Participating Initiatives

United Nations Global
Compact (UNGC)

Supporting the TCFD
Recommendations

TCFD Consortium

JCI (Japan Climate Initiative)

Water Project

30by30

Sedex

CLOMA (Japan Clean Ocean Material Alliance)

Sustainability Report 2023

External Assessments

SOMPO Sustainability Index

Toyo Keizai CSR Ranking

Certified Health & Productivity
Management Outstanding
Organization 2023 (“White 500”)

Top Message

Hoping that respect for the diversity of people and other living
things will lead to the creation of new value for the Earth Group.
Diversity begins with respecting
the individual
Diversity is at the core of the Earth Group’s management.
The power of people—our employees—
is of utmost importance. Before theemergence of such concepts assustainability, business activities
conducted with basic human rights anddiversity in mind were commonplace for
the Group. Rather than acting because
goals such as the SDGs have been set,
we believe that respecting others is anatural thing to do. For example, we
believe that diversity is based on respect
for the individual, rather than on
distinctions of male or female gender orthe definition of terms. We would likeeach of our employees to take on their
day-to-day activities with anunderstanding of our philosophy and theconcepts and guidelines forsustainability.

2

Earth Corporation

Earth Corporation will mark its 100th
anniversary in 2025. We would like to takethat milestone as an opportunity to show
gratitude to our predecessors for theiraccomplishments, to first see that ouremployees are happy, and then see thathappiness spread throughout society andacross the earth. I believe well-being will
come as our employees each respect one
another and help achieve true diversity.
In 2022, the company established a
new CSR and Sustainability Promotion
Department, clarifying our direction as acompany in terms of sustainability
activities. That said, those activities arecarried out by individual employees. The
company has people of various
generations, approaches, skills, andexpertise. It is thus very important that weunderstand diversity throughcommunication so that we can share ourknowledge and skills and move forward
together. In the course of our work, we
may talk about our own areas of expertiseon the assumption that the person we aretalking to knows what we are talking
about. However, it is important torecognize that we ourselves know nothingoutside of our own areas of expertise,
while communicating what we do know toothers. To do this, we need to constantly
show respect for others, “translating” ourmessages in a way they can understand,regardless of differences in age, position,or whether they were hired right out ofcollege or are mid-career hires.

Bringing a unique Earthapproach to sustainability
Sustainability management needs a uniquely
Earth approach. There are many things the
Earth Group can do to address biodiversity,
climate change, resource recycling, and otherissues. Addressing social issues, however,requires changing our very way of thinking. In
the past, for example, products thateliminated insect-borne infections were once
used with the intent of improving people’s

lives. Nowadays, we do not want to destroy
the ecosystem by using such methods.
Some insects that may be pests to humans
may play an important role in the ecosystemof creatures overall. Earth Corporation wasamong the first in the industry to think not ofkilling insects, coming up instead with theconcept of “insect control,” which means it issufficient to control only those insects which
are truly harmful and keeping them away frompeople. I believe this kind of more diverse
way of looking at things is what will lead to auniquely Earth approach. Thus, we willcontinue developing products that result in anenvironment comfortable for both humans
and insects.
While we should make active use of new
digital technologies, the important thing is tofocus on why we are using them, and if theyshould prove necessary, to quickly
incorporate them without being bound by

CONTENTS

past practices. MA-T®, a breakthroughoxidation control technology that is the first of
its kind in Japan, was also created throughopen innovation, and we are expanding ourfields of business overseas by joining forces
with other industries.
In addition, we no longer live in an era
in which products are chosen based
solely on price, or in which only looking
out for ourselves as a company is enough.
This is why we hope to cooperate with our
suppliers, our customers, and a variety ofother stakeholders with the goal ofreaching solutions to sustainability issues
throughout a global supply chain.
These efforts are supported by eachof our employees. Going forward, we willcontinue to engage in business bycommunicating with a wide range ofstakeholders so that we may contribute tosociety and the larger global environment.

Top Message����������������������������������������������������������������������������������� 2
Earth Corporation’s Sustainability����������������������������������������������������� 4
Our Key Topics Aimed at Attaining the SDGs��������������������������������� 5
Identification of Materiality����������������������������������������������������������������� 6
Materiality—Responding to Climate Change��������������������������� 8
Materiality—Concern for the Issues Affecting
the Global Environment�������������������������������������� 10
Materiality—Promoting Sustainable Procurement������������������ 16

November 2023

Katsunori Kawabata

President & Representative Director

Materiality— Creating Workplaces That Support Activities
by Diverse Individuals���������������������������������������� 20
Materiality— Provision of Products and Services That Contributetoward Safe and Comfortable Lifestyles������������� 24
Strengthening the Management Infrastructure������������������������������ 29
Activities That Contribute to Solving Society’s Problems�������������� 30
Outside Director’s Message����������������������������������������������������������� 32
Third-party Opinion������������������������������������������������������������������������� 33

Sustainability Report 2023

3

Earth Corporation’s Sustainability
Basic Policy on Sustainability
We formulated our Basic Policy on Sustainability in 2021. Whendrawing up this policy, we brought together representatives of every
department involved in business promotion, and engaged in
repeated discussions regarding the elements and phrases neededto effectively disseminate the concept of sustainability while
respecting Earth Corporation’s essential aspects. We are making it
clear, both within and outside the company, that we will bepromoting initiatives aimed at realizing sustainable business basedon this policy.

Earth Corporation’s Basic Policy on Sustainability
In line with our corporate philosophy—“We act to live in harmony with the Earth”—
we will collaborate with our stakeholders toaddress issues relating to sustainability,
and will contribute toward the sustainableenhancement of corporate value
and toward the building of a sustainable society.

4

Earth Corporation

Our Key Topics Aimed at
Attaining the SDGs*
Sustainability promotion framework
We have established a CSR and Sustainability Promotion
Department under the Group Management Headquarters, topromote the smooth, effective implementation of sustainability
activities in line with the company’s Basic Policy on Sustainability,
while maintaining a bird’s-eye view of the three key areas of theenvironment (E), society (S) and corporate governance (G).
We have also established a CSR and Sustainability Committee,
chaired by the company President, as a permanent body topromote frontline sustainability activities. This committee works
together with the CSR and Sustainability Promotion Department toformulate activity plans, set targets and key performance indicators(KPIs), share targets and KPIs throughout the company andpromote initiatives aimed at target achievement.
The committee also undertakes monitoring of progress status,
shares activity content within the company, compiles theSustainability Report and ESG Data book, and undertakes
appropriate disclosure of information in line with stakeholders’expectations. The content of the committee’s discussions and thestatus of activities are reported on regularly to senior management,
and important matters requiring examination and decision-making
by senior management are reported to and discussed by the Boardof Directors.

Earth Corporation’s stakeholders
Earth Corporation’s business activities aresupported by various stakeholders, including
customers, employees and their families,
suppliers, shareholders and investors and local
communities. To embody our slogan—“Making
the Earth a home that feels good”—we believethat it is important to communicate with thosevarious stakeholders, and to create anenvironment that promotes dialogue rather thanunilateral transmission of information.

