Shiseido Modern Slavery Statement (Year ended December 31, 2023)
The statement below is the report for FY2023 as of December 31, 2023. Based on thestatement of the previous fiscal year, this statement describes the actions taken in FY2023
and the initiatives planned for FY2024 and beyond.

1 About This Statement
Shiseido Company, Limited, (hereafter the “Company”) makes the following
declaration based on Section 54 (1) of the UK Modern Slavery Act 2015 (hereafter the“Slavery Act”) and discloses the measures implemented by the Company and its
subsidiaries (collectively referred to as the Shiseido Group, hereafter “Shiseido”) toensure that neither Shiseido’s business operations nor its supply chains involvepractices amounting to slavery and/or labour under conditions of slavery and humantrafficking. The Company hereby declares that Shiseido entirely opposes slavery andhuman trafficking in its business and supply chain operations. With this statement,
Shiseido follows the definitions and concepts of slavery and human trafficking
stipulated in the Slavery Act.

2 Business Operations and Organization
The Company is a cosmetics manufacturer established in 1872 in Japan. While the coreof Shiseido’s business operations revolves around cosmetics, such as skincare,makeup, and fragrance, the scope of our business activities extends into a wide rangeof areas, including restaurants and education/childcare. Our mission is to contribute tosociety through beauty innovations that enrich the lives of our stakeholders globally.
Shiseido currently operates cosmetic businesses in more than 120 countries and areas
with approximately 36,000 employees and a global turnover of 973 billion yen in FY2023.
In the UK, the Company currently sells cosmetics through its subsidiaries Shiseido UK
Limited and Gallinée Ltd.
Business Overview: https://corp.shiseido.com/en/company/business/
Key Figures: https://corp.shiseido.com/en/company/glance/

3 Supply Chain
Shiseido is engaged in purchasing, factory production, and logistics in cooperation
with the global headquarters and each region. Our relationship with our suppliers isbased on the following philosophies stated in the Shiseido Group Procurement Policy:“Building a Good Partnership,” “Fair Purchasing Transactions,” “Toward Global
Procurement,” “Performance of Contract,” “Promoting sustainable procurement,” and“Respecting diverse values.” Of these, we purchase materials from over 800 Tier 1

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suppliers around the world. Our Tier 1 suppliers are all required to follow the Shiseido
Group Supplier Code of Conduct, and they are responsible for adapting it to their Tier
2 and upstream suppliers.

4 Policies in Relation to Slavery and Human Trafficking
Shiseido strives to ensure that neither our business nor the supply chain related to it
involves the practices of enslavement or human trafficking. This is done byestablishing corporate policies applicable to Shiseido and thoroughly communicatingthem to employees and suppliers, including Tier 1 and upstream suppliers. These
policies were drafted by the person responsible for human rights at the GHQ and wereapproved by the Company’s Board of Directors. The Company's Chief DE&I Officer is
responsible for promoting the human rights policy, including human rights due
diligence and risk assessments, and reports to the Sustainability Committee at its
meetings to discuss sustainability-related issues. Designation of an Executive Officer
responsible for human rights issues identified through human rights risk assessments,
and improvement activities are being implemented to stop, prevent, and mitigate
negative impacts on human rights.
Shiseido's policies include the following:◼ Shiseido Policy on Human Rights
Adopted in 2017, the Shiseido Policy on Human Rights is based on the United
Nations Guiding Principles on Business and Human Rights to prevent slave
labour (e.g., child labour, forced labour, etc.) and other work under slavery andhuman trafficking. This Policy applies to Shiseido and its business partners.
https://corp.shiseido.com/en/sustainability/human/pdf/policy01.pdf◼ Shiseido Code of Conduct and Ethics
The Shiseido Code of Conduct and Ethics stipulates the mandatory
behaviours expected of every individual working for Shiseido. The Company
has established a specific code of conduct to operate its business with highethical standards, as well as to comply with the laws and regulations of thecountry, local government, and company rules. It declares the absoluteprohibition of practices such as child labour, forced labour, human trafficking,and other activities that may lead to human rights abuses.
https://corp.shiseido.com/en/company/standards/◼ Shiseido Group Procurement Policy
Our procurement policy, which was updated in 2022, is based on a consumeroriented perspective including the following principles:・We carry out our procurement activities to create better products through cocreation with business partners.

