Materiality:

Strengths and initiatives to help

“Actions for sustainable global environment”
About Mandom

Recently, the severity of environmental problems such as climate change and plastic marine pollution have been increasing year by
year, and the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) released in 2021 states that “It is
unequivocal that human influence has warmed the atmosphere, ocean, and land.” The report concluded that human activities are also
responsible for the increase in extreme events such as heat waves and heavy rainfall that have been occurring frequently in recent
years.
We recognize that the growing awareness of our stakeholders, including consumers and investors, toward the global environment will
have an impact on the continuity of the Companyʼs business activities in the future, and we believe that promoting global environmental
initiatives as a company will enhance our corporate value. We have been engaged in activities to reduce our environmental impact
to date, and we will further strengthen our efforts to reduce our environmental impact throughout the product life cycle, including
less dependence on plastics, with the aim of transitioning to a recycling-oriented society. Regarding reduction of greenhouse gas
emissions, we hope to realize virtually zero greenhouse gas emissions by 2050.

Value Creation Story

The Mandom Groupʼs Environmental Policies▲

For detailed items in the Mandom Groupʼs
Environmental Policies, please see our
website.

▲The Mandom Group, based on its corporate philosophy,
recognizes that environmental issues are a common issue for all humankind,and strives to understand the environmental impact of the entire value chain through its
business activities. We will strive to realize a sustainable society by creating value throughour core business, while cooperating with society to fulfil its wishes.

The Fukusaki Factory has separately
established the “Fukusaki Factory
Environmental Policy.”

Targets

1 By 2027, we aim to turn 90% of Mandom products sold inJapan into eco-friendly products.
2 By 2050, we aim to turn 100% of products sold by the

Mandom Group into eco-friendly products.

Progress

Materiality

Formulation of Targets and Associated Progress

53.5 %(as of March 31, 2023)* Target 1 : Progress against products sold in Japan
Middle-Range Planning

We place eco-friendliness as one of our product values and promote efforts to create value that empathizes with society inaccordance with the Mandom Group Eco-Friendliness Product Standards. As part of our effort, we have adopted our own ecofriendly product standards alongside medium- to long-term targets. We will promote efforts to make eco-friendly products in aid ofachieving sustainability across society while checking progress toward our targets. These standards will be updated on an ongoingbasis, with reference to the latest information on technology and developments in Japan and overseas while taking into account views,
expectations and wishes of all our diverse stakeholders.

Eco-Friendliness of Products

Procurement of
raw materials

Environmental issues

Biodiversity conservation andforest conservation

Climate change
Carbon neutrality/
CO2 emissions reduction
Product use
Water use reduction

Other

Waste reduction

Plastic waste reduction
Recycling Circular economy

Environmental-friendliness standards

Product that uses recycled paper with 80%+ content of waste paper pulp as material for its outer andinner box package inserts and other paper-based items
Product that uses FSC® certified paper as material for its outer and inner boxes, package inserts, andother paper-based items
Product that uses raw and other materials that have satisfied other international environmental
certification systems or criteria
Product that uses 25%+ plant-derived biomass content for its container and packaging materials
Product that uses 10%+ plant-derived biomass content for its laminate packaging
Product that uses 25%+ recycled materials for its container and packaging materials
Product that uses 50%+ recycled materials for its laminate packaging
Product that uses 20%+ less in power for dryer and gas for hot water supply when product is used,compared against benchmark
Product that uses 20%+ less water when product is used, compared against benchmark
Product that eliminates use of main container and packaging materials or reduces weight ordimension to achieve 10%+ less use of such packaging, compared against benchmark
Product that eliminates use of individually packaged units or reduces weight by 10%+ of suchpackaging, compared against benchmark
Refill product that reduces container weight by 50%+, compared to standard container weight
Product that has switched from petroleum-based plastic to alternative materials (e.g. paper, glass)
Product that uses mono materials that make separation for disposal easier(Notes) 1. Product that satisfies one or more of the criteria above shall be considered an eco-friendly product.
2. The benchmark will be a product manufactured in 2016 when Mandom revised the Environmental Policy.

