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1、48Advancing Gender Equality49Resolving the Gender Gap and Empowering Women in Japan53Supporting Womens and Girls Education and Financial Independence Worldwide55Empowering People Throughthe Power of Beauty61Challenging the Unconscious Biases and Prejudices that Limit Individual Beauty56Cultivating S

2、elf-Efficacy Through the Power of Beauty72Social Contribution62Promoting Respect for Human Rights63Respecting Human RightsSOCIETY46COO Message53CEO MessageMESSAGEGOVERNANCEDeveloping Sustainable Products27Formulas/Ingredients28Sustainable Packaging32Initiative to Build a Circular Model36Promoting Su

3、stainable and Responsible Procurement38Biodiversity Initiatives and Procurement of Raw Materials39Supplier Management4312ENVIRONMENTEditorial Policy84External Evaluations/DataExternal Evaluations77Sustainability Data79Shiseidos Sustainability7Diversity,Equity and Inclusion(DE&I)of Employees at Shise

4、ido6667Promotion of Diversity,Equity and Inclusion(DE&I)71Initiatives for Having Employees Work with Good HealthCorporate Governance Policy74Corporate Governance System7414Reducing Our Environmental Footprint15Reducing CO2 Emissions 22Reducing Water ConsumptionReducing Waste25ContentsEnvironmentSoci

5、etyGovernanceDataSUSTAINABILITY REPORT 20233Top Message CEO Message COO Message Shiseidos SustainabilityAt Shiseido,we aim to realize a sustainable world where everyone can enjoy a lifetime of happiness through the power of beauty toward 2030,along with our corporate mission:BEAUTY INNOVATIONS FOR A

6、 BETTER WORLD.For this,we are contributing to building a society which is rich in diversity and where each one person is respected and anyone can participate actively,as well as rich global environment where people can enjoy beauty wholeheartedly.Beauty businesses as our main businesses are rooted i

7、n the desire to be beautiful,which is inherent in humans.Cosmetics have a role in the health,livelihood,and even life of a person and enrich ones mind.We are convinced of the possibilities and perpetuity of beauty.We would like to create days filled with hopes,in which people in the world shine beau

8、tifully in their own ways,by providing the rich value of cosmetics through our core businesses.Beauty is founded on individuality,thrives on diversity,is free from discrimination,and has the power to unite people.This principle is one of Shiseidos core values,which is why we believe the Company shou

9、ld not only cultivate diversity within our organization,but also take the lead in promoting greater diversity in Japanese society as a whole.Based on this thinking,Shiseido is focusing on diversity,equity&inclusion(DE&I)in the domain of society.Human resources with diverse personal qualities includi

10、ng gender,age,nationality,race,lifestyle,career,and work styles gather to demonstrate their capabilities to the full,which is our great strength.As of January 2024,women hold 40%of management positions within Shiseido Group in Japan.As of April 2024,women comprise 45%of the board of directors,and ov

11、er 30%of the leadership team comprised of executive officers and regional CEOs are foreign nationals.We aim to increase the percentage of women in management positions at Shiseido Group in Japan to 50%by 2030 to fairly represent gender equality.For this purpose,we are advancing a number of initiativ

12、es,including the NEXT LEADERSHIP SESSION for WOMEN for developing women leaders,by involving their superiors and organizations in addition to aiming to reform the awareness of women themselves.These initiatives were highly evaluated by society as well,and in November 2023,Shiseido won first place am

13、ong approx.1,900 companies in the Forbes JAPAN WOMEN AWARD 2023 Corporate Ranking.This is one of Japans largest award programs related to women,and is hosted by Forbes JAPAN for the purpose of eliminating the gender gap and empowering women.We will create social value as a beauty company and aim to

14、realize a sustainable world where everyone can enjoy a lifetime of happiness through the power of beauty.DirectorRepresentative Corporate Executive Officer,Chairman and CEOMasahiko UotaniCEO MessageContentsEnvironmentSocietyGovernanceDataSUSTAINABILITY REPORT 20234Top Message CEO Message COO Message

15、 Shiseidos SustainabilityTo deliver these pieces of knowledge widely to the outside of the company,in February 2023 we established the Shiseido DE&I Lab,an internal research institution that conducts research on active participation of diverse human resources and its relationship with corporate grow

16、th.Thus,we launched full-scale empirical research.We conduct empirical research with an economic approach,quantifying and visualizing the DE&I factors of organizations with high performance to find how diversity influences the performance of organizations.In addition,we collect actual examples of ca

17、ses which led to innovations,analyze factors,and implement other measures.Further,I myself will also reach out proactively to other companies and Japanese society as Chairman of the Diversity Promotion Committee in the Japan Business Federation(Keidanren)and as the Chair of the 30%Club Japan,thereby

