity influences the performance of organizations. In addition, wecollect actual examples of cases which led to innovations, analyze factors, and implement
other measures. Further, I myself will also reach out proactively to other companies andFederation (Keidanren) and as the Chair of the 30% Club Japan, thereby contributing todiverse people, we pursue social value creation as a beauty company in the domains of society

What forms the important basis of sustainable growth is corporate governance. In March
2024, Shiseido transitioned from a company with an audit and supervisory committee to a
management transparency, fairness, and speed even in the rapidly changing market
environment. While the Board of Directors concentrates on discussion on long-term visions

Societycompany with a nominating committee, etc., so as to maintain and further improve● Shiseido’s Sustainability

and the environment, aiming to achieve sustainable growth.

Environment

gender equality of Japanese society that is said to lag behind the world. With the power of● COO Message

Japanese society as Chairman of the Diversity Promotion Committee in the Japan Business

Top Message

economic approach, quantifying and visualizing the DE&I factors of organizations with high● CEO Message

Thus, we launched full-scale empirical research. We conduct empirical research with anand strategies, the business execution team implements strategies with speed and flexibility
with a lot of power delegated to them. We will strive to maximize our medium- to long-term
public entity through transparent dialogue with all stakeholders (employees, consumers,
business partners, shareholders, the environment, society, and the earth).

Governancecorporate value and shareholder value and, at the same time, fulfill our responsibilities as a

Our history of over 150 years is also a history of social value creation with the power ofbeauty. This spirit will remain unchanged. We promise to achieve sustainable growth andDevelopment capability, the power of our brands loved all over the world, and the enthusiasm

Datacontinue to fulfill expectations from society by gathering Shiseido's outstanding Research &and capabilities of our diverse employees. And we will further evolve our sustainability
activities with the power of beauty, aiming to become the most trusted beauty company inthe world.

SUSTAINABILITY REPORT 2023

4

Contents

COO Message

Governancecustom at times, what was common to all countries was that all of them were proud ofSocietyworked with many local employees. Although I was perplexed by differences in culture andEnvironment● Shiseido’s Sustainability

Since I joined Shiseido in 1991, I have been engaged mainly in overseas business, having

Top Message

Kentaro Fujiwara● COO Message

Director
Representative Corporate Executive Officer,
President and COO● CEO Message

We will work on social value creation
with diverse stakeholders by integrating
business strategies andsustainability strategies.

working for Shiseido. I believe this is because they have been working by identifying with andsharing the spirit of Shiseido, which, since its foundation, has been taking on challenges tothe world through the power of beauty, and working to create social value through its coreData

discover and create the value of beauty, bringing joy and excitement to people’s lives acrossbusinesses in addition to economic value.
I myself have also been glad and proud to be part of Shiseido. Since I took office as President
and COO of Shiseido in January 2023, we have been feeling the rapid changes in the market
and the significance of their impacts. However, to take the difficult circumstances created by
the changes as an opportunity for our future growth, we have been pressing ahead with areform in a company-wide manner. Through this reform, each region and business will pushforward with activities integrating business strategy and sustainability strategy of each,aiming to achieve our 2030 vision: Personal Beauty Wellness Company.
I would like to mention about environment, where expectations and demands from society are
high. At Shiseido, we understand the importance of global initiatives and of cooperation withother companies in Japan, while also recognizing our own responsibility to lead the industry.
Attaching importance to initiatives in the value chain in particular, we are driving threestrategic actions: reducing our environmental footprint, developing sustainable products, andpromoting sustainable and responsible procurement.
For climate change issues, we have set CO2 reduction targets (SBTi) for the entire value chain
toward 2030. We are proactive in taking measures to reduce CO2 emissions, such as
zero emissions by 2050. In 2023, we completed a transition to 100% renewable electricity at
all 11 factories and Shiseido-owned distribution centers. In the China region, we have also
completed the transition to 100% renewable electricity across all sites. We have positioned
the reduction of Scope 3 CO2 emissions, which accounts for the largest share of total
emissions, as key actions for the future. We will enhance our collaboration with external
stakeholders, including business partners.

SUSTAINABILITY REPORT 2023

introducing renewable energy and sourcing sustainable raw materials, aiming to achieve net

5Contents

We have also been proactive in taking initiatives on climate change and biodiversity. As aresult of the 2023 survey by CDP, an international NPO that conducts environmental surveys
and discloses information, Shiseido was selected as one of the companies in the A List, theinformation in the Shiseido Climate/Nature-related Financial Disclosure Report this year again.
In product development, we will achieve sustainable value creation, which balances the results
society, and the global environment. In April 2023, we launched the BeauRing® project, ainto resources, we have started a pilot test by involving consumers, business partners, otherSustainability has become even more important for corporate management than ever. I believe
that, by taking this as a growth opportunity and integrating our business strategies withsustainability strategies, we can create value and new business opportunities. We willtransparency high and create social value through businesses.

Societycontinue to work together with our diverse internal and external stakeholders to keep the● Shiseido’s Sustainability

companies, and other stakeholders who are important for building the collection scheme.

Environment

circular model project to collect and recycle plastic containers. To recycle collected containers● COO Message

and high-quality design of our products with respect for and coexistence between people,

Top Message

Lists for the first time. Regarding climate change and biodiversity, we disclosed the● CEO Message

highest-ranked group, in the fields of Climate Change and Forests. We were included in two A

We aim to realize a sustainable world where everyone can enjoy a lifetime of happinessthrough the power of beauty toward 2030, along with our corporate mission: BEAUTY
everyone respects diversity and can enjoy life to the fullest and making the global
environment sustainable, with people living in harmony with the nature.

Governance

INNOVATIONS FOR A BETTER WORLD. For this, we will contribute to building a society where

Data
SUSTAINABILITY REPORT 2023

6

Contents

Shiseido’s Sustainability
Since the foundation of Shiseido in 1872, we have demonstrated our respect for people,
mission, BEAUTY INNOVATIONS FOR A BETTER WORLD, we firmly believe our people to be
are promoting a culture where everyone, regardless of gender, age, or nationality can embrace
beauty company, we are also working to address social issues through our unique approaches,aiming to realize a sustainable world where everyone can enjoy a lifetime of happinessthrough the power of beauty towards 2030. We have set forth three strategic actions in thesolve social and environmental issues.
Our actions for society are focused on addressing social issues, primarily through our diversity,

Societyareas of society and the environment to create social value through our core business and to● Shiseido’s Sustainability

diversity through respect and have constructive discussions on new value creation. As a

Environment

the capital of value creation and invest them based on the PEOPLE FIRST philosophy. And we● COO Message

society and nature and have worked to create social value. In order to realize our corporate

Top Message● CEO Message

Our Approach to Sustainability

equity and inclusion (DE&I) initiatives. These three strategic actions are: “Advancing genderequality,” which we strive to nurture a society where everyone can feel empowered to live
the power of beauty,” which we strive to eliminate assumptions and prejudices associatedwith beauty for a world where everyone can celebrate each other’s beauty; and “Promoting
respect for human rights,” which underlies all our activities.

Governancetheir life freely by having fair opportunities regardless of gender, ”Empowering people throughOur actions for the environment are based on the idea of banbutsu shisei*1, the phrase fromwhich our company name Shiseido originates. We are working to develop technologies andeconomy. To do so, we are taking the following three strategic actions: “Reducing ourDatabusiness models that can reduce environmental footprint and contribute to realize a circularenvironmental footprint,” “Developing sustainable products,” which we work on together withvarious stakeholders throughout the entire value chain and “Promoting sustainable andresponsible procurement” with consideration of the environment and human rights.
*1	From a phrase in Chinese Yi Jing, the Book of Changes from the Four Books and Five Classics of Confucianism, “Praise the virtues of the Earth, which
nurtures new life and brings forth significant values.”

Sustainability Governance
At Shiseido, we work to promote sustainability across the entire Group, including our brands
and regional businesses. Sustainability Committee was set up to ensure timely management
decisions related to sustainability efforts and their proper implementation across the Group,
the committee was held regularly in 2023. The committee decides on Group-wide
sustainability strategies, policies, and discusses specific topics such as risks and opportunities
related to climate change and the natural environment, and actions for human rights, as well
as monitors the progress of medium- to long-term goals. The committee consists of therepresentative corporate executive officers and executive officers in charge of Corporate
Brand Holders, to discuss a range of issues from different perspectives. Important matters in
the execution of business, which require approvals are proposed or reported to the Global
Strategy Committee or the Board of Directors.
In order to ensure executing and promoting of sustainability actions, a Sustainability
TASKFORCE was set up under the Sustainability Committee, consisting of the heads of key
relevant functions. At the Sustainability TASKFORCE, practical approaches to achieve our

SUSTAINABILITY REPORT 2023

Strategy, Research & Development, Supply Network, Corporate Communications, and our7Contents

long-term targets are discussed with relevant functions, regional headquarters, and local
subsidiaries as necessary.

Board of Directors
ProposalReportRepresentative Corporate Executive Officer, Chairman and CEO
Representative Corporate Executive Officer, President and COO
Proposal /ReportCorporate Executive Officer / Executive Officers
Sustainability Committee

Meetings according to themes such as Innovation Committee

SocietyBusiness
executionfunction

Command /Order /
Instruction

Global Risk Management &Compliance Committee

Global Transformation Committee*2● Shiseido’s Sustainability

Global Strategy Committee / Business Plan Meeting*1

Environment● COO Message

Oversight

Top Message

Oversight
function● CEO Message

Sustainability Promotion Structure

Sustainability TASKFORCE*1

Business plans and important issues are deliberated to ensure multifaceted consideration*2

Progress management and review for structural reforms and growth strategies

Data

Materiality

GovernanceBusiness Execution (Divisions / Subsidiaries / Affiliates etc.)

At Shiseido, we are committed to creating a sustainable world and enhancing people’s senseof happiness and fulfillment through value creation, as we have done since our founding. To
select social and environmental issues to be addressed through our business, we haveextracted sustainability issues based on interviews, surveys, and dialogues with stakeholders.
We first examined the importance of these issues to Shiseido’s business and to all of our
stakeholders, from employees and consumers to business partners, shareholders, society, andthe earth. Then, in 2019, we categorized and prioritized the issues along the two axes anddefined 18 material issues. Additionally, in light of recent changes in the environmentHighsurrounding society and the industry, we are considering a review of our current materiality.​

Environment

GovernanceSociety

CultureResponsible procurement
Development of eco-friendly formulas
Water usage

Diversity & Inclusion
Climate change
Sustainable packaging

Waste reduction

Quality assurance

Occupational health and safety
Respect for human rights

Information security and privacy
Strengthening of governanceand accountability
Fair business transactions

Quality of life

Responsible marketing and advertising
People development
Art & Heritage

Importance to Shiseido's BusinessHigh(Approved in 2019)SUSTAINABILITY REPORT 2023

Importance to Stakeholders

Deforestation

8

Contents

How We Formulated Our Materiality
The following process was implemented to define material issues.

•	Executive officer*1 and employee feedback

2

Shortlist the identified issues based on their relevance to our businesses
and make a more informed analysis• 	Issues are then selected by scoring them based on the two axes ofimportance to our businesses and importance to the entire company’s stakeholders(employees, consumers, business partners, shareholders, society, and the earth).

Governance• 	Issues are narrowed down to those highly relevant to our businesses
through discussions with executive officers*1 and various internal divisions.

Society

STEP● Shiseido’s Sustainability• 	External surveys, reports from major international organizations (GRI, SASB,
SDGs etc.), investor feedback

Environment• 	Consumer feedback (from company surveys conducted in five countries)● COO Message• 	Experts in environmental and social fields globally

Top Message

1

Identify social and environmental issues in consideration of all
stakeholders based on their expectations and demands alongwith various perspectives collected from● CEO Message

STEP• 	The questions and strategic actions surrounding these issues are thenconfirmed by the executive officers*1.
Data

STEP

*1

3

Submit the finalized list of material issues to the Sustainability
Committee for approval

Until the end of 2021, it was “corporate officers”.

SUSTAINABILITY REPORT 2023

9

Contents

Strategic Actions & Corresponding SDGs
Shiseido has established three strategic actions based on the material issues we have defined

initiatives.

• Sustainable packaging• Deforestation• Responsible procurement• Waste reduction• Water usage

Society• Quality of life
• Professional development• Occupational health and safety

3. Promoting Sustainable andResponsible Procurement
1. Advancing Gender Equality
2. Empowering People Throughthe Power of Beauty
3. Promoting Respect for
Human Rights• We are committed to maintaining and improving the transparency, fairness,accountability• Fair business transactions• Quality assurance• Responsible marketing and advertising• Information security and privacy• Art and heritageand speed of management initiatives by enhancing corporate governanceas well as maximizing corporate and shareholder value over the medium
term through dialogue with all stakeholders—consumers, employees,
shareholders, the environment, and society at large—to fulfill our
responsibilities as a public entity and optimize value distribution to each

Data

Governance / Culture• Strengthening of governance andGovernance• Respect for human rights

2. Developing Sustainable
Products

Society• Diversity, equity and inclusion (DE&I)

1. Reducing ourEnvironmental Footprint● Shiseido’s Sustainability

Environment• Development of eco-friendly formulas

Corresponding SDGs

Environment• Climate change

Strategic Action● COO Message

Material Issues

Top Message

priority basis in each department across the entire Group to implement these priority● CEO Message

in each area of society and the environment. We have allocated management resources on a

stakeholder. *1• We promote activities in art and heritage through our corporate culture thatgenerates social value and shares a uniquely Japanese aesthetic with theworld.

*1

We do not disclose strategic actions related to governance materiality.

SUSTAINABILITY REPORT 2023

10

Contents

Medium- to Long-term Targets and Results

Targets
Carbon neutral *1

2026

60%
(compared with 2019)

Water

Water consumption
reduction

40%*5

2026

46%
(achieved in 2023)

Waste

Zero landfill *62022

Achieved in 2022
(continued in 2023)

Switching to sustainable
packaging

100%*72025

69%

Palm Oil

Replacement withsustainable palm oil

100%*8

2026

51%

Paper

Replacement withsustainable paper

100%*92023

100%(achieved in 2023)*1

	At all our sites (including offsets)*2

	At all our sites (compared with 2019)*3	Throughout our value chain, excluding Shiseido sites, economic intensity target, compared with 2019.

*4	Target revision application in progress due to transfer of business.

*5	For all our sites, intensity per sales, compared with 2014.

*7	For sale of products with plastic packaging.

*8	Certified based on RSPO’s physical supply chain model: identity preserved, segregation, and/or mass balance, palm oil equivalent basis.

Data*6	For Shiseido owned factories.

GovernancePackagingSociety

2030

Environment

55%*3

Plan to disclosein 2025*4● Shiseido’s Sustainability

CO₂ emission reduction(SBTi, Scope 3)

2030● COO Message

46.2%*2

1. Reducing ourenvironmental footprint

3. Promoting sustainable
and responsible
procurement

2023 Results

CO₂ emission reduction(SBTi, Scope 1+2)

CO₂

2. Developing sustainableproducts

Target Year

Top Message

Strategic Action● CEO Message

Environment*9	Such as certified paper and recycled paper, paper weight basis.

SocietyStrategic Action

Targets

Target Year2023 Results
Directors
45.5% *1

• Ratio of women leaders at
all levels in Japan

50％

2030

1. Advancing genderequality*1	As of April 1, 2024*2

	As of January 1, 2024

Managers in Japan
40.0% *2
• Women’s empowerment inJapan​• Supporting education andfinancial independence
worldwide

One million people(to reach directly)

2030

Achievement ratio 62%• Cultivating self-efficacy throughthe power of beauty• Challenging the unconscious
biases and prejudices that limit
individual beauty

One million people(to reach directly)

2030

Achievement ratio 13%

SUSTAINABILITY REPORT 2023

2. Empowering people
through the power ofbeautyExecutive Officers
40.0% *1

11

ENVIRONMENT‘Shiseido’ comes from a phrase in the classical Chinese text, I Ching:“Praise the virtues of the Earth, which nurtures new life and brings forth
significant value.” This praise for the Earth, which continuously gives birth to
new things, is consistent with Shiseido’s goal of sustainability, which aims
to create and circulate new value in society. Since Shiseido was founded in
1872, we have developed a business model that combines business successwith respect for people, society, and the planet.

In everything we do, we cooperate with our stakeholders across our entire
value chain – from procurement of materials and product development
through to production, use and disposal – to create value through our
products and services and enable the coexistence of people and theenvironment. This is how we create new sustainable value for the world.

12

STRATEGIC ACTION 1

Reducing Our
Environmental Footprint
We are reducing the environmental footprint of our activities
by taking actions in three key actions.

CO2
By 2026 Carbon neutral.*1
By 2030 Reduce CO₂ emissions by 46.2% (SBTi, Scope1 and 2).*2
By 2030 Reduce CO₂ emissions by 55% (SBTi, Scope 3).*3

Water
By 2026 Reduce water consumption by 40%.*4

Waste
By 2022 Zero landfill.*5

STRATEGIC ACTION 2

Developing Sustainable Products
We use innovation to minimize the environmental impact ofour products and disclose our policies on product development.

Formula/Ingredients
Reduce our environmental and social impact by using
sustainably sourced raw materials that are selected inconsideration of safety, the environment and ethics.

PackagingBy 2025 100% Switching to sustainable packaging.*6

STRATEGIC ACTION 3

Promoting Sustainable andResponsible Procurement
We work with suppliers to procure raw materials in
consideration of environmental protection, biodiversity andhuman rights.

Palm Oil
By 2026 100% Replacement with sustainable palm oil.*7

Paper
By 2023 100% Replacement with sustainable paper.*8

Supplier Management
Create a sustainable supply chain.

*1A t all our sites (compared with 2019, including offsets)*6F or sale of products with plastic packaging.

*2A t all our sites (compared with 2019)*7C ertified based on RSPO’s physical supply chain model: identity preserved,*3T hroughout our value chain, excluding Shiseido sites, economic intensity target, compared with 2019.

*4F or all our sites, intensity per sales, compared with 2014.

*5F or Shiseido owned factories (achieved in 2022, continued in 2023)

segregation, and/or mass balance, palm oil equivalent basis*8S uch as certified paper and recycled paper, paper weight basis

13

Contents

STRATEGIC ACTION 1

Reducing Our Environmental Footprint

Top Message

The impact of climate change, including extreme weather events caused by global warming, isbecoming more apparent each year. Shiseido has set long-term targets for addressing environmental

growth of society, economy, and its businesses.
Shiseido has adopted an Environmental Policy as its requirements for addressing environmental

business activities. We will continue to work with stakeholders throughout our value chain to create

Environmental Policy

Governancesustainable impact within each of these actions.

● Developing Sustainable Products

waste reduction as priority domains in actions for reducing the environmental footprint of its

Societyissues and has defined the reduction of CO₂ emissions, the reduction of water consumption, andEnvironment

preserving the natural environment and its biodiversity while simultaneously ensuring the sustainable● Reducing Our Environmental Footprint

issues and engages in various company-wide activities to achieve the targets, with the aim of

Data● Promoting Sustainable and Responsible Procurement

CO₂
Carbon neutral
By

At all our sites (including offsets)

2023 Results 60%

2030(compared with 2019)

Water
CO₂

Reduce water consumption by 40%
For all our sites, intensity per sales,
compared with 2014.

2023 Results 46% achieved

2026

Reduce CO₂ emissions by 46.2%(SBTi, Scope 1・Scope 2)
At all our sites (compared with 2019)

Reduce CO₂ emissions by 55%

Zero landfill(SBTi, Scope 3)

For Shiseido owned factories

Throughout our value chain, excluding Shiseido sites,
economic intensity target, compared with 2019.

Achieved in 2022, continued in 2023

By

2022

SUSTAINABILITY REPORT 2023

Waste

By

14

Contents

STRATEGIC ACTION 1

Reducing Our Environmental Footprint

Reducing CO₂ Emissions

Top Message

Climate change is leading to numerous issues, including natural disasters
caused by temperature extremes, insufficient water resources, and an
accelerated loss of biodiversity. There are global moves to hold the increase inglobal average temperature to below 1.5°C above pre-industrial levels and toimportance was attached to more effective actions, and dialogues have been inprogress toward specific solutions.
While CO₂ emissions from the cosmetics industry are lower than otherindustries, Shiseido supports the Paris Agreement and the Glasgow Climate
pact, and has set response to climate change as its important task. For
set CO₂*2 emissions reduction targets, which are in line with the 1.5°C target, by*1

following the Science Based Targets*3 initiative. We obtained certification from*2

specified, these greenhouse gases will be collectively
referred to as ‘CO₂’.
	Scope 1, Scope 2, and Scope 3 emissions. Certification was
obtained from the Science Based Targets initiative (SBTi).

Climate/Nature-related Financial Disclosure Initiatives
Medium- to Long-term Targets and Results

To mitigate climate change, we are committed to reducing CO₂ emissions fromthe electricity and fuel used in our business activities. As part of our efforts, we
use renewable energy where possible and constantly seek to improve energy
efficiency in our factories, offices, and other facilities.

Driving Energy Conservation and Energy Efficiency
Improvement

Data● Promoting Sustainable and Responsible Procurement

Reducing CO₂ Emissions from Energy
Consumption (Scope 1 and 2)

Governance*3● Developing Sustainable Productsenergy.

	Greenhouse gases usually refer to CO₂, CH4, N2O, HFCs,
PFCs, SF6, and NF3. In this report, unless otherwise

SBTi. We are driving initiatives to reduce CO₂ emissions, such as improving
energy efficiency by reducing the use of energy and switching to renewable

	The 28th Session of the UN Climate Change Conferenceof the Parties

Societyachieving net zero emissions in 2050 and attaining the 2030 target, we have

Environment

and the Glasgow Climate Pact. At COP28*1 held in UAE in November 2023,● Reducing Our Environmental Footprint

achieve net zero emissions by 2050, in accordance with the Paris Agreement

To increase energy efficiency, we are introducing several building design
improvements at our factories, including improved heat insulation, more energyefficient equipment, and new environmental measures based on the ISO 14001
environmental management system. Specifically, in addition to using LED
lighting to reduce energy consumption, we installed Energy Management
Systems (EMS*1) to visualize energy use and CO₂ emissions on equipment thatuses electricity, steam, or compressed air. These systems allow us to optimize
energy usage in a number of ways. Furthermore, at our Osaka Ibaraki factoryand neighboring West Japan Distribution Center — our production and logistics

Osaka Ibaraki factory and neighboring WestJapan Distribution Center

and with excellent heat insulation properties, these panels have helped reduceenergy consumption. At our Kakegawa factory, steam was sent from the centralenergy building on the premises to each production building to be used as theheat source for hot water supply. EMS data analysis showed that steam
delivery distances were long and heat loss was not small. Therefore, we have*1	A system that realizes efficient use of energy such as

installed a heat pump at each production building to reduce heat loss. We haveenergy saving and load leveling by visualizing the energy

thus succeeded in improving energy efficiency.

technology

usage status using information and communication

SUSTAINABILITY REPORT 2023

hub in Japan — we installed sandwich panels in the exterior walls. Lightweight15

Contents

At our Gien factory in France, we have affixed heat insulating films on thefactory windows. The films limit temperature rises inside the factory in summer
and reduce power consumption by air conditioners, thereby helping saveenergy.