Customers

Shareholders
and investors*SDGs: Sustainable Development Goals

Infectious diseases

Oral hygiene environment• We are contributing
toward the eradication of
insect-borne diseases
through our insect control
products SDG 3.3• We are contributing
toward better oral
hygiene through ouroral care products
SDG 3

Environment• We are working to reduce waste by reducing returnsof seasonal products SDG 12.5
• We implement appropriate chemical substancemanagement (from an environmental and healthperspective) throughout the product lifecycle SDG 12.4
• We are reducing CO2 emissions in plants, offices and logistics SDG 13.1

Employees
and their family
members

Earth
Corporation

Suppliers

Local
communities• We are strengthening the company’s resilience to natural disasters, etc. SDG 13.1

Working environment

The Earth• We promote diversity, and we provide jobs andworkplaces that enhance motivation
SDG 5.1

SDG 5.5

SDG 8.5

Sustainability Report 2023

5

Identification of Materiality
To meet the expectations of stakeholders and continuallydevelop the Earth Group over the long term, Earth
Corporation believes that it is important to check andevaluate the impact of various social issues and corporate
activities and to clarify issues that are important tomanagement. Based on this approach, in 2021, we
identified key issues (materiality) that are important inrelation to sustainability.
In order to undertake sustainability initiatives in the futurethat effectively utilize both the unique characteristics of the
Earth Group’s business and its management resources, wehave decided on key topics and have formulated targets and
KPIs that are connected to these topics.
Materiality identification process
STEP 1

Selection of issues

Selection of issues, taking into account international frameworks andguidelines, etc., in the area of sustainability

STEP 2

Identification of materiality

Approval of five materiality items following meetings with senior
management and outside directors and following review by the Board of
Directors

6

Materiality(key issues)

Earth Corporation

Key topics and main measures
We are reducing our CO2 emissions.

Responding to Climate
ChangeConcern for the Issues
Affecting the Global
Environment

Promoting Sustainable
Procurement
Creating Workplaces
That Support Activities byDiverse Individuals

Evaluation of importance

Evaluation of the importance of each issue to our business, andformulation of draft materiality by the CSR and Sustainability Committee
and relevant department heads, based on our company’s overall strategic
direction

STEP 3

Earth Corporation’s materiality

Provision of Products andServices That Contributetoward Safe andComfortable Lifestyles

We are proceeding with the adoption of electric power
generated using renewable energy.

Targets and KPIs
CO2 emission reduction compared to 2020
(Scope 1 + 2):
Switching to renewable energy:• 14% reduction (by 2023) • 28% reduction (by 2026) • 46% reduction (by 2030)of renewable energy at our plants (renewable energy rate: 60%) (by 2023)• Adoptionof renewable energy at our Research Facilities (renewable energy rate: 90%) (by 2026)• Adoption• Adoption of renewable energy at our offices* (renewable energy rate: 95%) (by 2030) * Excluding rented offices• 3% enhancement (by 2023) • 6% enhancement (by 2026) • 10% enhancement (by 2030)of the current status of waste processing contractors, and adjustments (by 2023)• Survey
zero waste emissions from plants and Research Facilities (by 2026)• Realize• Maintain zero waste emissions from plants and Research Facilities (by 2030)
Establishment of the Earth ECO Standards (2023)• Expand• the scope of products compatible with Earth ECO standards and promote information disclosure (by 2026 and 2030)• Usage rate: 10% or more (by 2023) • Usage rate: 30% or more (by 2026) • Usage rate: 70% or more (by 2030)

We are enhancing the efficiency of water usage relating to
manufacturing (from R&D through to production).

Enhancement of water usage efficiency
compared to 2020:

We are making effective use of resources with the aim ofhelping to realize the resource-circulating society.

Reducing emission of industrial waste, etc.
from plants and Research Facilities to zero:

Stipulate Earth ECO Standards, and expand the scope ofenvironment-friendly products.

Overview of the Earth ECO Standards:

Promote procurement of environment-friendly packaging
materials.

Forest Stewardship Council® (FSC®) certified
paper usage rate (by weight):

We are encouraging employees to take their annual paid
leave entitlement.

Paid leave usage rate:

Maintain at a level of at least 70% (2023, 2026 and 2030)

To support female empowerment, we are raising the shareof women in management-level positions.

Female manager ratio:• At least 10% (by 2023) • At least 18% (by 2026) • At least 30% (by 2030)

To reduce the number of major quality incidents thatnegatively impact customer satisfaction and trust to zero, weare raising the periodic quality inspection implementation
rate both at our own plants and at contractors’ factories.

Periodic quality inspection
implementation rate:

Maintain at 100% (2023, 2026 and 2030)

To ensure compliance with relevant laws and reduce theincidence of major violations to zero, we are enhancing theimplementation rate for the annual education and training plan.

Education and training implementation rate:

Maintain at 100% (2023, 2026 and 2030)

Sustainability Report 2023

7

Materiality

Environmental awarenessResponding to
Climate Change

Framework

The need to mitigate and respond to climate change, which is the mostserious global environmental issue today, may have an impact on the
expansion of our business over the medium to long term. There is also
a possibility that abnormal weather conditions (such as rising averagetemperatures and changing rainfall patterns) resulting from climatechange may affect our business’s value chain as a whole. We recognizethat the response to climate change is an important management issue
that relates to medium- and long-term corporate value.

Basic approach
As an enterprise whose corporate philosophy is “We act to live in harmony
with the Earth,” we carry out our business activities in congruence with theglobal environment. We recognize that climate change and the response to
it represents an important managerial issue that is related to corporate
value, and we are working actively to address this issue in all of ourbusinesses.

For more details,
please visit our
corporate
website.

8

Earth Corporation

We are taking the following actions to contribute toward the transition toa post-carbon society.
We are reducing our CO2 emissions.
We are proceeding with the adoption of electric power
generated using renewable energy.

•
•

KPI

See p.6–7

President and Representative Director
Kawabata serves as Chairman of the CSR
and Sustainability Committee, bearing
direct responsibility for the supervision andmanagement of initiatives including thecreation of policies and strategies forresponding to climate change, putting inplace risk management structures,
establishing targets and indexes andmanaging progress. We have put in placea structure for responding to climatechange under the direction of the Board of
Directors, by first conducting discussions
at meetings of the Strategy Council*, andthen deciding on and reviewing policies
and strategies related to these responses,
while also reporting to the Board of
Directors on the achievement of targets.

* Strategy Council:
The Strategy Council is a body established toundertake preliminary deliberation regarding importantmatters such as matters put on the agenda for the
Board of Directors, and matters requiring a decisionby the President and Representative Director.
Members: Executive officers appointed by the
President and Representative Director
Chair: President and Representative Director
Frequency of meetings: As necessary

Initiatives relating to the response to climate change
Transition to renewable energy
Effective April 1, 2023, we switchedto renewable energy sources for the
power used in the production building
at our Sakoshi Plant in Ako City, Hyogo
Prefecture.
Virtually zero CO2 emissions are now
produced from the electricity used to
manufacture products at our main plant.

Sakoshi Plant running on renewable electricity

Toward a post-carbon society
We understand how important it is to calculate greenhouse gas (GHG) emissions
across the entire supply chain for the Earth Group to work toward achieving carbon
neutrality in society. In fiscal 2022 we conducted numerical analyses to visualize ourcomprehensive GHG emissions, covering Scopes 1 and 2 for the Earth Group andScope 3 for Earth Corporation, and also had third-party verification performed to ensure
accuracy.
Going forward, we will increase our response to climate change, disclose the EarthGroup’s GHG emissions and take measures to reduce those emissions.