18、 contributing to gender equality of Japanese society that is said to lag behind the world.With the power of diverse people,we pursue social value creation as a beauty company in the domains of society and the environment,aiming to achieve sustainable growth.What forms the important basis of sustaina

19、ble growth is corporate governance.In March 2024,Shiseido transitioned from a company with an audit and supervisory committee to a company with a nominating committee,etc.,so as to maintain and further improve management transparency,fairness,and speed even in the rapidly changing market environment

20、.While the Board of Directors concentrates on discussion on long-term visions and strategies,the business execution team implements strategies with speed and flexibility with a lot of power delegated to them.We will strive to maximize our medium-to long-term corporate value and shareholder value and

21、,at the same time,fulfill our responsibilities as a public entity through transparent dialogue with all stakeholders(employees,consumers,business partners,shareholders,the environment,society,and the earth).Our history of over 150 years is also a history of social value creation with the power of be

22、auty.This spirit will remain unchanged.We promise to achieve sustainable growth and continue to fulfill expectations from society by gathering Shiseidos outstanding Research&Development capability,the power of our brands loved all over the world,and the enthusiasm and capabilities of our diverse emp

23、loyees.And we will further evolve our sustainability activities with the power of beauty,aiming to become the most trusted beauty company in the world.ContentsEnvironmentSocietyGovernanceDataSUSTAINABILITY REPORT 20235Top Message CEO Message COO Message Shiseidos SustainabilitySince I joined Shiseid

24、o in 1991,I have been engaged mainly in overseas business,having worked with many local employees.Although I was perplexed by differences in culture and custom at times,what was common to all countries was that all of them were proud of working for Shiseido.I believe this is because they have been w

25、orking by identifying with and sharing the spirit of Shiseido,which,since its foundation,has been taking on challenges to discover and create the value of beauty,bringing joy and excitement to peoples lives across the world through the power of beauty,and working to create social value through its c

26、ore businesses in addition to economic value.I myself have also been glad and proud to be part of Shiseido.Since I took office as President and COO of Shiseido in January 2023,we have been feeling the rapid changes in the market and the significance of their impacts.However,to take the difficult cir

27、cumstances created by the changes as an opportunity for our future growth,we have been pressing ahead with a reform in a company-wide manner.Through this reform,each region and business will push forward with activities integrating business strategy and sustainability strategy of each,aiming to achi

28、eve our 2030 vision:Personal Beauty Wellness Company.I would like to mention about environment,where expectations and demands from society are high.At Shiseido,we understand the importance of global initiatives and of cooperation with other companies in Japan,while also recognizing our own responsib

29、ility to lead the industry.Attaching importance to initiatives in the value chain in particular,we are driving three strategic actions:reducing our environmental footprint,developing sustainable products,and promoting sustainable and responsible procurement.For climate change issues,we have set CO2

30、reduction targets(SBTi)for the entire value chain toward 2030.We are proactive in taking measures to reduce CO2 emissions,such as introducing renewable energy and sourcing sustainable raw materials,aiming to achieve net zero emissions by 2050.In 2023,we completed a transition to 100%renewable electr

31、icity at all 11 factories and Shiseido-owned distribution centers.In the China region,we have also completed the transition to 100%renewable electricity across all sites.We have positioned the reduction of Scope 3 CO2 emissions,which accounts for the largest share of total emissions,as key actions f

32、or the future.We will enhance our collaboration with external stakeholders,including business partners.We will work on social value creation with diverse stakeholders by integrating business strategies and sustainability strategies.DirectorRepresentative Corporate Executive Officer,President and COO

33、Kentaro FujiwaraCOO MessageContentsEnvironmentSocietyGovernanceDataSUSTAINABILITY REPORT 20236Top Message CEO Message COO Message Shiseidos SustainabilityWe have also been proactive in taking initiatives on climate change and biodiversity.As a result of the 2023 survey by CDP,an international NPO th

34、at conducts environmental surveys and discloses information,Shiseido was selected as one of the companies in the A List,the highest-ranked group,in the fields of Climate Change and Forests.We were included in two A Lists for the first time.Regarding climate change and biodiversity,we disclosed the i

35、nformation in the Shiseido Climate/Nature-related Financial Disclosure Report this year again.In product development,we will achieve sustainable value creation,which balances the results and high-quality design of our products with respect for and coexistence between people,society,and the global en

36、vironment.In April 2023,we launched the BeauRing project,a circular model project to collect and recycle plastic containers.To recycle collected containers into resources,we have started a pilot test by involving consumers,business partners,other companies,and other stakeholders who are important fo

37、r building the collection scheme.Sustainability has become even more important for corporate management than ever.I believe that,by taking this as a growth opportunity and integrating our business strategies with sustainability strategies,we can create value and new business opportunities.We will co

38、ntinue to work together with our diverse internal and external stakeholders to keep the transparency high and create social value through businesses.We aim to realize a sustainable world where everyone can enjoy a lifetime of happiness through the power of beauty toward 2030,along with our corporate