Company Information

Disposal

Performance for the Fiscal Year Ended March 31, 2022

Life cycle stage(FSC®N003667)

Mandom Report 2023

39

Materiality: “Actions for sustainable global environment”

Initiatives to Reduce Plastic Waste
Plastic packaging, which is widely used in various fields including cosmetics, has the advantages of being lightweight, durable,
and easy to process. On the other hand, it becomes so-called “marine plastic” if it is not disposed of and managed properly
and ends up in the sea, and there is growing concern about its impact on the ecosystem. In addition, plastics derived fromfossil resources generate a large volume of CO2 emissions in their manufacturing process and when incinerated, and are also
said to be a cause of global warming. In order to preserve a sustainable global environment and contribute to a carbon-freesociety, Mandom set a medium- to long-term target of reducing the volume of virgin plastics derived from fossil resources byat least 25% (compared to FY2016) by FY2027.
Having positioned the reduction of plastic waste as a top-priority challenge in the eco-friendliness of its products, the MandomGroup will strengthen its efforts through the 4Rs (reduce (reduce use and emissions), reuse, recycle, and renewable (replacewith renewable materials)) to work towards reducing the use of plastics derived from fossil resources and addressing social
challenges.

ReducePromote initiatives to reduce the amount of plastics used and the amount of plastics
discarded by reducing the thickness and weight of containers and packaging as well as
sales promotion materials, and by adopting materials other than plastics.

Reuse

Promote the development of refillable and replaceable products with the aim of reducing
waste of single-use containers by enabling repeated use of main containers.

RecyclePromote the development of products that are easy to sort during disposal as well as
containers made of mono material for easy reuse or recycle and recycled materials.

Reduction of usage and emissions

Promotion of reuse

Promotion of recycling

Renewable

Promotion of switching to renewablematerials

Promote the switching to sustainable materials such as plant-based materials (biomass
plastics, etc.) to reduce the use of petroleum-based materials.

Examples of Initiatives to Reduce Plastic Waste
Example of “Reduce”

Example of “Reuse”

We removed the individual packaging of “GATSBY Facial Wipes/Body

We developed refill products in order to

Wipes” sold exclusively through e-commerce.

reuse main containers and reduce waste.

Example of “Renewable”
We changed the outer box of our “GBHair Self Trimming Kit” and “GB Mens
Eyebrow Kit” and the cases housing
the accompanying scissors and otherelements from a plastic to a paper
construction.

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Mandom Report 2023

Promoting a Recycling-Oriented Society
About Mandom

We have been maintaining a rate of 99% or higher for resource recovery fromindustrial waste to qualify for “zero waste emissions” since October 2003 at the
Fukusaki Factory. In FY2022, this was achieved at all Mandom business sites inJapan.
To encourage waste reduction and recycling at our head office building, we conduct
environmental awareness seminars relating to such topics as environmental
problems, and explain rules for proper waste classification and disposal to new
employees and individuals who have transferred to the head office building.
Waste emissions including general wastes were 3,314 tons in FY2022, a year-onyear decrease of 2.0%. We take this result seriously. Additionally, to further bolster
our initiatives geared towards a sustainable global environment as we prepare forthe transition to a recycling-oriented society, we joined the Japan Circular Economy
Partnership (J-CEP) in 2022. Using the knowledge that we gained in doing so, wewill endeavor to promote a circular economy going forward.

Value Creation Story

J-CEP is a new business co-creation partnership in
which companies and other entities that seek to realize asustainable society engage in the promotion of a circular
economy in cooperation with residents, governments,
universities, and other organizations.

Waste Resource Recovery Initiatives
Example of packaging paper initiative
Materiality

Nonwoven fabrics(raw materials) packed withpackaging paper upon delivery

Nonwoven fabrics withpackaging paper removed

After storing all the removed
packaging paper, it is collected by anintermediate processing contractor(Collection results for FY2022: 11.9 t)

Example of nitrile glove initiative
Middle-Range Planning

At the Fukusaki Factory, we conduct improvement
activities every year with an awareness of waste
resource recovery within the factory. As an exampleof these improvement activities, packaging paper
used as raw material for nonwoven fabric deliveries,
which used to be treated as waste, is now
collected by an intermediate processing contractor
and recycled as recycled paper. In addition, nitrile
gloves, which were collected by a contractor after
being sorted and collected post-use within thefactory, are recycled as raw materials for roadbed
materials and sand cushioning. We are committed
to further improvements and initiatives toward a
recycling-oriented society.

Nitrile gloves used at
production sites

Efficient Water Use
Water Input

Left axis: ■ Fukusaki Factory water supply ■ Fukusaki Factory industrial water ■ Office water supply
Right axis:
Per unit sales(1,000 m3)(m3/million yen)

150

120

1.676
90

60

30

0

2.5

2.219

81,2061.748
80,705

9,568
8,325

9,086
9,986

63,313

61,633

FY2018FY2019

1.963

1.828

2.0

1.5

71,002

72,34370,197

7,236
6,542

5,905
3,442

6,368
2,016

1.0

57,22462,996

61,8130.5

FY2020

FY2021Company Information

In FY2020, water resource usage decreased due
to a decrease in production volume, affectedby COVID-19 pandemic. In FY2022, production
volume recovered to exceed that of the previous
year. However, water resource usage was70,197m3, a year-on-year decrease of 3.0%.
At the Fukusaki Factory, we are regularly callingupon each department to save water, and reviewing
methods of cleaning production equipment, piping,and other facilities.
We will continue to emphasize efficient use
of limited water resources and the continuous
response to water resource issues as we aim to do
our part for a better environment.

