Materiality and Sustainability Strategy of the Mandom
The Concept of Sustainability in Mandom Group
Mandom Groupʼs business activities are premised on the basisof sound and sustainable “environment (E)” and “society (S).”However, we are confronted with various issues that havebegun surfacing, such as climate change, declining biodiversity,marine plastic pollution, and human rights issues in supply
chains, which should be addressed appropriately by maintaining
solid “governance (G)” that supports such actions.
Mandom upholds “social responsibility & sustainability”
as its corporate philosophy, which itself is equivalent tosustainability of the Mandom Group. To solve social andenvironmental issues, we adhere to sustainable management(ESG management + SDGs management), having worked out
sustainability policies and identified material issues (materiality)
in sustainability in FY2021 to provide further Dedication toService (Oyakudachi) to consumers and create new corporate
values through our core businesses.
Framework for a Global Society and Sustainability of theMandom GroupIn September 2015, we signed the UN Global
Compact to express our support for its ten
principles in four areas of activity, with the aimof allowing all Mandom Group employees toshare in the values of global society as a step
toward sustainable development, and to create
new opportunities to strengthen relations witha diverse and wide range of stakeholders.

Sustainability Policies
We will promote unique sustainable management that ensures bothenrichment on an everyday basis and solution of social issues through ourconcepts of Health, Cleanliness, Beauty and Fun.
Themes of Unique Sustainable Management
ThemeDetails

Creating strong ties with consumers bystrengthening/expanding Dedication to ServiceWe will focus on two aspects of Dedication to Service, that is, maximizing satisfactionof consumers and increasing contact with them, by creating unique new value andproviding this to consumers through products, communication and distribution.

Training human resources that form a society,promoting active engagement of a diverse
cohort of employees

We will train all employees to be diverse “human assets,” who should take an active
part in rewarding work and contributing to the corporate future and society throughDedication to Service.

Contributing as good corporate citizens to asustainable society

We will dedicate ourselves to the realization of a sustainable society by analyzing theimpact of all our business activities, including supply chains as well as products andservices, on the global environment and society from a long-term perspective.

Taking measures to be a going concern

Through social responsibility & sustainability, we will continue to develop as acompany that is recognized by all stakeholders for its value, with the dynamism tosurvive in any era.

Relationship between the 4 themes
Creating strong ties withconsumers by strengthening/expanding Dedication to Service

Training human resources that form asociety, promoting active engagementof a diverse cohort of employees

Contributing as good corporate
citizens to a sustainable society〈 The last theme is the basis on which three other themes will be developed in a medium- to long-term plan 〉

Taking measures to be a going concern

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Group
Process of Identifying Material Issues (Materiality) in Sustainability

1

List the threats/risks and opportunities surrounding the Company based on social trends

2

Extract themes of initiatives based on threats/risks and opportunities

About Mandom

Step▼

Step▼

Step

3

Identify “key themes of initiatives” from themes of initiatives and the following matters・Key matters in Household & Personal Products sector set ・Framework of Companyby external organizations*
Mission and each strategy▼

4

Have dialogues on the key themes of initiatives identified in Step 3 with external experts (14 persons
across nine companies)

5Submit the Material Issues (Materiality) in Sustainability revised following the dialogues in Step 4 toSustainability Promotion Committee (currently Sustainability Committee) for approval

Value Creation Story

Step・Degree of impact on theCompanyʼs business▼Step* External organizations: FTSE, MSCI, SASB

Material Issues (Materiality) in Sustainability
Commitment

Related SDGs

Materiality

Materiality

Future challenges to be addressed by taking advantage of our strength and creating values

Creating an easy-to-start grooming
culture➡ P.26➡ P.34

We will promote work-style reform to improve “productivity per unit,”“growth of individuals and job satisfaction” and “creativity” so that allemployees as “human assets” may support the company and society.