39、 mission:BEAUTY INNOVATIONS FOR A BETTER WORLD.For this,we will contribute to building a society where everyone respects diversity and can enjoy life to the fullest and making the global environment sustainable,with people living in harmony with the nature.ContentsEnvironmentSocietyGovernanceDataSUS

40、TAINABILITY REPORT 20237Top Message CEO Message COO Message Shiseidos SustainabilitySince the foundation of Shiseido in 1872,we have demonstrated our respect for people,society and nature and have worked to create social value.In order to realize our corporate mission,BEAUTY INNOVATIONS FOR A BETTER

41、 WORLD,we firmly believe our people to be the capital of value creation and invest them based on the PEOPLE FIRST philosophy.And we are promoting a culture where everyone,regardless of gender,age,or nationality can embrace diversity through respect and have constructive discussions on new value crea

42、tion.As a beauty company,we are also working to address social issues through our unique approaches,aiming to realize a sustainable world where everyone can enjoy a lifetime of happiness through the power of beauty towards 2030.We have set forth three strategic actions in the areas of society and th

43、e environment to create social value through our core business and to solve social and environmental issues.Our actions for society are focused on addressing social issues,primarily through our diversity,equity and inclusion(DE&I)initiatives.These three strategic actions are:“Advancing gender equali

44、ty,”which we strive to nurture a society where everyone can feel empowered to live their life freely by having fair opportunities regardless of gender,”Empowering people through the power of beauty,”which we strive to eliminate assumptions and prejudices associated with beauty for a world where ever

45、yone can celebrate each others beauty;and“Promoting respect for human rights,”which underlies all our activities.Our actions for the environment are based on the idea of banbutsu shisei*1,the phrase from which our company name Shiseido originates.We are working to develop technologies and business m

46、odels that can reduce environmental footprint and contribute to realize a circular economy.To do so,we are taking the following three strategic actions:“Reducing our environmental footprint,”“Developing sustainable products,”which we work on together with various stakeholders throughout the entire v

47、alue chain and“Promoting sustainable and responsible procurement”with consideration of the environment and human rights.At Shiseido,we work to promote sustainability across the entire Group,including our brands and regional businesses.Sustainability Committee was set up to ensure timely management d

48、ecisions related to sustainability efforts and their proper implementation across the Group,the committee was held regularly in 2023.The committee decides on Group-wide sustainability strategies,policies,and discusses specific topics such as risks and opportunities related to climate change and the

49、natural environment,and actions for human rights,as well as monitors the progress of medium-to long-term goals.The committee consists of the representative corporate executive officers and executive officers in charge of Corporate Strategy,Research&Development,Supply Network,Corporate Communications

50、,and our Brand Holders,to discuss a range of issues from different perspectives.Important matters in the execution of business,which require approvals are proposed or reported to the Global Strategy Committee or the Board of Directors.In order to ensure executing and promoting of sustainability acti

51、ons,a Sustainability TASKFORCE was set up under the Sustainability Committee,consisting of the heads of key relevant functions.At the Sustainability TASKFORCE,practical approaches to achieve our Our Approach to SustainabilitySustainability Governance*1 From a phrase in Chinese Yi Jing,the Book of Ch

52、anges from the Four Books and Five Classics of Confucianism,“Praise the virtues of the Earth,which nurtures new life and brings forth significant values.”Shiseidos SustainabilityContentsEnvironmentSocietyGovernanceDataSUSTAINABILITY REPORT 20238Top Message CEO Message COO Message Shiseidos Sustainab

53、ilitylong-term targets are discussed with relevant functions,regional headquarters,and local subsidiaries as necessary.Oversight functionBusinessexecution functionBoard of DirectorsRepresentative Corporate Executive Officer,Chairman and CEORepresentative Corporate Executive Officer,President and COO

54、Corporate Executive Officer/Executive OfficersGlobal Strategy Committee/Business Plan Meeting*1Global Transformation Committee*2Global Risk Management&Compliance CommitteeBusiness Execution(Divisions/Subsidiaries/Affiliates etc.)OversightProposalReportMeetings according to themes such as Innovation

55、CommitteeSustainability CommitteeSustainability TASKFORCE*1Business plans and important issues are deliberated to ensure multifaceted consideration*2Progress management and review for structural reforms and growth strategiesCommand/Order/InstructionProposal/ReportAt Shiseido,we are committed to crea

56、ting a sustainable world and enhancing peoples sense of happiness and fulfillment through value creation,as we have done since our founding.To select social and environmental issues to be addressed through our business,we have extracted sustainability issues based on interviews,surveys,and dialogues

57、 with stakeholders.We first examined the importance of these issues to Shiseidos business and to all of our stakeholders,from employees and consumers to business partners,shareholders,society,and the earth.Then,in 2019,we categorized and prioritized the issues along the two axes and defined 18 mater