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・We comply with all relevant laws and regulations, prioritizing respect forhuman rights and protection of the global environment.
https://corp.shiseido.com/en/sustainability/ethical/procurement/pdf/1.pdf◼ Shiseido Group Supplier Code of Conduct
Updated in 2019, this code of conduct clearly states that the use of childlabour, forced labour, and human trafficking is prohibited. Shiseido takes any
abuses of the code seriously and does not hesitate to terminate such
relationships where necessary. Shiseido applies this code as a prerequisite forselecting Tier 1 suppliers, and Shiseido recommends that these suppliers
request Tier 2 and upstream suppliers to also comply with the code. This code
applies to purchasing contracts in order to strengthen solidarity and fulfil social
responsibilities together with suppliers.
https://corp.shiseido.com/en/sustainability/pdf/partner.pdf◼ Shiseido Group Sustainable Raw Material Procurement Guidelines
We have created guidelines for palm-derived materials, paper and mica,
which exacerbate environmental and human rights problems in the countriesof origin.
https://corp.shiseido.com/en/sustainability/ethical/procurement/pdf/2.pdf
In addition to the above policies, in 2004 the Company signed the United Nations Global
Compact and endorsed the principles of the Global Compact for Shiseido. Furthermore,in September 2010, the Company signed the Women’s Empowerment Principles
developed by UN Women and the United Nations Global Compact as a set of practicalguidelines for private business and non-governmental organizations working for
women’s empowerment.

5 Human Rights Due Diligence
Shiseido has taken the following steps to identify and assess the apparent andpotential impact of our activities relating to human rights in order to prevent or mitigate
such activities.
◼ Listing of human rights issues
By referring to international codes on human rights, standards on non-financial
disclosures, and the Corporate Human Rights Benchmark (CHRB), Shiseido
has developed a list of human rights issues to be considered based on theadvice of human rights experts. This list includes not only issues related tomodern slavery, such as forced labour and child labour, but also a wide range
of issues related to human rights, such as freedom of association, the right tocollective bargaining, and discrimination.

3◼ Assessment human rights risks
Shiseido has assessed the status of our activities for our listed human rights
issues by interviewing stakeholders (consumers, business partners,
employees, and society*) in Japan and other countries and by investigatinginternal documents such as but not limited to questionnaires, surveys andcertain report materials (along with referring to external documents for the
potential impact on human rights). Based on the results of this investigation,
Shiseido has assessed the severity and likelihood of both potential andapparent risks regarding impacts on human rights in Japan and abroad, as
well as the status of preventive and corrective measures Shiseido has taken toaddress these impacts.
*Including women, children, indigenous people, migrant workers, andtemporary workers, etc.
◼ Human rights risk reduction activities
Based on risk assessments of human rights issues, we identify areas in ourvalue chain where human rights risks are assumed to be relatively high, andplan and promote improvement activities to stop, prevent, and mitigate
negative impacts. The status of the promotion of these activities has been
confirmed, and activities to further reduce human rights risks are ongoing, as
well as progress reports and disclosure.
◼ Stakeholder Engagement
Through dialogue with domestic and global human rights experts, and various
NGOs and NPOs, we have continuously deepened our understanding of
human rights abuses and labour problems. Since 2017, Shiseido hasconsecutively participated in a stakeholder engagement program operated by
the Caux Round Table Japan in Tokyo, Japan. As part of the program for 2022,
we identified important human rights issues for each industry throughdiscussions with experts, NGOs, and NPOs with reference to the human rights
guidance tool produced by the United Nations Environmental Programme /Finance Initiative (UNEP FI). Thus, it was confirmed that there is a possibilityof child labour and forced labour in the cosmetics industry supply chain.
Through this activity, we recognised that the human rights risks of slavery(including child and forced labour) and other forms of labour under conditionsof servitude exist upstream in our supply chain, including in the countries oforigin of raw materials such as palm oil and mica. In response to this, Shiseidocontinues to actively engage with human rights experts to take preventativeand corrective measures to reduce such risks.