Please visit our corporate website to learn more about our
information disclosure based on TCFD recommendations and ourassumptions for scenario analysis (Japanese only).

Sustainability Report 2023

9

Materiality

Environmental awareness

Concern for the Issues
Affecting the Global
Environment

Global environmental pollution and the lack of resources are barriers to
the formation of a sustainable, recycling-oriented society. For Earth
Corporation, attention to environmental issues throughout the entire value
chain is directly tied into the sustainability of the company’s business. We
are aware that our initiatives aimed at effectively using resources andreducing waste not only mitigate business risks by reducing environmental
impact at every stage, from raw material procurement to product design
and manufacture, use and disposal; they also contribute to maintaining
and improving the company’s brand and corporate value.

In order to demonstrate concern for global environmental issues and contribute toward reducing the burden on the environment, weare implementing the following initiatives.

• We are enhancing the efficiency of water usage relating to manufacturing (from R&D through to production).
• We are making effective use of resources with the aim of helping to realize the resource-circulating society.
• We have drawn up the Earth ECO Standards, and we are promoting expansion of environmentally-friendly products.
KPI

Framework
Earth Corporation has put in place an
Environmental Management Structure
to resolve global environmental issues.

Katsunori Kawabata, President & Representative Director
Internal Auditing Dept.
Environmental Conservation Committee

Basic approach
Logistics units

Research &Development
Headquarters

Business units

Overseas units

Global Management
Headquarters(Located within the Head Office)Research Facilities(Located within the Sakoshi Plant)(Located within the Head Office)Research andDevelopment Headquarters

Local Offices, etc.

Local Offices, etc.

Naka-Nippon Branch

Local Offices, etc.

Kyushu Branch

Kita-Nippon Branch

Local Offices, etc.

Local Offices, etc.

Kanto Region
Area 3 Branch

Local Offices, etc.

Chugoku/Shikoku
BranchKanto Region
Area 2 Branch

Local Offices, etc.

Kansai Branch

Kanto Region
Area 1 Branch

Retail AccountSales Dept.

Head Office
Act Terrace

Global Supply Chain
Management Dept.

Kakegawa Plant

Ako Plant

For more details,
please visit our
corporate
website.

Production units

Sakoshi Plant

Earth Corporation has declared that in accordance with our corporate
philosophy of “We act to live in harmony with the Earth,” we will strive totake the protection of the global environment into account in all ourbusiness activities, and to actively contribute to the lives of the people of
the world. Current issues include global environmental pollution and thelack of resources. Given that environmental problems throughout the value
chain impact not only the company’s business but the world’s sustainability,
our basic stance is to continually promote initiatives aimed at reducing
environmental impact.

See p.6–7

Sustainability Report 2023

11

Initiatives to address global environmental problems

Reduction ofwater usage andrecycling

Freshwater existing on the land surface in forms that are easily usable by humanity such as lakes, ponds and rivers accounts for
0.008% of all the water on the planet. We consider the effective use of water resources to be an important issue in addressing global
environmental problems. We have therefore set the improvement of water usage efficiency as a materiality target (a 10% improvementfrom 2020 to 2030) that we are working to meet.

Reducing water usage in production lines

Wastewater purification

We use water as a raw material for our Mondahmin Mouthwash, Sukki-ri! Air
Freshener, and other products. We also use water for cleaning equipment
during product changeovers on many production lines.
A thorough cleaning of the production line during a product changeoveris essential for sanitizing equipment and preventing cross-contamination, but
we are working to reduce water consumption through ongoing research andimprovement efforts.
In 2019 we reviewed the line cleaning methods for our ONPO tablettype bath salts. Ordinarily, we would use heated water for cleaning theequipment after the changeover for every product, but we decided toswitch to air jet cleaning, depending on the presence of color or turbidity
components before and after
the changeover. This switch has
resulted in a 68% reduction inwater used for cleaning during
product changeovers. We are also
taking measures to further reducewater usage on the production
line by optimizing our production
schedule to reduce the number of
equipment washings.

Wastewater generated at our main production bases, the Ako Plant andSakoshi Plant, as well as at our adjacent research facilities, is purified at our
on-site wastewater treatment facilities and discharged into the sea. Before
discharging the treated wastewater, we strive to reduce the environmental
impact by setting voluntary standards that are even stricter than thoserequired by law, and adhering to those standards. We periodically report
to Ako City, where our main facilities are located, on the amount and water
quality of the released effluent.
In addition, we actively work on initiatives in collaboration with the local
government, having signed an Environmental Protection Agreement with Ako
City and established an Ako City Environmental Partnership.

ONPO production line air jet cleaning

12

Earth Corporation

Sustainable product development
Environment-friendly product development
Earth Corporation is committed to product development from theperspective of the 3Rs—reduce, reuse, and recycle—with an awarenessof the need to reduce environmental impact throughout the life cycle ofour products. At our Research and Development Headquarters, theThe “Reduce” perspective

The “Reuse” perspective

The “Recycle” perspective

Example product:

Example product:

Example product:

Bottles

Bottles

17-ton reduction

17-ton reduction

Lower containers

Lower containers

18-ton reduction

18-ton reduction

Sukki-ri! Air Freshener
for Room

Sukki-ri! Air Freshener
for Toilet(Original container)

Use ofrecycled plastic(Packaging carton)

Use of recycled paper

Mondahmin Mouthwash Premium
Care Large Pouch 1.7L

Mondahmin Mouthwash
Peppermint Large Pouch 1.7L

Sales name: Medicinal Mondahmin D-2

Sales name: Mondahmin PX4Quasi-drug▶︎To date, the use of plastic in containers has
been reduced for 86 items for a total reductionof approximately 312 tons. This amount was
a 20% increase compared to the reductions
achieved in FY2021.

Ako Plant wastewater treatment facility

Sakoshi Plant wastewater treatment facility

starting point for Earth Corporation’s manufacturing, we are working hardto develop environment-friendly products in response to the growing
environmental awareness of our customers in recent years.

Mouthwash

Cosmetics

Earth Bug Repelling Net EX

Kobae ga Hoi Hoi
Fruit Fly Catcher

Mouthwash▶︎We produce refills for 24 product items sothat the original bottle can be reused, with the
Mondahmin Mouthwash Large Pouch newly
added to the lineup. They use less plastic
material and are lighter than the original bottles,
enabling a reduction in plastic usage of around
305 tons, which was a 20% increase comparedto the reductions achieved in FY2021. We arecommitted to offering refill products that areeasy for our customers to use.

▶︎We use recycled plastic for the Earth Bug
Repelling Net EX container. Recycled plastic isused for 101 product items, with a total annual
usage of around 1,279 tons (about 20% morethan in 2021). Of the product items for which
paper containers are used, recycled paper isused in roughly 88% of items, and 201 items
fall under this category.