58、ial issues.Additionally,in light of recent changes in the environment surrounding society and the industry,we are considering a review of our current materiality.MaterialityImportance to StakeholdersHighHighDeforestationResponsible procurementEnvironmentSocietyGovernanceCultureDevelopment of eco-fri

59、endly formulasWater usageQuality assuranceWaste reductionInformation security and privacyStrengthening of governance and accountabilityDiversity&InclusionClimate change Sustainable packagingOccupational health and safety Respect for human rightsQuality of lifeResponsible marketing and advertisingPeo

60、ple developmentFair business transactionsArt&HeritageImportance to Shiseidos Business(Approved in 2019)Sustainability Promotion StructureContentsEnvironmentSocietyGovernanceDataSUSTAINABILITY REPORT 20239Top Message CEO Message COO Message Shiseidos SustainabilityThe following process was implemente

61、d to define material issues.*1Until the end of 2021,it was“corporate officers”.How We Formulated Our MaterialityIdentify social and environmental issues in consideration of allstakeholders based on their expectations and demands along with various perspectives collected from Experts in environmental

62、 and social fields globally Consumer feedback(from company surveys conducted in five countries)External surveys,reports from major international organizations(GRI,SASB,SDGs etc.),investor feedback Executive officer*1 and employee feedbackSTEP1Shortlist the identified issues based on their relevance

63、to our businesses and make a more informed analysis Issues are narrowed down to those highly relevant to our businessesthrough discussions with executive officers*1 and various internal divisions.Issues are then selected by scoring them based on the two axes ofimportance to our businesses and import

64、ance to the entire companys stakeholders(employees,consumers,business partners,shareholders,society,and the earth).The questions and strategic actions surrounding these issues are thenconfirmed by the executive officers*1.STEP2Submit the finalized list of material issues to the SustainabilityCommitt

65、ee for approvalSTEP3ContentsEnvironmentSocietyGovernanceDataSUSTAINABILITY REPORT 202310Top Message CEO Message COO Message Shiseidos SustainabilityShiseido has established three strategic actions based on the material issues we have defined in each area of society and the environment.We have alloca

66、ted management resources on a priority basis in each department across the entire Group to implement these priority initiatives.*1We do not disclose strategic actions related to governance materiality.Material IssuesStrategic ActionCorresponding SDGsEnvironment Climate change Development of eco-frie

67、ndly formulas Sustainable packaging Deforestation Responsible procurement Waste reduction Water usage1.Reducing our Environmental Footprint2.Developing Sustainable Products3.Promoting Sustainable and Responsible ProcurementSociety Diversity,equity and inclusion(DE&I)Quality of life Professional deve

68、lopment Occupational health and safety Respect for human rights1.Advancing Gender Equality2.Empowering People Through the Power of Beauty3.Promoting Respect for Human RightsGovernance/Culture Strengthening of governance and accountability Fair business transactions Quality assurance Responsible mark

69、eting and advertising Information security and privacy Art and heritage We are committed to maintaining and improving the transparency,fairness,and speed of management initiatives by enhancing corporate governanceas well as maximizing corporate and shareholder value over the mediumterm through dialo

70、gue with all stakeholdersconsumers,employees,shareholders,the environment,and society at largeto fulfill ourresponsibilities as a public entity and optimize value distribution to eachstakeholder.*1 We promote activities in art and heritage through our corporate culture that generates social value an

71、d shares a uniquely Japanese aesthetic with theworld.Strategic Actions&Corresponding SDGsContentsEnvironmentSocietyGovernanceDataSUSTAINABILITY REPORT 202311Top Message CEO Message COO Message Shiseidos SustainabilityMedium-to Long-term Targets and ResultsEnvironmentSocietyStrategic ActionTargetsTar

72、get Year2023 Results1.Reducing our environmental footprintCO Carbon neutral*1202660%(compared with 2019)CO emission reduction(SBTi,Scope 1+2)46.2%*22030Plan to disclose in 2025*4CO emission reduction(SBTi,Scope 3)55%*32030WaterWater consumption reduction40%*5202646%(achieved in 2023)WasteZero landfi

73、ll*62022 Achieved in 2022(continued in 2023)2.Developing sustainable productsPackagingSwitching to sustainable packaging100%*7202569%3.Promoting sustainable and responsible procurementPalm OilReplacement with sustainable palm oil100%*8202651%PaperReplacement with sustainable paper100%*92023100%(achi

74、eved in 2023)Strategic ActionTargetsTarget Year2023 Results1.Advancing gender equality Ratio of women leaders at all levels in Japan502030Directors45.5%*1Executive Officers40.0%*1Managers in Japan40.0%*2 Womens empowerment in Japan Supporting education and financial independence worldwideOne million