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６ Risk Assessment and Management
Shiseido continues to assess and manage human rights risks in our supply chain using
the following three approaches:◼ Approach 1: Assess and manage risks through human rights due diligence
In order to prevent or mitigate the impact that our activities have or could haveon human rights, we have identified and assessed that impact through theprocess described in "5. Human Rights Due Diligence." As a result, the areasin our supply chain where human rights risks were reported to be more likelyare:- Harassment and discrimination- Violation of compliance/fair competition- Privacy invasion and personal/confidential information leakages- Occupational safety and health issues (work-related accidents)- Breach of working hours, breaks, and rest period (overtime work)- Incomplete supplier management (in no particular order).
On the other hand, we found that "forced labour" and "child labour," which areclosely related to modern slavery and human trafficking, had lower humanrights risks compared to other areas. For each human rights area, Shiseido
will closely examine the risk level and the status of preventive and corrective
measures that have already been introduced, and then assess the issues andtake action according to the risk priority levels.
◼ Approach 2: Risk identification in the supply chain as a whole
Shiseido assesses suppliers from the perspective of sustainability (humanrights, occupational health and safety, the environment, and business ethics)
and confirms compliance with the Shiseido Group Supplier Code of Conduct
through EcoVadis, Sedex, or our original Self-Assessment Questionnaire(SAQ) once a year. We classify suppliers into three categories according to thedegree of risk: low risk, medium risk, and high risk. And for high-risk suppliers,
we conduct third-party audits and request corrective action for nonconformances identified during them. In the event of critical non-conformance,
we confirm correction status through third-party audits again, and if the nonconformance is not corrected within a set period, we also consider suspensionof business to reduce the number of high-risk suppliers.
◼ Approach 3: Direct approach in terms of raw materials
In addition to the activities described above, as a direct action for raw
materials that Shiseido has determined to have a high human rights risk, wehave continued to promote the application of the certification system andparticipation in international initiatives.

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Shiseido has devised ways to reduce the risks associated with palm oil, which
is widely known to carry human rights risks including child labour and forced
labour in the country of origin, by joining the Roundtable on Sustainable Palm
Oil (RSPO). The goal is to procure raw materials certified by the RSPO in
consideration of environmental protection and human rights in the place oforigin. We are targeting a switch to 100% mass balance or better certified oil by
2026.
With respect to mica (which is a raw material for cosmetics), where the issue ofchild labour in India is becoming more apparent, Shiseido joined the
Responsible Mica Initiative (RMI), which strives to achieve a responsible mica
supply chain, in 2017. Shiseido participated in RMI's two activity groups,
Traceability and Workplace Standards, and supported activities aimed at
improving the traceability of the mica supply chain in India and responses toslave labour, including child labour.
Apart from the above initiatives, in 2023, Shiseido joined in a consortium of 15
cosmetics industry companies, TRaceability Alliance for Sustainable
CosmEtics (TRASCE) to enhance traceability in key ingredient and packaging
supply chains across the industry.
Together with the member companies, we are committed to working to map
our supply chains across the entire value chain on a common digital platform,
Transparency-One, an ISN Company.
*The 15 founding members of TRASCE: Albéa, Chanel, Clarins, Cosfibelgroup powered by GPA, Dior, The Estée Lauder Companies, Groupe Pochet,
L’Occitane en Provence, L’Oréal, Merck, Neyret, Nuxe, Sensient, Shiseido andSisley7 Performance Assessment
Shiseido strives to prevent slavery (e.g. child labour and forced labour), other forms oflabour under conditions of servitude, and human trafficking in its supply chain. We aim
to establish traceability not only with Tier 1 suppliers but also Tier 2 and upstream
suppliers on a global basis. The assessment results were used to determine the statusof risks in the supply chain related to labour rights, health and safety, the environment,
business ethics, and to request corrective actions.
◼ Approach 1: Human rights due diligence
For the six human rights issues identified by the 2020 activities, Executive
Officers were designated to be in charge, and improvement activities were
implemented in 2021 to stop, prevent, and mitigate negative impacts onhuman rights. One of the issues identified was "incomplete suppliermanagement," and we promoted the introduction of a rigorous and objective

