Materiality:

Strengths and initiatives to help

“Sustainable procurement of raw materials”
About Mandom

At the Mandom Group, we will follow the Guiding Principles on Business and Human Rights and identify the negative impact on humanrights relating to the business conducted by the Company and will engage in action that prevents or reduces such negative impact. If
due diligence action on human rights uncovers any occurrence or furtherance of negative impact on human rights, we will strive to takeappropriate and effective remedial action. If our products or services are directly linked to a negative impact on human rights due toour trading partnerships, we recognize the possible need to take corrective action.
Recently, companies have been internationally required to engage in fair and free competition as well as proper trade and responsible
procurement. To achieve this, the Mandom Group will procure palm oil, paper, etc. ethically. Our action ranges from protection offorests and biodiversity to execution of corporate social responsibility by sustaining natural and labor environments and respecting
human rights throughout all value chains.

The Mandom Group recognizes that our business activities
must only exist on the basis of our respect for human rights.
We have adopted and will implement the following HumanRights Policy so that we can promote action in respect of theValue Creation Story

Human Rights
human rights of all Mandom employees and their families,
trading partners and all others involved in the supply chain as
well as production operations upstream, consumers and allother stakeholders relating to the Mandom Group.

Mandom Groupʼs Human Rights Policy
1. Basic Stance on Human Rights

5. Reporting System
Any employee recognizing the possibility of violation of laws andrules that apply in the countries and regions of our operationor the infringement of human rights rules and other in-house
regulations can use the internal reporting system to report such
violations. We also have set up a reporting contact where external
stakeholders can report any violation of our Human Rights Policyor any risk of violation.

6. Education and Training
We will deliver continuous education to employees so that correctknowledge about respect for human rights can be fully diffused
and understood throughout the Mandom Group.

Performance for the Fiscal Year Ended March 31, 2022

We respect all the diverse values, individualities and privacy of
stakeholders relating to our corporate activities as we promote
diversity.
We will not discriminate under any circumstance against any
person on reasons of race, nationality, ethnicity, sex, age, origin,religion, education, physical characteristics, disability, healthcondition, sexual orientation, or gender identity.
We strive to create a workplace environment where employees
can work safely with reassurance, energy and in full mental andphysical health, where there is mutual trust and where common
sense prevails.
We will eliminate any discrimination, violence or harassment in theworkplace.

In our activities relating to negative impact on business and humanrights, we will engage experts from outside the Company and wewill provide opportunities and engage in dialog and discussion
with relevant stakeholders, with respect and sincerity.

Middle-Range Planning

2. Respect of Stakeholder Human Rights and Promotion ofDiversity

4. Dialogue and Discussion with Stakeholders
Materiality

We support and respect international norms relating to humanrights including the International Bill of Human Rights stipulatedby the United Nations on the basic human rights of all people, theILO Declaration on Fundamental Principles and Rights at Work,and the Guiding Principles on Business and Human Rights.
As a signatory to the United Nations Global Compact, theCompany supports the ten basic principles of the Compact.
The Mandom Group will comply with the laws of the nations andregions where we conduct our business activities.
If laws or rules in the nations or regions conflict with theinternational principles on human rights, we will comply with thelocal laws while pursing methods of respecting the internationallyaccepted basic human rights principles.

7. Information Disclosure
We will disclose the progress and results of our human rights
actions on the Company website and through other means.

3. Due Diligence in the Supply Chain

Company Information

We will follow the Guiding Principles on Business and HumanRights and identify the negative impact on human rights relating
to the business conducted by the Mandom Group and will engage
in action that prevents or reduces such negative impact. If due
diligence action on human rights uncovers any occurrence orfurtherance of negative impact on human rights, we will strive totake appropriate and effective remedial action. If our products orservices are directly linked to a negative impact on human rights
due to our trading partnerships, we recognize the possible needto take corrective action.

Mandom Report 2023

45

Materiality: “Sustainable procurement of raw materials”

Building and Implementing a CSR Procurement System
Aiming to Build and Implement a CSR Procurement System
We have selected “the building and implementing a CSR
procurement system” and are engaged in drafting supplier CSR
guidelines and gaining the cooperation of trading partners toachieve this goal.
As times change in an age of rapid globalization, socialand environmental issues are becoming more varied andcomplex. We are currently engaged in thoughtful action basedon our Purchasing Policy, but we need to strengthen that
implementation, which includes making ongoing improvements
and revisions to prevent new social and environmental

issues from arising and thereby avoiding such risks. Anotherreason for better implementation is to be able to continue
responding to expectations and demands from a broad range ofstakeholders.
We strive to achieve fairness and transparency in alltransactions and will try to gain the cooperation of our trading
partners as we practice due diligence with respect to specifictopics in core areas such as human rights, labor practices andthe environment, alongside taking other measures to build asustainable and CSR procurement system.