75、 people(to reach directly)2030Achievement ratio 62%2.Empowering people through the power of beauty Cultivating self-efficacy through the power of beauty Challenging the unconscious biases and prejudices that limit individual beautyOne million people(to reach directly)2030Achievement ratio 13%*1 At a

76、ll our sites(including offsets)*2 At all our sites(compared with 2019)*3 Throughout our value chain,excluding Shiseido sites,economic intensity target,compared with 2019.*4 Target revision application in progress due to transfer of business.*5 For all our sites,intensity per sales,compared with 2014

77、.*6 For Shiseido owned factories.*7 For sale of products with plastic packaging.*8 Certified based on RSPOs physical supply chain model:identity preserved,segregation,and/or mass balance,palm oil equivalent basis.*9 Such as certified paper and recycled paper,paper weight basis.*1 As of April 1,2024*

78、2 As of January 1,202412Shiseido comes from a phrase in the classical Chinese text,I Ching:“Praise the virtues of the Earth,which nurtures new life and brings forthsignificant value.”This praise for the Earth,which continuously gives birth tonew things,is consistent with Shiseidos goal of sustainabi

79、lity,which aimsto create and circulate new value in society.Since Shiseido was founded in1872,we have developed a business model that combines business successwith respect for people,society,and the planet.In everything we do,we cooperate with our stakeholders across our entirevalue chain from procu

80、rement of materials and product developmentthrough to production,use and disposal to create value through ourproducts and services and enable the coexistence of people and theenvironment.This is how we create new sustainable value for the world.ENVIRONMENT13STRATEGIC ACTION 1STRATEGIC ACTION 2STRATE

81、GIC ACTION 3Reducing OurEnvironmental FootprintWe are reducing the environmental footprint of our activitiesby taking actions in three key actions.CO2By 2026 Carbon neutral.*1 By 2030 Reduce CO emissions by 46.2%(SBTi,Scope1 and 2).*2By 2030 Reduce CO emissions by 55%(SBTi,Scope 3).*3WaterBy 2026 Re

82、duce water consumption by 40%.*4WasteBy 2022 Zero landfill.*5Promoting Sustainable andResponsible ProcurementWe work with suppliers to procure raw materials inconsideration of environmental protection,biodiversity andhuman rights.Palm OilBy 2026 100%Replacement with sustainable palm oil.*7PaperBy 20

83、23 100%Replacement with sustainable paper.*8Supplier ManagementCreate a sustainable supply chain.Developing Sustainable ProductsWe use innovation to minimize the environmental impact ofour products and disclose our policies on product development.Formula/IngredientsReduce our environmental and socia

84、l impact by usingsustainably sourced raw materials that are selected inconsideration of safety,the environment and ethics.PackagingBy 2025 100%Switching to sustainable packaging.*6*1 At all our sites(compared with 2019,including offsets)*2 At all our sites(compared with 2019)*3 Throughout our value

85、chain,excluding Shiseido sites,economic intensity target,compared with 2019.*4 For all our sites,intensity per sales,compared with 2014.*5 For Shiseido owned factories(achieved in 2022,continued in 2023)*6 For sale of products with plastic packaging.*7 Certified based on RSPOs physical supply chain

86、model:identity preserved,segregation,and/or mass balance,palm oil equivalent basis*8 Such as certified paper and recycled paper,paper weight basisContentsTop MessageSocietyGovernanceData Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible Procur

87、ementSUSTAINABILITY REPORT 202314EnvironmentReducing Our Environmental FootprintThe impact of climate change,including extreme weather events caused by global warming,is becoming more apparent each year.Shiseido has set long-term targets for addressing environmental issues and engages in various com

88、pany-wide activities to achieve the targets,with the aim of preserving the natural environment and its biodiversity while simultaneously ensuring the sustainable growth of society,economy,and its businesses.Shiseido has adopted an Environmental Policy as its requirements for addressing environmental

89、 issues and has defined the reduction of CO emissions,the reduction of water consumption,and waste reduction as priority domains in actions for reducing the environmental footprint of its business activities.We will continue to work with stakeholders throughout our value chain to create sustainable

90、impact within each of these actions.STRATEGIC ACTION 1Environmental Policy2030By2026By2022ByCOReduce CO emissions by 46.2%(SBTi,Scope 1Scope 2)At all our sites(compared with 2019)Reduce CO emissions by 55%(SBTi,Scope 3)Throughout our value chain,excluding Shiseido sites,economic intensity target,com

91、pared with 2019.CO2023 Results 60%(compared with 2019)Carbon neutralAt all our sites(including offsets)WaterReduce water consumption by 40%2023 Results 46%achievedFor all our sites,intensity per sales,compared with 2014.WasteZero landfillAchieved in 2022,continued in 2023For Shiseido owned factories