Sustainability Report 2023

13

Biodiversity
Sustainable sales promotion materials developed through collaboration
with other companies

Earth ECO Standards

We are making efforts to reduce the amount of plastic used in hanger display hooks,
which are used to hang merchandise. From the autumn of 2023, some hooks forpromotional materials started being replaced with plastic hooks made with 51% scallop
shell powder. To reduce the amount of plastic while maintaining the strength needed tohang products for display, we work with a company (Company A) that has developed the“free blend method,” a new technology for mixing target materials with plastic. We also
work with two other partners (Company B and C) that support us in marketing theseproducts to a broader audience. Through the collaboration, we have been able to launcha new type of strong, environmentally-friendly hook made from scallop shell powder.
We believe that by having other companies also using environmental-friendly
material, we can create a ripple effect leading to society-wide efforts to reduce plastic
use, conserve resources, utilize
resources efficiently, sort and reduce
waste, and improve transportation
Earth
Corporation
efficiency.

With the aim of establishing measures that help to create asustainable environment, we have formulated the Earth ECOStandards, our own unique environmental standards topromote the creation of environmentally-friendly products.
The Earth ECO Standards are voluntary standards designed
to help achieve the six goals out of 17 SDGs that relate to
the environment or manufacturing. Starting from January2023, products that conform to the Earth ECO Standards
bear the Act For ECO Mark.
Products that display the Act For ECO Mark (partial)

Planning
Record of use

Basic approach
Earth Corporation recognizes that biodiversity is an important managerial issue and that preserving biodiversity is vital to the long-term interestsof the planet, society as a whole, as well as our company. To prevent the loss of biodiversity, we are committed to implementing various
initiatives together with our stakeholders based on our management philosophy of “We act to live in harmony with the Earth.” We will strive toprotect biodiversity and promote the sustainable use of nature throughout our company and our supply chain.

Protection of the natural environment

Conservation of insect species

If we want to protect the Earth’s biodiversity, we need to know where westand today. Ascertaining what creatures exist where and in what numbers
is essential to that effort.
At Earth Corporation, we not only protect the forests where creatures
live, but are putting effort into surveying the forests to understand what
creatures inhabit them.

Myriad species thrive on this planet, forming diverse ecosystems.
However, once a species goes extinct, it can never be revived. Rare andendangered species which are at risk of extinction, are few in number andare vulnerable to environmental changes, especially in their limited
habitats. It is critical that we ensure that their populations do not decline
and that their environments do not become degraded.
Earth Corporation is working to preserve endangered species of
insects.

Dealing with non-native species

Corporate
collaboration
Development of sales
promotion materials
Company A

Companies B & C

Materialdevelopment
Formation

InvestingSales promotion

Reverse side

For more details on biodiversity,
please visit our corporatewebsite (Japanese only).

Non-native species, also known as invasive alien species, are living things
that human beings have introduced to a new place from their natural
habitat in another location. Non-native species introduced into a newlocation can have far-reaching effects on the ecosystem, biodiversity,
agriculture, forestry, fisheries and human health.
Earth Corporation is contributing to the fight against invasive species,
utilizing our unique knowledge and expertise.

Japan Business Initiative for Biodiversity (JBIB)The Third National Biodiversity Strategy ofJapan calls for corporate participation. We
have joined JBIB as a company that actively
works to protect biodiversity, contributing
to biodiversity conservation in Japan andabroad.

Hook made from scallop shell powder

14

Earth Corporation

Sustainability Report 2023

15

Materiality

Environmental awarenessPromoting Sustainable
Procurement

We are promoting sustainable procurement, based on our corporate
philosophy of “We act to live in harmony with the Earth.” We recognizethat building partnerships with all of our business partners, maintaining
ethical relationships that are fair and equitable, and promoting
procurement that takes into account human rights, health and safety,
and the environment, will not only lead to corporate value creation forour company but also contribute toward the development of asustainable society.

Basic approach
We have put forward the corporate philosophy that Earth Corporation will
“act to live in harmony with the Earth,” and we believe that theimplementation of sustainable practices is exactly what it will take toachieve this goal. In this regard, procurement activities cannot be
undertaken successfully without seeking to maintain harmony with theplanet, and we believe that sustainable procurement, with the cooperationof our business partners, is a vital effort that contributes toward thesustainable development of society.

In support of the United Nations Global Compact, and following the
Earth CSR Procurement Guidelines that we put forward in 2017, allemployees involved in procurement had been practicing CSRbased procurement, but in response to recent trends regarding
CSR and calls from international society, in August 2020 weamended those guidelines, and subsequently renamed them theSustainable Procurement Guidelines. Furthermore, in August 2023
we established a Supplier Code of Conduct and reached out to allof our suppliers with a request to abide by the new code.
KPI

A Supplier Code of Conduct
We are committed to responsible procurement and aim to achievea sustainable society as we build partnerships with our suppliers
and the companies they work with based on relationships of trust.
We request our business partners to comply with the following
guidelines and make them known within their companies. We also
request your firm’s cooperation and urge you to encourage yourown suppliers to similarly comply.

A Request to Suppliers
For more details,
please visit our
corporate
website.

See p.6–7

Sustainable Procurement Guidelines

Purchasing: Compliance with Laws, Regulations and Norms
We are committed to complying with domestic and internationallaws and regulations, international treaties and social norms, andto conducting procurement activities based on corporate ethics.
Purchasing: Product Safety and Quality
We are committed to purchasing raw materials that fulfill our
quality requirements to ensure product safety and quality.
Purchasing: Fair Trade
We are committed to providing an equal opportunity to all of ourbusiness partners and to ensuring fair and impartial procurement
practices.
Information Security
We are committed to strictly managing confidential and personal
information related to our procurement activities.
Sustainability Initiatives
We are committed to working with our business partners toprotect human rights (including prohibiting discrimination andeliminating long working hours) and promote occupational healthand safety and environmental conservation.
Building Trust with Clients
We are committed to building relationships of trust with ourclients, aiming for mutual growth through sustainable initiatives.

Sustainability Report 2023

17

Initiatives relating to sustainable procurement

Awareness-raising activities for business partners

FSC® certification

Procurement measures for palm oil

We carry out the following activities to familiarize business partners with
our Procurement Code of Conduct and with the Earth Corporation’s
Sustainable Procurement Guidelines, and to enable them to implement
the content of the policy and guidelines together with us. So as toenhance business partners’ awareness of their own CSR initiatives andencourage them to continue to strengthen these initiatives, we ask themto fill out a CSR Self-assessment Questionnaire. This activity has been
implemented since 2017, and as of June 2022, we had received
completed questionnaires from 198 out of 224 raw materials producers
and contracted manufacturers.

Earth Corporation sets the goal of increasing the rate of Forest StewardshipCouncil® (FSC®) certified paper use in its sustainability materiality(promoting sustainable procurement). In 2020, we switched over to using
FSC® certified paper (paper made from wood produced in forests that are
deemed to be appropriately managed, or from other materials linked toappropriate use of forest resources) for the paper tubes used in our BathRoman products, and continues to expand the use to other paper-based
wrapping materials. Going forward, we will continue to undertake productdevelopment and raw materials procurement in such a way as to be able
to provide customers with products that are made responsibly and withdue consideration for the environment.

Earth Corporation has procured palm oil and palm kernel-derived materials
to manufacture products. However, we have recognized various issues
related to palm oil production, issues such as the impact on the naturalenvironment and climate change, human rights violations, and labor
environment issues. Therefore, we carefully select suppliers of palm oiland palm kernel-derived materials, and continue discussing the shift toalternative materials that satisfy our quality standards.

