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.

Value Creation Story

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.

The Mandom Groupʼs Environmental Policies
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 asustainable society by creating value through our core business, while cooperating with society to fulfil its wishes.

1. Initiatives for Climate Change

5. Compliance with laws and social norms

We will promote initiatives to reduce greenhouse gas emissions in
the value chain with the aim of transitioning to a carbon-free society.
We seek to accurately understand the effects on biodiversity in ourvalue chain and promote initiatives to avoid and reduce that impact.

3. Initiatives for resource recycling
We will promote initiatives to conserve resources and recycle
products to realize a circular economy throughout the product life
cycle.

4. Initiatives for eco-friendliness in products and services

6. Promotion of environmental communication
We will share this policy to the public and actively promote thedisclosure of environmental information as we strive to promote
communication with stakeholders.

7. Efforts as individuals
Each Mandom menber will work to protect the environment by
taking actions such as conserving resources, reducing waste
and using recycled products, not just as an organized part ofcorporate activities but also as an integrated part of daily life as
one individual consumer.

Middle-Range Planning

We place eco-friendliness as one of our product values and promote
efforts to create value that empathizes with society in accordancewith the Mandom Group Eco-Friendliness Product Standards.

Materiality

2. Initiatives for biodiversity

We will comply with environmental laws and regulations, andstrive to actively respond to social norms and wishes, in line witha philosophy of Social Responsibility & Sustainability.

（Note）In addition to the above, the Fukusaki Factory has separately establishedthe “Fukusaki Factory Environmental Policy.”（https://www.mandom.co.jp/en/company/philosophy_sf.html#policy）

Performance for the Fiscal Year Ended March 31, 2022

We place eco-friendliness as one of our product values and promote efforts to create value that empathizes with society in accordancewith the Mandom Group Eco-Friendliness Product Standards. As part of our effort, we have adopted our own eco-friendly productstandards alongside medium-to long-term targets. We are committed to making eco-friendly products in aid of achieving sustainability
across society.
These standards will be updated on an ongoing basis, with reference to the latest information on technology and developments inJapan and overseas while taking into account views, expectations and wishes of all our diverse stakeholders.

Eco-Friendliness of ProductsLife cycle stage

Procurement of
raw materials

Environmental issues

Biodiversity conservationand forest conservation

Product use
Water use reduction

Disposal

Other

Waste reduction

Plastic waste reduction
Recycling Circular economy(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

Climate change
Carbon neutrality/
CO2 emissions reduction

Environmental-friendliness standards

Product that uses recycled paper with 80%+ content of waste paper pulp as material for its outer and inner box package
inserts and other paper-based items
Product that uses FSC® certified paper as material for its outer and inner boxes, package inserts, and other 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%+ 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 or dimension 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 such packaging, compared against
benchmarkRefill 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（FSC N003667）®

Mandom Report 2022

35

Materiality: “Actions for sustainable global environment”

Initiatives to Reduce Plastic Waste
In recent years, there have been growing concerns over the environmental impact that plastics have when they are released into
the ocean.
In light of this situation, we, the Mandom Group, have positioned efforts to reduce plastics as a top priority in our productenvironmental friendliness agenda, and we will strive to develop products that are friendly to both consumers and the environment.
We are also committed to further strengthening our efforts through the 4Rs (reduce (reduce use and emissions), reuse, recycle, andrenewable (replace with renewable materials)) of plastic products to help solve the marine plastic problem.

ReduceReduction of usage andemissions

Reuse
Promotion of reuse

RecyclePromotion of recycling

Renewable
Promotion of switching to
renewable materials

Promote 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.
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.
Promote 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.
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 in FY2021
In FY2021, we implemented the following initiatives, as concrete examples.

Example of “Reduce”

We removed the individual packaging of “Happy Deo Face Sheet” and “Gatsby Facial Cleansing Wipes/Body Cleansing Wipes”
sold exclusively through e-commerce.

Example of “Renewable”

Biomass plastic was used for the container of “gatsby THE DESIGNER Wax/Gel Grease.”

36

Mandom Report 2022

Promoting Measures toward a Carbon-Free Society

Value Creation Story

affluent society where people can enjoy expressing their true
self, live a healthy and positive life, and continue challenging
themselves to express their true self, instead of giving up or
sacrificing one for the other, a so-called trade-off relationship.
In particular, in response to climate change, we expressed our
support for the 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 andcreating corporate value through our core business. At thesame time, we also joined the TCFD Consortium*2, which wasestablished for the purpose of discussing effective corporate
disclosure and appropriate initiatives regarding TCFD.
Going forward, we will use the TCFD proposal framework tofurther strengthen our governance on climate change, analyze
the risks and opportunities arising from climate change, anddisclose information on the financial impact of climate change.