92、ContentsTop MessageSocietyGovernanceData Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementSUSTAINABILITY REPORT 202315EnvironmentClimate change is leading to numerous issues,including natural disasters caused by temperature extreme

93、s,insufficient water resources,and an accelerated loss of biodiversity.There are global moves to hold the increase in global average temperature to below 1.5C above pre-industrial levels and to achieve net zero emissions by 2050,in accordance with the Paris Agreement and the Glasgow Climate Pact.At

94、COP28*1 held in UAE in November 2023,importance was attached to more effective actions,and dialogues have been in progress toward specific solutions.While CO emissions from the cosmetics industry are lower than other industries,Shiseido supports the Paris Agreement and the Glasgow Climate pact,and h

95、as set response to climate change as its important task.For achieving net zero emissions in 2050 and attaining the 2030 target,we have set CO*2 emissions reduction targets,which are in line with the 1.5C target,by following the Science Based Targets*3 initiative.We obtained certification from SBTi.W

96、e are driving initiatives to reduce CO emissions,such as improving energy efficiency by reducing the use of energy and switching to renewable energy.STRATEGIC ACTION 1To mitigate climate change,we are committed to reducing CO emissions from the electricity and fuel used in our business activities.As

97、 part of our efforts,we use renewable energy where possible and constantly seek to improve energy efficiency in our factories,offices,and other facilities.To increase energy efficiency,we are introducing several building design improvements at our factories,including improved heat insulation,more en

98、ergy-efficient equipment,and new environmental measures based on the ISO 14001 environmental management system.Specifically,in addition to using LED lighting to reduce energy consumption,we installed Energy Management Systems(EMS*1)to visualize energy use and CO emissions on equipment that uses elec

99、tricity,steam,or compressed air.These systems allow us to optimize energy usage in a number of ways.Furthermore,at our Osaka Ibaraki factory and neighboring West Japan Distribution Center our production and logistics hub in Japan we installed sandwich panels in the exterior walls.Lightweight and wit

100、h excellent heat insulation properties,these panels have helped reduce energy consumption.At our Kakegawa factory,steam was sent from the central energy building on the premises to each production building to be used as the heat source for hot water supply.EMS data analysis showed that steam deliver

101、y distances were long and heat loss was not small.Therefore,we have installed a heat pump at each production building to reduce heat loss.We have thus succeeded in improving energy efficiency.Reducing Our Environmental Footprint Reducing CO Emissions from Energy Consumption(Scope 1 and 2)Driving Ene

102、rgy Conservation and Energy Efficiency ImprovementReducing CO Emissions*1 The 28th Session of the UN Climate Change Conference of the Parties*2 Greenhouse gases usually refer to CO,CH4,N2O,HFCs,PFCs,SF6,and NF3.In this report,unless otherwise specified,these greenhouse gases will be collectively ref

103、erred to as CO.*3 Scope 1,Scope 2,and Scope 3 emissions.Certification was obtained from the Science Based Targets initiative(SBTi).*1 A system that realizes efficient use of energy such as energy saving and load leveling by visualizing the energy usage status using information and communication tech

104、nologyClimate/Nature-related Financial Disclosure InitiativesMedium-to Long-term Targets and ResultsOsaka Ibaraki factory and neighboring West Japan Distribution CenterContentsTop MessageSocietyGovernanceData Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable

105、and Responsible ProcurementSUSTAINABILITY REPORT 202316EnvironmentAt our Gien factory in France,we have affixed heat insulating films on the factory windows.The films limit temperature rises inside the factory in summer and reduce power consumption by air conditioners,thereby helping save energy.We

106、are constantly working to increase the use of renewable energy at our factories and offices.In 2023,we finished switching 100%of the electricity at all 11 factories and our distribution centers to renewable electricity.In addition,we are advancing the use of renewable energy at all of our sites worl

107、dwide,such as switching 100%of the electricity at our offices to renewable energy.In the China Region,we completed a 100%switchover at all sites.Moreover,at the Beijing Office,which includes the factory of Shiseido Liyuan Cosmetics Co.Ltd.(SLC)in China,we fulfilled requirements under the code for ca

108、rbon neutrality certification(PAS 2060:2014)and obtained certification.Following the completion of switchover of 100%of the electricity at our Shiodome and Ginza offices in Japan to renewable electricity in 2022,we switched 100%of the electricity at all company-owned buildings of Shiseido Japan to e

109、lectricity from renewable energy in 2023.We are driving the shift to electricity from renewable energy mainly at the Shiseido Global Innovation Center(Yokohama),in Europe,and at our branch offices in Japan.In addition to promoting the use of renewable energy,we are also proactive in installing solar

110、 panels on the premises and in the buildings of our factories and research centers worldwide.Eight of our factories*1 in the world are equipped with solar power generation facilities.As a result,renewable electricity now accounts for 85%of all the electricity used at Shiseido Group.In addition,Shise