Item

Based on the collated results of the responses to the CSR Selfassessment Questionnaire obtained thanks to business partners’
collaboration, we share the results with business partners throughindividual meetings, etc., in line with our belief that we need to contributetoward the sustainable development of society as a whole. Going forward,
we will continue to implement this activity with respect to new business
partners, and with regard to indirect transactions also, we will carry out
raw materials procurement in accordance with the key points of ourguidelines.

Grading Distribution
A (100–80 points)

B (79–60 points)

C (59–40 points)

D (39–20 points)

E (19–0 points)

Corporate governance

52%

23%

11%

13%

1%

Human rights

41%

24%

13%

22%

0%

Labor

64%

20%

9%

6%

1%

Environment

60%

18%

8%

14%

0%

Fair corporate activities

56%

19%

14%

10%

0%

Quality and safety

77%

13%

6%

4%

0%

Information security

62%

24%

7%

6%

0%

Supply chain

38%

27%

13%

21%

1%

Regional society

54%

20%

13%

13%

0%
June 2022

18

Earth Corporation

Earth Jet
300 mL
Bath Roman Warm
Yuzu fragrance

Rotenyu Meguri
Bath Powder

Quasi-drug

Quasi-drug

Earth Jet
450 mL

Pesticide quasi-drug

Pesticide quasi-drug

Major products madewith palm oil-derived ingredients

Sustainability Report 2023

19

Materiality

Environmental awareness

Creating Workplaces
That Support Activities
by Diverse Individuals

In line with our core Earth Value of “Diversity,” we aim to realize aworkplace environment that supports effective utilization of diverse
human assets. We aim to realize a rewarding workplace where each
employee can grow by creating a workplace environment that gives
due consideration to employees’ health and safety and by ensuringthat employees are treated fairly with respect for human rights andthe safeguarding of diversity. We recognize that as a long term goal
this will lead to greater value creation for the company.

Promotion of diversity & inclusion
The Earth Group Global Code of Conduct specifies theneed to prevent violation of human rights, accept
diversity (individualities) and exert autonomy. These arerules that all Earth Group corporate officers andemployees are expected to abide by when conducting
business activities in countries with different lifestyles,
habits, culture, laws and rules.

Basic approach

The Earth Group implements the following measures in order to realize aworkplace environment that supports effective utilization of diverse humanassets.

• We are encouraging employees to take their annual paid leave
entitlement.
• To support female empowerment, we are raising the share ofwomen in management-level positions.

Note: Health Management® is a trademark of the Nonprofit
Organization Kenkokeiei.

Earth Corporation Health Management Declaration“Making the Earth a home that feels good.”
Earth Corporation has grown with society by continually contributing to therealization of healthy and comfortable lifestyles and providing high-quality
products. To continue meeting our responsibility as a caring company for
employees and their families, and to fulfill our commitment to being a good
corporate citizen in the society we serve, the entire Earth Group declares that it
will continue to promote the health of all employees to ensure that each andevery member of the Earth Group family is able to enjoy physical and mental
health at work.
Katsunori Kawabata
President & Representative Director

Based on our core Earth Value of “Diversity,” the Earth Group aims to realize aworkplace environment that supports effective utilization of diverse human assets.
To clarify the measures that we are implementing with respect to humanassets in order to realize our corporate philosophy and management goals,
we have formulated the Earth Human Assets Philosophy and the Earth
Human Assets Management Policy.

For more details,
please visit our
corporate
website.

Health Management®

KPI

See p.6–7

Framework
Health and safety initiatives
In order to realize a healthy, safe workplaceenvironment, we have established the following
committees and subcommittees, and implemented
related activities.
S afety and Hygiene Committee and Hygiene
CommitteeH ealth and Safety SubcommitteeS afe Driving Management ActivitiesC ompliance Committee (including the internalreporting [whistleblower] contact windows)

•
•
•
•

Organizational framework for health management
We have established the Committee for Promoting the Health of Employees andTheir Family Members, a cross-company organization which is chaired by the
Senior Executive Officer. In line with the company’s annual health management
plan, the committee meets once a month, and it undertakes the disseminationof information both within and outside the company, the holding of healthseminars, and theimplementing of
preventive vaccinationsin the office, etc.
Certified for three consecutive years

Sustainability Report 2023

21

Initiatives relating to the realization of workplace environmentthat supports effective utilization of diverse human assets

From “resources” to “assets”

Harassment prevention initiatives

Initiatives relating to diversity & inclusion

Workstyle and workplace environment reform initiatives

Earth Corporation views employees as being highly valuable
sources of corporate development, and as such we see them as
being “assets” rather than “resources.” We believe that it isimportant to focus on our human assets in order to realize the three
Earth Values of “One Earth, Open communication, Diversity.”
By improving the measures adopted in our personnel system(including recruitment, education and training, personnel
reassignments, salaries, appraisal system, workstyle reform, diversity,etc.), we are working to enhance employee motivation andstrengthen employee capabilities.

Earth Corporation’s employment rules contain stipulations
prohibiting workplace bullying, sexual harassment, or harassment of
employees based on gender or in relation to pregnancy, childbirth,
taking time off work for childcare or to look after elderly relatives,
etc. In addition, for the purpose of correctly understanding andpreventing harassment, we are continuously conducting online andface-to-face harassment prevention training for all employees.
Furthermore, in order for employees to be able to seek consultations
with peace of mind, we have established a new Harassment andHuman Relations Hotline and Occupational Health Nurse Internal
Consultation Window, and we are aiming to realize an employeefriendly workplace environment where people can work
enthusiastically without harassment.

Promotion of initiatives aimed at furthering the dynamic engagement of female employees

Besides the normalization of working hours and encouraging
employees to take their paid leave entitlement, we have also
adopted a home-working system and staggered working
hours system, and put new working methods into practice,in order to realize flexible workstyles. In addition, by putting inplace the IT infrastructure needed to promote hotdesking—including having application documents in electronic form
(going paperless), adopting digital seals, and reducing theamount of space needed for
document storage—we areproceeding with the buildingof a working environment that
supports flexible workstyles,
enabling employees to work
effectively regardless of
Poster encouraging the adoptionof improved meeting formats
location.

Initiatives relating to human asset cultivation
With the aim of cultivating self-directed human assets, we implement
grade-specific training and training for specific purposes, so as tostimulate employee motivation, help them develop their careers,and enhance their knowledge and capabilities.

Training for new employees (lecture introducing our products) in progress

22

Earth Corporation

Training for managers

Initiatives relating to evaluation and treatment of employees
Evaluation is implemented in accordance with employees’
employment management category. With regard to human asset
management, we make effective use of evaluation results when
deciding on the treatment of employees in terms of roles, salaries,
etc., and in the cultivation of self-directed human assets capable oftaking on challenges. By ensuring that evaluations are transparent
and clarifying the accountability of supervisors, we strive to create
an environment in which employees can work with satisfaction, andto provide support for employees’ personal growth.

Around 40% of Earth Corporation employees are women. We are implementing
measures to create an employee-friendly working environment so that employees cancontinue to work with enthusiasm regardless of which life stage they have reached. Earth
Corporation has set itself the target of increasing the share of managers who are female
to at least 30% by 2030, and we continue to implement measures to help achieve this,including the provision of training to help female employees plan their careers.