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risk identification and remediation process, including the implementation of
third-party audits, and a process to monitor the progress of high-risk suppliers
and reduce the number of them.
In 2023, we conducted a human rights risk assessment as part of our periodic
review of our risk map regarding potential human rights issues. Two of ourfactories were surveyed by a human rights NGO to assess the working
environment, which included interviews with migrant workers. Although thesurvey did not find any significant human rights risks, we will continue to
conduct investigations to identify potential human rights risks and continuously
improve our working conditions.
https://corp.shiseido.com/en/sustainability/rights/activity.html◼ Approach 2: Supplier assessment results
In 2023, we aimed to conduct self-assessments for all Tier 1 suppliers of raw
material, packaging for our products, sales support tools, OEM products andmanufacturing goods. Of 860 Tier 1 suppliers, we completed the selfassessment of 859 suppliers and 12 high-risk suppliers were identified. We
conducted third-party audits for all of them to identify and correct their issues.
By the end of 2023, the number of high-risk suppliers was reduced to 3. We
will continue to remediate the remaining suppliers by the end of 2024.
Regarding the upstream assessment, we expanded the scope to include
upstream manufacturing suppliers which our strategic suppliers havetransactions with. We requested our strategic suppliers to identify theirstrategic manufacturing suppliers as well as to assess their risks.
In total, 169 upstream suppliers were assessed, and 1 high-risk suppliers was
identified.
◼ Approach 3: Direct action on raw materials identified as high human rights risk
In regards to palm oil, the relevant teams in our global and regional
headquarters have been working together to promote initiatives aimed atachieving this target, and in 2023, we replaced 51% of palm oil-derived raw
materials (palm oil equivalent, weight basis) with RSPO’s physical supply chain
model.
With respect to mica, to date, working with local partners RMI programs havereached 180 villages covering nearly 19,500 households, representing some
95,000 of the most vulnerable members of the mica. The programs helped to
improve living income and livelihood.

8 Education and Training
The Company provides training on the Shiseido Code of Conduct and Ethics and/or
related policies and rules through various internal programs, such as position-specific7

training, in order to promote the increase of knowledge and understanding of all
Shiseido employees.
◼ Executive officers, vice presidents, and chief representatives
With the revision of the Shiseido Code of Conduct and Ethics in 2022, theExecutive Officers, vice presidents, and office managers of both Shiseido Co.,
Ltd. and Shiseido Japan Co., Ltd. were briefed on the significance and key
points of the revision.
◼ Employees
Shiseido Code of Conduct and Ethics training: With the revision of the Shiseido
Code of Conduct and Ethics in 2023, a total of 18,750 employees including thevice presidents and chief representatives of the Shiseido Group in Japan
participated in training on the code, and similar training was also conducted in
all regions of Shiseido Group. We also made employees aware of theprohibition of discrimination, abuse, and harassment during this training.
Harassment awareness programs: In the Shiseido Group in Japan, we
conducted training on harassment prevention, and 132 newly appointed
managers participated in the training. In addition, we provided training to all
employees, with a total of 16,862 participants (83% participation rate).
Human rights awareness programs: We also conducted e-learning on“Unconscious Bias" as human rights awareness programs, with a total of
45,698 participants (81% participation rate).
Other programs: In EMEA, we launched a Sustainability Education Program tofurther understand sustainability issues and our strategies to address them.
◼ Supply chain
In order to implement responsible procurement, Shiseido provides various
training programs for employees in the Procurement department in terms ofhuman rights, occupational health and safety, and the environment.
In 2023, we conducted a training for all buyers in the Procurement Departmentof GHQ to understand human rights issues in the supply chain and how toaddress them. Furthermore, in order to support building suppliers’ capabilities,
we have a wide ranging of initiatives.
- Explaining our Responsible Procurement Policy through online material- Giving feedback on self-assessment results to suppliers- Supporting high-risk suppliers by recommending corrective action plans- Recommending EcoVadis Academy which is an online e-learning tool tostrategic suppliers

89 For the Future
Shiseido continues to take the perspective of the UN Guiding Principles on Businessand Human Rights and strives to prevent the initiation of its involvement in humanrights abuses for its own business and throughout its supply chain. In FY2024, we willcontinue with the improvement activities implemented in FY2023 to stop, prevent, andmitigate negative impacts on human rights risks.
To minimize sustainability risks in the entire supply chain, we plan to continue
upstream supplier assessment. Furthermore, in 2024, we will start the assessment of
Indirect Material suppliers. Our scope will be suppliers identified as potentially high-riskby a 3rd party risk-screening tool.

This statement was approved by the Board of Directors of the Company and signed by
the following person:

Kentaro Fujiwara
Director
Representative Corporate Executive Officer,
President and COO
Shiseido Company, Limited
May 29, 20249