111、ido is a member of the RE100 global initiative,which brings together businesses committed to using 100%renewable electricity in their activities.We will continue to accelerate our transition to renewable electricity in our operations to reduce fossil-fuel derived electricity.Increasing the Use of Re

112、newable EnergyFukuoka Kurume factoryIn 2023,we expanded solar power generation facilities at our Fukuoka Kurume factory,thus increasing the total capacity of the facilities to 1.9MW.The total power-generating capacity of all factories of Shiseido has reached 6.8MW.*1 The eight factories are:Kakegawa

113、(Japan),Osaka Ibaraki(Japan),Fukuoka Kurume(Japan),Shanghai(China),Beijing(China),Taiwan factory,East Windsor(US),Gien(France).(Country/Region)Solar panels at the Fukuoka Kurume factory(Japan)ContentsTop MessageSocietyGovernanceData Reducing Our Environmental Footprint Developing Sustainable Product

114、s Promoting Sustainable and Responsible ProcurementSUSTAINABILITY REPORT 202317EnvironmentInitiatives to Reduce Indirect CO Emissions from the Value Chain(Scope 3)Other Than Our SitesOur indirect CO emissions also result from our business activities but they are not directly under our control for ex

115、ample,emissions that derive from the manufacturing and shipping of raw materials or the use and disposal of our products.As part of our work to reduce the impact of our business activities on climate change,we have established science-based long-term reduction targets for our indirect CO emissions,a

116、nd we are working with our suppliers and other stakeholders to reduce emissions across our entire value chain.We select raw materials with a special emphasis on reducing our environmental footprint in line with the green chemistry principles*1.For the procurement of palm oil and paper,we support the

117、 principles of the No Deforestation,No Peat,No Exploitation(NDPE)and procure raw materials that are not linked to deforestation.Furthermore,we are striving to reduce CO emissions related to the development of containers,by promoting the use of recycled resins.In addition,in 2022 Shiseido participate

118、d in the CDP Supply Chain Program*2.The goal is to reduce CO emissions from the upstream supply chain,which accounts for over 40%of the indirect CO emissions in the value chain.In 2023,we selected suppliers that participate in the program,based on the spend and importance.We requested 50 companies w

119、orldwide to report their CO emissions,reduction targets,and other relevant information.We will use this information to calculate and reduce our Scope 3 emissions.To calculate and reduce Scope 3 emissions,it is crucial that our suppliers understand CDP and Scope 3.Therefore,in 2023,we held an explana

120、tory session with CDP Worldwide-Japan for our suppliers in Japan.We will continue to support and collaborate with our suppliers to achieve our targets.Shiseido transports its products worldwide and is taking steps to reduce CO emissions when shipping its own products.For example,in Japan we conduct

121、joint deliveries with other domestic companies to optimize transportation routes and improve loading efficiency.In February 2023,we introduced an electric truck into our vehicle fleet in Japan on a trial basis.The electric truck is expected to reduce CO emissions by 1 ton per year,and we plan to exp

122、and our fleet of electric vehicles moving forward.At our Beijing factory in China,we replaced the gasoline-driven shuttle bus for employee commuting with an electric one(EV),to reduce CO emissions from the shuttle bus.We also optimize the use and design of packaging materials according to the shape

123、and volume of the products shipped and actively promote the reuse of protective materials used in transportation,as part of our efforts to reduce waste and CO emissions.We take these initiatives mainly for bottle suppliers that deliver frequently.In Japan,we are also progressively reducing packaging

124、 materials used in the process of transporting products from factories to each Selection and Use of Raw Materials that Reduce Environmental Footprint Reducing CO2 Emissions During Transportation*1 The design of chemical products and processes that reduce or eliminate the use or generation of substan

125、ces that are hazardous to people or the environment.*2 The Carbon Disclosure Project(CDP)Supply Chain Program is an initiative in which member companies use the CDP platform to request that their suppliers disclose information related to climate change,water,and forestry.Shiseidos EV truckEV shuttle

126、 bus for employees commuting to and from our Beijing factoryContentsTop MessageSocietyGovernanceData Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementSUSTAINABILITY REPORT 202318Environmentretailer,as these materials have an impact

127、 on waste and CO emissions.Furthermore,in order to reduce CO emissions of the bottle delivery,we are collaborating with a bottle supplier that has multiple production sites to conduct production at the site closest to our production facility.In our exports from Japan to overseas destinations,the dou

128、ble stack palletization*1,which we introduced in 2022,further improved the loading efficiency in 2023.*1 A logistics process consisting of placing goods together on top of a pallet to consolidate the load at the warehouse.Environmental DataActions for Scope 3 Emissions by CategoryCategoryExplanation