Top Message

Increasing the Use of Renewable Energy
We are constantly working to increase the use of renewable energy at ourall 11 factories and our distribution centers to renewable electricity. In addition,
we are advancing the use of renewable energy at all of our sites worldwide,such as switching 100% of the electricity at our offices to renewable energy.
In the China Region, we completed a 100% switchover at all sites. Moreover, at
the Beijing Office, which includes the factory of Shiseido Liyuan Cosmetics Co.
Ltd. (SLC) in China, we fulfilled requirements under the code for carbon

Shiodome and Ginza offices in Japan to renewable electricity in 2022, weswitched 100% of the electricity at all company-owned buildings of Shiseido
electricity from renewable energy mainly at the Shiseido Global Innovation
Center (Yokohama), in Europe, and at our branch offices in Japan.
In addition to promoting the use of renewable energy, we are also proactive ininstalling solar panels on the premises and in the buildings of our factories andSolar panels at the Fukuoka Kurume factory(Japan)accounts for 85% of all the electricity used at Shiseido Group.
In addition, Shiseido is a member of the RE100 global initiative, which brings
together businesses committed to using 100% renewable electricity in theiractivities. We will continue to accelerate our transition to renewable electricity
in our operations to reduce fossil-fuel derived electricity.
Fukuoka Kurume factory

In 2023, we expanded solar power generation facilities at our Fukuoka Kurume*1

	The eight factories are: Kakegawa (Japan), Osaka Ibaraki

factory, thus increasing the total capacity of the facilities to 1.9MW. The total(Japan), Fukuoka Kurume (Japan), Shanghai (China),

power-generating capacity of all factories of Shiseido has reached 6.8MW.

(France).(Country/Region)

Datawith solar power generation facilities. As a result, renewable electricity now● Promoting Sustainable and Responsible Procurement

research centers worldwide. Eight of our factories*1 in the world are equipped

GovernanceJapan to electricity from renewable energy in 2023. We are driving the shift to● Developing Sustainable Products

Following the completion of switchover of 100% of the electricity at ourSocietyneutrality certification (PAS 2060:2014) and obtained certification.

Environment● Reducing Our Environmental Footprint

factories and offices. In 2023, we finished switching 100% of the electricity at

Beijing (China), Taiwan factory, East Windsor (US), GienSUSTAINABILITY REPORT 2023

16

Contents

Initiatives to Reduce Indirect CO₂ Emissions
from the Value Chain (Scope 3) Other Than
Our Sites

Top Message

Our indirect CO₂ emissions also result from our business activities but they are
not directly under our control – for example, emissions that derive from the
manufacturing and shipping of raw materials or the use and disposal of our
products. As part of our work to reduce the impact of our business activities onfor our indirect CO₂ emissions, and we are working with our suppliers and otherstakeholders to reduce emissions across our entire value chain.

Selection and Use of Raw Materials that Reduce
Environmental Footprint

palm oil and paper, we support the principles of the No Deforestation, No Peat,
No Exploitation (NDPE) and procure raw materials that are not linked todeforestation. Furthermore, we are striving to reduce CO₂ emissions related tothe development of containers, by promoting the use of recycled resins.
In addition, in 2022 Shiseido participated in the CDP Supply Chain Program*2.
The goal is to reduce CO₂ emissions from the upstream supply chain, which
accounts for over 40% of the indirect CO₂ emissions in the value chain. In 2023,

emissions, reduction targets, and other relevant information. We will use thisinformation to calculate and reduce our Scope 3 emissions.
To calculate and reduce Scope 3 emissions, it is crucial that our suppliers*1

understand CDP and Scope 3.
Therefore, in 2023, we held an explanatory session with CDP Worldwide-Japan	The design of chemical products and processes that
reduce or eliminate the use or generation of substancesthat are hazardous to people or the environment.

*2	The Carbon Disclosure Project (CDP) Supply Chain
Program is an initiative in which member companies use

for our suppliers in Japan. We will continue to support and collaborate with our

the CDP platform to request that their suppliers disclose

suppliers to achieve our targets.

forestry.

information related to climate change, water, andReducing CO₂ Emissions During TransportationData

importance. We requested 50 companies worldwide to report their CO₂● Promoting Sustainable and Responsible Procurement

we selected suppliers that participate in the program, based on the spend andGovernance● Developing Sustainable Products

footprint in line with the green chemistry principles*1. For the procurement ofSociety

We select raw materials with a special emphasis on reducing our environmental

Environment● Reducing Our Environmental Footprintclimate change, we have established science-based long-term reduction targets

Shiseido transports its products worldwide and is taking steps to reduce CO₂
emissions when shipping its own products. For example, in Japan we conduct
joint deliveries with other domestic companies to optimize transportationroutes and improve loading efficiency. In February 2023, we introduced anelectric truck into our vehicle fleet in Japan on a trial basis. The electric truck is
expected to reduce CO₂ emissions by 1 ton per year, and we plan to expand our
fleet of electric vehicles moving forward. At our Beijing factory in China, we

Shiseido’s EV truck

replaced the gasoline-driven shuttle bus for employee commuting with an

We also optimize the use and design of packaging materials according to theshape and volume of the products shipped and actively promote the reuse ofprotective materials used in transportation, as part of our efforts to reduce
waste and CO₂ emissions. We take these initiatives mainly for bottle suppliers
that deliver frequently. In Japan, we are also progressively reducing packaging
materials used in the process of transporting products from factories to each

EV shuttle bus for employees commuting to andfrom our Beijing factory

SUSTAINABILITY REPORT 2023

electric one (EV), to reduce CO₂ emissions from the shuttle bus.

17

Contents

retailer, as these materials have an impact on waste and CO₂ emissions.
Furthermore, in order to reduce CO₂ emissions of the bottle delivery, we arecollaborating with a bottle supplier that has multiple production sites to
conduct production at the site closest to our production facility.
palletization*1, which we introduced in 2022, further improved the loading*1

Top Message

In our exports from Japan to overseas destinations, the double stack	A logistics process consisting of placing goods together
on top of a pallet to consolidate the load at theefficiency in 2023.

warehouse.

Environmental Data

Explanation

Internal data

Emission factors

Capital goods

Emissions generated from making capital goods.

CAPEX

Reference-1

3

Fuel and energy related
activities

Emissions generated in the process of mining,
extraction, refining, transportation of energy andfuels.

Amount of energy consumption

IDEA v3.1

4

Upstream transportationand distribution

Emissions generated from procurementtransportation and shipping transportation.

Raw material procurement volume
Product volume
Distance between our factories and sales sites
Means of transportation

IDEA v3.1
Ecoinvent 3.95

Waste generated inoperations

Emissions generated in the process of transportation
and waste treatment from our operations.

Waste generated by material type and disposal
methodIDEA v3.1

6

Business travel

Emissions from employee business-related travel

Travel expenses
Number of trips by destination
Transportation distance

IDEA v3.1
Reference-1

7

Employee commuting

Emissions from employee commuting between homeand Shiseido’s site

Commuting expenses

IDEA v3.1
Reference-1

8

Upstream leased assets

Not applicable.

9

Downstream transportationand distribution

Emissions generated in storage and stores

Sales volume
Product bottom area

Reference-4

10

Processing of sold products

Not applicable. The products sold do not need to beprocessed for consumer use

11

Use of sold products

Emissions from product use, such as rinsing,
drying up.

Energy, water, and consumable goods consumed
in product use

IDEA v3.1

12End-of-life treatment ofsold products

Emissions generated in decomposition of ingredients,
and the process of transportation and waste
treatment from products soldAmount of carbon derived from fossil resourcesin the molecules that make up the ingredient andpackaging components
Waste generated by material type

IDEA v3.1

13

Downstream leased assets

Not applicable.

14

Franchises

Not applicable.

15

Investments

Emissions from unconsolidated affiliates andstock investees

Scope 1 and scope 2 emissions of unconsolidated
affiliates and stock investees
Shareholding Ratio―

SUSTAINABILITY REPORT 2023

Calculation methods of Scope 3 emissions
1) Emission factor database for calculating GHG emissions of an organization through its supply chain v3.22) Germer, J. et al. (2008) Environment, Development and Sustainability, 10, 697-716
3) Calculation method and Emission Factors for Reporting of Act on Promotion of Global Warming Countermeasures4) The Chain Store Industry’s Vision toward Carbon Neutral by 2050

Data

2

Governance

IDEA v3.1
Ecoinvent 3.9
Reference-1
Reference-2

Society

Raw material procurement volume
POSM procurement volume, AdvertisingexpensesPalm- and paper-related raw material
procurement● Promoting Sustainable and Responsible Procurement

Emissions generated from upstream of the supply
chain, such as raw materials, advertising service,land use change due to palm- and paper-derived
material production.

● Developing Sustainable Products

1

Purchased goods andservices

Environment

Category● Reducing Our Environmental Footprint

Actions for Scope 3 Emissions by Category

18

Contents

STRATEGIC ACTION 1

Reducing Our Environmental Footprint

Climate/Nature-related Financial
Disclosure Initiatives

Top Message

Given the seriousness of the impact of climate change issues on businessgrowth and social sustainability, Shiseido has been disclosing information withreference to TCFD/TNFD and ISSB’s frameworks. We conducted qualitative andquantitative analyses of the risks and opportunities associated with the

major actions, over the short, medium, and long term. Regarding the naturalenvironment, we identified quantitative long-term risks in consideration of
biodiversity loss and dynamic states of water resources and disclosed them in
Shiseido Climate/Nature-related Financial Disclosure Report.

businesses. Sustainability Committee was set up to ensure timely management
across the Group. In 2023, the committee was held regularly. The committee
decides on Group-wide sustainability strategies, policies, and discusses specifictopics such as risks and opportunities related to climate change and the naturalenvironment, and actions for human rights, as well as monitors the progress of
medium-to-long-term goals. The committee consists of the representative

Communications, and our Brand Holders, to discuss a range of issues fromdifferent perspectives. Important matters in the execution of business, which
require approvals are proposed or reported to the Global Strategy Committeeor the Board of Directors.
In order to ensure executing and promoting of sustainability actions, a
Sustainability TASKFORCE was set up under the Sustainability Committee,
consisting of the heads of key relevant functions. At the Sustainability
TASKFORCE, practical approaches to achieve our long-term targets are
discussed with relevant functions, regional headquarters, and local subsidiaries
as necessary.

Data

Strategy, Research & Development, Supply Network, Corporate● Promoting Sustainable and Responsible Procurement

corporate executive officers and executive officers in charge of Corporate

Governancedecisions related to sustainability efforts and their proper implementation● Developing Sustainable Products

Shiseido is promoting sustainability initiatives through our brands and regional

Society

Governance

Environment

due to climate change for both the 1.5/2°C and 4°C scenarios, as well as our● Reducing Our Environmental Footprint

transition to a decarbonized society and changes in the natural environment

Strategy (Scenario Analysis)
We conducted our scenario analysis for both the transitional and the physicalrisks/opportunities in terms of the 1.5/2°C and 4°C scenarios, respectively,
based on the Representative Concentration Pathways (RCPs) and Shared
Socioeconomic Pathways (SSPs) provided by the IPCC. Regarding transitionalrisk, the elements associated with the transition to a decarbonized society —were considered. Physical risks related to the acute or chronic phenomena
caused by the rise in temperature — such as floods and water shortages —were also considered. Based on these considerations, the financial impacts of
the 1.5/2°C and 4°C scenarios were then analyzed.
The influence of carbon tax was identified as the transition risk, withprojections pointing toward approximately JPY 0.05-0.87 billion in 2030. For
physical risks, JPY 0.89 billion of floods and JPY 3.5 billion of water shortageSUSTAINABILITY REPORT 2023

such as policy, regulation, technology, market, and consumer perceptions —19

Contents

were forecasted potentially. As for opportunities, in the 1.5/2°C scenario, highawareness by consumers means there is a market for sustainable brands andproducts. Similarly, the 4°C scenario identifies sales opportunities for productsthat can help people to live with high temperatures. At Shiseido, we aim to

Top Message

leverage these findings — by mitigating risks and making the most ofopportunities to provide sustainable products to consumers and promote ourbeauty innovations.

Transition(seen mainly in the 1.5/2°C
scenario)

Chronic• Changes in rainfall conditions impact the cost of
procuring raw materials derived from crops �• Changes in rainfall conditions impact the cost of
procuring raw materials derived from crops �� Risk factor analyzed qualitatively and quantitatively.
For nature-related risks and opportunities, we conduct a quantitative analysisof the impact on biodiversity throughout the value chain by means of a Liferaw materials with high dependence on biodiversity in line with the LEAP
approach recommended by TNFD. We thus monetized ecosystem services bypollinators, such as honey bees, as physical risk analysis in the aspect of
dependencies. At the same time, we analyzed risks on sustainability-related
regulations as transitional risks along with climate change issues.
Click here for Shiseido Climate/Nature-related Financial Disclosure Report.

Risk ManagementDatamaterial procurement. In response, we assumed places of origin of cosmetics● Promoting Sustainable and Responsible Procurement

Cycle Assessment. This revealed that the impact is great, particularly in raw• Develop environment-friendly products• Develop climate-adaptive solutions

Governance• Natural disasters stop operations (e.g. typhoons,floods)• Natural disasters disrupt logistics

SocietyAcute• Improve energy efficiency• Develop more ethical products (e.g. clean beauty)● Developing Sustainable Products

Physical(seen mainly inthe 4°C
scenario)• Carbon tax increase �• Fuel price increase• Loss of sales opportunities for products using
single-use plastics �

Opportunities

Environment

Risks● Reducing Our Environmental Footprint

Risks and Opportunities

We assess and identify the impactful risks holistically from a mid-to-long-term
perspective. “Environmental (Climate Change, Biodiversity, etc.)” and “Natural
Disaster, Infectious Disease and Terrorism” are listed as the categories related
to sustainability. Climate-related and biodiversity-related risks are analyzed
based on scientific and socioeconomic evidence and integrated into theenterprise risk management system as one of the elements related to climatechange or natural disasters. According to their significance, the risks and theircountermeasures are deliberated by the Global Risk Management & Complianceproposed or reported to the Board of Directors as necessary.

SUSTAINABILITY REPORT 2023

Committee and the Global Strategy Committee. The material risks are also

20

Contents

Metrics and Targets
In order to mitigate the climate-related risks, we set the reduction of CO₂
emissions as our target. We aim to achieve carbon-neutrality*1 by 2026 for

Top Message

Scope 1 and Scope 2 emissions. For CO₂ emissions reduction targets of theoverall value chain, our 2030 target, which conforms to the 1.5°C trajectory,
was accredited by SBTi*2 as a science based target, and we are working to
reduce CO₂ emissions.
With regard to biodiversity, we are replacing paper and palm-derived raw*1	Scope 1 and Scope 2 emissions are the targets. Carbon

carbon pricing (ICP) system in 2023 and began to apply it for making decisions*2	SBTi is a global initiative that defines and promotes best

on decarbonization investments in energy-efficient facilities, renewable energy
facilities, and the similar.*3

offsets made by using credits are included.
practice in science-based target setting andindependently assesses companies’ targets.
*3	ICP price as of 2024: USD 130.0/t-CO₂

Click here for Shiseido Climate/Nature-related Financial Disclosure Report.

Shiseido was selected by CDP, an international NPO, as one of the companies
in the A List 2023 in recognition of its leadership in transparency andperformance in the fields of Climate Change and Forests. We were selected for
We were included in two A Lists for the first time.

Encouragement Award from Life Cycle Assessment
Society of Japan (JLCA)At the 20th JLCA Awards held in January 2024, Shiseido received the Incentive
Award in recognition of its activities for “Climate- and Nature-related Risk
Analysis Using LCA: Application to TCFD and TNFD Reports.”

Data● Promoting Sustainable and Responsible Procurement

the second consecutive year in Climate Change and for the first time in Forests.

Governance

CDP A List <Climate Change and Forests>

Society● Developing Sustainable ProductsAwards Related
to Reduction of CO₂ Emissions

Environment

To reduce Scope 1 and 2 CO₂ emissions, we decided to introduce an internal● Reducing Our Environmental Footprintmaterials, which have a large impact, with certified raw materials.

Awards ceremony, January 23, 2024

SUSTAINABILITY REPORT 2023

21

Contents

STRATEGIC ACTION 1

Reducing Our Environmental Footprint

Reducing Water Consumption

Top Message

It is estimated that humans can use only 0.01% of all water on earth as fresh
water resources. The increasing severity of water shortages has been a global
concern due to population concentrations, which has been caused by changes
to the industrial structure and urbanization progressing rapidly in developing
associated with climate change. Damage from climate disasters, such as major
typhoons and drought, are also indirect causes of water problems. Sustainable
use of water resources is expected to grow more important.
According to long-term projections based on climate and weather, rainfall isforecast to remain stable toward the end of this century in Japan, where ourthe cosmetics industry is lower than in other industry sectors, so we believe
every aspect of our products, including the development of water-containing
products such as lotions; the growth of plants as raw materials; temperature
control and equipment cleaning at factories; consumption; and waste disposal.
As stated in the Shiseido Environmental Policy, we regard an understanding of
the water-related environmental impact and sustainable use of water resources
as an important environmental issue from the perspective of the value chain,from product development to production and use. We implement initiatives
accordingly. While a lot of water is needed at our factories, such as for motive

Recycling System, with which we use some of the discharged wastewater as
makeup water for motive power facilities. At factories, where we consume morewater than we do at offices and research centers, we constantly monitor not
only water intake but also the amount of water discharged, its temperature,and the quality of treated wastewater. We also conduct water environment
research of the watersheds where our factories are located. Thus, we areworking on water resource management (Water Stewardship*1) with our
stakeholders.
Medium- to Long-term Targets and Results*1	Using water in a way that is socially equitable,
environmentally sustainable, and economically beneficial.

Data

consumption. At Shiseido's factories, we have introduced a Discharged Water● Promoting Sustainable and Responsible Procurement

power facilities, the reuse of water will enable a significant reduction in water

Governance● Developing Sustainable Productsthat the impact of water shortages will be limited. However, water supports

Societymajor factories are located. Moreover, the consumption of water resources inEnvironment● Reducing Our Environmental Footprint

and emerging countries in particular, as well as changes in weather conditions

Use and Reduction of Consumption of Water
Resources in Production Process
Regarding direct use of water resources, we have set reduction of water
consumption at our sites as a target and apply various methods to achieve thistarget. For example, as each Shiseido factory has various facilities andequipment tailored to the kind of cosmetics it produces, we design specificinitiatives include using automatic cleaning to ensure the manufacturing
equipment is cleaned more effectively and consolidating the washing locationsof equipment parts.
At our Val de Loire factory in France–an area where rainfall is expected to drop
in future–initiatives like reduction of water consumption and redesigning thenozzles on our cleaning facilities successfully reduced the amount of water

SUSTAINABILITY REPORT 2023

water reduction initiatives for each site. Examples of our water-saving

22

Contents

used per clean by 30%.
At our Shanghai factory in China, we have introduced a system for collecting,storing, and reusing wastewater from production of pure water used forcosmetics production. We reuse the wastewater as cooling water for cooling

Top Message

tower and for various other purposes. As a result of these aggressive reduction
activities, in 2023 the overall water consumption at the Shanghai factory
decreased by no less than 20% from the previous year. At our Hsinchu factoryin Taiwan, we reuse 100% of the wastewater from our water purification
systems as cooling water for cooling tower.

water and reuse or recycle it within the process. At our Kakegawa factory, we
launched a Discharged Water Recycling System in 2023. With this system, we
recycle some of the discharged wastewater to use it as makeup water for
motive power facilities, in an effort to make efficient use of water resources andreduce their consumption. This has enabled cyclic use of wastewater fromto reuse approx. 12,000 m3 of water every year. It means water reduction
At our Osaka Ibaraki factory in Japan, we introduced a circular system thatutilizes re-used water to cool the manufacturing tanks. This system enables anannual reduction in water consumption of around 65,000 m3. Other new water
utilization initiatives include optimizing our pure water manufacturing
equipment — as we have done at our Nasu factory in Japan, for example. Purewater manufacturing consumes approximately half of all water used at thefactory. Through this initiative, as well as other water recycling schemes, wereduced our annual water consumption by around 72,000 m3, an amount that is

alcohol-based cleaning for our fragrance manufacturing equipment andtransportation components. The alcohol used is cleaned and reused in theprocess repeatedly.

Water treatment facilities at Nasu factory (Japan)

Water Stewardship (Initiatives on Water
Resources in Communities)

Data

At our Gien factory in France, we switched from water-based cleaning to● Promoting Sustainable and Responsible Procurement

approximately one third of the factory’s annual water usage.

Governance● Developing Sustainable Products

equivalent to approximately 15.6% of water consumed at the Kakegawa factory.

Societyproduction process, which was discharged before. Use of this system enables

Environment● Reducing Our Environmental Footprint

To ensure more effective use of water, we focus on circular systems that clean

To effectively use water resources, we are engaged in the management of water
resources as common property of the water basin, including secondary use incooperation with communities.
Nasu factory, one of our major factories in Japan, is located in a vast fanshaped area (Nasunogahara), which was formed through the deposition of ahighly permeable gravel layer. Rainwater readily permeates the ground in thisarea, making it difficult to use surface water (river water). Therefore, at our
Nasu factory, we use groundwater pumped up from a water-bearing layer thatlies 150 meters below the ground surface. In an area like this, used water iswhose quality conforms to our own strict standards, which are tougher thanlocal ordinance standards, before releasing it into local canals. Thus, the water
is reused as agricultural water. Reflecting these geographical characteristics of
the watershed where the Nasu factory is located, we believe that
understanding the water environment in the overall watershed is important forsustainable use of water resources. Consequently, we are conducting water
environment research of the overall Nasunogahara area. We studied

SUSTAINABILITY REPORT 2023

also a valuable resource. We therefore treat it appropriately into wastewater

Water resources, field investigation: Professor
Oki, professor Yoshida and senior researcher
Kiguchi of the University of Tokyo and members
from Shiseido.

