The KOSÉ Group Modern Slavery Statement
KOSÉCorporationandKOSÉGroupcompanies(hereinaftercollectively referred to as the "KOSÉ Group" or the "Group") disclose
the following information on our initiatives in our business activities
and supply chains in fiscal 2023 (from January 1 to December 31,2023) to prevent slavery and/or labour under conditions of slavery
and human trafficking based on the provisions of Section 54 of theUK Modern Slavery Act 2015.

Introduction
The KOSÉ Group respects the human rights of all people involved in
all our business activities and supply chains. In addition, with astrong recognition that there should be no negative impacts onhuman rights, we continue to conduct activities to ensure that noform of slavery or human trafficking is practiced in our business orsupply chains.

Organisation's Structure
KOSÉ Corporation, the ultimate parent company of the KOSÉ Group, isa global cosmetics company founded in Japan in 1946 with theCorporate Philosophy "Create a culture and values embodying a
distinctive beauty through a sophisticated fusion of sensuousness
and intelligence" and the Corporate Message “Creating Beauty in a
Sustainable World”. The KOSÉ Group, consisting of KOSÉ Corporationand its 38 consolidated subsidiaries with over 13,000 employees
worldwide, is engaged mainly in the manufacture and marketing ofcosmetics. The Group's products, including those in e-commerce
operations, are currently sold in 68 countries or regions, withconsolidated sales of 300.4 billion yen in fiscal 2023.

Our UK branches, KOSÉ Corporation UK branch and ALBION Co., Ltd.
London branch, import, market and distribute the Group's products in
the United Kingdom. In the United Kingdom, Tarte, Inc. also distributes
its products.
For more information about the Group, please visit:https://www.kose.co.jp/company/en/

Our Supply Chains
The KOSÉ Group procures raw materials from suppliers in various
regions such as Asia, including Japan, Europe, and the United States,and conducts manufacturing at its own factories in Japan andTaiwan. We also outsource the manufacture of some of our cosmetic
products and purchase finished products from our suppliers.
To provide better products and services at every stage ofprocurement, manufacture, distribution, and marketing, and topromote sustainable procurement initiatives, it is essential tostrengthen cooperation with a wide range of suppliers both insideand outside Japan, and this is one of the most important issues forus.
For more information about our supply chain management, please
visit: https://www.kose.co.jp/company/en/sustainability/scm/

Our Policies
Since 2017, the KOSÉ Group has been a signatory to the United
Nations Global Compact, the world's largest sustainability initiative
for businesses and organizations. The key principles of this Compact
include support for human rights and the elimination of all forms offorced and compulsory labor and child labor, and we are acting tofulfill this responsibility.

We have formulated our own KOSÉ Group Action Guidelines, whichstate that we will act with integrity in accordance with “Mind toFollow the Right Path”, which was the motto of Kozaburo Kobayashi,
the founder of KOSÉ Corporation, while respecting the human rights
of all people involved with the Group, including our employees,
suppliers and other business partners, and customers.
To further promote the human rights initiatives of the KOSÉ Group
Action Guidelines, we have formulated the KOSÉ Group HumanRights Policy in line with the United Nations Guiding Principles onBusiness and Human Rights, as well as complying with the principles
set out in the International Bill of Human Rights and otherinternational standards, and we work to ensure that there are no
human rights abuses, including slavery and human trafficking, at any
stage of our business operations or supply chains. In addition, in theKOSÉ Sustainability Plan, which defines our approach tosustainability, we have identified the promotion of respect for humanrights as one of the principles on which the KOSÉ Group should baseitself and we are determined to promote effective initiatives.

As for actions toward our Group employees and society, in addition
to having employees sign a pledge that requires compliance with theKOSÉ Group Action Guidelines, we conduct educational andawareness-raising activities through annual compliance education. At
the supply chain stage, we have formulated the Sustainable
Procurement Guidelines for Suppliers as a supplement to theprocurement policy of the Group, and we have provided our supplierswith full explanations and ascertained their actual situations in orderto ensure their full comprehension of our commitment to respect forhuman rights. In addition to these initiatives, we have obtained
declarations from our suppliers that they will fulfil their corporatesocial responsibilities (CSR).

Human Rights Due Diligence
The KOSÉ Group is promoting human rights due diligence based on
the laws and regulations of each country in which it operates, inaccordance with the procedures of the United Nations Guiding
Principles on Business and Human Rights (UNGPs).
This is an ongoing process involving communication with our external
stakeholders in relation to the following aspects, based on theGroup's Human Rights Policy: (i) Assessment of possible negative
impacts and identification of issues to be addressed; (ii)
Implementation of appropriate measures; (iii) Monitoring and followup evaluations; and (iv) Information disclosure.
In addition, the KOSÉ Group has established dedicated internal andexternal help desks (hotlines) in order to mitigate any negative
human rights impacts should they occur. These hotlines guarantee
confidentiality and anonymity to ensure that whistleblowers are notplaced at any disadvantage. In the event of any negative humanrights impacts, we will promptly take steps to provide relief to thoseaffected.
In fiscal 2023, there were no issues reported to the above hotlinesthat were serious enough to constitute a human rights abuse, suchas participation in modern slavery or human trafficking.

The progress of these human rights due diligence processes isreported twice a year to the Sustainability Committee, which issupervised by the Board of Directors and chaired by the President &CEO, and resolutions on future promotion are made. In addition, we
have a monitoring system in place, consisting of a working group topromote initiatives to respect human rights, established within theSustainability Promotion Committee under the Sustainability
Committee, in order to prevent human rights abuses, including
modern slavery and human trafficking, at all stages of our businessand supply chains. It is led by the division specializing insustainability, human resources and purchasing departments, withthe cooperation of the legal department, which manages thereporting hotlines.