After storing all sorted andcollected nitrile gloves, they
are collected by a contractor
involved in the initiative(Nitrile glove collection resultsfor FY2022: 2.2 t)

Performance for the Fiscal Year Ended March 31, 2022

Dedicated collection boxes are
set up onsite for sorting andcollecting after use

FY20220

Mandom Report 2023

41

Materiality: “Actions for sustainable global environment”

Promoting Measures toward a Carbon-Free Society
Initiatives related to Climate Change (disclosure based on TCFD*1 recommendations)Viewing climate change as one of its material issues(materiality) in sustainability, the Mandom Group has adopted“initiatives geared towards a carbon-free society” and “ecofriendly product manufacturing” as themes it will tackle.
We expressed our support for the Task Force on Climaterelated Financial Disclosures (TCFD) in June 2022, as a good
corporate citizen who lives socially with the dynamism of
the times, and in order to be more effective in evolving our
Dedication to Service (Oyakudachi) and creating corporate
value through our core business. Alongside using the TCFD
proposal framework to further strengthen our governanceon climate change, we perform scenario analysis using the
scenarios disclosed by various initiatives as a reference,extract the risks and opportunities arising from climate change,
and assess the financial impact of climate change. Additionally,
we will push forward with various actions based on the themes
we will tackle as well as proactively disclose information.

Governance

Strategy (Opportunity and Risk Analysis)

Viewing response to climate change as a material issue insustainability management, we have established it as oneof the themes we will tackle with respect to materiality.
Additionally, we have formed medium- to long-term targets*2that we discuss at meetings of the Sustainability Committee*3
chaired by the President Executive Officer and consisting of
our management as well as meetings of related subordinate
committees. The content of those discussions is then referredto the Management Council and the Board of Directors, where
the execution status of targets is ascertained and deliberated.

Depending on the status of warming prevention measures,a number of conceivable scenarios are present with respect
to the issue of climate change. Using a variety of data as areference, the Group examines transition risks and physicalrisks in its business management while referring to scenarios
for 1.5˚C and 4˚C*4, both of which are considered representative
average temperatures. We will analyze risks and opportunities
as well as their impact and aggressively tackle them as they
pertain to the effects on our Dedication to Service (Oyakudachi)
through the products that constitute our business domain.

External Site▲

*1 TCFD: Task force on Climate-related Financial Disclosures

External Site▲

*2 See p.24 “Sustainability Strategy and Materiality.”*3 See p.25 “Sustainability Promotion System.”▲▲*4 Examples of various scenarios used as a reference
AR6 Synthesis Report: Climate Change 2023:
IPCC > World Energy
World Energy Outlook (WEO) 2022: International Energy Agency (IEA)▲

Risks and opportunities with climate change at Mandom
Scenario Classification

Transition
risks

Risks and opportunities

Business impact/financial impact
Increase in operational costs due to introduction of carbon
tax

Mediumterm＋＋

Rise in energy costs for renewable power

Rise in energy costs due to growth in demand forrenewable power

Short
term

＋＋

Long
term

＋＋

Medium
term

＋＋

−

Long
term

＋＋

−

Medium
term

＋＋

−

Long
term

＋＋

−

Long
term

＋＋

−

Short
term

＋＋

−

Long
term

＋＋

−

Cost resulting from transition from packaging
materials and plastic products to “sustainableproducts”

Product development/market expansion andcost reductions related to physical risks andOpportunities
accompanying improvement in evaluation by
investors

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Mandom Report 2023

Envisioned monetary impact¥320 million per year

Introduction of/rise in carbon tax

Risk of getting shut out of market if there is no progress intransition to “sustainable products” concerning packaging
materials and plastic products
1.5˚C
Risk of earnings decreasing and business costs increasing
scenario
due to changes in market (changes in consumer
Decrease in earnings and increase in business
preferences) and intensified competition in specificcosts resulting from changes in the market
markets
Reduction in costs, increase in earnings, improvement
Reduction in costs, increase in earnings,
in asset value, etc. resulting from development of new
improvement in asset value, etc. resulting fromdevelopment of new products and technologies products and technologies
Opportunities
Increase in earnings and enhancement of market Increase in earnings and enhancement of market
competitiveness resulting from incorporation of competitiveness resulting from incorporation of consumer
preferences
consumer preferences
Damage to business bases and suppliers caused by
Fragmentation of supply chain caused byabnormal weather, etc. and risk of decrease in earnings
damage to suppliers
resulting from fragmentation of supply chain
Physicalrisks
Risk of stagnation of business activities caused Risk of stagnation of business activities cause by water
shortages given projections of increased frequency of
by water shortages resulting from heat waves
heat waves and droughts
and droughts
4˚C
scenario
Rise in energy costs due to growth in demand forTransition
Rise in energy costs for renewable power
renewable power
risks