23

Contents

groundwater sampled at the factory by combining a hydrological model
simulation, in which water flows of the overall Nasunogahara area are
reproduced on computer, as well as an onsite survey of the watershed aroundthe factory. Findings of the research show that water discharged from the

Top Message

factory nurtures various living things in the surrounding area as it wets local
farmlands and pours into rivers.
At our Shanghai factory in China–which is located in a water-stressed*1 area–weparticipate in a local environmental protection association and proactively

government, which promotes water conservation and is working to improvewater utilization rates and strengthen water conservation management. In thearea around our Val de Loire factory in France, rainfall volumes are expected tofall in future. Therefore, we regularly share information with other local
industries on good water practices to decrease water consumption.

where Nasu factory is located, based on our scientific understanding of theoverall area obtained through our research. We have also had the researchfindings and direction of our initiatives reviewed by external academic experts.
Shiseido aims to build a Water Stewardship in collaboration with its
stakeholders, towards a more comprehensive, sustainable use of water

assessment questionnaires such as Sedex and Shiseido SAQ, and strive toascertain water-related environmental impacts.

Data

our suppliers to provide information on their water usage through self-● Promoting Sustainable and Responsible Procurement

resources, and moreover for protection of biodiversity in watersheds. We ask

Governancegovernments and relevant organizations from the watershed of Nasunogahara,

environment.

Society

As our Water Stewardship initiative, we have been engaging with local

quantity to meet the demands of people and the● Developing Sustainable Products

Engaging Stakeholders*1	A situation where there is not enough water of sufficient

Environment

regarding factory activities. We also report monthly water consumption to the● Reducing Our Environmental Footprint

obtain environmental information, such as environmental laws and regulationsSUSTAINABILITY REPORT 2023

24

Contents

STRATEGIC ACTION 1

Reducing Our Environmental Footprint

Reducing Waste

Top Message

As population growth continues and income levels rise, resource consumption
and waste increase.
To make more effective use — and reuse — of limited resources, it is importantthat businesses shift from a disposable, linear economic model to a circularand reducing waste throughout our entire value chain, while complying with all
relevant waste management rules in the countries and regions where we
operate.
Medium- to Long-term Targets and Results

generate. In 2003, we achieved “zero emissions*1” at our domestic factories inJapan, and we continue our waste separation and recycling activities to thisday. To give a specific example, we use dehydrators and dryers to minimize theamount of sludge generated by our factories during wastewater treatment. In
addition, at our Nasu factory, we have changed the delivery method of certain
liquid raw materials from the use of drum cans to delivery by tank trucks. We
have thus reduced the generation of waste drum cans as a waste reduction
recycling them, and undertake other activities for reusing and recycling waste.
In 2023, we entirely reviewed cardboard boxes, plastic packaging, and otherpackaging containers used for product transportation, in a project to reduce theoutermost packages. We are moving forward with initiatives to minimize theuse of resources while ensuring product quality. We also recycle waste plastics,
not to mention cardboard boxes and paper used in transportation, into valuable
resources. We compress and melt the waste plastics to reduce their volume
before recycling them. While our target was to achieve zero waste*2 to landfill
from our factories worldwide by 2022, the actions above enabled us to achieve
the target in 2020, two years ahead of schedule, and we have maintained zerowaste to landfill to the present.

Data● Promoting Sustainable and Responsible Procurement

initiative. We also reuse shipping boxes, sort waste by material strictly for

Governance● Developing Sustainable Products

At Shiseido, we continuously work to reduce, reuse, and recycle the waste we

Society

Reducing, Reusing and Recycling Waste

Environment● Reducing Our Environmental Footprint

economy. At Shiseido, we are doing this by optimizing the use of raw materials

We are also engaging in various initiatives to minimize waste generated outsideof our factories and branch offices, including streamlining our productcontainers and packaging, eliminating package inserts, and switching to
cardboard boxes with lighter weight. Moreover, we also work to limit productwaste by minimizing excess inventory through improved precision in demand
forecasts and shorter lead times in production and procurement.

*1	“zero emissions” is a concept defined by UN university inJapan. Recycled waste: 99.5% or higher (excluding waste
designated as landfill by law)*2	Excluding waste designated as landfill by law

SUSTAINABILITY REPORT 2023

25

Contents

Employee Education
All our waste reduction initiatives are driven by our PEOPLE. Therefore, wearrange online seminars and training sessions for newly appointed managers

Top Message

and employees in charge of industrial waste in Japan. When we outsource thedisposal of waste from our factory or office to a waste disposal contractor, we
make sure to assess the contractor, ensure that industrial waste is disposed ofappropriately, ensure that a manifest is delivered, and inform the importance of
onsite confirmation to the contractor. Following the seminars and training

Environmental Data

Environment

waste with the help of our internal guidelines and checklists.

Society● Reducing Our Environmental Footprintsessions, each participant should be able to identify how to effectively manage

Governance● Developing Sustainable Products

Data● Promoting Sustainable and Responsible Procurement

SUSTAINABILITY REPORT 2023

26

Contents

STRATEGIC ACTION 2

Developing Sustainable Products

Top Message

We are facing a crisis stemming from the finiteness of resources, a result of economic activities
exceeding the limits of the planet’s receptiveness and resilience. We also face issues including

circular economy, which is premised on both making effective use of resources to reduce theirenvironmental footprint throughout the product lifecycle and recycling resources.
Shiseido positions Sustainability INNOVATION as an important research area and one of the threephilosophy, based on our compliance with high safety and quality standards that we have had inwhich balance satisfaction stemming from the results, high-quality design, and feel of our productswith respect for and coexistence between people, society, and the global environment.

Environmental Policy
Shiseido Quality Principle

Data● Promoting Sustainable and Responsible Procurement

DYNAMIC HARMONY

Governanceplace for more than a century. We will step up to the challenge of creating sustainable innovations,● Developing Sustainable Products

Sustainability as a research approach under DYNAMIC HARMONY, our unique Research & Development

Society

pillars of its Research & Development strategy for 2030. To achieve this, we have adopted Premium/

Environment

Manufacturers are expected to follow green chemistry principles towards the development of a

● Reducing Our Environmental Footprintclimate change, biodiversity, other environmental issues, and population explosion.

Shiseido’s 5Rs

By

2025

Formula/Ingredients
2023
2020
Disclosed our packaging policy

2023

2019
Disclosed our product development policy

2020

Revised in 2024

2019

Packaging
100% Switching tosustainable packaging
For sale of products with plastic packaging

2023 Results 69%

SUSTAINABILITY REPORT 2023

Disclosed Shiseido Quality Principle

27

Contents

STRATEGIC ACTION 2

Developing Sustainable Products

Top Message

Reducing Environmental Impact Based on Our
Product Development Policy and the Conceptof Product Lifecycle
Shiseido develops and provides safe and high-quality products and services
based on more than a century’s experience in dermatology and material
and the environment. Therefore, we disclosed our Corporate ProductDevelopment Policy, in which we have summarized our policies on productdevelopment (formulas and packaging) and use of ingredients and raw
materials that could be concerning for consumers. We also monitor trends inproduct-related regulations, such as PPWR*1 and ESPR*2 in EU, in developing our
products.
and responsible procurement and the use of raw materials is of the utmost
product lifecycle, we focus on developing formulas and ingredients, packaging,and circular recycling models that are aimed at making effective use of limited

Click here for Product Development Policy (About Ingredients/Formulas)ingredients and formulas to ensure they are safe for the human, have minimal
environmental impact, and use natural and upcycled materials sourced throughethical procurement. We comply with all relevant regulations in each country
where we operate. In addition, we have our own in-house standards for
ingredients–and only select ingredients that meet our strict safety,
environmental, and ethical standards.
Our Global Innovation Center in Yokohama, Japan, which manages all regional
centers, is working to select raw materials and develop formulations that are
not only safe and functional but also respect the environment.

Data

In line with green chemistry principles, we carefully evaluate our raw materials,*2	Ecodesign for Sustainable Products Regulation● Promoting Sustainable and Responsible Procurement

Formulas/Ingredients*1	EU Packaging and Packaging Waste Regulation

Governanceresources, mitigating climate change, and minimizing our impact on ecosystems.

● Developing Sustainable Products

importance from an environmental perspective. Based on the idea of theSociety

Cosmetics formulations include natural raw materials. Therefore, sustainable

Environment● Reducing Our Environmental Footprintscience. At Shiseido, we want to help tackle issues concerning people’s health

Our Approach for Chemical Substances

Raw Material Development Aimed at
Reducing CO₂ Emissions and Switching toBio-based Raw Materials
are high among Scope 3 CO₂ emissions. This has made it imperative to reduce
CO₂ emissions through selection of raw materials. Cosmetics formulations
include natural raw materials. We work with our suppliers to reduce CO₂
emissions by shifting to bio-based raw materials in line with the green
chemistry principles.

SUSTAINABILITY REPORT 2023

At Shiseido, the proportion of CO₂ emissions from raw material procurement28

Contents

Exploring the Possibilities of Algae
in the MATSURI ProjectIn 2022, Shiseido joined the MATSURI project, the world’s first corporate joint

Top Message

project to explore how algae can be used to drive a sustainable future, which isled by the CHITOSE Group. Powered by the sun, algae absorb CO₂ throughphotosynthesis, while also generating useful proteins, lipids, andcarbohydrates. More extensive use of algae is expected to contribute to lower
CO₂ emissions in future, where algae products can replace fossil-derived raw
signed a strategic collaboration agreement focused on R&D with the Group.
The purposes of this initiative include the development and mass production of
cosmetics and container raw materials using algae, as well as the developmentof raw materials which can be used in the food industry. To maximize thepotential of algae, we will work together with MATSURI Project partnercompanies in ending the use of fossil resources for cosmetics.

UV CareWe are accelerating innovation in the field of suncare to protect against UV andpursue coexistence between people, their ecosystems, and the environment.
The effect caused by the climate change, UV exposure for people around thetime causes spots and wrinkles on the skin– symptoms of photoaging.
Recognizing the importance of innovations for protecting beautiful skin from
UV, we will enhance our research efforts to provide products and services withadded benefits.
Because suncare products are used in the sea, we believe that we need toaddress their environmental impact appropriately as a company.
We are assessing the impact that UV filters used in suncare products have on
the ocean. This includes working with universities and research initiatives toassess the impact of each UV filter used in our products on coral*2, andperforming simulations*3 of how suncare products spread into the ocean when

Data

● Promoting Sustainable and Responsible Procurement

world is expected to increase*1. Exposure to UV rays over extended periods ofGovernance● Developing Sustainable Products

Marine Protection Initiatives

Society

Click here for the news release regarding MATSURI.

Environment● Reducing Our Environmental Footprintmaterials. In 2023, Shiseido invested 1.0 billion yen in the CHITOSE Group andused by people at the seashore. We are utilizing the results of theseassessments for ingredient selection and the development of coral-respecting
formulas, while applying them to suncare product development for both
SHISEIDO and ANESSA.
In 2023, in order to evaluate the impact of cosmetic ingredients on marine
ecosystems, we began a partnership agreement with Innoqua Inc., a start-up

Photo: Innoqua Inc.

Artificial marine ecosystem reproduced in an
aquarium using environmental transfer technology
developed by Innoqua Inc.

company with proprietary technology that reproduces ecosystems in an
aquarium. The aquarium can reproduce possible future environmental change*1	According to an announcement by the Japan Agency for
Marine-Earth Science and Technology.

a tremendous impact on marine life. This allows us to evaluate the impact of*2	Egg-laying size groups of coral, excluding those in thevarious cosmetic ingredients, such as those used in sunscreen, on the entire*3	Utilizing the Tokyo Bay risk assessment model developed

marine environment, including coral and other organisms.
Click here for Corporate website: Research on Sustainability
Click here for Brand website: SHISEIDO
Click here for Brand website: ANESSA

planktonic larval and juvenile stages.
by the National Institute of Advanced Industrial Scienceand Technology.

SUSTAINABILITY REPORT 2023

scenarios, including ‘rising seawater temperatures’, which are predicted to have

Click here for the news release regarding Innoqua Inc. (In Japanese only)

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No Animal Testing
We strive to provide safe and effective products to consumers while complying
with cosmetics regulations and respecting the principles of animal protection.

Top Message

For more than 40 years after we established a safety research department in
1963, we continued to study alternative methods which do not involve animal
testing. In 2013, we abolished animal testing entirely*1 and shifted to a safetyassurance system that does not use animals. We have established a safetyassurance system with our unique strict standards. Working together with
were developed on our own or jointly with other companies, as official methods.
In February 2023, we announced our involvement in the newly launchedInternational Collaboration on Cosmetics Safety (ICCS). A global project
involving manufacturers, suppliers, industry associations, and animal protection
organizations, ICCS’s goal is to promote and implement animal-free safety
Shiseido will promote and implement the safety assurance of cosmetics without
alternative methods of animal testing, discussions and collaboration withrelated companies and organizations, and approaching the regulations of each

Click here for Safety Assurance Without Animal Testing

Procuring Sustainable Raw Materials

including as a humectant and as an oil. However, palm oil production can have asignificant impact on the environment. We have disclosed our medium- tolong-term targets for the procurement of sustainable palm oil, as well as ourgoal to switch from palm oil to more sustainable raw materials.
Promoting Sustainable and Responsible Procurement

Data

Palm oil is used in cosmetics and household goods for a range of purposes,

authorities.

● Promoting Sustainable and Responsible Procurement

Shiseido strives to procure environmentally friendly, sustainable raw materials.

*1	Except when required by governmental and regulatory

Governancecountry and region.

● Developing Sustainable Products

animal testing through the sharing of technologies and knowledge on

Societyassurance in the development of cosmetics and personal care products.

Environment● Reducing Our Environmental Footprint

external stakeholders, we are striving to establish alternative methods, which

SUSTAINABILITY REPORT 2023

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Brands That Cater to Consumer Needs
When selecting a product, consumers increasingly place importance on acompany’s approach to social responsibility, environmental protection, andTop Message

ethical raw material sourcing. At Shiseido, in addition to disclosing ourcorporate policy on ingredient and raw material sourcing, we work to develop
brands with a strong environmental, social and ethical profile.
Drunk Elephant originating in the US, for example, is a leading brand in thesustainable action. Taking this stance, the brand has gained significant support
from Millennial and Generation Z consumers.
In 2022, we launched the Ulé skincare brand in France. Based on plant-derived
ingredients, Ulé promotes beauty both inside and outside the body. The brandenvironmental impact, and transparency. To ensure clearer raw material
buys its three botanical treasures (centella, coleus and tulsi) and produces all
its products locally in France. The names and origins of the raw materials canGovernancebe found on the brand website.

● Developing Sustainable Products

traceability and reduce environmental impact from transportation, the brandSocietyemphasizes responsible procurement, product efficacy and safety, lower

Ulé

Environmentand responsible raw material procurement as well as its promotion of● Reducing Our Environmental Footprintclean beauty market sold in 40 countries and regions, known for its sustainable

Data● Promoting Sustainable and Responsible Procurement

SUSTAINABILITY REPORT 2023

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STRATEGIC ACTION 2

Developing Sustainable Products

Sustainable Packaging

Top Message

Climate change and marine plastic waste are pressing environmental issues
that need to be addressed on a global scale. It is expected that the Global
Plastics Treaty (a resolution of the United Nations Environment Assembly
approved by over 175 countries in Nairobi in 2022 which calls for urgent action
Shiseido aims to realize a circular economy where all materials are responsibly
managed during production through efforts such as recycling to minimize theimpact on our ecosystem. It is expected that the interest of consumers andother stakeholders in climate change and other environmental issues willcontinue to rise. Adapting to changes in societal awareness through productdevelopment and other means, is extremely important for the sustainability of
Based on the Shiseido 5Rs packaging development policy*1, Shiseido is working
economy.
To achieve our goal of 100% sustainable packaging*2 by 2025, we are adopting(PCR) materials, reducing packaging weight and encouraging refills to promotereused packaging. We have also started initiatives designed to reduce theamount of virgin petroleum-based plastic used by adopting non-plastic
alternative materials, and we are introducing mono-material packaging to
improve recyclability.*3 In addition, we aim to build a Shiseido circular business*1	Packaging development policy: respect, reduce, reuse,model that recycles used packaging as new resources in collaboration with*2	For sale of products with plastic packaging.

Reuse

RecycleReplace

Data

Reduce*3	Amount of plastic packaging used in Japan in 2023
(Including estimates): 9,600t.

Shiseido's 5Rs

Respect

recycle and replace.
● Promoting Sustainable and Responsible Procurement

consumers and external partners.

Governancerecyclable and reusable designs, using bio-based and post-consumer recycled● Developing Sustainable Products

to reduce its environmental footprint and contribute to realize a circularSociety

our business.

Environment● Reducing Our Environmental Footprint

to end plastic pollution globally by 2040) will be signed by the end of 2024.

Medium- to Long-term Targets and Results

Products with Packaging
Reduce and Reuse
packaging development policy, we are reducing the amount of plastic we use
and reducing our impact on the environment by such as optimizing the size of
packaging to suit the product, reducing packaging weight and offering refillable
packaging.
Refillable packaging significantly reduces resource use. By encouraging thereuse of main packaging, it is possible to reduce the total amount of plastic

SUSTAINABILITY REPORT 2023

We understand that the Earth's resources are limited. In line with Shiseido’s 5Rs

32

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used for packaging. Our Life Cycle Assessment confirms that refillable
packaging lowers resource use and waste and significantly reduces CO₂
emissions compared to the continuous disposal of regular (primary) packaging.
To significantly contribute to the reduction of the environmental impact, we aim

Top Message

to promote the development of these products widely, not only in Japan but
also on a global scale.
Since we launched our first refillable product in 1926, we have provided
refillable packaging in a wide range of product categories, including skincare

amount of plastic and ultimately, to reduce the environmental footprint.
This included increasing the amount of refillable packaging in our prestige
skincare brand Clé de Peau Beauté and launching refillable packaging for the
cream LA CRÈME, which uses 95%*1 less plastic than its regular (primary)packaging. In 2023, the brand launched new refillable packaging for five newrefillable packaging from Clé de Peau Beauté increased approximately 23% year

Before launching a refill option for the IPSA loose powder that became available
in 2023, we redesigned the main container to improve durability and to make it
more suitable for repeated use.
We are also incorporating innovative technologies to reduce environmental
impact. In 2023, the brand SHISEIDO, which operates in 88 countries andregions around the globe, became the first company to sell cosmetics using

container made using LiquiForm® can reduce plastic usage per container*3.
Moreover, this technology, inclusive of the reduction of energy consumption
through the one-step technology, can reduce CO2 emissions by approximately
70%*4 throughout the supply chain—from raw materials procurement andproduction to use and disposal—compared to our standard conventional
refillable container of the same volume. We will raise awareness of refillable
products by launching them not only in Japan but also in other Asian countries
and regions, including China. We will also strengthen our activities to achieve
toward a circular economy that seek the cooperation of consumers.
In 2024, Ulé, a skincare brand that promotes beauty both inside and outside
the body, launched a refillable option made from 100% recyclable materials forcleansing gel Dream of Pure. The refill helps reduce plastic and aluminum usage
by 23% and 100% respectively, as opposed to purchasing new packaging.
In 2023, the luxury brand Serge Lutens launched a fragrance that strikes a

IPSA and Ulé. Left: main container, Right: refill/refill container.

Data

manufacturing bottles and filling them with liquid content. Refillable cosmetics● Promoting Sustainable and Responsible Procurement

container made with LiquiForm® technology. *2 It is a one-step technology for

Governance● Developing Sustainable Products

on year.

Societyproducts, including SÉRUM RAFFERMISSANT SUPRÊME n. In 2023, sales of

Clé de Peau Beauté and SHISEIDO. Left: maincontainer, Right: refill/ refill container.

Environment

keeping units (SKUs) within 31 brands globally in an effort to reduce the● Reducing Our Environmental Footprint

and makeup. In 2023, we offered refillable packaging for about 740 stock*1	Weight ratio of regular (primary) packaging*2	The new packaging technology was developed chiefly by
Amcor. Shiseido worked with Yoshino Kogyosho, acompany that has put the technology to use, to jointly
develop cosmetic packaging.
*3	Comparison with a refillable container of the same
volume, not including contents*4 	CO2 emissions per unit for both our existing refillable
container and the Liquiform®-based refillable container

delicate balance between sustainability and luxury. The refill packaging is made(not including contents) have been verified by thefrom 100% recyclable aluminum in consideration of environmental impact.

ISO/TS14067:2013). Figures were compared by Shiseido.

SuMPO Environmental Label Program (in accordance withSUSTAINABILITY REPORT 2023

33

Contents

RecycleTo realize a circular economy, it is important to select materials and design
products with the reuse of resources in mind.

Top Message

To reduce our consumption of single-use plastic, we are developing packaging
made from a material that can be more easily sorted and reused/recycled after
use without compromising the quality of the packaging’s design.
In 2023, a number of our brands launched products with packaging that iseasier to recycle, including SHISEIDO and Clé de Peau Beauté. In addition, the
SIDEKICK

ReplaceTo mitigate climate change and marine plastic pollution, we are focusing on the
bio-based materials with low environmental impact — and promoting their use.
made from recycled plastic.

recycled. In 2023, as part of our global sustainability initiatives, a limited
edition design of facial lotion and emulsion featuring Doraemon has beenreleased to demonstrate our commitment to enhancing not only the beauty of
individual's skin but also ensuring a radiant future for our world. Again, over

ELIXIR facial lotion and emulsion and a limited
edition design of same products featuring
Doraemon

72% of the PET used in these bottles is recycled. The facial lotion and emulsion

ANESSA suncare brand. BAUM, which celebrates and honors our connection
with nature, offers environmentally friendly products. Packaging, for example,
use sustainable raw materials such as upcycled wood left over from furnitureindustry, plant-derived or recycled plastic, and recycled glass. Additionally,

BAUM facial lotion

many containers are refillable.
Products' secondary packaging that is made from plastic is being replaced with*1	Comparison between the existing main container andpaper alternative. In addition, Point of Sale Materials (POSM) used at retail*2	Comparison of the existing main container and refill in

stores, such as drug stores, and counters that are made from plastic will also
be replaced with paper alternatives in due course to further reduce the amountof plastic we use. In 2022, we switched approximately 70%*3 of our plastic
POSM in Japan to paper.

refillterms of CO₂ emissions per packaging. The evaluation
was carried out by Shiseido using Japan EPD Program by

Data

We also use some plant-derived bio-based plastic in the outer packaging of our● Promoting Sustainable and Responsible Procurement

refills help reduce plastic usage by over 85%*1 and CO₂ emissions by 85%.*2

GovernanceOver 72% of the PET in the bottles of ELIXIR facial lotion and emulsion is● Developing Sustainable Products

For example, packaging of some Clé de Peau Beauté and ELIXIR products isSocietyresearch of post-consumer recycled (PCR) materials, plastic alternatives, andEnvironment

consumers in 2022 — is made of easily recyclable aluminum.

● Reducing Our Environmental Footprint

tube packaging for SIDEKICK — a cosmetics brand launched for young male

SuMPO (which complies with ISO/TS14067: 2013)	Calculated using the container of the facial lotion sold in
September 2022 and onward*3	For promotional materials of premium Japanese brands,
such as set cases and hooks.