Materiality

CSR Information
Mandom Groupʼs CSR KohDoh Practices > Environment >Preventing Global Warming▲

External Site▲

*1 TCFD: Task force on Climate-related Financial Disclosures*2 TCFD Consortium

Middle-Range Planning▲

It is recognized that carbon dioxide emissions have increased
significantly since the Industrial Revolution, especially since the20th century when the population grew significantly.
As this increase in carbon dioxide emissions has been blamedfor having a significant impact on climate change such as global
warming, we recognize that the implementation of concretemeasures to address climate change is an urgent issue thatthe world must join forces to address in order to realize asustainable society.
Against the backdrop of the current climate change-related
needs of society, Mandom upholds “social responsibility &sustainability” as its philosophy, which itself is equivalent
to sustainability of the Mandom Group. To solve socialand environmental issues, we will adhere to sustainable
management (ESG management + SDGs management),
working out sustainability policies and identifying material
issues (materiality) in sustainability to provide further
Dedication to Service (Oyakudachi) to consumers and create
new corporate values through business operation.
The slogan “BE ANYTHING, BE EVERYTHING.” is also our
ESG slogan.
As a “human-oriented” company, this slogan is relevant to all
employees, and in a society where social issues are becoming
increasingly diverse and complex, such as environmental issues,
globalization, diversity, and identity, and it is difficult to resolve
the issues faced by consumers, it represents Mandomʼs desire
to be dedicated to service and help realize a sustainable andAbout Mandom

Initiatives related to Climate Change (disclosure based on TCFD*1 recommendations)

Formulation of Long-Term Targets
Trends in CO2 Emissions (Scope 1 + 2 in Japan and Overseas)

2. Aiming to reduce CO2 emissions in Scope
1 + 2 in Japan and Overseas by 46% ormore compared to FY2013 by FY2030

Left axis: ■ CO2 emissions

Right axis:

Specific emissions per unit sales(t-CO2)(t-CO2/million yen)

50,0000.50

0.407
40,000

Performance for the Fiscal Year Ended March 31, 2022

1. Aiming to achieve zero CO2 emissions
Group-wide in 2050

0.425
0.389
0.348

0.40

0.366

30,743In FY2021, CO2 emissions from Scope 1 + 2 in

30,00028,457

27,777

Japan and Overseas totaled 24,391 tons, a 12.2%

0.30

23,162

24,391

reduction compared to FY2013. This is an increase
20,0000.20

10,0000.10

Company Informationof 5.3% YoY. This was due to an increase in fuelconsumption and electricity consumption resulting
from an increase in production volume in FY2021 inreaction to a significant drop in production volume
in FY2020 due to ramifications of COVID-19.

0

FY2013

FY2018FY2019FY2020

FY20210

Mandom Report 2022

37

Materiality: “Actions for sustainable global environment”

Calculating Greenhouse Gas Emissions for the Entire Value Chain (Scope 3)
15. Investments 0.5%
12. End-of-life treatment ofsold products 5.9%

Scope1 0.6%
Scope2 1.7%

11. Use of sold products
56.7%

1. Purchased goods
and services 27.7%

CO2 emissions

208,587 t-CO

2

2. Capital goods 2.7%
3. Fuel and energy
related activities 0.9%
4. Transportation and delivery(upstream) 1.6%
5. Waste generated
in operations 1.3%

9. Transportation and delivery (downstream) 0.1%

6. Business travel 0.1%
7. Employee commuting 0.2%

Scope of calculations: Japan
Period of calculations: April 2021 - March 2022

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

Since FY2018, Mandom has been calculating thegreenhouse gas emissions produced throughout theentire value chain from the procurement of materials
to the manufacture, sales, use, and disposingof products based on the Scope 3 Standard
established by the GHG Protocol.
Our calculations show that more than 90% of
greenhouse gas emissions fall under Scope 3 andwe were able to see that emissions were particularly
large in Category 1 (Purchased goods and services)
and Category 11 (Use of sold products).
In addition to improving the accuracy of future
calculations, we will strive to reduce ourenvironmental impact throughout the value chain,such as by developing environmentally friendly
products that can help reduce emissions in the
categories detailed above.

▲▲

Promoting a Recycling-Oriented Society
Since October 2003 at the Fukusaki Factory we have been maintaining a 99% or higher rate of resource
recovery from industrial waste to qualify as “zero waste emissions.” In FY2021, this was achieved at all
Mandom business sites in Japan.
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 3,381 tons in FY2021, a year-on-year increase of 14.3%.
We take this result seriously and will continue to promote the formation of a recycling-oriented society.
In addition, in order to deepen our knowledge of the transition to a recycling-oriented society and to strengthen
our efforts for a sustainable global environment, we participated in the MEGURU BOX Project, a demonstration
experiment to collect used plastic, which was implemented from July 2021 by the Kyushu Circular Economy
Partnership (secretariat companies: AMITA HOLDINGS CO., LTD. and NEC Solutions Innovator, Ltd.) to
optimize resource recycling in the Kyushu region and create business contributing to a sustainable society.
The “MEGURU BOX Project” is the first of its kind in Japan, to work with more than ten companies, including
daily necessities manufacturers and Kitakyushu City, to create a system for resource recycling.

Efficient Water Use
At the Fukusaki Factory, we are regularly callingupon each department to save water, and reviewing
methods of cleaning production equipment, piping,and other facilities.
Also, at the head office building we use water-saving
equipment that controls water flow and low-flush
toilets to reduce water use.
In FY2020, water resource usage decreased due
to a decrease in production volume, affected by
COVID-19, but with a recovery in production
volume, water resource usage in FY2021 was
72,343 m3, a year-on-year increase of 1.9%.

38

Mandom Report 2022

MEGURU BOX

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

150

120

90

2.219
1.752
83,64910,297
7,556

60

30

0

65,796FY2017

1.676
81,2061.748
80,705

9,568
8,325

9,086
9,986

63,313

61,633

FY2018FY20191.828

71,0022.5

2.0

72,343

1.5

7,236
6,542

5,905
3,442

1.0

57,22462,9960.5

FY2020

FY20210