Promoting the employment of persons with disabilities
2.48% of our employees are persons with disabilities, which is in compliance with thestatutory requirement.

LGBT-related measures
We view LGBT issues as one of the most important areas in our efforts to promote
diversity. In 2021, we implemented e-learning to help employees deepen theirunderstanding of fundamental LGBT, sexual orientation, and gender identity matters. In
2022, we made improvements to our internal rules, held seminars with external
lecturers, and established a consultation window for LGBT matters.

Promoting work-life balance

Employees
can make freeuse of the Act
Café

We have put in place the systems needed for living support, sothat employees can balance their work and their other
responsibilities when dealing with childcare, senior care, or
personal injury or illness.

Sustainability Report 2023

23

Materiality

Environmental awareness

Provision of Products andServices That Contributetoward Safe andComfortable Lifestyles

In our company’s manufacturing operations, our most important
responsibility to society is to continue providing safe, reliable
products and services that customers view as being of high quality.
We recognize that the steady fulfilment of this social responsibility is aprecondition for safeguarding and enhancing corporate value, andconstitutes the foundation for our creation of corporate value.

The Earth Group implements the following initiatives in order to provide products and services that contribute toward safe and comfortable
lifestyles.
In order to reduce to zero the incidence of major quality incidents that could impact customer satisfaction and losecustomers’ trust, we are enhancing the periodic quality audit implementation rate at both our own plants and those of
our contracted manufacturers.
To ensure compliance with relevant laws and regulations, and reduce the incidence of major incidents that involve
compliance violations to zero, we are enhancing the annual education and training plan implementation rate.

•
•

KPI

See p.6–7

Framework

Basic approach

For more details,
please visit our
corporate
website.

1. By listening attentively to customers’ insights, and providing safe, reliable
products and services, we create new value.
2. By striving to ensure high quality right up to the point at which the
product is used, we will build a brand that customers can trust.
3. Besides maintaining compliance with all legal requirements, in line with
our unique Quality Management System we obtain quality-related
information from countries and regions around the world, and strive toenhance the quality of the safe, reliable products that we provide.

* This is a meeting attended by senior managers, the holding of which is recommended
by the Association of Consumer Affairs Professionals.

Customers
Inquiries
Comments

Providing even better products and services

In line with our corporate philosophy, we at the Earth Group strive, in every
stage of the value chain—including product development, materials
procurement, production, logistics, sales and customer communication—
to provide customers with safe, reliable products and services.

The Customer Service Department undertakes the internaldissemination of customer insights in reports such as annual andmonthly reports, and in the “Voice of Customers” internal website,
and also works to expand usage of a text mining system thatenables relevant departments to research and utilize customer
insights from their own perspective. In addition, it liaises directly with
relevant departments regarding the proposal and implementation ofsuggestions for improvement raised based on customer insights atmeetings such as the Customer Insights Discussion Meeting*, theMeeting to Discuss Points of Interest, and the Voice of Customer
Meeting.

Responding to inquiries
and provision of information

Customer Service Dept.

Sales

TACO System(Tactical Antenna for Consumers’ Opinions)
Consultation support, and accumulation of consultation content data
Text mining system
Analysis and dissemination

Research Development

Quality
Marketing Production Sales
assurance

PR

EMAL
COREE
system(Collect
Opinions
by R&E Ex)

Liaison with relevant departments

Sustainability Report 2023

25

Provision of products and services that contribute toward safe and comfortable lifestyles

Initiatives adopted from a customer-focused perspective

Quality assurance

R&D

1. C
 onsideration for the safety of testing personnel, and improvement of
testing accuracy and effectivenessZEROnoKNIGHT G—developed to prevent damage caused by harmful insects from continuing to increase
Iyana Mushi ZEROdeKNIGHT, a pest control agent containing the new active ingredient,
TENEBENAL*TM, has been popular with customers since its launch in February 2022. As
the second product of the series, we began sales of ZEROnoKNIGHT G fumigant
containing TENEBENAL*TM, which has been proven effective against bedbugs andcockroaches, in February 2023. TENEBENAL*TM is not only effective against bedbugs
and cockroaches that are resistant to existing insecticidal ingredients, but it also
provides outstanding efficacy for one year.
Damage caused by harmful insects has become a significant issue around theworld, and damage by resistant bedbugs has been a particular problem. After the liftingof COVID-19 restrictions, domestic and international travel has exacerbated the problem.
Earth Corporation provides solutions through the manufacture of agents containing
TENEBENAL*TM, such as ZEROnoKNIGHT G, that effectively mitigate the harm causedby resistant bedbugs and other harmful insects
to contribute to the increase of QOL aroundthe world.

Basic approach to intellectual property
By adopting a proactive approach to securing intellectual
property right for the results of our R&D efforts, we strive tomaintain our competitiveness. We also work to maintain andeffectively utilize those patents and design rights that can
provide benefits for our company.

(1) Number of patents owned by Earth Corporation as of June 22, 2023
(2) Number of registered designs owned by Earth Corporation asof June 22, 2023
NumberPatents

302

Design rights

171

Note: Japan only

(3) No. of patents registered over the five-year period from 2018 to 2022
Fiscal year of
2022
2018
2019
2020
2021
registration
No. ofpatents
registered*TENEBENALTM (common name: Broflanilide) isa trademark of Mitsui Chemicals Crop & Life
Solutions, Inc.
Class 2 OTC drug

26

Earth Corporation

25

23

33

Note: Based on the date of registration; Japan only

34

46

We evaluate raw materials using the appropriate test items and methods.
We perform mandated testing for products as well as other testing basedon product functions.
We are proceeding with the automation of testing that that employs
organic solvents or reagents with large quantities of specimens with theaim of enhancing test reliability, operational efficiency and the safety of
testing personnel.
For example, the Products Quality Assurance Department closely
communicates with manufacturers regarding the design, production andoperation of devices that measure active ingredients contained in ONPO, ourbath product series, in accordancewith Earth Corporation testing
standards. This enables us to ensure
reliability, efficacy and safety, whichleads to a reduction in the use anddisposal of organic solvents used fortesting. We also installed air purifiersin testing rooms to improve theAutomated specimen processing device
for measuring the quantity of the active
environment for personnel handlingingredient in our ONPO productlarge amounts of scented products.