POSM
At Shiseido, we published the POSM Eco Design Guideline in 2023 for the
purpose of reducing the environmental impact related to the lifecycle of
Based on the guideline, we promote the development of POSM materials in linewith the Shiseido's 5Rs*1. We will work with our stakeholders to reduce ourenvironmental impact in the manufacturing of not only our products but also
promotional materials.

*1	Packaging development policy: respect, reduce, reuse,recycle and replace.

SUSTAINABILITY REPORT 2023

promotional materials, including in-store display tools and shopping bags.

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Participation in Related Initiatives
R Plus Japan Ltd.

Top Message

To play a part in solving the global plastics recycling challenge, Shiseido
invested in R Plus Japan in 2022 and engaged in recycling used plastics. Bybringing together companies across the plastic packaging industry — frommonomer and polymer manufacturers to packaging producers, trading, food andbeverage companies — R Plus Japan aims to commercialize an efficient, low-

Click here for Press Release: R Plus Japan

Initiatives with External Institutions

the cosmetics industry. In 2022, we granted Toyo University a license to use ourdatabase. In 2022, the university developed a prototype of an environmentallyfriendly product that uses the extract from boysenberries, a local specialty of
Tatebayashi City, Gunma Prefecture. The product began to be sold via
crowdfunding in 2023.

*1	The World Intellectual Property Organization (WIPO) is a
specialized agency under the United Nations,
responsible for developing international intellectual
property systems. WIPO GREEN is an international

Governancelow-energy manufacturing technology, which is listed in the WIPO GREEN● Developing Sustainable Products

In March 2020, Shiseido became the first WIPO GREEN*1 partner company from

Society

Granting Technology License to Toyo University for
Environmental Impact Reduction

Environment● Reducing Our Environmental Footprint

environmental impact recycling technology by 2030.

framework for promoting innovation in environment-

patented technologies registered in the WIPO GREEN
database.

Data

companies. As of April 2023, Shiseido had licensed out 11● Promoting Sustainable and Responsible Procurement

related technologies, and has more than 150 partner

SUSTAINABILITY REPORT 2023

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STRATEGIC ACTION 2

Developing Sustainable Products

Initiatives to Build a Circular Model

Top Message

Shiseido started a new scheme to collect used plastic cosmetics packaging instores, utilizing a wide range of business partners and consumer touchpoints.
As well as increasing consumer awareness about the value of used containers
as a recyclable resource, we hope the scheme will help drive wider behavioral
to implement circular models.

In-store Collection and Recycling
To support and promote recycling, we collect used cosmetics packaging incontainers are recycled fully and correctly, including customers, waste
In 2023, in Japan, we collected around 49,000*1 used containers through 88
AEON stores in collaboration with Aeon Retail Co., Ltd., TerraCycle Japan*2, andCollaborating to Build a Circular Modelfor Plastic Cosmetics Containers

result, they have to be made from a wide variety of plastics, which can make itchallenging to recycle them back into reusable plastic resources.
To solve this issue, Shiseido launched an initiative in 2022 in collaboration with
SEKISUI CHEMICAL CO., LTD. and Sumitomo Chemical Co., Ltd. The initiative
involves creating a circular economy in which plastic cosmetics containers arecollected and recycled without separating the materials. We are planning to
manufacture recycled plastics in the future by collecting used cosmetic
packaging, which we then turn into new cosmetic packaging. The threecompanies will be advancing this cross-sectoral alliance, while also calling on
related industries and companies to join the effort to create a circular economy.

Dataof use, and giving the premium look and feel are considered and designed. As ais “Eliminating the Idea of Waste®“.

● Promoting Sustainable and Responsible Procurement

When developing cosmetic containers, protecting the contents, ensuring ease*2	TerraCycle is a US-based social enterprise whose mission

Governanceother companies.

*1	Collection period: January 2023 - December 2023.

● Developing Sustainable Products

collection companies, and other companies.

Societystore and recycle it as new materials. We work with multiple parties to ensure

Environment● Reducing Our Environmental Footprintchange in society and encourage competitors and companies in other industries

Click here for Press Release: Collaborating in Building a Circular Economy
for Plastic Cosmetics Containers

SUSTAINABILITY REPORT 2023

36

Contents“BeauRing®” Circular Model Project for Plastic
Cosmetics Containers
In April 2023, we launched the “BeauRing®” project — a circular model project

Top Message

to collect and recycle plastic containers into new ones for reuse. We begancollecting used containers from several Shiseido product retailers in Yokohama
and the Shiseido Global Innovation Center in Yokohama. The POLA brand of
POLA ORBIS HOLDINGS INC. joined in the project. As well as driving in-house

BeauRing BOX

BeauRing logo

initiatives, we are encouraging other companies to join the project to expand

Click here for Press Release: Circular Model Project “BeauRing®”

Recycling Initiatives in China

AUPRES brand, which we market in China. The bottles were made into desks
and chairs by applying the supplier's recycling technology. They were donatedGovernanceto Hope Elementary School in Sichuan province.

● Developing Sustainable Products

material supplier. We recycle used plastic bottles for the cosmetics of theSociety

In 2023, Shiseido launched a joint recycling initiative in China with a packaging

Environment

which consumers use cosmetics with a more positive mindset.

● Reducing Our Environmental Footprint

the circle of resource circulation and, ultimately, create a sustainable society in

Data● Promoting Sustainable and Responsible Procurement

SUSTAINABILITY REPORT 2023

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Contents

STRATEGIC ACTION 3

check for problems in operating their businesses and to strengthen cooperation not only internally
but also with suppliers to ensure the traceability of raw materials.
At Shiseido, we utilize the world’s natural resources, which are finite, to develop products andwhich are indicated below. Shiseido Group Procurement Policy defines our expectations to suppliers

Shiseido Group Procurement Policy
Shiseido Group Supplier Code of Conduct

Data● Promoting Sustainable and Responsible Procurement

Shiseido Group Sustainable Raw Materials Procurement Guidelines

Governanceand correcting supplier risk through third-party audits and supplier sustainability evaluations.

● Developing Sustainable Products

in terms of environmental and human rights, outlining a strict and objective process for identifying

Societyoperate our business. To our suppliers, we present a policy, standards, and guidelines, the links toEnvironment

emissions, water resources, biodiversity, and human rights at suppliers. Companies are required to● Reducing Our Environmental Footprint

Value chain, or procurement in particular, involves various sustainability issues including CO₂

Top Message

Promoting Sustainable andResponsible Procurement

Paper
100% Replacement with sustainable paper
Such as certified paper and recycled paper, paper weight basis2023 Results 100% achieved

Supplier management
2022

By

Revised Shiseido Procurement Policy
Shiseido Group Sustainable Raw Materials Procurement Guidelines

2022

Disclosed Shiseido Group Supplier Code of Conduct

2019

Palm oil
100% Replacement with sustainable palm oil
Certified based on RSPO’s physical supply chain model: identity preserved,
segregation, and/or mass balance, palm oil equivalent basis2023 Results 51%

SUSTAINABILITY REPORT 2023

2019

2026

38

Contents

STRATEGIC ACTION 3

Promoting Sustainable and Responsible Procurement

Biodiversity Initiatives andIn recent years, many scientists and non-governmental organizations havewarned of rapid biodiversity loss. As a result, from both a species conservationand sustainable business perspective, companies are being called upon toensure transparent information disclosure regarding the relationship between
conservation activities.
the loss of biodiversity caused by overexploitation but also violations of thehuman rights of the people working there.

Corporate Initiatives on Biodiversity

significant dependence and impact on terrestrial ecosystems, especially in the
procurement of raw materials. In particular, palm oil and paper have a material
impact, so companies are required to be proactive in taking measures. In 2020,
we published our medium- to long-term targets for the sustainable procurementof palm oil and paper, and we are currently in the process of switching to moresustainable raw materials.
For the procurement of palm oil and paper, we support the principles of the No
Deforestation, No Peat, No Exploitation (NDPE). We request suppliers to ensurecompliance with NDPE as stated in the Shiseido Group Sustainable Raw
Materials Procurement Guidelines.

Data

freshwater and marine biodiversity and found that our business has a● Promoting Sustainable and Responsible Procurement

At Shiseido, we have analyzed the relationship of our business with terrestrial,

GovernanceMedium- to Long-term Targets and Results● Developing Sustainable Products

Generally, in raw material production areas, there are concerns over not only

Societybusiness and the natural environment and to engage in biodiversity

Environment

Shiseido’s business activities rely on nature’s rich biodiversity.

● Reducing Our Environmental Footprint

Biodiversity Initiatives andProcurement of Raw Materials

Top Message

Procurement of Raw Materials

We are also strengthening our efforts to solve issues related to the mining of
mica. By clarifying our own procurement policy and building a support system incollaboration with other companies, we aim to create positive change in themica mining industry.
At Shiseido, we use the Taskforce on Nature-related Financial Disclosures’(TNFD) framework and the LEAP Approach to analyze risks and opportunities
around our business activities' dependence and impact on nature. To fulfill the
responsibilities of business site managers, we requested MS&AD InterRisk
surveys focused on rare species' habitats and reserves and the status of water
resources in areas around our sites, including factory premises. We analyzed
them from the perspectives of preciousness and importance (identified
sensitive locations and material locations). We also analyzed them by means ofa Life Cycle Assessment for the purpose of assessing indirect impacts given via
the value chain. For raw materials originating from agricultural products, whichwere identified as a factor with a significant impact, we converted the value of

SUSTAINABILITY REPORT 2023

Research & Consulting, Inc., which has TNFD members, to conduct detailed

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Contents

ecosystem services by pollinators, such as honey bees, into monetary values
and thus visualized the level of our dependence on biodiversity in procurement.
We summarized and disclosed results of these analyses in a Shiseido Climate/
Nature-related Financial Disclosure Report in 2023

Top Message

Based on the results of the analyses we conducted, going forward we will drive
sustainable business activities which are in harmony with nature andbiodiversity by working together with suppliers, external experts, and otherstakeholders, with a strong awareness that recovering and regenerating

Shiseido Group Sustainable Raw Materials Procurement Guidelines
Click here for Shiseido Climate/Nature-related Financial Disclosure Report
Click here for Environmental Policy (Biodiversity/Forests)

many of its brands and business operations in regions.
Since 2019, brand SHISEIDO has been implementing the "SHISEIDO BLUEPROJECT," a global initiative to protect the oceans under the theme "Respect
for the Ocean.” As a Global Sustainability Partner for the global home of surfing
World Surf League, the brand has worked together with local communities andNGOs to implement activities including beach clean-ups and dune planting tocreate even more beautiful oceans. In 2023, the fifth year of this partnership,
Tahiti, French Polynesia as its title sponsor, while also continuing environmental
conservation activities.
Click here for the details on the activities of the SHISEIDO BLUE PROJECTBAUM was established to celebrate and honor our coexistence with trees. In
October 2023, the brand planted seedlings at BAUM Oak Forest in Morioka
City, Iwate Prefecture for the third time, in collaboration with Iwate-ken Shinrin
Seibi Kyodo Kumiai (Iwate Prefecture Forest Development Cooperative) and
Sumitomo Forestry Co., Ltd. Since launching in 2020, the brand has carried out
these plantings as a way to give back to nature rather than only receiving the

Data● Promoting Sustainable and Responsible Procurement

WSL's official suncare partner SHISEIDO co-sponsored the Tahiti Pro held inGovernance● Developing Sustainable Products

Shiseido engages in a wide range of biodiversity protection activities throughSociety

Biodiversity Initiatives by Brands andOther Activities

Environment● Reducing Our Environmental Footprint

biodiversity is essential.

blessings of trees. As part of its sustainability efforts, BAUM will continue to
use wood from its forests in product packaging.
In Japan in 2022, we began nature conservation activities on Mt. Ibuki*1, an area
where medicinal herbs have been cultivated for centuries. In addition to
opening our own medicinal herb garden and cultivating herbs, we are working
alongside the Reiho Ibukiyama Association–which works to protect the naturearound the mountain–to restore vegetation and preserve the abundant naturein the mountain’s foothills.
herb bath powder, jointly with Matsuda Chemical Industries. We used this*1	A semi-independent peak among the Ibuki Mountains,product as a reciprocal gift in crowdfunding for nature conservation activities

which connect Maibara City in Shiga Prefecture and theon Mt. Ibuki.

and one of the 100 famous Japanese Mountains.

Click here for the news release regarding the nature conservation activities on Mt. Ibuki. (In Japanese only)

Ibi/Fuwa districts in Gifu Prefecture. 1,377 meters high

SUSTAINABILITY REPORT 2023

In 2023, to make full use of unused herbs from Mt. Ibuki, we developed SOYU,

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Bees play an important role in the pollination of crops. There are concerns
around the declining population of honeybees. So our Val de Loire and Gien
factories in France have incorporated the protection of honeybees and theconservation of ecosystems into their sustainability plans. As well as setting up

Top Message

beehives onsite, both factories prohibit the use of agrochemicals on factory
grounds. In 2023, the factories’ beehives produced around 179kg of honey.

Palm Oilfood to cosmetics. However, its production has caused significant challenges,
including deforestation and human rights issues. Therefore, it is essential forcompanies to ensure sustainable and responsible procurement of this raw
material.
In 2010, as part of our efforts in this area, we joined the Roundtable on
we purchased RSPO credits equivalent to 100% of the palm oil-derived raw
reaching 100% sustainable palm oil in our products by 2026. The relevant teams
in our global and regional headquarters have been working to achieve thistarget ever since. To achieve this target, we request all suppliers dealing inpalm oil to join RSPO and switch to certified palm oil*1 based on the RSPO’s
physical supply chain model. We thus work with suppliers to procuresustainable palm oil-derived raw materials and ensure traceability.
In addition, in 2023 we held a session for explaining our procurement policy tosuppliers in Japan and requested them to collaborate with us in promoting

the RSPO’s physical supply chain model. In addition, we continued working
towards RSPO Supply Chain Certification at our factories. All of our factories
are now RSPO certified.*2
Since 2019, we have been part of the Japan Sustainable Palm Oil Network(JaSPON) and the palm oil working group of the Consumer Goods Forum(CGF)*3, both of which work to solve issues related to palm oil by strengthening
collaboration with other companies. Further, through the Shiseido Camellia
Fund*4, we support WWF Japan’s activities in Indonesia. By training local*1	Raw materials certified by RSPO’s physical supply chain

farmers on environmentally friendly production methods and workplace safety,*2	The Fukuoka Kurume factory (Japan), which began

and by supporting the establishment of producer associations, WWF*5 Japan is
helping smallholder farmers acquire RSPO certification and improve theirlivelihoods. We purchased RSPO credits sold by RSPO-certified small-scale
farmers. In doing so, we promoted sustainable procurement in response toenvironmental and social challenges.

methodDatamaterials (palm oil equivalent, weight basis) with certified palm oil based on● Promoting Sustainable and Responsible Procurement

traceability of palm oil. In 2023, we replaced 51% of palm oil-derived raw

Governance● Developing Sustainable Products

materials we procure. In 2020, we disclosed our medium- to long-term target ofSociety

Sustainable Palm Oil (RSPO), an international non-profit organization. In 2023,

Environment● Reducing Our Environmental Footprint

Palm oil is a highly versatile raw material used in a variety of products fromoperations in 2022, will be RSPO certified in 2024.
*3	An international industry group consisting of
manufacturers and retailers from the food and consumer
goods industries.
*4	A fund that uses donations from Shiseido employees andalumni to support the activities of NPOs and NGOs
working to tackle social issues.
*5	World Wildlife Fund for Nature

Check our progress at www.rspo.org

SUSTAINABILITY REPORT 2023

41

Contents

Paper
As part of our strategic action to use resources responsibly and reduce our useof single-use plastics, we actively promote the use of paper for secondary

Top Message

packaging, such as folding cartons. However, there are environmental issues
associated with the production of raw materials for paper, such as
deforestation and loss of biodiversity, as well as human rights issues. Therefore,
sustainable and responsible procurement is essential.

packaging by 2023.
Cosmetics packaging must meet various expectations and standards. It should
be sophisticated and beautiful, but also sustainable in its design and strong
enough to protect the cosmetics inside. In collaboration with paper
manufacturers, we are developing innovative paper packaging solutions that
We are also switching to sustainable paper for promotional materials andto implement initiatives in accordance with the Shiseido POSM Global Eco
Design Guidelines within the company from 2023. For example, we areas product displays, bags, and leaflets. In addition, we are reducing paper
usage by standardizing and unifying some of the cardboard paper for cosmetic
sample.

*1	Use of certified paper and recycled paper from theperspective of forest conservation.

Due to its light-reflecting properties and excellent heat resistance, mica is used
in a wide range of industries, including cosmetics. In 2017, Shiseido joined the
Responsible Mica Initiative (RMI), which aims to eliminate child labor and forcedlabor at mining sites in the mica-producing countries to establish mica as asustainably and responsibly produced raw material. We endeavor to ensure
responsible procurement of mica produced in India, which has risk of humanright issues such as child labor, by sourcing from RMI member companies andconfirming that there are no human right issues.
In collaboration with non-governmental organizations, the Indian Government,
and its member companies, among others, RMI implemented community

Data● Promoting Sustainable and Responsible Procurement

Mica

Governanceswitching to certified paper and recycled paper for promotional materials, such

● Developing Sustainable Products

consumables such as copy paper in offices. For promotional materials, we beganSocietymeet and exceed these expectations.

Environment● Reducing Our Environmental Footprint

We were able to achieve the goal of using 100% sustainable paper*1 for productempowerment programs in 180 mica-dependent villages during the six years
from 2018 to 2023. This program supported activities, such as helping to
improve incomes and livelihoods of approx. 95,000 people from approx. 19,500
households in the villages.
We will continue to strive to procure mica sourced from producers with nosocial responsibility issues.

Traceability
TRaceability Alliance for Sustainable CosmEtics (TRASCE) to enhance
traceability in key ingredient and packaging supply chains across the industry.
Together with the member companies, we are committed to working to map our*1	The 15 founding members of TRASCE: Albéa, Chanel,
Clarins, Cosfibel group powered by GPA, Dior, The Estée

supply chains across the entire value chain on a common digital platform,

Lauder Companies, Groupe Pochet, L’Occitane en

Transparency-One, an ISN Company.

Shiseido and Sisley (alphabetical order)

Provence, L’Oréal, Merck, Neyret, Nuxe, Sensient,

SUSTAINABILITY REPORT 2023

In 2023, Shiseido joined in a consortium of 15 cosmetics industry companies*1,

42

Contents

STRATEGIC ACTION 3

Promoting Sustainable and Responsible Procurement

Supplier Management

Top Message

Our aim is to create a sustainable supply chain built on responsible
procurement and to minimize risk across the entire supply chain. To do so, weare promoting the implementation of the Supplier Assessment Program.

We conduct a self-assessment for all suppliers when starting business from theperspective of sustainability (human rights, occupational health and safety,
environment, and business ethics) using either EcoVadis*1, Sedex*2, or our
original Self-Assessment Questionnaire (SAQ)*3. We start business with new
non-high-risk and then agree to Shiseido Group Supplier Code of Conduct.

Supplier Code of Conduct using the above assessments. We categorize
risk, and high-risk. If a supplier is categorized as high-risk, we conduct thirdparty audits, which include employee interviews and verification of required
documentation. High-risk suppliers are then requested to implement corrective
action plans, and in the event of critical non-conformance, we conduct further
third-party audits to confirm correction status. If issues are not corrected within*1	Provider of business sustainability ratings that provides aholistic sustainability ratings service of companies,
delivered via a global cloud-based platform.
*2	One of the world’s leading ethical trade membershiporganizations, which works with businesses to improve

In addition to Tier 1 supplier, we also implement the Supplier Assessment

SAQ evaluates suppliers from four criteria: human rights

Program for Upstream suppliers (Tier 2 supplier and beyond).

environment, and business ethics.

New Suppliers
Before Engaging in New Business• Conduct self-assessment using EcoVadis,
Sedex, or Shiseido SAQ and confirm thatthey are not high risk before starting
business.
• Supplier agrees to the Shiseido Group
Supplier Code of Conduct

and labor, occupational health and safety, theExisting Suppliers
Assessment• Self-assessment using thesame methods as with new
suppliers.
• Identify high-risk suppliers
according to score.

Third-Party Audits

Corrective Actions• Conduct third-party audits
for high-risk suppliers
identified by assessment.

• Request suppliers to correct
non-conformances
discovered during audits.

Data*3	Based on Shiseido Group Supplier Code of Conduct, the● Promoting Sustainable and Responsible Procurement

working conditions in global supply chains.

a set period, we consider suspension of business.

Governancesuppliers into three groups according to the degree of risk: low-risk, medium-● Developing Sustainable Products

For existing suppliers, we continuously confirm compliance with Shiseido Group

Societysuppliers after conducting supplier assessments, confirming that they are

Environment● Reducing Our Environmental Footprint

Supplier Assessment Program• Conduct further audits toconfirm whether critical
non-conformances have beencorrected.
SUSTAINABILITY REPORT 2023

• Consider suspension ofbusiness if critical nonconformances are notcorrected with in a certain
period.

43

Contents

Results
Tier 1 Suppliers Assessment

Top Message

In 2023, we conducted the Supplier Assessment Program globally for all 860
Tier 1 suppliers (categories: direct materials, OEM products, contract
manufacturing goods, and sales support tools). It was since 2020 that we
conducted the program covering all Tier 1 Suppliers. As a result, we completed
the self-assessment of all 860 suppliers*1.

• We provided feedback on the result and advised on corrective action plans to
all 12 suppliers.
• We conducted third-party audits to all high-risk suppliers and asked suppliers
to take corrective actions. As a result, we reduced the number of High-Risk*1	1 supplier completed the self-assessment in February2024.
*2	Scope of the assessment is based on priorities derived

aiming to complete the corrections by the end of 2024. In addition, we willby using IQ Plus, a screening tool from EcoVadis, which

expand the categories of the Supplier Assessment Program and plan to start an

spend and others.

screens suppliers based on county, industry sector,

Tier 1 Suppliers Assessment Results
No. of High-Risk
Suppliers identified

No. of remaining High-Risk Suppliers(at the end of FY2023)

2020

889

132

0

2021

279

17

0

2022

72

10

0

2023

860*1

12

3

Assessment of Upstream Suppliers(Tier 2 supplier and beyond)Data

No. of suppliers assessed● Promoting Sustainable and Responsible Procurement

Year

Governanceassessment of Tier 1 suppliers of indirect materials*2 in 2024.

● Developing Sustainable Products

We will continue working with the 3 high-risk suppliers for corrective actions,Society

Suppliers to 3.

Environment

assessment.