Risk Assessment and Management
Of the four processes of the KOSÉ Group's human rights due
diligence, to determine (i) Possible negative impacts and issues tobe addressed, and (iii) Monitoring and follow-up evaluations, wehave conducted a Human Rights Risk Assessment (assessment ofpotential risks to human rights arising from business activities).
This is an internal assessment of actual and potential human rights
risks in the business value chain based on the Human Rights
Guidance Tool developed by the United Nations Environment
Programme Finance Initiative (UNEP FI), and a desktop study onhuman rights risks in each country where the Group operates. In
addition to the above and taking into consideration social
perspectives acquired through engagement with rights-holders, wehave assessed particularly important human rights issues based on
the likelihood of potential and actual negative human rights impacts
within and outside of Japan, as well as the status of preventive andcorrective measures implemented by the Group in response to those
impacts.

As a result of these risk assessments, we have determined that it isnecessary to keep promoting “ongoing understanding of humanrights issues in the raw material procurement supply chains” as wellas “diversity and inclusion in the company and human rights(especially human rights of foreign employees and gender diversity)in the workplace” as the human rights issues that we should address.
Furthermore, it was confirmed that, in order for the Group to have apositive impact on society through its respect for human rights, it isalso important to promote “diversity-friendly communication ofinformation and responses (public relations, advertising, customer
service, product explanations, etc.)”.

With regard to the above, the human rights risk identification process
and efforts, and, in particular, the objective validity of the issues tobe addressed by the Group, have been assessed by a third-party
organization specialized in human rights risk assessment.

Performance Assessment― Business activities
The KOSÉ Group conducted a qualitative survey of all of its businessfacilities (50facilities/departments, response rate: 100%) by using ahuman rights self-check sheet, to understand the human rights risks
and countermeasures which vary according to the characteristics ofeach facility and business. We also hear from our own production
factories with relatively large numbers of foreign employees, about
the numbers and nationalities of their foreign employees andmeasures taken to ensure that foreign employees are notdisadvantaged. Combining this information, it was confirmed that
there were no serious human rights abuses, including slavery andhuman trafficking, in our business activities in fiscal 2023.

― Supply chains
KOSÉ Corporation undertakes to verify the status of its suppliers. For
example, we ask our primary suppliers with a transaction value of acertain amount or more, to complete a Self-Assessment
Questionnaire (hereinafter referred to as SAQ) using the CSR
Procurement Self-Assessment Questionnaire of the United Nations
Global Compact Network Japan (GCNJ) every year. Scores of 70% orabove are categorized as Level 3, the highest of all the three scoringlevels; scores of 50% or above but lower than 70% are Level 2; andscores of lower than 50% are Level 1. For suppliers with low scores,
their SAQ response results are reviewed in detail by both sides, andrequests for improvements are made as necessary. In particular, forsuppliers with low scores in human rights and labor issues andenvironmental impacts, we provide advice on setting targets to beachieved through meetings during onsite inspections and otheroccasions, and ask for reports on the results of the actions they havetaken.

In fiscal 2023, as in the previous year, we conducted an SAQ surveyof 161 suppliers regarding overall ESG issues, including human rights
and labor. Following close examination of the responses regarding
human rights and labor issues that we received from the 36
companies of Levels 1 and 2 (representing 23.0% of all thecompanies surveyed).

In fiscal 2023, we visited oil palm plantations in Malaysia and had
discussions with the Malaysian NGO, palm oil production companies,
and palm oil growers (small-scale farmers). Through these activities
we have ascertained that, as of the end of December 2023, there
are no particular CSR procurement risks, including slavery and humantrafficking, with any of our primary suppliers.
The KOSÉ Sustainability Plan sets a target to achieve “100%responsible palm oil procurement" by 2030, and our actual
procurement performance of KOSÉ Corporation and Albion Inc. infiscal 2023 was ３0.2 %, including procurement of certified raw
materials and purchase of RSPO credits under the Book and Claimsystem.
In addition, we have joined Sedex (Supplier Ethical Data Exchange;https://www.sedex.com/ ) to keep track of the status of our businessactivities and supply chains. While utilizing their various resources,

we will continue to address human rights and other issues to build
sustainable and responsible supply chains and our own businessactivities.

Training
Based on the KOSÉ Group Human Rights Policy, the Group
implements various training programs for employees to promote theidea of respecting human rights, including prohibition of modern
slavery and human trafficking, in our business and supply chains.

Examples in fiscal 202３
Lecture on understanding "Guiding Principles in Business andHuman Rights" and sharing human rights risk issues (Target:Management level, attendance rate: 100%)
Lecture on understanding unconscious bias for management thattakes into consideration the diversity of subordinates (Target:Newly appointed managers and leaders) (Participant rate: 100%)
Training for understanding various types of harassment prevention
using case examples (Target: Management-level employees
Number of trainees: 344)
E-learning courses on prevention of various types of harassment(Target:employees in Japan participation rate: 100%)

Further steps
Based on the KOSÉ Group Human Rights Policy, the KOSÉ Group willcontinue its efforts to ensure that the human rights of all people inour business and supply chains are free from negative impacts,
including slavery and human trafficking.

For more information about our initiatives in relation to HumanRights, please visit:https://www.kose.co.jp/company/en/sustainability/rights/

This statement is made pursuant to section 54 of the Modern Slavery
Act 2015 and constitutes our slavery and human trafficking
statement for the financial year ending December 31, 2023. It wasapproved by the Board of Directors on April 3, 2024.

Kazutoshi Kobayashi
President & CEO
KOSÉ Corporation and the KOSÉ group
April 3, 2024