Middle-Range Planning➡ P.31

We will respond appropriately to changing senses of values andconsumption behavior of consumers and maintain an environment inwhich consumers can look and choose the products and services thatserve and satisfy a billion customers on earth.

Expanding Dedication to Service toa diversity of consumers

Realizing mutual growth ofemployees and the company

Based on our original concept of “Health, Cleanliness, Beauty andFun,” that is, the basic parts of “Health, Cleanliness and Beauty”
combined with “Fun,” we will make consumers have fun and feelsatisfied with everyday life through products and services that only
Mandom can provide.

Actions for sustainable global
environment➡ P.39Sustainable procurement of raw
materials➡ P.45

Performance for the Fiscal Year Ended March 31, 2022

Issues to be addressed to realize a sustainable society and company
Switching over to a recycling-based society in our view, we will takemeasures to reduce our environmental burden at all stages of the life
cycle of products, including less dependence on plastics. Regarding
reduction of greenhouse gas emissions, we hope to realize virtuallyzero greenhouse gas emissions by 2050.
We will procure palm oil, paper, etc., ethically. Our action ranges
from protection of forests and biodiversity to execution of corporatesocial responsibility by sustaining natural and labor environments andrespecting human rights throughout all supply chains.

Company Information

Our everlasting mission is expanding and strengthening our Dedication
to Service, which is feasible on the assumption that we are a going
concern. Besides ensuring safety and security, we will strengthenbusiness systems based on our philosophy.

Maintaining/enhancing thecorporate base➡ P.48▲

CSR Information
Mandom Group CSR > Sustainability Strategy and Materiality

Mandom Report 202323

Materiality and Sustainability Strategy of the Mandom Group

Medium- and Long-Term Targets and Progress on Material Issues (Materiality) in Sustainability
The Company formulated its sustainability policies and identified
materiality in FY2021 and has been promoting initiatives inthis regard. However, no specific materiality-related evaluation
indictors and targets had been disclosed previously, which wasconsidered to be an issue. The ESG Executive Committee,
which was newly established in FY2022, has scrutinized andMateriality

Theme of initiatives

consolidated the themes of initiatives, as well as deliberated andformulated medium- and long-term targets for the material issues(materiality) in sustainability. Moving forward, we will continuously
review materiality-related matters in consideration of the latest
social conditions as well as the opinions and expectations of ourstakeholders, while reporting on our progress.

Evaluation indicator

Medium- and long-term targets
TargetProgressYear of(FY2022 results)
achievement

Future challenges to be addressed by taking advantage of our strength and creating values

Creating an easy-tostart grooming culture

Strengthening ourDedication to Service(“Oyakudachi”) for
consumers who
actively express theirindividuality

Number of proposals on a new cosmetic fieldthat “enables consumers to freely express their Three or more proposals per year
own individuality” or on consumer attributes
Number of proposals on new technologythat contributes to solution of issues
faced by consumers

Participation rate of employees in training
Developing humanresources to create a programs for penetration of Only One
new grooming culture Marketing

Expanding Dedication
Expanding our
Number of challenges addressed toto Service to a diversity
Dedication to Service expand our distribution networkof consumers

Realizing mutual
growth of employees
and the company

Ratio of “active engagement employees”
Creating a culture
in a philosophy surveythat encourages
employees to take on
new challenges
Employee engagement
Active engagement
by diverse humanresources

Each year Eight proposals

35 or more proposals in total from 2021 to2027

2027

Eight proposals (totalnumber of proposals
from 2021)(To be disclosed in FY2023)

2027

Target to be disclosed
in FY2023

13 or more attempts per year

38% or higher

81% or higher per year

Each year 44 attempts

2027

16%

Each year 70%

20% or more (Mandom Corp.
(non-consolidated))

2027

11.9%

CO2 emissions reduction (compared toFY2013) in Scope 1+2CO2 emissions reduction in Scope 1+2
in Japan and overseas: 43% or morecompared to FY20132027

14.8% reduction

Achievement of zero CO2 emissions
Group-wide

Completed preparation of scenarios forachievement of zero CO2 emissions
Group-wide by 2050

2027Scope 3 emissions foroverseas group companies
under calculation

Fossil resource-based virgin plastics
emissions reduction ratio

25% or higher

2027

5.7%
(compared to FY2016)

Eco-friendliness inproducts

Mandom Group standards-based ecofriendly products ratio

Eco-friendly products account for 90% of
the Mandom products sold in Japan.