● Reducing Our Environmental Footprint

Furthermore, 12 suppliers were identified as high-risk suppliers in the self-

Same as previous year, we assessed five Tier 2 strategic suppliers in 2023, andnone were categorized as high-risk. In addition, we expanded the assessment
scope and began to assess upstream suppliers (Tier 2 supplier and beyond).
First, we requested our strategic suppliers (Tier 1 and Tier 2) to identify
important manufacturing suppliers that they work with and confirm the risks ofthese suppliers using such as EcoVadis and Sedex etc. As a result, we
completed an assessment of 169 upstream suppliers in total and identified one
high-risk supplier. Together with our Tier 1 and Tier 2 strategic suppliers, we will
supplier.
Click here for corporate website: Promoting Sustainable and Responsible Procurement

SUSTAINABILITY REPORT 2023

continue identifying suppliers to assess and correct the issues of the high-risk

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Contents

Assessment Scope of Upstream Supplier(Tier 2 supplier and beyond)Distributors

OthersOthersOtherscompliance violations. To ensure any issues or potential violations are brought
to our attention, Shiseido set up the Shiseido Business Partner Hotline in 2013.

group companies and employees through a dedicated web form or in writing.
Operating Performance of Hotlines/Helplines

Strengthening of Supplier Engagement
To ensure responsible procurement through an engagement with our suppliers,in 2023, we held our first Supplier Sustainability Session for Suppliers in Japan.
Around 200 companies participated and we explained them our medium- toData

can contact us regarding human rights and compliance violations by Shiseido● Promoting Sustainable and Responsible Procurement

This is a Hotline through which suppliers and other business partners in Japan

Governancerespond appropriately to any actual or potential human rights issues andSociety

It is extremely important that our suppliers and other business partners

Important suppliers identified
by our strategic suppliers● Developing Sustainable Products

Hotline for Suppliers and Other Business
Partners

Strategic suppliers identified
by Shiseido

Environment

Strategic
suppliers(Tier 1)

Upstream suppliers to assess● Reducing Our Environmental Footprint

Important suppliers identified
by our strategic suppliers(Tier 2 and beyond)

Shiseido

Important suppliers identified
by our strategic suppliers(Tier 3 and beyond)

Top Message

Strategic suppliers(Tier 2)long-term targets and implementation of the Supplier Assessment Program.
Furthermore, we held a ceremony to present letters of appreciation to suppliers
who have shown great performance in terms of the Supplier Assessment
Program. To strengthen supplier engagement, we will continue to hold suchinitiatives as well as the sessions.

SUSTAINABILITY REPORT 2023

45

SOCIETY
We are committed to realizing Shiseido’s corporate mission,“BEAUTY INNOVATIONS FOR A BETTER WORLD,” by prioritizing diversity, equity,and inclusion (DE&I) as our key business strategy.
We aim to create a culture where employees respect individuals’ differences regardless ofgender, age, or nationality, feel valued, and continue to contribute to innovations
through the synergy of our diverse workforce.

We have set our strategic actions as “Advancing Gender Equality” and“Empowering People Through the Power of Beauty,” and by 2030,
we will support 1 million people in each of these actions, leveraging our findings andexpertise from our longstanding efforts. We remain firmly committed
to respecting the human rights of all stakeholders.
This commitment is the foundation for working with all the stakeholders throughout ourbusiness, including employees and consumers, for a highly inclusive society where everyone
can be their authentic self.

46

STRATEGIC ACTION 1

Advancing Gender Equality
Resolving the Gender Gap
and Empowering Women in Japan
We strive to nurture a society where everyone can feelempowered to live their life freely regardless of gender.

Supporting Women’s and Girls’ Education and
Financial Independence Worldwide
We are dedicated to resolving gender issues through ourbusiness for the empowerment of women.

STRATEGIC ACTION 2

Empowering People Throughthe Power of Beauty
Cultivating Self-Efficacy Through the Power of Beauty
We reach out to people with profound concerns or hardships toenrich their minds and bring happiness to their lives.

Challenging the Unconscious Biases and Prejudices That
Limit Individual Beauty
We aim to achieve the world where everyone can celebrate eachother’s beauty regardless of gender, age, or nationality.

STRATEGIC ACTION 3

Promoting Respect for Human Rights
Respecting Human Rights
We promote various initiatives to respect the human rights ofstakeholders throughout our business.

47

Contents

STRATEGIC ACTION 1

Advancing Gender Equality

Top Message

In the Global Gender Gap Report 2023, the World Economic Forum*1 reported that girls around theworld who cannot receive primary and secondary education because of barriers such as child

Environment

marriage, poverty, discrimination, and gender prejudice, are in an increasingly dire situation.
Japan’s ranking for gender equality is in the 125th place*2, the lowest among major developed
countries, showing little improvement in 16 years since the first report in 2006, with women’sreported that it would take another 131 years to close the gender gap. Shiseido believes this is a
As one of our strategic actions, “Advancing Gender Equality,” we are aiming to support 1 million
people by 2030. To reach this goal, we are building upon our accumulated findings and expertise to*1	The World Economic Forum (WEF) is a nongovernmental and nonprofit organization based in Switzerland aimed to resolve global economic issues
by engaging political, political, academic, and other leaders of society.
*2	Based on the index for measuring the gender gap between areas and countries used in the Global Gender Gap Report 2023.

● Promoting Respect for Human Rights

Resolving the gender gap andRatio of women leaders
at all levels in Japan 50%
By

2030

2023
Established Shiseido DE&I Lab

2019Participated in the 30% Club Japan

2023
2019

Supporting education andfinancial independence worldwide● Social Contribution(to reach directly)

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido

empowering women in Japan

Data

Medium- to Long-term Targets and Results

Governance

Education and Financial Independence Worldwide.”● Empowering People Through the Power of Beauty

focus on “Resolving the Gender Gap and Empowering Women” and “Supporting Women’s and Girls’

Societypressing issue in Japan.

● Advancing Gender Equality

participation especially low in the areas of politics and the economy. The World Economic Forum48

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STRATEGIC ACTION 1

Advancing Gender Equality

Resolving the Gender Gap and

Top Message

Empowering Women
Building on insights and experiences accumulated by Shiseido, we partner withinternational institutions, private enterprises, municipalities, and other relatedorganizations to work towards gender equality, including women’s financial

Environment

independence and participation in decision-making. We strive to nurture asociety where everyone can feel empowered to live their life freely by having
fair opportunities regardless of gender.

As a leader in achieving gender equality throughout Japanese society, Shiseido
promotes a variety of activities to empower women by constantly upgrading
our internal initiatives.

At the Shiseido DE&I Lab established in 2023, we explore ways to leverage thepower of diversity in our joint work with Tokyo University researchers. We study
innovation by introducing different values and ideas and aim to verify the
relationship between diversity and corporate growth. Additionally, we
disseminate our findings broadly throughout society, thereby contributing to
the growth of the Japanese economy through DE&I.

● Promoting Respect for Human Rights

Click her for the Shiseido DE&I Lab

Participation in the 30% Club Japanfor Sound Gender Balance in Corporate
Decision-Making Bodies
The 30% Club Japan aims to increase the proportion of women on the boards*1
United Kingdom, the Japan chapter was inaugurated in 2019, and Phase 2
started in 2022 with the goal of achieving women directors for 30% of thedirectors’ positions*2 at TOPIX 100 companies by 2030. Masahiko Uotani,
Shiseido’s Representative Corporate Executive Officer, Chairman, and CEO,
continues to serve as the chairperson for Phase 2, as well as for Phase 1,
leading the activities of the TOPIX President’s Committee, which consists of 34
chairpersons and presidents of companies*3 listed on the TOPIX 100 and TOPIX

with a total participation of 172 chairpersons and presidents of the TOPIX 100
and TOPIX Mid 400. To lead innovations, it is necessary to nurture anorganizational culture with high adaptability to change, and it is considered*1	Women on the boards are defined as directors andauditors.
*2	Proportion of women members on the boards of directors
at TOPIX 100 companies (including auditors at
companies with a board of auditors)*3	As of the end of December 2023
*4	As of the end of December 2023

● Social Contribution

Mid 400.

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido

of companies in Japan. As part of a global initiative that originated in the

The TOPIX President’s Committee was held 9 sessions*4 as of the end of 2023

Data

the process by which the empowerment of diverse human resources facilitates

Governance● Empowering People Through the Power of Beauty

Shiseido DE&I Lab

Society● Advancing Gender Equality

Resolving the Gender Gap and
Empowering Women in Japan

49

Contents

extremely important to achieve gender balance among management executives(such as executive officers and organization head positions) who have manyteam members and substantial influence on daily operations. In addition to theongoing theme, the appointment of women to executive officer and

Top Messageorganization head positions, there were lively discussions and case studies fromdifferent member companies on broad topics, such as fostering anorganizational culture that leverages diversity. On the project management
team organized by operation-level leaders of member companies (about 80

Meeting of the TOPIX President’s Committee

members from 34 companies), cross-company projects have been organized totackle three gateways that inhibit the career development of women, which

Environment

was clarified through the TOPIX President’s Committee, by promoting theimplementation of concrete measures to resolve common issues, including
developing career awareness among young women, sharing best practices for
combining work with childcare, and holding exchange meetings between
leaders.

stakeholders collaborating with companies, which is characteristic of the 30%
Club Japan, is going into full operation. Specific actions have been taken
through the collaboration of the Investor Group of 33 institutional investors,

companies comprising the TOPIX President’s Committee rose by 12.5
percentage points to 23% compared to the average ratio for all listedcompanies in Japan. It has also brought about further progress for women’s
untraditional posts, including directors of business operations andmanufacturing operations. Shiseido will lead the way in transforming Japanesecompanies to break away from the current homogeneity by promoting theactive participation of women, thereby leading innovations.

Empowering Women through Collaboration
with Local Governments
Yukari Suzuki, Shiseido’s Director, Senior Executive Officer, and Chief D&I Officer(at the time) participated seven times in the Tokyo Living Conference sponsoredby the Tokyo Metropolitan Government as a committee member in 2023. The
the Toyo Metropolitan Government regarding various social systems andcorporate organizational situations related to the work styles and lifestyles ofTokyo residents. At the fourth conference, she presented Shiseido’s efforts topromote DE&I and emphasized the need for empowering and developing
women instead of merely protecting them through programs and systems.
Network” by Female Governors and Mayors in Tochigi—hosted by the Tokyo
Chamber of Commerce and Industry, and other organizations. During the
speech, she introduced specific initiatives aimed at promoting the advancementof women within Shiseido.

● Social Contribution

Metropolitan Government, the Yamagata Prefecture Government, the JapanSUSTAINABILITY REPORT 2023

Additionally, she delivered a keynote speech at an event of the “Vision● DE&I of Employees at Shiseido

objective of this conference is to facilitate discussions between experts and● Promoting Respect for Human Rights

Click here for the 30% Club Japan

Data

participation in corporate decision-making, such as advancement to previously

GovernanceWith its activities during the past 5 years, the ratio of women on the boards of● Empowering People Through the Power of Beauty

the University Group of 9 universities, and the TOPIX President’s Committee.

Society

In Phase 2, a fully integrated approach to influencing society through various● Advancing Gender Equality

women candidates for executive positions with the President’s Committee

50

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Furthermore, in 2023, Shiseido personnel were invited to deliver lectures ongender equality and the promotion of women’s empowerment by approximately
40 sponsor companies, local governments, universities, ministries, and variousorganizations; these lectures reached a total of 7,245 attendees. The lectures

Top Message

covered a wide range of topics, including the importance of top management’s
commitment to developing women leaders, Shiseido’s history of promoting
women’s empowerment, and various human resources measures to change
mindsets. Some of the major events were the Fukushima Women’s Participation
and Advancement Symposium 2023 hosted by Fukushima Prefecture and the

Tochigi Women’s Empowerment Support Forum2023

Tochigi Women’s Empowerment Support Forum 2023 hosted by Tochigi
Environment

Prefecture. We will continue to dedicate ourselves to promoting positive socialchange by applying the knowledge and experience we have gained through ourefforts to advance gender equality.

In the drive to make the childcare environment better through company
cooperation, Shiseido launched a childcare business in 2017 with theestablishment of KODOMOLOGY Co. Ltd., which focuses on the entrusted
operation of in-house childcare facilities for businesses. In addition to the

supports management of 3 childcare facilities at other companies in Kanagawa
Prefecture and Shizuoka Prefecture (2 facilities in Shizuoka and 1 facility in
Kanagawa)*2. Since 2022, we have offered the parenting training programChildren playing at the in-house daycare facility
KANGAROOM Kakegawa“KODOMOLOGY Ikutore — Preparing for Paternity Leave” at KANGAROOMJapan. In April 2023, we introduced KANGAROOM+, a parenting support
service available to employees of Shiseido and partner companies, from theprenatal stage through elementary school age. Starting in November 2023,
KANGAROOM+ expanded to offer postpartum support service for employeeswith children under 3 months of age. This service features childcare
housework and childcare during these early months.

KANGAROOM+ began providing
postpartum support*1	KODOMOLOGY CO.,LTD. closed Kangaroom Shiodome
at the end of March 2023 and started the childcare

Click here for information on employee support in balancing work and childcare/family care.
Click here for press releases on the postpartum support offered at KANGAROOM+

support program, “KANGAROOM +” for employees ofShiseido and alliance partners in April 2023.
*2	As of the end of December 2023

Click here for the corporate website of KODOMOLOGY CO.,LTD. (in Japanese only)

The proportion of women researchers in Japan is low compared to Western
nations, remaining at roughly 18.3%*1. To improve this situation, Shiseido isoffering continued support to women researchers in Japan who are engaged inworld-leading, innovative research in natural sciences. The Shiseido Female
Researcher Science Grant has been providing support in this area since 2007.
Now in its 16th year, 2023, we awarded research grants to 10 women
to women in their life events such as childbirth and childcare, so long as theobjective of the funding is research. To date, it has contributed to the research
results and the career development of 159 researchers.
The theme for the 2023 award presentation ceremony held at the Shiseido
Global Innovation Center (Yokohama) was “Building a Network of Women

The Shiseido Female Researcher Science Grant
award ceremony in 2023

● Social Contribution

researchers. This subsidy is distinguished for its versatility in providing support

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido

Supporting Women Researchersin Natural Sciences● Promoting Respect for Human Rights

professionals certified in postpartum care visit employees’ homes to assist with

Data

Shiodome in response to the new legal requirements for paternity leave in

Governance

Shiodome (2003)*1 and KANGAROOM Kakegawa (2017), KODOMOLOGY● Empowering People Through the Power of Beauty

operation of in-house nurseries within Shiseido, such as KANGAROOM

Society● Advancing Gender Equality

Childcare Support

51

Contents

Researchers for a Sustainable Society.” We surveyed past award recipients*2
about the current situation of women researchers and found that over 80%
reported facing challenges due to their gender. Many shared their struggles,
such as balancing family and work, a lack of understanding due to the

Top Message

underrepresentation of women in the research community, and the absence ofcolleagues and networks they can confide in. These responses highlighted the
difficulties faced by women researchers in balancing family and work due todeep-rooted gender roles in Japanese society, as well as their isolation andconcerns about career development. On the positive side, recipients noted
several benefits from winning the award beyond the financial grant. They
the award also provided emotional support, facilitated interactions with
Shiseido researchers, and increased their recognition.

Development by Japan’s Ministry of Internal Affairs andCommunication*2	The survey was conducted from November 16-30, 2022,
and completed by 74 recipients of the Shiseido Female
Researcher Science Grant (sent to 119 recipients.)

Society● Advancing Gender Equality

Click here for details on the Shiseido Female Researcher Science Grant (in Japanese only)*1	Based on the 2023 Report on the Survey of Research andEnvironment

mentioned that exchanges with fellow award winners inspired new ideas, while

Governance
Data● Empowering People Through the Power of Beauty● Promoting Respect for Human Rights● Social Contribution

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido

52

Contents

STRATEGIC ACTION 1

Advancing Gender Equality

Supporting Women’s and

Top Message

Girls’ Education and
Financial Independence Worldwide
Shiseido brands and regional headquarters overseas are cooperating to support

Environment

the education and the independence of socially vulnerable women and girls
with the aim of resolving global gender issues and empowering women.

In April 2023, Global luxury brand Clé de Peau Beauté and UNICEF*1 haveannounced a three-year extension of their partnership dedicated to addressing
gender inequality with a focus on science, technology, engineering, andmathematics (STEM) education, employment, and empowerment programs for
The two partners have worked together since 2019, with the partnershipsupporting UNICEF’s work to tackle the root causes of gender inequality.
This extension aims to reach 5.7 million more girls around the world over the
next three years, providing the tools and resources they need to develop theirskills and fulfil their potential. This represents nearly half of UNICEF’s overall
important than ever as the world emerges into the post-COVID-19 era, which
saw a disproportionate number of young girls disadvantaged and left behind in
crucial fields.
As part of the initiative to support the partnership, in 2023, the brandcontinued to hold its CRM Campaign*2, where US$3 from every purchase of The
UNICEF’s programs around the world.
These funds were used to address the unique challenges that young girls faced,

Ms. Dao Thi Hong Quyen, recipient of the 2023
Power of Radiance Awards

particularly in countries and regions where stereotypes and gender
discrimination have impeded their access to education. The initiatives
supported by this partnership including the development of gender-responsive
and skill-based curricula, advancing STEM education, and providing vocational
teaching and mentorships to empower young girls, equipping them with theconfidence and competencies necessary to thrive in the competitive job market.
China, Niger, Peru and Vietnam among others, and will expand similar
successful programming in Indonesia, all working to address the enduring
gender equality gap in STEM in the wake of the Covid-19 pandemic.
Click here for Clé de Peau Beauté global partnership with UNICEF.

Additionally, Clé de Peau Beauté’s long-term philanthropic commitment includes
women from around the world who have acted to drive positive change throughknowledge since 2019. In 2023, the fifth year of the program, the Power ofRadiance Awards recognized Ms. Dao Thi Hong Quyen from Hanoi, Vietnam as*1	UNICEF does not endorse any company, brand, product,or service*2	A cause-related marketing campaign whereby US$3 fromevery purchase of The Serum between January 1 andthe recipient. Ms. Quyen is a passionate biology teacher who is working to

December 31, 2023, was donated to support UNICEF’s

close the gaps in STEM (Science, Technology, Engineering, and Math) education

around the world.

programs for the education and empowerment of girls● Social Contribution

the annual ‘Power of Radiance Awards — a philanthropic endeavor to honor

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido

These funds will continue the life-changing work in Bangladesh, Kyrgyzstan,● Promoting Respect for Human Rights

Serum, one of the brand’s best-seller products, was donated to support

Data

goal for its Skills4Girls program by 2025. Progress in this area is more

Governance● Empowering People Through the Power of Beauty

girls.

Society● Advancing Gender Equality

Clé de Peau Beauté:
Supporting Education for Girls

53

Contents

and tackle gender bias in her community. As the Head of Science at Genesis
School in Hanoi, she oversees the design of science programs and has
empowered girls through her significant contributions in STEM education.
Funding*3 for these charity programs comes from a portion of the global sales

Top Messageof the brand’s best-selling product — The Serum. The brand will continue tosupport women who have a positive impact on society and celebrate all
women’s aspirations to be beautiful and strong, both inside and out.
Click here for information on the Power of Radiance Awards.
Click here for information on Clé de Peau Beauté.

Environment

In 2020, Shiseido Travel Retail partnered with Friends-International in the“Empower Her” initiative, which aims to help young women from disadvantaged
backgrounds in Cambodia break the cycle of poverty by providing them witheducation, vocational training, and access to job opportunities in the beauty

development of the training curriculum. In 2023, 108 women received vocational
beauty training, and 57 of whom were given the opportunity for employment.

Beauty training in progress

With the vision, “Aiming for a society in which all children are brimming withchildren through three pillars of activities: “Supporting Children’s Challenge for
the Future” to help them prepare themselves for challenges brought by
adulthood, “Creating Opportunities to Learn for People who Nurture Children”
to provide training for child welfare facility personnel, and “Creating a Society
in which Children are Supported by Everyone” to disseminate information to thegeneral public.

Self-reliance Seminar

As part of “Supporting the Children’s Challenge for the Future,” the Foundation
Aoki Inc., Recruit Co., Ltd., and other companies and organizations, to enablejunior high school and high school students who receive social care*2 to acquiresocial knowledge and skills from specialists so that they can live independent
lives. In FY2023*3, more than 350 children participated in these seminars. In

The logomark was renewed in concurrence with
the name change in 2022.

addition, the scholarship program launched in 2007 to support students
recipients in FY2023, making the total number of recipients 88. Other activities
Opportunities to Learn for People who Nurture Children” and subsidizing child*1	In October 2022, the name was changed from theShiseido Social Welfare Foundation to the Shiseido Child
Foundation in commemoration of its 50th anniversary.
*2	“Social care” refers to the public responsibility ofabuse prevention awareness events and seminars for families raising children

protecting children who are unable to live with theirthroughout Japan for “Creating a Society in which Children are Supported byhouseholds with difficulty finding childcare. About

Everyone.”parents by caring for them and providing support to
42,000 children in Japan are receiving social care.
*3	FY2023 refers to April 2023 to March 2024

● Social Contribution

included training staff of child welfare facilities as part of “Creating

SUSTAINABILITY REPORT 2023

entering universities, junior colleges, and vocational schools, supported 16● DE&I of Employees at Shiseidoorganizes Self-Reliance Seminars in cooperation with Shiseido Japan Co., Ltd.,● Promoting Respect for Human Rights

smiles and shining in their own way,” the Shiseido Child Foundation*1 supports

Data

Support for the Independence andHigher Education of Children who Live at
Childcare Facilities or with Foster Parents

Governancecontributed beauty products, and we have also been involved in the● Empowering People Through the Power of Beauty

industry. In support of the initiative, we have made cash donations andSociety● Advancing Gender Equality

Shiseido Travel Retail:Supporting Marginalized Women andGirls in Cambodia

Click here for the activities of the Shiseido Child Foundation.

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STRATEGIC ACTION 2

Top Message

Empowering People
Through the Power of Beauty
There are people everywhere in the world who avoid interactions because of their age, health

Environment

condition, disability, a change in their physical appearance, and other concerns and hardships.
There are also people who feel they have difficulty maintaining social connections because
unconscious biases and fixed ideas that they experience everyday hinder their individual expression

everyone feels empowered, confident, and free to be themselves. We are a beauty company thatenables diverse beauty, and we strive to eliminate assumptions and prejudices associated withsupport 1 million people by 2030. To reach this goal, we are building upon our accumulated findings
the Unconscious Biases and Prejudices That Limit Individual Beauty.”*1	Social well-being is defined as the sustaining of meaningful relationships with society and people.

Medium- to Long-term Targets and Results

Dataand expertise to focus on “Cultivating Self-Efficacy Through the Power of Beauty” and “Challenging● Empowering People Through the Power of Beauty

As one of our strategic actions, “Empowering People Through the Power of Beauty,” we are aiming toGovernancebeauty for a world where everyone can celebrate each other’s beauty.