Purchasing Policy
We at the Mandom Group have adopted the following Purchasing Policy andwill implement it in order to pursue fair and transparent business practices to the fullest extent.

1. We strive to achieve fairness, honesty and transparency inall transactions based on the principles of mutual equality,
respect for independence, and free competition, regardlessof nationality, business record or size of business. In choosing
our trading partners, we will take overall consideration including
their effort input into sustainable technology development
capacity and environmental protection, respect for human rights
and management attitudes towards sustainability and social
responsibility while balancing our judgements on our assessmentof the quality, technology, price, delivery and stability of supply thatthey can assure.

2. Our shared goals are OYAKUDACHI and safety and reassurance
to consumers. To this end, we will work with our trading partners
by engaging in mutual learning and development as well as close
communication so that we can build a business partnership ofharmony and mutual prosperity.

3. We will contribute to the sustainable development of the societythat surrounds us and the global world. Through collaboration with
our trading partners, we will reduce environmental impact in all
our activities involving design, production and distribution of ourproducts and services.

4. In undertaking our international business operations, we will
act as a local company to enhance OYAKUDACHI to ourlocal stakeholders. We will promote local production and localpurchasing.

5. We will fully understand and comply with Japanese and foreignlaws and rules in order to engage in honest and fair purchasing
activities.

About the Mandom Group Supplier CSR Guidelines (Version 2)
In order to address sustainable procurement, we issued
the Mandom Group Supplier CSR Guidelines (Version 2) inNovember 2017, asking suppliers for their understandingof these guidelines. Going forward, we will secure theunderstanding and cooperation of our trading partners̶
through steps such as requesting that these guidelines
be shared with secondary, tertiary, and overseas trading
partners̶and we will continue discussions, working step-bystep to make our supply chain more transparent.
▲

CSR Information
Mandom Groupʼs CSR KohDoh Practices > Fair Operating
Practices > Mandom Group Supplier CSR Guidelines (Version 2)

46

Mandom Report 2023

We also regularly conduct monitoring using the “CSR
Procurement Self-Assessment Tool Set” recommended by theGlobal Compact Network Japan.
・Number of companies monitored in FY2021: 110*Our next monitoring survey is scheduled to be conducted in FY2023.

Protecting Biodiversity

Targets 1 Procure 100% of palm-derived materials accepted by the Fukusaki

Progress

Factory as certified oil (including book-and-claim response) by2026

About Mandom

Formulation of Targets and Associated Progress

38.1 %(as of March 31, 2023)

and recycled paper for paper containers and packaging by 2027

Value Creation Story

89.0 %

2 Switch completely to the use of FSC®-certified paper, used paper,(as of March 31, 2023)

These efforts will not only protect both the environment and biodiversity; they will help to actively build and strengthen cooperative
relationships with related counterparties and experts, NGOs and NPOs, and people in various communities. At the same time, theefforts will lead to our building and implementing a CSR procurement system that also considers human rights and labor issues.

Procurement of Sustainable Palm Oil
Ratio of Raw Materials Including RSPO-Certified Palm
Oil to Palm-Derived Raw Materials

Materiality■ B&C ■ MB（%）

40.0

30.0

Middle-Range Planning

In March 2018, Mandom joined the Roundtable on Sustainable
Palm Oil (RSPO) in order to procure sustainable palm oil that takes
into consideration the social issues and environmental impact of
the raw material production area, and in March 2021 acquired
RSPO supply chain certification at its Fukusaki Factory, the only
production base in Japan, and began procuring mass balance (MB)certified oil in May 2021.
In FY2022, in addition to procuring RSPO-certified palm oil using a
mass balance method for some raw materials that were to be used
at our Fukusaki Factory, we completed the purchase of certification
under the RSPO supply chain certification model “book-and-claim
method” for the entire volume of three raw materials, including theone most commonly used at that factory. We plan to gradually
increase our purchase of certifications for other materials in thefuture. For book and claim credits, we also purchase credits that
support small-scale palm farmers who obtained RSPO certification.

20.0

10.0

0.0

2019

2020

2021

2022
Performance for the Fiscal Year Ended March 31, 2022

Procurement of Sustainable Paper Materials（FSC® N003667）

External Site

WWF Japan Official Website
About RSPO▲▲FSC
FSC Japan Official Website

Examples of product using FSC®-certified paper

Company Information

Mandom engages in the procurement of sustainable papermaterials. We will contribute to preventing global warming throughthe effective use of forestry resources that is eco- andcommunity-friendly while preventing illegal deforestation and thedestruction of ecosystems.
We have set a target to use FSC®-certified paper or recycled
paper for all paper containers and packaging for our products by
2027 in accordance with “Eco-Friendliness of Products” on page
39. We are 89.0% of the way there as of March 31, 2023.
At the Fukusaki Factory, we are gradually introducing the use ofFSC®-certified paper and recycled paper for cardboard used totransport Mandom products.

Used in mount part

Used in paper packaging materials

Mandom Report 202347