・Timing of manifestation
・Degree of impact

Envisioned timing Degree ofof manifestation impact

Product development/market expansion and cost
reductions related to physical risks and accompanying
improvement in evaluation by investors

Short term: 0–1 years; medium term: 3–5 years; long term: 10+ years++: Considerable impact; +: Certain degree of impact; -: Small or negligible impact*Maximum risk value when current
emissions continue until 2030

¥170 million–¥990 million per year
*Maximum risk value when current
power composition/electricity
consumption continues until 2030

¥710 million per year
*Maximum risk value when current
consumption continues until 2030

Risk Management

Left axis: ■ CO2 emissions (overseas) ■ CO2 emissions (Japan)(t-CO2)50,000

Right axis:

Per unit sales(t-CO2/million yen)

0.472

0.50

0.425
40,000

0.363

0.366

0.348

0.30

30,000

6,643

5,409

20,00010,000 21,876

23,048FY2013

4,475

4,859

3,645

18,687

19,533

20,664FY2019FY2020

FY2021

FY2022
Scope1 0.6%

Mandom believes that reducing GHG emissions
throughout the entire value chain, from raw material
procurement to product manufacturing, sales, use, anddisposal, is important in order to realize a “decarbonizedsociety.” Since FY2018, we have been calculating thegreenhouse gas emissions produced throughout the entire
value chain based on the Scope 3 Standard established by
the GHG Protocol.
Our calculations show that more than 90% of greenhousegas emissions fall under Scope 3 and we were able tosee that emissions were particularly large in Category 1(Purchased goods and services) and Category 11 (Use ofsold products).
In addition to improving the accuracy of future
calculations, we will strive to reduce our environmental
impact throughout the value chain, such as by developing
environmentally friendly products that can help reduce
emissions in the categories detailed above.

12. End-of-life treatment ofsold products 6.2%

Scope2 1.4%

CO2 emissions

179,498 t-CO

0.10

0

Performance for the Fiscal Year Ended March 31, 2022▲

15. Investments 0.6%

Calculation of GHG emissions for the entire value chain

0.20

Middle-Range Planning

0

0.40

Materiality

In FY2022, CO2 emissions from Scope 1 + 2 in Japanand overseas totaled 24,309 tons, a 14.8% reduction
compared to FY2013.
In FY2022, while an increase in overseas production
yielded increases in fuel and power consumed, due in partto the replacement of all power at our Japanese head
office building with renewable power, emissions decreased
by 0.3% year on year.

Value Creation Story▲

Trends in CO2 emissions (Scope 1 + 2 in Japanand overseas)*5 Trends over five years in environmental data for the MandomGroup – Supply chain emissions in Japan▲

CO2 emissions in business activities

About Mandom

from the use of power in Scope 2 and emissions from theprocurement of raw materials and use of products in Scope 3
are deemed considerable. From the dual perspective of risks
and opportunities in our business activities, we formulate
medium- to long-term targets and tackle with priority thechangeover of the power we consume to renewable energy
and the development of eco-friendly products.
Moreover, with respect to the calculation and ascertainment of
CO2 emissions in our value chain, going forward, we will pursue
initiatives aimed at calculating and ascertaining emissions
across the entire Group.

Under the Sustainability Committee, after examining of
impact on our business activities pertaining to climaterelated opportunities and risks at meetings of related
committees, we ascertain the situation in the entire Groupand examine response. Through deliberation and approval by
the Sustainability Committee and reports to the Management
Council and the Board of Directors, we manage progress ineach material issue (materiality) and target.
Additionally, for emission results, progress in targets is
managed based on yearly calculations of CO2 emissions
originating from energy and power used by each company inthe entire Group (Scope 1 + 2) and CO2 emissions generated
by the value chain in our Japan business (Scope 3).*5
In particular, concerning CO2 emissions, emissions originating