Societywell-being, as well as social well-being*1. We engage in various activities to achieve a society where● Advancing Gender Equalityof beauty. At Shiseido, we advocate the power of beauty as instrumental in mental and physical● Promoting Respect for Human Rights

Cultivating self-efficacy

Support for people living with cancer,
older people and people with disabilities(to reach directly)

The Shiseido Life Quality Makeup initiative

By

prejudices that limit individual beauty
2022
Launch of SEE, SAY, DO program(for corporations/organizations)

SUSTAINABILITY REPORT 2023

Challenging the unconscious biases and● Social Contribution

2022

2030

● DE&I of Employees at Shiseido

through the power of beauty

55

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STRATEGIC ACTION 2

Empowering People Through the Power of Beauty

Cultivating Self-Efficacy

Top Message

Through the Power of Beauty
At Shiseido, we take a scientific approach to uncovering the power of beauty toenrich minds, spark joy, and bring happiness to life. This pursuit started in 1956
with the launch of Japan’s first makeup product designed to lessen theEnvironment

suffering of wartime burn victims, and we continue to explore ways to harness
the power of beauty, such as the development of specialized cosmetics andapplication techniques to address the changes in a person’s appearance fromdiscolorations and scars. We collaborate with various support groups, medical
beauty to promote the mental, physical, and social well-being*1 of people facing*1	Social well-being is defined as the sustaining of
meaningful relationships with society and people.

Support for People Living with Cancer

with the changes in their appearance associated with medical treatment. Since
2008, we have provided support in appearance care that addresses the visible
side effects of cancer treatment. In 2015, we published a booklet for people
living with cancer, and several editions have appeared since. In 2022, wetechniques to deal with changes in the skin and looks caused by cancer
treatment, called “Appearance Care for Your Confidence and Comfort.” In 2023,“Appearance Care for Your Confidence andComfort”

following the COVID-19 pandemic, we once again began actively conducting
appearance care seminars for people living with cancer and we have reached atotal of 6,045 people worldwide*1.

Japanese Association of Supportive Care in Cancer, held in Nara Prefecture,
Japan, for our presentation on joint research with St. Luke’s International
Hospital. The study demonstrated that online consultations on appearance careprovided psychosocial support for people with cancer, improving their quality ofDelegates from Yamagata City and Shiseido
Japan at the signing ceremonylife.
In Japan, a highly skilled team of seven Social Area Leaders and 38 Social Area
activities that leverage the power of beauty by identifying the characteristics
and social issues unique to their areas.
In 2023, Shiseido Japan and Yamagata City entered into the Agreement for the
Health Maintenance and Promotion of the Citizens of Yamagata City. Throughthis agreement, we are joining forces in initiatives to promote the health ofDelegates from Tochigi Prefecture and Shiseido
Japan at the signing ceremony

Shiseido Japan also entered into the Collaboration Agreement for Cancer
residents living with cancer. Tochigi Prefecture and Shiseido Japan are working
together to promote the prefecture’s measures for cancer with the aim ofhelping residents live more physically and mentally healthy lives.
Click here for “Appearance Care for Your Confidence and Comfort”*1	Countries and regions including Japan, China, Singapore,
and Taiwan (as of December 2023)● Social Contribution

Control with Tochigi Prefecture and held appearance care seminars for Tochigi

SUSTAINABILITY REPORT 2023

residents through the city’s programs for cancer and health. In the same year,● DE&I of Employees at Shiseido

Partners from Shiseido Japan plays crucial roles in planning and leading● Promoting Respect for Human Rights

In June 2023, we won an award for excellence at the 8th Annual Meeting of theDataintroduced an easy guide for all genders illustrating the information and

Governancelives in the ways they desire, we continue our global efforts to help them cope

● Empowering People Through the Power of Beauty

With the vision of a society where people with cancer can continue to live their

Societybroad skin concerns and challenges.

● Advancing Gender Equality

institutions, and local governments in activities that leverage the power of56

Contents

Global Expansion of the LAVENDER RING
MAKEUP & PHOTOS WITH SMILES”
for People Living with Cancer

Top Message

Since 2017, Shiseido has participated in the LAVENDER RING project to support
people with cancer, pursuing a society where people can live with a smile even
if they have cancer. We lead the MAKEUP & PHOTOS WITH SMILES, and we
encourage people in living their own lives after cancer and helps them to return
to society through hair and makeup, as well as portrait photography. In

Environment

recognition of such efforts, Shiseido received the Mécénat Award for Excellencein November 2021 from the Association for Corporate Support of the Arts, apublic interest incorporated association in Japan.

book entitled LAVENDER RING Photo Book: Smiles and Messages from 206

LAVENDER RING Photo Book: Smiles andMessages from 206 People Living with Cancer(Hearst Fujingaho Co., Ltd.)

206 people living with cancer resonate with, inspire, and encourage readers,and not just people living with cancer, their families, and supporters. The photobook is available in bookstores, hospitals, and from other retailers.

Japan, China, Singapore, Taiwan, and Thailand. The reception by the partnering
patient groups and medical institutions was very positive, and they expressed

Event in Taiwan

the hope that the event would be held regularly because it inspired courageand confidence in many participants.

in Japan, and events were held in five areas (Tokyo, Osaka, Aichi, Ehime, andFukuoka). In addition, we held a special photo exhibit titled “MAKEUP &PHOTOS WITH SMILES” to display the participants’ bright smiles and messages
at the 31st General Assembly of the Japan Medical Congress held in Tokyo.

Makeup session at the event in Taiwan

30 MAKEUP & PHOTOS WITH SMILES events in partnership with medical
institutions and patient groups in Japan, China, Singapore, Taiwan, and Thailand
and have welcomed a total of 653 groups of people living with cancer to these
events.
Click here for LAVENDER RING website
Click here for MAKEUP & PHOTOS WITH SMILES website
Click here for Smiles and Messages from 206 People Living with Cancer

Exhibit at the 31st General Assembly of the Japan
Medical Congress

The Shiseido Life Quality Makeup initiative started over 60 years ago. The
initiative focused on Japan’s first makeup products for people suffering fromburn scars from war. Shiseido has been engaged in the research of physicaltreatment, as well as the development of beauty information and specialized
products. Today, as part of this initiative, Shiseido operates dedicated Life
Quality Beauty Centers in Japan, China, Singapore, and Taiwan. At the Shiseido
beauty information to older people and people with disabilities in addition to

Online appearance care consultation● Social Contribution

appearance care for birthmarks, burn scars, and the side effects of cancer

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido“Shiseido Life Quality Makeup” : Support for
People with Serious Skin Concerns

Life Quality Beauty Center in Japan, we are reinforcing its function of providing● Promoting Respect for Human Rights

In summary, since the inception of the program in 2017 until 2023, we have held

Data

In 2023, LAVENDER RING MAKEUP & PHOTOS WITH SMILES continued to grow

Governanceglobally, and in 2023, events were held in countries and regions including● Empowering People Through the Power of Beauty

Since 2022, LAVENDER RING MAKEUP & PHOTOS WITH SMILES has expanded

Society

People Living with Cancer. The featured poster portraits and interviews with● Advancing Gender Equality

On World Cancer Day, February 4, 2021, LAVENDER RING published its first57

Contents

people dealing with deep skin concerns.
In 2023, the center offered enhanced personalized consultation in a privacyprotected space, along with virtual seminars and events. A total of 2,516
in-person and online consultations, seminars, and events were attended by

Top Message

58,058 people.
In China, upon renewal of the dedicated product series for Shiseido Life Quality
Makeup, Perfect Cover (Chinese brand name: PF-COVER), in March 2023, we
focused on online communication to reach far and wide; we are working with
key opinion leaders (KOLs), a leading platform for people with vitiligo (白白手拉Consultation room at the Shiseido Life Quality
Beauty Center (Japan)手), and social media. Currently, 80% of those who visit the Shiseido Life

Environment

Quality Center in China have vitiligo.
In Taiwan, we strengthened our collaboration with medical institutions in 2023,
holding 221 Shiseido Life Quality Makeup seminars through patient groupretailers while continuously supporting the improvement of the skills of theConsultation at the Shiseido Life Quality Beauty
Center (China)

Click here for the Shiseido Life Quality Makeup website

Quality Makeup, which applied optical technology to address blue discoloration(nevi of Ota), red discoloration (hemangiomas), and conspicuous dark spots.
including vitiligo and uneven skin textures, such as scars and vitiligo.
In anticipation of further global expansion, the series went through a complete
renewal in 2022 with new packaging and reformulation. The renewed series
provides enhanced coverage for changes in appearance from the side effects ofcancer treatment (such as dull complexion and pigmentation) while achieving a

Shiseido Life Quality Makeup for serious skinconcerns

lasting, natural-looking finish. The flagship product, Perfect Cover Foundation
MC offers smooth application and a comprehensive coverage solution toconcerns about uneven skin tones and surfaces. Specially developed for vitiligo,
match the rest of the skin. As demand for makeup increases post-pandemic, we
aim to support individuals seeking coverage to help them look and feel likethemselves.
Perfect Cover products● Social Contribution

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido

Perfect Cover Foundation VC provides seamless coverage of vitiligo patches to● Promoting Respect for Human Rights

The series has since evolved to meet a wider range of deep skin concerns

Data

In 1995, Shiseido launched the Perfect Cover series designated for Shiseido Life

Governance

Evolution of Perfect Cover● Empowering People Through the Power of Beauty

Makeup consultation at the Shiseido Life Quality
Beauty Center (Taiwan)

Societyretailer personnel.

● Advancing Gender Equality

events and lectures. Six highly trained consultants introduced Perfect Cover at

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Collaborating with Retail Partners andOther Organizationsin Support Programs for Older People

Top Message

Japan is home to the oldest population in the world with its aging rate*1 now*2
at 29.1%. Japan’s Ministry of Health, Labour and Welfare issued guidelines topromote the healthy lifestyles of residents in local communities, and thisinspired the creation of support structures for people with cancer and older
people nationwide.

Environment

Shiseido Japan supports this initiative by reinforcing partnerships with retailpartners, support groups, medical institutions, and local governments indifferent regions of Japan to enrich the social lives of older people. Together,Workshop at the Welcafe Kawaguchi Ryoke branch

we offer beauty workshops for older people designed to promote a healthy life
Support Centers, and Welcia Yakkyoku Co., Ltd., jointly held 56 workshops forolder people at 18 Welcafe locations, the community spaces inside Welcia
pharmacies in 2023.
We also developed the Beauty for Health program, which incorporates researchfindings from Shiseido’s cosmetic therapy*3 to help older people, and 497*4

power of beauty.

*1	The aging rate is the proportion of a society’s populationthat is comprised of persons aged 65 or older.
*2	Based on data published in 2023 by Japan’s Ministry ofInternal Affairs and Communications*3	Shiseido’s cosmetic therapy uses skincare and makeup
application techniques to help improve and maintainIn the medical field, oral frailty*6 continues to affect the lives of older people.
Shiseido’s cosmetic therapy has shown that the action of applying cosmetics

mental and physical health, quality of life, and healthy
life expectancy.
*4	As of December 2022
*5	CRC: National Federation of Cosmetic Retailresearch, we collaborate with dentists and dental clinics to hold seminars for*6	A decline in oral function, including chewing, swallowing

local communities.

Cooperatives.
food, and speaking. It is considered a key early sign of
aging.

Support for People with Disabilities● Promoting Respect for Human Rights

In the 1980s, Shiseido began developing educational materials to assist
consumers with vision impairments or low vision. This included beauty manuals
in Braille, Braille stickers for products, and Braille dosage stickers. The Shiseido
Listener’s Café, an audio-based beauty information website launched in 2002,
enjoyed a major renewal in July 2022 to reach a larger audience. The website
now features updated videos, and employees with visual challenges join toshare beauty tips. As it did before, the website works with text-to-speech (TTS)
software and offers beauty advice from Social Area Partners, event information,
Poster for Shiseido Guide Makeup

grooming content.
In 2019, Shiseido Japan developed the Shiseido Guide Makeup for people withvisual impairments and added the course to Shiseido Life Quality Beauty
Seminars. In 2021, online seminars were enhanced with workshops for people
with visual impairments. In 2023, we resumed Guide Makeup seminars after the
COVID-19 pandemic in cities across Japan, including Saitama, Hamamatsu,
both in-person and online attendance. By harnessing the power of beauty, weare committed to promoting a society where people with visual, intellectual,developmental, and other challenges can also live their lives in ways they
desire.

Guide Makeup workshop at the Association of the
Visually Impaired in Nagoya● Social Contribution

Nagoya, Kyoto, and Hiroshima. These seminars were designed to accommodate

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido

and other practical information so that people can enjoy the beauty andDatastimulates the salivary glands, thereby improving oral function. Drawing on our

Governanceproviding access for local communities to improve well-being through the● Empowering People Through the Power of Beauty

CRC*5 member retailers have adopted the program. We are committed toSociety● Advancing Gender Equality

expectancy. For instance, in Saitama, Shiseido Japan, local Community General

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Contents

Also in 2018, Shiseido started adding closed captions to its television
advertising to reach viewers who are deaf or hard of hearing, and now all ourcommercials have closed captioning.

Top Message

Click here for The Shiseido Listener’s Café (in Japanese only)
Click here for Shiseido Life Quality Beauty Seminars (in Japanese only)
Logo of Shiseido Listener’s Café

Environment

Support for Patientswith Xeroderma Pigmentosum
Since 2000, Shiseido has supported people living with Xeroderma Pigmentosum(XP)—a condition characterized by extreme sun sensitivity—through sunscreen
donations and seminars led by Shiseido researchers and Personal Beauty
At these seminars, they explain how to effectively protect the skin to enjoy thefinancial aid for patient exchange meetings through voluntary donations fromparticipating employees’ salaries (Shiseido Camellia Fund). In 2023, to raiseawareness and promote the understanding of XP, we invited the Japanese
National Network of XP Family Associations to speak about its activities andClick here for Shiseido Camellia Fund website

Governanceemployees.

Data● Empowering People Through the Power of Beauty

how it uses donations at Brown Bag, the intranet seminar for Shiseido

Support for Patients with Xeroderma
PigmentosumSocietyoutdoors even for patients with XP. Since 2005, Shiseido has also provided● Advancing Gender Equality

Partners.

● Promoting Respect for Human Rights● Social Contribution

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido

60

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STRATEGIC ACTION 2

Empowering People Through the Power of Beauty

Challenging the Unconscious Biases

Top Message

and Prejudices that Limit
Individual Beauty
As a cosmetics company that celebrates diversity in beauty, Shiseido launched

Environment

a global project to dispel prejudices and stereotypes that impede people’s
achievement of their desired beauty, that is, unconscious beauty biases (UBBs).
This demonstrates our commitment to achieving a world where everyone canlive their lives and celebrate each other’s beauty, regardless of gender, age, andLaunch of an Interactive Website andthe SEE, SAY, DO Programfor Corporations/Organizations
Sustainable Development Goals (SDGs) through the Sustainable Beauty Actions
project. As part of this initiative, the brand developed the SEE, SAY, DO
project*1 in September 2022, aiming of building a society where everyone canbe who they want to be. A special website was unveiled allowing users toJapanese corporations and organizations to help them discuss UBBs. The
program has been well-received because it is eye-opening and informative toknow even seemingly harmless, casual remarks can perpetuate UBBs.
Partnering with ARROWS Inc., a developer-operator of SENSEI Note, Japan’slargest online information exchange platform for teachers, we developed free
upon request in March 2023. Titled “For a World Where Everyone Can Be True,
Beautiful Self,” the free program can be used during a moral education class tolearn unconscious biases and stereotypes that interfere with the students or*1

	We conducted an online qualitative survey in ten

someone else from staying true to themselves. It facilitates proactive thinking

countries worldwide (Australia, Brazil, China, France,and discussion on how to be who they want to be and feel alive and beautiful.

Emirates, and the United States), collecting 5,000

In 2023, 16,875 students across Japan took the program.

world before the project.

Click here for the SEE, SAY, DO. Project website

Germany, Italy, Japan, Thailand, the United Arabpersonal experiences to shed light on UBB around the● Promoting Respect for Human Rights

educational material on unconscious biases and started providing it to teachers

Dataexperience UBB. Shiseido also developed the SEE, SAY, DO program for

Governance● Empowering People Through the Power of Beauty

Brand Shiseido, which markets to 88 countries and regions, pursues theSociety● Advancing Gender Equality

nationality.

Click here for the SEE, SAY, DO. project press release● Social Contribution

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido

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STRATEGIC ACTION 3

Promoting Respect for Human Rights

Top Message

At Shiseido, respect for human rights is at the core of our DNA. Across our business, we arededicated to respecting and protecting the rights of our diverse group of stakeholders, including

Environment

business partners and employees.
We are committed to eradicating human rights issues — including forced labor and child labor —as well as workplace harassment, which is an issue that has become more prevalent due to changes
action against such issues poses great risk to our company and all our stakeholders.
to human rights. Based on Shiseido Code of Conduct and Ethics, which defines the mandatory
behavior expected of every individual working for Shiseido Group, we ensure that our business is

Shiseido Code of Conduct and Ethics
Shiseido Policy on Human Rights
Shiseido Group Supplier Code of Conduct
Shiseido Group Procurement Policy

Employees

Shareholders

Society

Data

Consumers● Social Contribution

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido

Business
Partners● Promoting Respect for Human Rights

Human Rignt Due Diligence

Governance● Empowering People Through the Power of Beauty

always conducted according to high ethical standards.

SocietyAcross Shiseido Group, we have standards and policies in place to guide our actions when it comes● Advancing Gender Equality

in social structure and the rise of more diverse values. We are aware that failure to take appropriate

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STRATEGIC ACTION 3

Promoting Respect for Human Rights

Respecting Human Rights

Top Message

Respect for human rights is integral to our working principles. It is part of ourdefinition of running a sustainable business and contributing to the realizationof a sustainable world.
Since 2011, we have followed Shiseido Code of Conduct and Ethics (revised
April 2022), which stipulate the mandatory behavior expected of every

Environment

individual working for Shiseido. We have also established Shiseido Policy on
Human Rights and have been working closely with our business partners todefine and update the principles and policies surrounding ethical businessconduct. These are reflected in Shiseido Group Supplier Code of Conduct,rights, legal compliance, labor practices, intellectual property protection,
To ensure responsible procurement, we conduct regular assessments andthird-party audits, and have in place a rigorous and objective risk identification
and remediation process.

(UNGPs), National Action Plans (NAPs) have been formulated in various
countries, mainly in the EU, and many NAPs include a statement on human
In 2020, we established a human rights due diligence process to promptly
identify, prevent and mitigate potential human rights issues.
In addition to the visible human rights risks, potential negative impacts onhuman rights are regularly identified and risk mitigation measures are taken toprevent serious damage. Progress and findings are reported to theof sustainability — and human rights-related issues.
In any new business relationship, such as mergers and acquisitions, respect forhuman rights (compliance with personnel and labor issues, employee, andcustomer safety, etc.) is part of the due diligence process for all investment
decisions.

Human Rights Risk Assessment (Identification and Assessment of Impact)

Review the status of respect for human rights when considering new
business relationships, such as mergers and acquisitions.

Improvement activities aimed at curbing, preventing, and mitigating
negative impacts on human rights.

Human Rights Due Diligence Process
Confirmation of Progress

Check the progress of improvement activities and promote

Review and improve the evaluation process

improvements to further reduce human rights risks.

● Social Contribution

Report / disclose progress to stakeholders

SUSTAINABILITY REPORT 2023

Communication● DE&I of Employees at Shiseido

Assessment of human rights risks related to all stakeholders(employees, consumersm, business partners, shareholders, andmembers of society).

Human Rights Risk Activities● Promoting Respect for Human Rights

Sustainability Committee, a management meeting focused on the deliberationData

rights due diligence.

Governance

Based on the United Nations Guiding Principles on Business and Human Rights● Empowering People Through the Power of Beauty

Human Rights Due Diligence

Societyconfidentiality, environmental protection, and fair trade.

● Advancing Gender Equality

which stipulates the standards that govern and direct our behavior on human63Contents

Human Rights Risk Assessment
In cooperation with external human rights experts, and by referencing
international codes on human rights, standards on non-financial disclosures,

Top Message

and the Corporate Human Rights Benchmark (CHRB), we have developed a listof human rights issues to be considered. This list includes labor-related issues,
such as forced labor and child labor, as well as a wide range of other humanrights issues, such as freedom of association, the right to collective bargaining,and discrimination.
The human rights issues identified above were sorted by relevancy to each

Environment

Shiseido stakeholder (employees, consumers, business partners, shareholders,and members of society). The severity and likelihood of both visible andpotential human rights impacts were then assessed based on interviews with
employees in Japan and overseas, and by investigating internal and externalon the status of Shiseido’s implementation of preventive and corrective
measures.
After assessing our value chain, we identified a number of human rights risks:“discriminatory actions/expressions”, “violation of compliance/fair competition”,“personal/confidential information leakages”, “employees’ personal data andprivacy”, “incomplete supplier management”, “occupational safety and healthperiods (overtime-work)”, and “harassment and abuse”.
In 2023, we conducted a human rights risk assessment as part of our periodic
review of our risk map regarding potential human rights issues. Two of ourfactories in Japan were surveyed by a human rights NGO to assess the working
environment, which included interviews with migrant workers (indirectly hired
continue to conduct investigations to identify potential human rights risks andcontinuously improve our working conditions.

● Promoting Respect for Human Rights

Measures for Mitigation andCorrection of Human Rights Risks
The above areas identified through the human rights risk assessment have been
consolidated into six categories for each area of responsibility of the Executive
Officer*1.
• Violation of compliance/fair competition• Harassment and discrimination• Breach of working hours, breaks, and rest period (overtime-work)• Privacy invasion and personal/confidential information leakages• Incomplete supplier management
We assigned executive officers to those categories of human rights to engage
them in activities for stopping, preventing, and mitigating negative impacts onhuman rights. Human rights issues of employees are managed by the Human
Resources and Risk Management departments, and those of suppliers andcontracted manufacturers are handled by the Supply Network Division.

● Social Contribution

In the training provided for managerial positions on harassment and ethics,
regular training and education are conducted about Shiseido Code of Conduct
and Ethics and related policies and rules according to positions and job types
to deepen our employees’ understanding of the human rights and to work to
reduce human rights risks. Training sessions for top-level employees including*1	In no particular order

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido• Occupational safety and health issues (work-related accidents)

the Global Headquarters officers and department directors in Japan, those forData

employees). Although no significant human rights risks were found, we will

Governance● Empowering People Through the Power of Beauty

issues (work-related accidents)”, “breach of working hours, breaks, and rest

Society● Advancing Gender Equality

documents. In addition, we evaluated the risk of each human rights issue based

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division/department heads of domestic and overseas offices, those for
employees in various divisions/departments, and those for new employees areheld.