2. Implementation of final product usage testing from a customer-focused
perspective

3. Ensuring the continued reliability and safety of our products
Our products are manufactured in accordance with the requirements of
the Act on Securing Quality, Efficacy and Safety of Products Including
Pharmaceuticals and Medical Devices and other relevant laws. To maintainour quality standards and ensure a corporate culture that prioritizes
product quality, the Products Quality Assurance Department and the
production units implement regular study sessions and quality audits. We
also implement quality audits with respect to our contracted
manufacturers, both in and outside Japan to establish closer cooperationand trusting relationships with customers and share the concept ofensuring customer-oriented quality of products and use for manufacturing.
In addition, we aim to further enhance the quality of our products byproviding feedback to the design and production units regarding thereviews and requests that theCustomer Service Department
receives. To prevent the falsificationof test data, we use a quality
management system for test
devices and a compilation of test
result reports to set login controls
and passwords, and check datausing the audit trail management
function to ensure the reliability ofdata.
In-service training

To ensure customers can use our products with peace of mind, we conduct
testing based on how customers will actually be using the products.
Sustainability Report 2023

27

Initiatives to provide protection from danger
Mosquito Repellent Spots
With growing awareness throughout Japan of the need to be alert for
insect-borne infectious diseases—for example, in 2022 the number ofpeople affected by Severe Fever with Thrombocytopenia Syndrome, aninfectious disease which is spread by ticks, was the highest on record—
as part of our insect bite prevention awareness-raising activities, weorganize Mosquito Repellent Spots at the venues for outdoor gatheringsand sporting events. Mosquito Repellent Spots are provided by Earth
Corporation to disseminate the risks of insect-borne infectious diseases
and make proposals for theirprevention through the effective useof insect repellents. At Mosquito
Repellent Spots, we show theproper use of Saratect insect
repellents, and present exhibits ofharmful insects and the damage
they can cause to increaseawareness.
Mosquito Repellent Spots

Earth Insect Control Seminar
We held the Earth Insect Control Seminar 2023 as an enlightenment activity
to foster wider understanding of proper insect control. This was the seminar’s
fourth year, and this year’s theme was Infectious Disease Prevention
Considered from the Perspective of Insect Control. This year as well, we
invited Kouichi Goka from the National Institute for Environmental Studies andSatoshi Kutsuna from Osaka University . They gave presentations on the

28

Earth Corporationconservation of biodiversity as a form of security for human society, and theconcept of zoning, which allows people and other living organisms to live
symbiotically. Professor Kutsuna discussed infectious diseases caused bymosquitoes and ticks, emphasizing
the importance of insect control toprevent such infectious diseases.
We continue implementing
enlightenment activities for proper
insect control, including thedissemination of highly reliable
information through collaboration
with experts.
Earth Insect Control Seminar

Initiatives to combat dengue fever in Vietnam
Starting from 2021, Earth Corporation has been supporting the World
Mosquito Program (WMP)* campaign to bring dengue fever under control in
Thu Dau Mot City, Binh Duong
Province, Vietnam. Earth Corporation
shares the same objectives as the
WMP, and will be working together
with the WMP to help realize theSDGs.
* WMP is a non-profit initiative established byresearchers at Monash University in Australia
to protect people throughout the world frommosquito-borne infectious diseases.
Signing the WMP agreement

Environmental awarenessStrengthening
the Management
Infrastructure

Earth Corporation is working to strengthen corporate governance, andall corporate officers and employees implement compliance thoroughly
in line with statutory requirements and high corporate ethical standards.
In addition, we undertake appropriate management of various risks that
may affect our business activities, we realize fair transactions throughthe comprehensive prevention of corruption (bribery, inside trading, etc.),
and we recognize the importance of carrying out management in amanner that wins the trust of all stakeholders.

Disclosing items regarding sustainability that supports
Earth Corporation management base
Governance• Audit• Corporate Governance• Compliance• Earth Global Code of Conduct• Human Rights Policy• Sustainability Policy• Risk Management• Information Security

Society

Environment• Safety and Health• Pharmaceutical and Medical Devices Act• Management of Pharmaceutical Affairs• Management of Chemical Substances• Animal Welfare• Response to Human Rights Issues at
Supply Chains• Response to Environmental Preservation• Response to the Environment at Supply
Chains• Response to Climate Changes (TCFD:
Task Force on Climate-related Financial
Disclosures)• Biodiversity Measures• Response to Use of Palm Oil• Implementation of Sustainable Products

See our official website fordetails about the Strengtheningof Management Infrastructure(Japanese only).

ESG data
Our data relating to sustainability initiatives
is broken down into three categories: E(Environmental), S (Social) and G(Governance). In principle, these data
relate to initiatives implemented by
December 31, 2022.

For more details about ESG
data, please visit our corporatewebsite.

Sustainability Report 2023

29

Activities That
Contribute to Solving
Society’s Problems

With increasing importance being attached to CSR activities bycorporations and other organizations, and with growing interest in
education-related CSR, we are implementing various activities that
include dispatching employees togive lectures in schools (visitingclasses), holding special events,
For more details,
developing teaching materials,
please visit
providing samples, arranging visits toour corporatewebsite.
our facilities, and implementing
workplace experience programs, etc.

Educational and awareness raising activities

Collaboration with the local community

Education-related CSR

Comprehensive alliance agreements withlocal government authorities

We implement initiatives across various fields in our social contribution activities, and webelieve that, by using education-related CSR to provide children and local residents withaccurate knowledge about insect pests that cause direct harm to humans, we can help
them to protect themselves from insect-borne infectious diseases, and help to prevent the
spread of such diseases. In addition, we believe that our efforts in making available morethan 100 species of insects bred by our Research Laboratories to a wide range of research
institutes and high schools for use in their researchand education programs will contribute to scientificprogress and human resource cultivation. (Offered
3,145 insects to 19 institutions between January
and October 2023).
As part of our education-related CSR activities,
we have provided insects that we bred to universities
and high schools, and we have also visited schools
to give classes (20 schools including 1,304
Visited a school to give classes
elementary school students in 2022).

30

Earth Corporation

Earth Corporation signed the first collaborative agreement on
the safe, secure, and healthy living in the community with
Chiyoda City on March 24, 2020, and has expanded theinitiative to local governments nationwide. We will work on
solving a broad range of social issues, such as health andhygiene, education, and disaster control through the provisionof our know-how andthe most updated
technologies to local
governments, andcontribute to thesustainable andhealthy developmentof people and society
in individual regions.
Signing an alliance with Osaka Prefecture

Sponsorship for sporting and cultural events

Supports for regions affected by natural disasters

The Earth Mondahmin Cup

Collaboration with Japan Platform on disaster response

The Earth Mondahmin Cup is a
women’s professional golf tour that wasin its 11th year since 2012. We strive toensure that every tournament will bememorable, remaining in the heart andretaining a place in history for thedevelopment of golf and the sports
sector as well as for society as a whole.

Starting from 2019, we have been providing funding assistance for the
emergency support activities in regions affected by disasters, etc. conducted by
Japan Platform, an NGO which provides emergency humanitarian aid in times ofconflict or natural disaster, and we are contributing
toward the building of effective support systems.

Physical support
Mr. Tatsuya Otsuka, the chairof the Earth Mondahmin Cup
organizing committee, with thecompetition winner, Ms. Jiyai Shin

Special sponsorship for the Kokoro no Gekijo project
Earth Corporation provides special sponsorship for Kokoro no Gekijo(Theatre of the Heart), a social contribution project hosted by Shiki
Theatre Company and Butaigeijutsu Center . This project invites
children throughout the country to theaters and helps teach what isessential for us to live our lives, such as an understanding of theirreplaceableness of life, consideration for others, and the pleasure ofbelieving in each other. Throughthis project, 400 performances
have been given in about 140
cities in Japan targeting six
graders at elementary schools,
with 560,000 students
attending each year.