1. Purchased goods
and services
39.4%

2

11. Use of sold products
46.9%

9. Transportation anddelivery (downstream) 0.1%
7. Employee commuting 0.1%

Company Information

Scope of calculations: Japan
Period of calculations: April 2022–March 2023

2. Capital goods 1.2%
3. Fuel and energy related
activities 0.5%
4. Transportation anddelivery (upstream) 2.0%
5. Waste generated inoperations 0.9%
6. Business travel 0.1%▲

CSR Information
Overview of Domestic Environmental Load of the Mandom Group
Historical Environmental Data
Environmental Data by Production Site▲▲

Mandom Report 2023

43

Materiality: “Actions for sustainable global environment”

Indicators and Targets
In order to realize a sustainable society, we at Mandom are
moving to ascertain our GHG emissions (in Scopes 1, 2 and
3). Believing that addressing the matter with further speed
is of the essence, in addition to the long-term targets that
we formulated, we formulated medium-term targets aimed atachieving the long-term counterparts in December 2021. As
a Group-wide initiative, we formulated an initiative roadmap
for risks and opportunities based on scenario analysis that
we performed in 2022, and are currently implementing thatroadmap.

GHG emission reductions in the Group

Related targets: Eco-friendliness in products

Long-term targets

Long-term targets

・Aiming to achieve zero CO2 emissions Group-wide
in FY2050

・Turning 100% of products marketed by the
Mandom Group into eco-friendly products
by 2050

Medium-term targets

Medium-term targets

・Aiming to reduce CO2 emissions in Scope 1 + 2 in Japanand Overseas by 46% or more compared to FY2013 by
FY2030・Aiming to reduce CO2 emissions in Scope 1 + 2 in Japanand Overseas by 43% or more compared to FY2013 by
FY2027・Turning 90% of Mandom products marketedin Japan into eco-friendly products by 2027▲

For the progress status, please refer to “Medium- and Long-Term Targets and Progress on Material Issues (Materiality) in Sustainability” on page 24.

Initiative roadmap for risks and opportunities
Scenario Classification

Risks and opportunities

・Introduction of/rise in carbon tax
・Rise in energy costs for renewable power

Transition
risks
・Cost resulting from transition from packaging materials andplastic products to “sustainable products”
・Decrease in earnings and increase in business costs resulting
from changes in the market

1.5˚C
scenario・Reduction in costs, increase in earnings, improvement in asset
value, etc. resulting from development of new products andtechnologies
Opportunities
・Increase in earnings and enhancement of market
competitiveness resulting from incorporation of consumer
preferences

4˚C
scenario

Physicalrisks

・Fragmentation of supply chain caused by damage to suppliers・Risk of stagnation of business activities caused by water
shortages resulting from heat waves and droughts

FY2023

FY2027

FY203043% reduction of CO2 emissions in
Scope 1 + 2
46% reduction of CO2 emissions in
Scope 1 + 2

FY2050Net zero CO2emissions* Including Scope 3

Promotion of eco-friendly products(90% adoption of eco-friendliness for products marketed in Japan (up to 2027)➡ 100% (up to 2050))

Building of supply chain from perspective of BCP

Status of Initiatives
In 2022, we changed the power consumed at our head officeunder our Japan business over to renewable energy-certified
power, and also switched lighting at the head office andR&D buildings to LED. Consequently, due to the increase inproduction volume accompanying the recovery in the market,
which had been sluggish due to the impact of the COVID-19
pandemic, CO2 emissions in Scope 1 increased (an increaseof 442 t-CO2 compared to 2021). However, we managed tofacilitate reductions in CO2 emissions in Scope 2 (a decreaseof 524 t-CO2 compared to 2021), resulting in a total reduction
volume of 81 t-CO2 in Scope 1 and 2 (compared to 2021).
For initiatives geared towards eco-friendliness with products,
we are currently enhancing our eco-friendly product offerings,

which constitute 53.5% of the Mandom products marketedin Japan as of March 31, 2023 (45.8% as of March 31,2022). Additionally, as a means of responding to changes
in consumer value in the market due to the rise in outdoor
temperatures accompanying the issue of climate change, weare rolling out products that make use of our proprietary “Kaitech technology”*6. (Examples of such products: “GATSBYSpace Shower Wipes for Scalp/for Body,” “Mandom Happy
Deo Body Sheets Fresh & Smooth/Extra Cool,” and “Mandom
Happy Deo Face Mist Refresh Mint.”)*6 Kai-tech technology: Proprietary technology of Mandom that utilizes ourknowledge of Transient Receptor Potential (TRP) channels, which are skinsensation sensor, to thoroughly pursue greater comfort upon use

Visit our website below for more detailed information on disclosures in line with TCFD.
https://www.mandom.co.jp/en/csr/eco_globalwarming.html

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Mandom Report 2023