Top Message

If improper acts or the like are revealed, we stop such acts immediately andimplement corrective measures and reoccurrence prevention measures rapidly incooperation with the relevant companies, offices, and divisions/departments.
We also take disciplinary action against employees who have been involved insuch acts in accordance with employment regulations and internal rules. If any
cases of disadvantageous treatment, harassment, etc. toward whistleblowers orEnvironment

consulters are identified, we take appropriate relief/restoration measures
immediately in cooperation with the relevant companies, offices, and divisions/departments, and take strict measures including any disciplinary punishment
against the persons who have engaged in such disadvantageous treatment orpromptly reported to management from the divisions/departments. Any serious
compliance-related concern is reported to management of the Global Risk
Management & Compliance Committee and/or HQ/SJ Compliance Committee,
and we work to eliminate the concern immediately and implement corrective
measures and reoccurrence prevention measures rapidly in cooperation with therelevant companies, offices, and divisions/departments.

We offer whistleblowing and consultation hotlines for the purpose of detecting
and correcting violations against the laws and regulations, the Articles ofconsultation hotlines are operated according to internal rules that specify
confidentiality, prohibition of disadvantageous treatment or reprisals against
whistleblowers/consulters, elimination of conflicts of interest, and the process
for handling whistleblowing and consultations, etc. These internal rules aredisclosed via the internal intranet so that employees can view them at any● Promoting Respect for Human Rights

time.
Globally, we have established whistleblowing and consultation hotlines at eachregional affiliate for employees to voice their concerns about or report on words
and/or actions which are or may be unethical or in violation of laws in therelevant countries/regions, the internal rules, and the Shiseido Code of
Conduct and Ethics. At Company headquarters, the Shiseido Global Hotline has
been established to receive reports directly from any employee in the Shiseido
Group.
The hotline system in Japan consists of the Shiseido Hotline that deals with
Whistleblowing report to Audit Committee to Audit and Supervisory Board
Members for reports from Japan and overseas relating to directors, executive
whistleblowing and consultations.

*1	The hotlines in Japan accept whistleblowing andconsultations from all persons working for Shiseido
Group companies in Japan (directors, corporate
executive officers, auditors, executive officers,

partners in Japan to voice any concerns on violations of human rights andformer employees within one year of their retirement,compliance by Shiseido Group companies and employees.

Whistleblower Protection Act).

Operating Performance of Hotlines/Helplines

and other protected parties as stipulated in the● Social Contribution

Click here for our human rights initiatives.

employees, contract employees, temporary employees,

SUSTAINABILITY REPORT 2023

Shiseido also has a Shiseido Business Partner Hotline for suppliers and business● DE&I of Employees at Shiseido

general workplace issues and whistleblowing, as well as Shiseido Group

officers, and hotline staff members.*1 All these hotlines accept anonymous

Data

Incorporation, and rules within the Shiseido Group. The whistleblowing andGovernance● Empowering People Through the Power of Beauty

Grievance Mechanism

Society● Advancing Gender Equality

harassment. If the case may pose a risk to our business management, it is65Contents
Top Message

Diversity, Equity and Inclusion(DE&I) of Employees at Shiseido
At Shiseido, we regard our people, who constitute the ultimate source of corporate value creation as
our greatest asset. We have continued to evolve our people programs in line with our PEOPLE FIRST

Environment

philosophy, believing that our corporate value will be enhanced by investing in our people. Under our
corporate mission of BEAUTY INNOVATIONS FOR A BETTER WORLD, we strive to develop a
corporate culture of mutual recognition and respect of differences among people.

important elements of our management strategy, aiming to have – each person - continue to create
innovations through meaningful interactions.

Developing diverse professionals
Support for active participation of employees with disabilities

Health and safety of employees

2019
Shiseido Health Declaration

2022
Shiseido Vision Zero Declaration (Safety Declaration)● Social Contribution

work with good health

SUSTAINABILITY REPORT 2023

Initiatives for having employees● DE&I of Employees at Shiseido

Advancing empowerment of women and gender equality at Shiseido
Increasing the percentage of male employees taking childcare leaveDataof employees at Shiseido● Promoting Respect for Human Rights

Promotion of diversity, equity and inclusion (DE&I)

Governance● Empowering People Through the Power of Beauty

Medium- to Long-term Targets and Results

Societygender, age, and nationality. We position diversity, equity and inclusion (DE&I) as one of the most

● Advancing Gender Equality

To do this, we facilitate discussions on the creation of new value worldwide, such as irrespective of66

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Promotion of Diversity, Equity
and Inclusion (DE&I)

Top Message

Taking the positives from employees’ differences and creating new value isessential to the sustainable growth of the company. At Shiseido, we aim tocreate an organizational culture where people with diverse values fully actualize
their individual capabilities and continue to create innovations regardless of
their attributes. Therefore, we position diversity, equity and inclusion (DE&I) as

Environment

a key element of our management strategy.

We understand that there are many global social issues that remain to besolved in the area of gender equality, particularly in women’s empowerment.
Japan especially is facing many issues that need to be addressed. At Shiseido,
we are advancing a number of initiatives aimed at achieving the same level ofwomen’s empowerment that has been achieved in other developed countries.

across our global organization in leadership positions. Moreover, 40.0%*1 of ourdirectors and auditors are women; in Japan women fill 40.0%*2 of leadership
positions. We believe that empowering women can help spark innovation and inpotential. To drive this, we aim to increase the percentage of women in
leadership to 50% by 2030 to fairly represent gender equality.
For many years at Shiseido Japan, we have offered and promoted a wide rangeof systems and support measures for women’s life events. Since the early 1990s
implemented childcare leave and shortened working hour systems. We haveopened two in-office childcare facilities — KANGAROOM Shiodome in 2003*3,
and KANGAROOM Kakegawa in 2017 — for Shiseido employees, as well as
local businesses and residents. Further, to provide flexible childcare in line withdiverse workstyles, in April 2023 we opened KANGAROOM+, a comprehensive
childcare facility offering mainly babysitting services. In addition to ensuring
more freedom of time and place by offering one-on-one childcare instead of

In-house daycare nursery, KANGAROOM Kakegawa

group childcare, the scope of services has been extended to include elementary
their children enter elementary school first grade.*4
In 2008 we introduced the Kangaroo Staff program to secure personnel to coverfor Shiseido Personal Beauty Partners who have to work shorter hours due tochildcare. In 2023, 479 Kangaroo Staff helped to support the work-life balance
initiatives like these, 92.3% of employees across Shiseido Group in Japan return

NEXT LEADERSHIP SESSION for WOMEN

percentage.

*1	As of the end of January 2024*2	As of the end of January 2024
*3	KANGAROOM Shiodome (our in-house nursery) was

In the area of people development and leadership, we hold a women’sclosed in line with the transition to KANGAROOM+*4	While nursery schools look after children from morning

leadership development program called NEXT LEADERSHIP SESSIONS for

until night, elementary schools finish in the afternoon,

WOMEN. In 2023, 64 women participated in the program, where they learned

shorter hours when their children start school.

meaning that some parents have to begin working● Social Contribution

to work following childcare leave, and we continue to maintain this high

SUSTAINABILITY REPORT 2023

of 1,411 Shiseido Personal Beauty Partners raising young children. As a result of● DE&I of Employees at Shiseido

school students. The aim is to cater to the problems that parents face when

● Promoting Respect for Human Rights—even before the introduction of childcare and family care laws—weDataturn promote further growth at Shiseido, allowing employees to fulfil their

Governance● Empowering People Through the Power of Beauty

More than 80% of Shiseido Group employees are women, with 58.8% of womenSociety● Advancing Gender Equality

Advancing Empowerment of Women and
Gender Equality at Shiseido

67

Contents

important management and business skills while discovering their own uniqueleadership styles. In the seven years since its launch, 47% (114) of the 241
program participants (excluding retirees) have been successfully promoted.
Further, to increase the ratio of women in management positions to 50%, we

Top Message

expanded to three new programs for candidates for next Group Managers,
Department/Division Heads and Executive Officers, reinforcing our leadershippipeline to steadily develop the next generation of leaders.
Between 2020 and 2023, a total of 165 women from various fields including
Sales, Production, and R&D, have taken part in Speak Jam, a mentoring program

Environment

linking with executive officers*5.
We are working to improve our workplace environments to create comfortableworkplaces not only for women, but for employees with many different
implementing various workstyle revisions. These include flextime with no core
hours, remote work (Shiseido Group in Japan), and the introduction of “Shiseido
Hybrid Work Style,” an innovative new arrangement that allows employees tocombine in-office work with remote work to maximize productivity.
In 2022, we set up the Women’s Health Project, with the leading role played byaccurate information about health issues in accordance with their lifestyle,enabling them to take autonomous health actions. We took steps to improvehealth literacy by adopting themes under the three-year medium-term plan
started in 2023. Those initiatives were aimed at deepening understanding oflife stage-related health issues specific to women — who constitute more thanregardless of age, position, and gender in order to foster a corporate culturethat encourages open, companywide discussion of the issues. A total of about
600 employees participated in the events in 2023. The satisfaction levels of
understanding of participants exceeded 90% in all of the events. Further, theevents were held in open spaces, so they attracted participants from the● Promoting Respect for Human Rights

general public in addition to our own employees.
In addition, about 8,000 Personal Beauty Partners — of whom approximately
90% were women — participated in online menopause seminars and viewed
online talks by executives. They thus received e-learning to acquire basic
knowledge on cancers specific to women and support for balancing cancer
treatment and work. These initiatives to have each Beauty Consultant acquirebasic knowledge on menopause are aimed at not only enhancing the wellnessof the Beauty Consultants themselves, but also enabling them to better serve*5

regardless of gender, with the aim of enabling them to balance work andchildcare. Childcare is a valuable experience that helps people see things fromdiverse points of view and offers various insights, thereby serving as a catalyst
to broaden one’s perspective in life and work. At the same time, allowing each

● Social Contribution

Shiseido has been improving the workplace environment for all employees,

SUSTAINABILITY REPORT 2023

Increasing the Percentage of Men
Taking Childcare Leave	Previously corporate officers (name changed in 2021)● DE&I of Employees at Shiseido

customers experiencing menopause.

Click here to find out more about NEXT LEADERSHIP SESSION for WOMEN

Data

80% of the human resources of the overall Group — among all employees

Governance● Empowering People Through the Power of Beauty

the People Division. In this project, each employee obtains and understands

Society● Advancing Gender Equality

attributes. To ensure health, safety, job satisfaction and security, we are68Contents

employee to achieve their career goals —regardless of their gender and evenwhile raising children — will help develop an organizational culture where
employees work energetically and with passion. It also accelerates ourdiversity-oriented management.

Top Message

We aim to build a workplace environment that permits all employees to design
their life and career on their own, in their own unique ways. We reached thegoal of having 100% of men use childcare leave by the end of 2023 in thecompany.

Environment

Developing Diverse Professionals
At Shiseido, to ensure we can provide value that is suited to each one of our
independently acquire the expertise and skills to drive innovation and continue

Career Ownership Development Enabled
by a Job-Based Personnel Systemhave established an array of systems that enable each employee to develop
their career in a self-directed manner, by clarifying job content and the required
professional skills of each department. Several times a year we host workshops
members. As our global initiative, in 2022 we began to introduce the Global
Grade System in countries as a common framework for the Shiseido Group
worldwide, aiming to facilitate cross-border career development. We also
release international job postings throughout the year to offer as many careerdevelopment opportunities as possible. At Shiseido Group in Japan, we are
employees receiving the training by 2023. In November 2023, we held an online
event on career and skills by inviting a university professor, with participation of
approximately 300 employees.

Training Programs for Enhancing Professional
Knowledge and Skills
them, to encourage employees to develop their careers on their own andenhance their professional knowledge and skills. We have launched LinkedIn
Learning as a platform for self-directed learning for all employees. As of theend of 2023, approximately 7,000 employees worldwide were using it. Other
training programs we provided include business skills training, MBA dispatch,knowledge and skills.

● Social Contribution

SUSTAINABILITY REPORT 2023

and Sales Academy and Marketing Academy, for enhancing professional● DE&I of Employees at Shiseido

We run a number of open training programs available for whoever wants to take

● Promoting Respect for Human Rights

rolling out career-related workshops and e-learning programs, with 4,770

Data

for managers on how to use performance management to develop their teamGovernancecapabilities, we introduced a job-based personnel system in Japan in 2021. We● Empowering People Through the Power of Beauty

To allow diverse professionals in the world to fully demonstrate their

Societyto achieve growth.

● Advancing Gender Equality

consumers, we aim to create an organization where employees can69

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Various Mentoring Programs to Take Ownership of
their Own Careers
In 2017, we introduced a reverse mentoring program, in which employees serve

Top Message

as mentors of department managers and officers. By 2023, 1,040 people hadparticipated in this program. Open discussions between employees as mentors
and management as mentees serve as opportunities for interactions andlearning for a diverse range of employees who differ in gender, nationality, age,career, and other attributes.
In 2022, we introduced the Career Mentoring Program to have employees

Environment

develop their medium- to long-term career plans on their own. By 2023, 452
employees had participated in this program. This program allows employees toappoint management personnel other than their own superiors as their mentors.
Superiors give feedback from perspectives that differ from what they might
postings. With this and other outcomes, the program serves as an opportunity
to cultivate career options.

Support for Active Participation of Employeeswith Disabilities

talents. At Hana Tsubaki Factory, which has nine branch offices nationwide,
including offices in Tokyo and Osaka, the majority of employees haveintellectual disabilities. We have set “Serious Expectations” as one of its
employees (FTEs) under the same personnel system that is applied to
employees without disabilities. Disabilities are considered on an individual
basis, in principle, and ample measures are taken in both tangible andintangible aspects of the work environment. Further, in the SWING Project toIncrease Job Options for Employees with Visual Impairments that was launchedbased on a proposal made by employees with visual impairments themselves.
We built systems and frameworks that permit visually challenged people towork and continued recruitment activities for three years from 2021. A total offour new employees with visual impairments, including one who joined in 2023,
were appointed as salespeople in the three years. In addition to taking internal
initiatives, in 2021 we joined The Valuable 500, an international initiative tosupport the full and effective social participation of people with disabilities.

● Promoting Respect for Human Rights

in 2019, a new job category named “online sales and marketing” was created

Employee with visual impairments working in sales

Data

employment policies. Many colleagues with disabilities are working as full-time

Governanceemployed in various workplaces where they demonstrate their respective● Empowering People Through the Power of Beauty

At the Shiseido Group, around 400 employees with diverse disabilities are

Society● Advancing Gender Equality

receive on a daily basis. This led some employees to apply for internal job

Click here for Shiseido’ policy on employment of persons with disabilities. (in Japanese only)● Social Contribution

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseido

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Contents

Initiatives for Having Employees Work
with Good Health

Top Message

Health and Safety of Employees
It is our mission to realize a sustainable world through beauty. To accomplish
this, we must create a work environment where all employees can work safely.

Environment

To support the health and safety of our employees, we established the“Shiseido Health Declaration” and the “Shiseido Vision Zero Declaration (Safety
Declaration)”. The Representative Corporate Executive Officer, Chairman and
CEO is responsible for managing employee health. He is also responsible forleading occupational accident countermeasure committees.

Shiseido Health Declaration“Our mission is BEAUTY INNOVATIONS FOR A BETTER WORLD. To that end, wevitality.”

Shiseido Vision Zero Declaration (Safety Declaration)
employees to work healthily and safely.”
Click here for Health and Safety of Shiseido Group

Developing Next-Generation Management
Leaders at Shiseido Future University
In November 2023, we opened Shiseido Future University (SFU), a facility fordeveloping next-generation management leaders, in Ginza, the place where
Shiseido was founded. The first president of this university is Masahiko Uotani,
the Representative Corporate Executive Officer, Chairman and CEO. Shiseidoof spirit appropriate for a beauty company — along with cutting-edge, globally

Shiseido Future University in Ginza

competitive business knowledge — for the purpose of creating value andinnovations that are unique to Shiseido. SFU runs original leadership programs
mainly for people identified as next-generation management leaders, who are
selected from among Group companies worldwide. The concept of thedevelops human resources into management leaders who set visions on theirinnovation while being inspired by the founder’s thoughts as well as the DNA
and heritage of Shiseido that have been passed down over 150 years.

Global leadership training● Social Contribution

own, enhance corporate value from a long-term perspective, and drive

SUSTAINABILITY REPORT 2023

university is “Inspired by our Heritage & Building Our Future.” The university● DE&I of Employees at Shiseido

Future University aims to develop leaders with a sense of beauty and richness● Promoting Respect for Human Rights

Wellness Support Group, an organization that
promotes good health and safety among
employees

Data“Our vision is to achieve zero lost time accidents by creating an environment for

Governancehealthily based on our perception that beauty and health are sources of● Empowering People Through the Power of Beauty

promote initiatives for employees and their families to live beautifully andSociety● Advancing Gender Equality

the creation and maintenance of healthy, safe workplaces by setting KPIs and71

Contents

Social Contribution

Top Message

Employee’s Social Contribution Activities
Shiseido aims to realize a sustainable world where everyone can experiencehappiness through the power of beauty. We believe it is important for each
employee to think about social and environmental issues and consider ways inwhich we can address them. Based on our sustainability strategies, we

Environment

encourage employees to participate in voluntary social contribution activities
across the fields of society and the environment. For example, in Japan, EMEA,
Americas, Asia Pacific and Travel Retail, schemes have been established toallow employees to take part in social contribution activities during working

Employees Around the World Make Social
Contributions on “Shiseido Camellia Day”
Every year since 2017, Shiseido has hosted “Shiseido Camellia Day” in EMEA
this initiative to all regions in 2021, and held “Shiseido Camellia Day” again in
2023. This day is aimed at bringing employees who volunteer during working
hours together to share their civic engagement, passions, and skills for the
benefit of the associations in their regions.

participated in various activities tailored to the needs of their local
communities.
In Shiseido EMEA, more than 960 employees from countries such as Belgium,
Germany, France, Italy, Spain, Switzerland, and the United Kingdom participatedin programs to promote environmental conservation, Diversity, Equity, andknowledge to contribute to their local communities. In Italy, we provided mental

Makeup support being provided in Italy

support with makeup for women receiving cancer treatment, in collaboration
with “La Forza e il Sorriso,” a cancer patient support organization that has built
a cooperative relationship with us over many years. Our initiatives in otherregions include activities for conserving green zones in urban areas and support
for “Association La SAUGE,” which drives agricultural activities while protecting
ecosystems.
In Shiseido Americas, more than 1,200 employees from across the region
Canada, and Brazil, respectively, under the theme of “Power of Community.”
Through “THE BEAUTY OF HELPING OTHERS” program, in which employees
take part in social contribution activities throughout the year, Shiseido
Americas partnered with 16 different non-profit organizations to host more than
22 events across the United States and Canada. Volunteers cleaned beaches
number of activities to protect the global environment in New York, New Jersey,

In Asia Pacific and Travel Retail, more than 700 employees from countries andregions such as Singapore, Taiwan, Thailand and Vietnam participated in social
contribution activities for a week.
In Singapore, more than 150 employees participated in various volunteer● Social Contribution

Ohio, Texas, and Brazil, thus giving back to their communities.

SUSTAINABILITY REPORT 2023

and collected plastic waste in California, Florida, and Canada, and engaged in a

Beach cleaning activities in Florida● DE&I of Employees at Shiseido

volunteered to participate in social contribution activities in the United States,● Promoting Respect for Human Rights

Inclusion, and cultural and heritage education. They used their skills and their

Data

In 2023, we resumed in-person activities, and employees around the world

Governance● Empowering People Through the Power of Beauty— a day dedicated to employees making social contributions. We expanded

Society● Advancing Gender Equality

hours.

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activities supporting six local charity partners. The activities ranged frommentoring underserved youths to supporting marginalized women. Employees
also distributed food packs, which also contained daily commodities and otheressential supplies, to households needing support.

Top Message

In Taiwan, employees collaborated with Taipei Women’s Rescue Foundation tocreate a Camellia Gift Box for Christmas. The gift box was created with the aimof providing comprehensive aid supplies with an extensive lineup of donation
items, including not only Shiseido products but also daily necessities,

Food packs being prepared in Singapore

stationery, and sweets. With a handwritten Christmas message attached, thegift box was used to support more than 600 individuals in need. In addition toEnvironment

the above, we engaged in activities in each region. They included providing
makeup services and grooming tips for working mothers, sponsorship ofscholarships for of students, and beach cleanup activities.

The “Shiseido Camellia Fund” is backed by charitable contributions from current
and retired Shiseido Group employees. It supports NPOs working to solve social
issues. The “Shiseido Camellia Fund” began in Japan in 2005 and expanded to
EMEA, Americas, Asia Pacific and Travel Retail in 2020. It supports initiatives
environment. This includes initiatives in the areas of women’s empowerment,children’s education, environmental conservation, and disaster relief.
Read more about Shiseido Camellia FundAt Shiseido, we express our commitment to building a peaceful and healthysociety and support international students from Ukraine as future leaders of
the country under our corporate mission of “BEAUTY INNOVATIONS FOR A● Promoting Respect for Human Rights

BETTER WORLD.” In March 2022, we donated 1 million euros (approximately 130
million yen) through the United Nations High Commissioner for Refugees(UNHCR) to be used for the immediate aid of the evacuees, and also provided
skin care products and daily necessities. We also implemented a donationmatching scheme and organized a system to accept voluntary employee
donations wherever Shiseido operates (approximately 60 million yen). Our
Osaka Ibaraki factory in Japan hired two Ukrainian evacuees to provide themwith a safe working environment. We hosted the Shiseido Charity Concert“MUSIC for PEACE” at Suntory Hall*1, the proceeds (approximately 30 million
funding to help cover the living expenses of five Ukrainian international
students studying at ICU (International Christian University), so that they canconcentrate on their studies.
In 2023, we provided five students from Ukraine with the tuition fees needed
until their graduation. We also engaged in various activities to help approx. 100
Ukrainian students live and develop their careers in Japan, such as participatingin events for recruiting evacuees to share knowledge with other companies andhumanitarian organizations around the world to provide long-term support for
Ukrainian evacuees.

Holdings Corporation, Daiwa Securities Group Inc., andTokio Marine & Nichido Fire Insurance Co., Ltd., with thecollaboration of Dentsu Inc.
*2	An organization that aims to pave the way for refugees
through education, and accepts refugees into Japan.

● Social Contribution

future, the Shiseido Group and its employees will continue to work with*1	Co-sponsored by Suntory Holdings Limited, Seiko

SUSTAINABILITY REPORT 2023

● DE&I of Employees at Shiseidoyen) from which were donated to Pathways Japan*2. Additionally, we offeredoffering the students advice on job hunting and career development. In the

Data

Support for Ukraine

Governance● Empowering People Through the Power of Beauty

tailored to the needs of each region across the fields of society and theSociety● Advancing Gender Equality

Shiseido Camellia Fund

73

Contents

GOVERNANCE
into practice and reinforcing the corporate governance, and“BEAUTY INNOVATIONS FOR A BETTER WORLD” as OUR

strives to maximize medium- and long-term corporate andMISSION in its Corporate Philosophy THE SHISEIDO

shareholder value through dialogues with all stakeholders,

PHILOSOPHY, and defines the corporate governance as our“employees,” “consumers,” “business partners,”“platform to realize sustainable growth through fulfilling“shareholders,” and “society and the Earth.” In addition,

OUR MISSION”.

while fulfilling social responsibilities, the Company aims to

The Company is committed to maintaining and improving

achieve optimized distribution of values to respective

management transparency, fairness and speed, by putting

stakeholders.