2027

53.5%

Palm oil

Ratio of RSPO -certified palm oil among
palm oil that is used as an origin of raw
materials

Switching 100% of palm-derived raw materials
used at the Fukusaki Factory to RSPO* -certified
palm oil (including book-and-claim compliance)

2026

38.1%

Paper containers
and packaging
materials

Usage rate of FSC® -certified paper for
paper and containers and packaging, andrecovered paper usage ratio

Switching completely to the use of FSC®certified paper/recovered paper for paper
containers and packaging

2027

89.0%

Providing safety,
security and highquality

Number of complaints about quality

Serious complaints: 0

Each year

Two complaints

Safety and securityof employees

Number of employees on long-term leave

Less than 10 (in Japan)

Each year

15 employees

Pursuing themissionMission sharing ratio

65% or higher

Each year

62%

Ratio of women in managerial posts

Issues to be addressed to realize a sustainable society and company

Actions forsustainable global
environment

Sustainableprocurement of raw
materials

Maintaining/enhancing thecorporate basePromoting measures
toward a carbonfree society* RSPO: Roundtable on Sustainable Palm Oil

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Sustainability Promotion System

Decisionmaking

Group and holding discussions with relevant departments atcommittee meetings and other meetings, we are strengthening
our efforts to contribute to the sustainable development ofsociety.

About Mandom

We have established a Sustainability Committee headed by
the President Executive Officer with the aim of strengthening
the sustainability promotion system. While developing ourapproach for promoting the sustainability of the MandomSupervision

ESG Executive Committee

ESG
Value Creation Story

Sustainability Committee

Board of Directorsʼ Meeting

Quality Assurance Committee

S SocietyOccupational Health and Safety Committee
Total Risk Management Committee

G Governance<Secretariat>

Activities carried out by other related departments

ESGMateriality

CorporatePlanning Div.

Code of Conduct Promotion Committee▲

CSR Information
Mandom Group CSR > Mandom Group Sustainability Promotion SystemActivities of the Sustainability Committee and associated committees
Committee

FY2022 Themes●●●

ESG Executive Committee

●

●

●

Quality Assurance Committee

●

●

●

●

Occupational Health and Safety
Committee

●

●

●

●

●

●

Code of Conduct Promotion
Committee●●

Conduct management reviews based on quality assurance regulations
Summarize reports from customers
Respond to quality issues
Report on safety issues
Report on product recalls as well as recall-related issues and measures to be taken
Conduct and report on quality training and internal quality audits as well as plans for FY2023
Improve the health and safety as well as workplace environment of employees
Provide information to improve employee health
Adopt measures to prevent leakage of confidential information due to viruses
Promote the Human Ethical Testing Committee (subcommittee)
Review policy on responding to the present COVID-19 situation
Formulate BCP for the head office
Respond to contingency risks in each operating country

Company Information

Total Risk ManagementCommittee●Review medium- and long-term targets related to materiality
List threats/opportunities relevant to management and business issues in MP-14
Report on the latest sustainability-related issues

Performance for the Fiscal Year Ended March 31, 2022●

Formulate medium- and long-term targets related to materiality
Supervise and manage associated committees, including evaluating, analyzing, andproposing improvements to their activities
Determine the themes of initiatives to be strengthened in FY2023

Middle-Range Planning

Sustainability Committee●Determine policies for company-wide education on Mandom Code of Conduct
Review current status of internal reporting system and consider measures for raisingawareness of the system

Mandom Report 202325