Effective utilization of surplus inventory
Starting from 2022, we have been using our surplus inventory to participate in
the COSME BANK PROJECT, which provides daily necessities and cosmetics
products to people who cannot afford them for financial reasons. This project is
led by Meyumi Yamada, in line with the goal of delivering smiles to the Earth andwomen.
The project aims to generate meaningful sustainable eco-cycles for bothcompanies and a diverse range of consumers with support from partnercompanies, resulting the delivery of products to 63,000 households in FY2022.
Rather than discarding surplus inventory as waste, making products
available in this way enables Earth
Corporation to provide opportunities forpeople to experience them (whichconstitutes useful PR), to provide
support for women who are seeking togain autonomy, and address societal
problems relating to poverty, health,
COSME BANK PROJECT Representative Director
welfare, gender equality and the
Meyumi Yamada and Earth Corporation President
and Representative Director Katsunori Kawabata
motivation to work.
Sustainability Report 2023

31

Outside Director’s Message
Sustainability means more than merely
reporting one’s activities—it has become astandard for questioning corporate
morality, so to speak. It asks aboutbusiness activity, but at the same time,
whether the stories behind initiatives to findsustainable solutions to social issues, inevery respect, and the methods used, arecorrect.
Companies are being questioned
about their ability to remain viable 100 or
200 years into the future, in terms ofcompliance, environmental preservation,and their contributions in the form ofbenefits returned to society, but especiallyin the areas of respect for human rights,
diversity, equality, efforts to address safety,
the corporate governance function, andothers.
Regarding corporate governance,
Earth Corporation has also responded to
the revision of the Tokyo Stock Exchange’s
Corporate Governance Code. We disclosea skill matrix that summarizes the profiles
and skills of our outside directors,
including their reasons for appointment

32

Earth Corporation

Third-party Opinion
and attendance rate at board meetings.
I believe governance currently
functions at Earth Corporation itself, as
well as at its group companies andsubsidiaries. I would point out as evidence
the fact that Earth Corporation regularly
reviews its internal rules and regulations
and revises them as necessary. It can be
surprisingly easy to overlook the need to
examine whether such guidelines are inline with the current times. To merely
create something once is not enough,which the company understands and puts
in practice.
When engaging in sustainability
activities, it is important that a company
have long-term strategies and targets, andthat these are clearly explained to andinculcated among its employees. Having aplan and effective communication withindividual employees are crucial.
In recent years, in particular, there has
been a greater focus on diversity. I believethat diversity, in the true sense of theword, includes being able to recognize
differences in one another’s thinking.

It means being willing to listen in order tolearn how the other person thinks. It
means recognizing our mutual differencesby listening to our partners in the supply
chain; by taking the time to listen to thecustomers who are our end users; by
employees listening to one another’s
opinions. As this practice spreads, I think it
will lead to the further evolution ofsustainability at the Earth Group.

Mika Takaoka
Professor,
Department of
Business Administration,
Rikkyo University

Commendable actions

Harold George Meij
Outside Director

Overall, I think this is a good report that clearly reflects the EarthGroup’s corporate philosophy that “We act to live in harmony with
the Earth.” The report is positioned as a summary of Earth
Corporation’s sustainability activities, and by reading it along with
content made available on the web, we can gain an overall pictureof the company’s sustainability-related activities.

There are three items in the report that I would especially like tocommend.
The first is that Earth Corporation has put in place an adequate
structure for promoting sustainability. As I commended them for in
the report from two years ago, the company became a signatory to
the United Nations Global Compact (UNGC) in June 2021, andexpressed its support for the ten principles across four areas
advocated by the UNGC. With this, the company reexamined its
Group CSR promotion structure, reorganizing its CSR Promotion
Secretariat and CSR Working Group into the CSR & Sustainability
Promotion Office. Subsequently, in the same year the company
formulated its Basic Sustainability Policy and established the CSR
and Sustainability Promotion Department within its GroupManagement Headquarters. Setting up this promotion departmentin the heart of the organization will accelerate the company’s efforts
to solve social issues on a continuing basis and through its own
core business. I give Earth Corporation high marks for its sincerecommitment to integrity in this area.
The second item is the fact that Earth Corporation has identified
materialities related to sustainability, formulated priority themes andkey measures, and established targets and key performanceindicators (KPIs). Identifying these materialities, setting KPIs, andimplementing a PDCA cycle, including progress monitoring, puts inplace a system to verify whether their sustainability activities are inline with their original objectives and whether they are being
implemented effectively. As noted in the CEO’s message, I think it isSustainability Report 2023

33

Editorial Policy

necessary to identify materiality and set KPIs in order to carefully
consider why each of these activities is being undertaken, and toengage in new activities with a sense of speed—and, whennecessary, without being bound by conventional practices.
The third item is the fact that, in August 2023, the company
established a new set of Sustainable Procurement Guidelines.
Since first announcing its CSR Procurement Guidelines in 2017, thecompany has implemented CSR hand-in-hand with the partners
positioned in its supply chain. The recent establishment ofprocurement guidelines that include a commitment not to infringeon human rights is a necessary, and highly commendable,
response by the Earth Group, a global company widely recognizedoverseas. Since the Guiding Principles on Business and Human
Rights were unanimously endorsed by the UN Human Rights
Council in 2011, there has been an accelerating international
movement to require companies to respect human rights. In 2020,
the Japanese government also formulated an action plan on“Business and Human Rights,” which calls for the establishment ofa human rights policy as a step toward efforts to respect humanrights, and for the publicizing of corporate commitments both in andoutside companies. While we know that the Earth Group as acompany has a sufficiently high awareness of human rights issues,
given that its Earth Group Global Conduct Guidelines alreadyspecify the prevention of human rights violations and the company
has recently formulated its Sustainable Procurement Guidelines, I
look forward to the company formulating and publishing its Human
Rights Policy next year as a way of clearly demonstrating this to theoutside world.

34

Earth Corporation

Also, in addition to disclosing via the web the company’s own
direct (Scope 1) and indirect (Scope 2) emissions of greenhousegases, Earth Corporation now also discloses greenhouse gas
emissions across its value chain as a whole (Scope 3). It has also
expressed its support for the recommendations of the Task Forceon Climate-Related Financial Disclosures (TCFD), and discloses
climate change-related information in line with the TCFD framework.
I highly commend their willingness to contribute to a decarbonizedsociety.

Earth Corporation publicizes its unique concepts, initiatives regarding
issues and priority items related to materiality, and quantitative results fromthe viewpoint of ESG. Use the QR code on each page for more detailed
information on its website.

Please visit our official website
to access Company Information.

Subject Period
This sustainability report covers the period from January to December
2022. However, we strive to include the most updated information on our
activities, including those undertaken in FY2023.
Publication
February 2024

What I would like to request
At this point, Earth Corporation’s sustainability activities havereached a certain point, so why not expand the boundaries ofsustainability activities to the entire group next year? Specifically,
I would like to see them consider establishing sustainability policies
and materialities and calculating Scope 3 for the entire Group.
Moving ahead, I look forward to seeing them steer the industry as
the leading company in Asia for insect-borne infectious disease
control, while further promoting ESG management with a global
awareness.

Target Range
Earth Corporation (partially including the Group)

Please visit our official website toaccess IR Information.

Supplement
Employees include managerial, full- and part-time staff.
Responsibility
CSR and Sustainability Promotion Department

Editorial Notes
We would like to express our great appreciation to those whose efforts made the creation of Sustainability Report 2023 possible. Thanks toeveryone at the Earth Group companies, stakeholders and partner companies, we were able to achieve good results from our CSR activities. I lookforward to your continual support and cooperation as we move together into the future.