Environment

The Shiseido Group including the Company has establishedTop Message

Corporate Governance Policy

Society

Corporate Governance System
Transition from a “Company with an Audit &Supervisory Board” to a “Company with Three Statutory Committees”
corporate governance through a range of initiatives

reinforced by focusing on determining the basic

including the adoption of governance system aligned withmanagement policy and management strategy whilethe “monitoring board-type system” where the board isoverseeing the implementation thereof in order toputting more focus on oversight responsibilities to ensure

accelerate the overall business execution of the Company

transparency and fairness in governance practice, while

in a rapidly changing environment. Nominating Committee

ensuring effective strategic planning and timely execution

and Compensation Committee, each composed solely of

thereof. Now, we take this effort a step further, theIndependent Directors are responsible for appointment ofCompany has transited to a Company with Three Statutory

Directors and remuneration of Directors and Corporate

Committees in order to maximize corporate value based on

Executive Officers with fairness, transparency, andresolution of the Ordinary General Meeting of Shareholders

objectivity for successful implementation of our businessheld on March 26, 2024.

strategy. Furthermore, with the strengthened function ofUnder this structure, by clearly separating the functions

the Internal Audit Department, the Audit Committee

between management oversight and execution of the

conducts highly effective audit, whereas Corporate

Company’s business while strengthening each of these

Executive Officers and Executive Officers are responsiblefunctions, the Company ensures effective implementation

for the execution of the Company’s business through anof its strategies even in the increasingly volatile businessaccelerated decision-making process under the directenvironment.

supervision of Representative Corporate Executive Officers.

Data

The oversight function of the Board of Directors will be

Governance

The Company has long been committed to improving the

SUSTAINABILITY REPORT 2023

74

Contents

The following is the Company’s corporate governance framework:
General Meeting of Shareholders
Proposal/Report based on
applicable laws andregulations

Appointment/
Dismissal of Directors

Approval

Audit
Committee

ReportOversight

Proposal /ReportAudit

Direction asnecessary

Global Strategy Committee / Business Plan Meeting

Global Risk Management &Compliance Committee

Internal
Audit
Department

Cooperation

Corporate Executive Officers / Executive Officers

Internal
Audit

Society

Global Transformation Committee(Progress management and review for structural reforms and growth strategies)

ReportProposal/Report(Business plans and important issues are deliberated to ensure multifaced consideration)

Command/Oder/
Instruction

Business Execution function

Representative Corporate Executive officer, Chairman and CEO
Representative Corporate Executive officer, President and COO

Environment

Appointment/Dismissal ofRepresentative Corporate Executive
Officers/Corporate Executive Officers

ReportDirection

Top Message

Compensation
Committee

Accounting
AuditorAccounting audit

Oversight function

Audit/
evaluation

Audit

Board of Directors
Nominating
Committee

Appointment

Meetings according to themes such as Innovation Committee, Sustainability Committee

second line and the Internal Audit Department on the thirdpromoting of the Three Lines Model contributes toline work together while aiming to promote healthy growthstrengthening corporate governance, the businessstrategies and enhance sustainable corporate value, anddepartment on the first line, the function department of theestablishment and improvement of risk scenarios and risk

global headquarter and the regional headquarters on the

mitigation activities are continuously carried out.

Data

In addition to the above structure, with the recognition that

GovernanceBusiness Execution (Divisions / Subsidiaries / Affiliates etc.)

Read more

Diversity of Directors
The Company believes that its Board of Directors should berace, personality, and insights and experiences in various

composed of Directors with various viewpoints andfields related to management. In addition, the Company has

backgrounds in addition to diverse and sophisticated skills,

set a certain maximum term of office for External Directors

required for effective oversight of the execution ofin order to reflect their independent views to thebusiness.

management of the Company, and allows a handover period

When selecting candidates, we place importance on

from long-serving External Directors to newly appointed

ensuring diversity, taking into account not only genderones to ensure appropriate transition.

equality, but also other attributes such as age, nationality,
Read more

SUSTAINABILITY REPORT 2023

75

Corporate Executive Officers as an important matter for

remuneration levels by benchmarking peer companies in thecorporate governance. For this reason, in accordance withsame business industry or in the similar business size inside

the basic philosophy, the Directors and Corporate Executive

or outside Japan and by taking the Company’s financial

Officers remuneration structure is deliberated and decided

condition into consideration. The remuneration of individualin the Compensation Committee chaired by an External

Directors and Corporate Executive Officers are determined

Director to incorporate objective points of view.

after deliberations by the Compensation Committee.

The remuneration of Corporate Executive Officers (including

In addition, External Directors who are independent fromthose who concurrently assume the position of Directors)

business execution and Directors who are the members ofcomprises “basic remuneration” as fixed remuneration as

the Audit Committee receive only basic remuneration, as

well as “annual incentive” and “long-term incentive-type

variable remuneration such as performance-linked

remuneration (non-monetary remuneration)” as

remuneration is not appropriate.

Environment

performance-linked remuneration, and the Company sets

Top Message

The Company regards the remuneration for Directors andContents

Remuneration for Directors and Corporate Executive Officers

Read more

Society

Succession Plan for CEO
challenges of the Company. Furthermore, when actually

the Nominating Committee with the cooperation of theselecting the CEO’s successor, the Nominating Committee

incumbent CEO. The CEO and the Nominating Committee

thoroughly deliberates on matters such as the final

formulate the succession plan based on the Company’s

candidate and their selection process before making

business environment from a medium-to-long-term

recommendations. The Board of Directors then makes theperspective upon sufficient discussions on various

final decision on the appointment.

viewpoints such as the qualifications for a CEO, policies for

In 2019, the Company developed a five-year succession plan

the selection of a successor, and his or her training policies.

framework for the CEO. In accordance with this framework,

The progress of the formulated succession plan is regularlya CEO successor was selected over a period of three years

reported to the Nominating Committee, which monitors its

and a successor was approved in November 2022. The

status of implementation.

Company aims to realize a smooth CEO succession andRegarding selection of specific candidates for the CEO, thestrengthen its management structure by making theNominating Committee receives full reports from the CEO

successor have ample time to take on the responsibility toabout the candidate from various perspectives and engage

lead the Company in cooperation with the incumbent CEO.

in discussions. Additionally, the Nominating Committee

We will continue to conduct objective monitoring bymembers themselves conduct interviews and exchange

external directors and execute the succession plan for a

opinions with candidates, evaluating them from ansmooth transition.

Data

independent standpoint while considering the management

the development of the succession plan are carried out by

Governance

The selection of candidates of successor for the CEO andRead more

SUSTAINABILITY REPORT 2023

76

Contents

External Evaluations
Shiseido received positive evaluations from Socially

Selection Status

countries worldwide and was selected for inclusion as a

Top Message

Major ESG Indexes

Responsible Investment (SRI) evaluation institutions ofconstituent company for SRI indexes, which take account ofEnvironment

companies that are highly trusted by society in terms of
ethics, environment, employment and safety in their

Click here for External Evaluations of Shiseido Corporate Website

operations, in both Japan and overseas.

GlobalSociety

FTSE4Good Index Series

Read more

Read more

Governance

Dow Jones Sustainability World Index (DJSI
World) Dow Jones Sustainability Asia PaciﬁcIndex (DJSI Asia Paciﬁc)

S&P/JPX Carbon Efficient Index

Read more

Read more

SOMPO Sustainability Index

Morningstar Japan ex-REIT Gender Diversity Tilt
Index*1

MSCI Japan ESG Select Leaders Index

Read more

MSCI Japan Empowering Women Index (WIN)
Read more*1

Calculation started in
March 2023

Read more

SUSTAINABILITY REPORT 2023

Read more● Editorial Policy

FTSE Blossom Japan Sector Relative Index

Read more● Sustainability Data

FTSE Blossom Japan Index

Data● External Evaluations

Japan

77

Contents

Evaluation of Sustainability andCollaboration with External Organizations

Top Message

Evaluation
Awarded first double A rating from CDP

Dow Jones Sustainability Asia Pacific Index for the Third

News release

Consecutive Year

Environment

Included in the Dow Jones Sustainability World Index andNews release

Recognized as Certified Health & Productivity Management

Wins first place in Forbes JAPAN WOMEN AWARD 2023’s

Outstanding Organization (White 500)

“Corporate Ranking”

News release

News release

Ranked No. 1 Overall for third consecutive year in 100 Best

Receives its first “Promotion Award” at Women’s HealthCompanies Where Women Actively Take PartManagement® Awards

News release

News release

Recognized as Excellent Company for Promoting Cancer

Shiseido Future University receives LEED Gold®

Control

Certification

Read more (in Japanese only)

News release

Shiseido Headquarters Shiodome Office achieves highest

Received the Encouragement Award in the 20th LCA Japan“S-Rank Evaluation” in “CASBEE-Wellness Office Certification”

Forum Awards

News release

Read more (in Japanese only)

RE100

SBT

News release

News release● Editorial Policy

Collaborations with external organizations

Data

News release

GovernanceNews release

Societyyear● Sustainability Data

Selected as a “Nadeshiko Brand” for the fourth consecutive

Receives “AA” from MSCI ESG Rating● External Evaluations

Included in the MSCI Japan ESG Select Leaders Index

SUSTAINABILITY REPORT 2023

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Sustainability Data

Top Message

Environmental Data

The data marked with ● in the figure below has been third-party certified.

Assurance Statement for Environmental Data [424KB]

Environment

CO₂
Scope 1,2 *1 (t)

Total

2020

2021

2022

2023

78,750 ●72,458 ●65,481 ●46,439 ●34,722 ● *3

96.8

100.0

100.0

100.0

100.0

27,036 ●25,968 ●28,744 ●23,912 ●21,105 ●

95.0

100.0

100.0

100.0

100.0

Coverage(%) *2
Scope1
Coverage(%) *2

51,714

Coverage(%) *2

98.0

46,49036,737●100.0

22,527●100.0

13,617 ●

●

100.0

*1

Targeting energy-derived CO and the performance data was calculated based on the GHG Protocol. Scope 2 was based on the market-based method.		

*2

At all sites.

*3

Total emissions after the deduction of carbon credits (for �3,581 t) is 31,141 t

100.0

2021

2022

2023

2,770,000

2,540,000

1,520,000

1,510,000

973,000

Purchased goods and services

644,000 ●528,000 ●953,000 ● *2

931,000 ●509,000 ●Category 2

Capital goods

231,000

246,000

225,000 ●150,000 ●139,000 ●Category 3

Fuel and energy related activities

15,60013,20012,600

9,500

9,740

Category 4

Upstream transportation and distribution

110,000

85,40051,600 ● *4

67,500 ●37,200 ●Category 5

Waste generated in operations

20,70033,00015,100 ●15,500 ●13,900 ●Category 6

Business travel

14,700

1,600

900

2,400

9,460

Category 7

Employee commuting

5,200

6,200

8,500

7,500

7,990

Category 8

Upstream leased assets

0

0

0

0

0

Downstream transportation and distribution

―

―

―

87,000 ● *3

0

0

0

0

Category 9

Category 10 Processing of sold products
Category 11 Use of sold products
Category 12 End of life treatment of sold products

74,300 ●01,580,000 ●

1,540,000 ●

134,000 ● *4

143,000 ●108,000 ●148,000 ●82,900 ●118,000 ●94,600 ●59,400 ●Category 13 Downstream leased assets

0

0

0

0

0

Category 14 Franchises

0

0

0

0

0

Category 15 Investments

―

―

―

2,800

Used IDEA v2 and ecoinvent v3.8 as CO₂ calculation basis database.

*2	Emissions from land-use change related to the procurement of raw materials and ingredients were taken into account from 2021.
*3

Downstream transportation & distribution and Investments were taken into account from 2022.

*4

Excluding the sold business and brands.

Calculation method [PDF : 586KB]

*3

4,940

SUSTAINABILITY REPORT 2023

*1

● Editorial Policy

Category 1

Data

2020

● Sustainability Data

2019

● External Evaluations

Scope 3 *1 (t)Total

Governance

Scope2●Society

2019

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Scope1,2,3 Total (t)

Total

2019

2020

2021

2022

2023

2,848,750

2,612,458

1,585,481

1,556,439

1,008,126

Top Message

Avoided CO₂ emissions (t)Each stage of the value chain

Avoided CO₂ emissions
2,900

End of life

1,300

Total

4,200

Environment

Procurement

Society

Energy (MWh)2023

289,280

298,589

322,527

304,962

239,863

Coverage(%) *1

96.8

100.0

100.0

100.0

100.0

Electric power

115,228

127,188

137,881

141,841

127,305

Gas *2

122,636

128,568

139,424

109,953

58,413

LPG

2,771

2,552

2,370

2,559

1,778

Fuel *3

24,35816,14620,181

20,43624,129Steam

24,28624,13522,67130,172

28,239

2020

2021

2022

2023

Energy consumption*1

At all our sites.

*2

Total consumption of city gas and natural gas.

*3

Total consumption of gasoline, kerosene, diesel oil and fuel oil.

*4

Non-renewable energy consumption in 2023 : 131,037 MWh.

Water*1 (Mil. m3)
Water withdrawals

1.2 ●

1.2 ●

1.2 ●

1.1 ●

0.8 ●

Municipal water

1.0

0.9

0.9

0.7

0.5 ●

Municipal water(Industrial grade)

0.1

0.1

0

0

0●

Ground water

0.1

0.3

0.3

0.3

0.3 ●

Water discharged

0.9 ●

1.0 ●

1.0 ●

0.9 ●

0.6 ●

Sewage

0.9

0.8

0.8

0.8

0.4

0

0.2

0.2

0.1

0.2

Surface water● Editorial Policy

2019

*4

Data

2022

Governance2021● Sustainability Data

2020

● External Evaluations

2019*1	2019-2020: Production sites (covarage:100%). 2021: Production sites (coverage:100%) and domestic research centers.
2022-2023: Production sites(coverage:100%) and research centers (covarage:100%).
• Other sources of water withdrawals (surface water, harvested rainwater, external wastewater, sea water, quarry water) in 2019-2023: 0m3.
• Total net fresh water consumption in 2023 (water consumption excluding the amount of wastewater returned to the same water source): �0.8 million m3.
• Percentage of water withdrawal and water consumption in areas with high or very high water stress as classified by the World Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct in 2023: 11%.

SUSTAINABILITY REPORT 2023

• Other destinations of water discharged (ocean, subsurface / well, off-site water treatment, beneficial / other use) in 2019-2022: 0m3, in 2023: 831,057m3.

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Waste generated in operations*1 (t)
2020

2021

2022

2023

Waste discharged

14,297

12,825

13,096 ●12,560 ●10,895 ●Recycled *2

13,91012,77913,03812,473

10,813 ●Disposed

387

47

58 ●

87 ●

Top Message

81 ●2019-2021: Production sites(Coverage 100%) and domestic research centers.

Environment

*1

2019

2022-2023: Production sites(Coverage 100%) and research centers(Coverage 100%).
*2

Including thermal recovery.

Environmental pollution (Air/Water)(t)27

Coverage(%) *1

81.8

SOx emissions

0

Coverage(%) *1

81.8

Chemical Oxygen Demand

103 ●Coverage(%) *1

90.9

24 ●

23 ●

90.9

2022

100.0

0●
90.9

0●

100.0
0●

10 ●
100.0
0●

91.7

91.7

68 ●

52 ●

46 ●

91.7

Production sites.

Including those functions, Shiseido observes environmental laws andregulations thoroughly by conducting compliance evaluation based on
ISO14001 standards. Investigations of domestic and overseas affiliates revealed
no major violations of environmental laws or regulations in the last 5 years● Editorial Policy

including 2023. Shiseido is committed on appropriate operation that complies

92.3● Sustainability Data

In terms of environmental law, key function of the company is production sites.

92.3

Data

Responding to Environmental Risks

with the environmental laws and regulations continuously.

31 ●

91.7

70 ●
90.9

2023

GovernanceNOx emissions

2021● External Evaluations

*1

2020

Society2019

SUSTAINABILITY REPORT 2023

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Social Data

Data marked with ● has been third-party certified.

Assurance Statement for Social Data

Number of Shiseido Group Employees
2021

2022

2023

2024

46,76345,52740,48438,87835,675

85.6

83.0

82.2

81.9

82.2

Ratio of Women (%)

PERIOD: As of January 1 each year
SCOPE: Shiseido Group in Japan (21 companies)

Number of Employees by Region (persons)
2021

2022

2023

2024

24,884 ●24,903 ●23,458 ●22,129 ●20,793 ●

2020

2022

2023

52.7

57.5

58.3

58.1

58.8

33.1 ●

34.7 ●

37.3 ●

37.6 ●

40.0 ●*1

Ratio of women junior managers in entire Shiseido Group: 64.7%.

*2

Leaders: Manager position holders and annual salary system employees. Scope: Shiseido Group in Japan (21 companies)*1

PERIOD: As of April 1 each year

2021

2022

2023

2024

Ratio of women on Board of Directors *1 (%)

46.2

46.2

46.2

40.0

45.5

External directors ratio on Board of Directors (%)

53.8

53.8

53.8

53.3

63.6

Ratio of women executive officers (%)

25.0

31.6

35.3

35.3

40.0

Ratio of women of all top management*3 (%)

28.3

41.7

42.9

44.1

43.8

*2

● Editorial Policy

2020● Sustainability Data

Diversity in Top Management

*1

2024

Data

To achieve 50%*2

2021● External Evaluations

Japan Target:

Governance

PERIOD: As of January 1 each year in Japan, andDecember 31 of the previous year outside Japan

Ratio of Women Leaders (%)
Entire Shiseido Group

Society

2020
Japan

Environment

2020

Total (persons)

Top Message

PERIOD: As of January 1 each year in Japan, andDecember 31 of the previous year outside JapanSCOPE: Entire Shiseido Group	Ratio of women directors and Audit & Supervisory Board members is shown until 2023. With the transition to a “Company with Three Statutory Committees” at the 124th Ordinary General Meeting(March 26, 2024), the ratio of women directors is shown from 2024.

*2

Ratio of women corporate officers*3

Leaders within 2 levels from the CEOSUSTAINABILITY REPORT 2023

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2020

Contents

Ratio of Employees with Disabilities *¹ (%)

PERIOD: As of June 1 each year

2021

2022

2023

3.25

3.04

3.89

4.18

4.52

Shiseido Group in Japan *2

2.12 ●

2.22 ●

2.44 ●

2.65 ●

2.82 ●

Target

2.2

2.2

2.3

2.3

2.3

Top Message

Shiseido Company, Limited*1	Ratio of employees with disabilities: Physically and intellectually disabled persons are included, and the employment rate for disabled persons is indicated by three significant figures.
*2

Shiseido Group in Japan: 12 special subsidiary companies of Shiseido Group.

Environment

LTIFR*¹
2021

2022

2023

Directly hired
employees(Coverage (%))

0.87（100）●

0.77（100）●

0.74（100）●

0.68（100）●

0.89（100）●

Indirectly hired
employees(Coverage (%))

0.00
（39.6）●

2.56（79.5）●

0.73（85.0）●

1.05（93.0）●

0.53（85.0）●

Directly hired
employees(Coverage (%))

―

1.6
（100）

1.9
（100）

1.8
（100）

1.5
（100）

*1

Lost Time Injury Frequency Rate (LTIFR): Number of work-related accidents/Total hours worked x 1,000,000.

*2SCOPE: Shiseido Group in Japan (21 companies).

2021

2022

2023

2024

13,334

13,672

13,43812,93012,731

Ratio including
contract
employees *1

53.3

55.0

56.6

58.3

58.2

Ratio excluding
contract
employees *2

76.5

77.3

77.1

78.3

78.3

Shiseido Group in Japan

Shiseido Groupin JapanNumber of labor union members/Number of employees (including managerial position holders and contract employees, but excluding temporary staff and corporate officers) × 100*2	Ratio of employees subject to collective bargaining agreement among all employees excluding contract employees =Number of labor union members/Number of employees (including managerial position holders, but excluding contract employees, excluding temporary staff and corporate officers) × 100● Editorial Policy*1	Ratio of employees subject to collective bargaining agreement among all employees including contract employees =DataRatio of Labor
Union Members
(%)

2020

● Sustainability Data

Number of Labor
Union Members（persons）

PERIOD: As of January 1 each year

● External Evaluations

Labor Union

Governance

Shiseido Groupoutside Japan

2020

Society

Shiseido Groupin Japan *2

2019

SUSTAINABILITY REPORT 2023

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Editorial Policy

Top Message

The “Sustainability” section of the Shiseido Group corporate website is edited according to the following policy.
We report the activities that lead to the solution of social issues and the role that we play in a sustainable world.
We explain how we create social value that we provide as a company to various stakeholders.

Environment

Scope
Shiseido Company, Limited and its consolidated subsidiaries (collectively, the Shiseido Group)

Society

Target period
Mainly fiscal 2023 (from January 1, 2023 to December 31, 2023).
Some pages include content which is prior to the target period or is more recent.

Governance

Reference guidelines• UN Global Compact• TCFD (Task Force on Climate-related Financial Disclosures)• SASB (Sustainability Accounting Standards Board)• Environmental Reporting Guidelines of the Ministry of the Environment (2018 edition)

June 2024

Some environmental and social data are third-party certified, which is marked with ● in data.

● Editorial Policy

Assurance Statement● Sustainability Data

Update period

Data• TNFD (Task Force on Nature--related Financial Disclosures)● External Evaluations• GRI Standards (Global Reporting Initiative)

Environmental Data
Social Data

SUSTAINABILITY REPORT 2023

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Information Disclosure
Pre-Financial Information

Financial Information

Top Message

ReportSustainability Report
Corporate Governance Report
Annual Securities Report

Environment

Integrated Report

Corporate Website
IR Library

R&D / Supply Network

Stock and Bond Information

Society

Sustainability

Corporate Governance

GovernanceOur sustainability initiatives are also disclosed in our Corporate WEB site and Integrated Report.

Data● External Evaluations● Sustainability Data
● Editorial Policy

SUSTAINABILITY REPORT 2023

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OUR MISSION is

BEAUTY INNOVATIONSFOR A BETTER WORLD

Sustainability Strategy Acceleration Department
Corporate Transformation Acceleration Division
Shiseido Company, Limited
Address: 6-2, Higashi-shimbashi 1-chome, Minato-ku, Tokyo 105-8310, Japan
Tel: +81-3-3572-5111
URL: https://corp.shiseido.com/en/