129、Internal dataEmission factors1Purchased goods and servicesEmissions generated from upstream of the supply chain,such as raw materials,advertising service,land use change due to palm-and paper-derived material production.Raw material procurement volumePOSM procurement volume,Advertising expensesPalm-

130、and paper-related raw material procurementIDEA v3.1Ecoinvent 3.9Reference-1Reference-22Capital goodsEmissions generated from making capital goods.CAPEXReference-13Fuel and energy related activitiesEmissions generated in the process of mining,extraction,refining,transportation of energy and fuels.Amo

131、unt of energy consumptionIDEA v3.14Upstream transportation and distributionEmissions generated from procurement transportation and shipping transportation.Raw material procurement volumeProduct volumeDistance between our factories and sales sites Means of transportationIDEA v3.1Ecoinvent 3.95Waste g

132、enerated in operationsEmissions generated in the process of transportation and waste treatment from our operations.Waste generated by material type and disposal methodIDEA v3.16Business travelEmissions from employee business-related travelTravel expensesNumber of trips by destinationTransportation d

133、istanceIDEA v3.1Reference-17Employee commutingEmissions from employee commuting between home and Shiseidos siteCommuting expensesIDEA v3.1Reference-18Upstream leased assetsNot applicable.9Downstream transportation and distributionEmissions generated in storage and storesSales volumeProduct bottom ar

134、eaReference-410Processing of sold productsNot applicable.The products sold do not need to be processed for consumer use11Use of sold productsEmissions from product use,such as rinsing,drying up.Energy,water,and consumable goods consumed in product useIDEA v3.112End-of-life treatment of sold products

135、Emissions generated in decomposition of ingredients,and the process of transportation and waste treatment from products soldAmount of carbon derived from fossil resources in the molecules that make up the ingredient and packaging componentsWaste generated by material typeIDEA v3.113Downstream leased

136、 assets Not applicable.14FranchisesNot applicable.15InvestmentsEmissions from unconsolidated affiliates and stock investees Scope 1 and scope 2 emissions of unconsolidated affiliates and stock investeesShareholding RatioCalculation methods of Scope 3 emissions1)Emission factor database for calculati

137、ng GHG emissions of an organization through its supply chain v3.2 2)Germer,J.et al.(2008)Environment,Development and Sustainability,10,697-7163)Calculation method and Emission Factors for Reporting of Act on Promotion of Global Warming Countermeasures 4)The Chain Store Industrys Vision toward Carbon

138、 Neutral by 2050ContentsTop MessageSocietyGovernanceData Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementSUSTAINABILITY REPORT 202319EnvironmentSTRATEGIC ACTION 1Reducing Our Environmental Footprint Given the seriousness of the im

139、pact of climate change issues on business growth and social sustainability,Shiseido has been disclosing information with reference to TCFD/TNFD and ISSBs frameworks.We conducted qualitative and quantitative analyses of the risks and opportunities associated with the transition to a decarbonized soci

140、ety and changes in the natural environment due to climate change for both the 1.5/2C and 4C scenarios,as well as our major actions,over the short,medium,and long term.Regarding the natural environment,we identified quantitative long-term risks in consideration of biodiversity loss and dynamic states

141、 of water resources and disclosed them in Shiseido Climate/Nature-related Financial Disclosure Report.Climate/Nature-related Financial Disclosure InitiativesShiseido is promoting sustainability initiatives through our brands and regional businesses.Sustainability Committee was set up to ensure timel

142、y management decisions related to sustainability efforts and their proper implementation across the Group.In 2023,the committee was held regularly.The committee decides on Group-wide sustainability strategies,policies,and discusses specific topics such as risks and opportunities related to climate c

143、hange and the natural environment,and actions for human rights,as well as monitors the progress of medium-to-long-term goals.The committee consists of the representative corporate executive officers and executive officers in charge of Corporate Strategy,Research&Development,Supply Network,Corporate

144、Communications,and our Brand Holders,to discuss a range of issues from different perspectives.Important matters in the execution of business,which require approvals are proposed or reported to the Global Strategy Committee or the Board of Directors.In order to ensure executing and promoting of susta

145、inability actions,a Sustainability TASKFORCE was set up under the Sustainability Committee,consisting of the heads of key relevant functions.At the Sustainability TASKFORCE,practical approaches to achieve our long-term targets are discussed with relevant functions,regional headquarters,and local sub

146、sidiaries as necessary.We conducted our scenario analysis for both the transitional and the physical risks/opportunities in terms of the 1.5/2C and 4C scenarios,respectively,based on the Representative Concentration Pathways(RCPs)and Shared Socioeconomic Pathways(SSPs)provided by the IPCC.Regarding

147、transitional risk,the elements associated with the transition to a decarbonized society such as policy,regulation,technology,market,and consumer perceptions were considered.Physical risks related to the acute or chronic phenomena caused by the rise in temperature such as floods and water shortages w

148、ere also considered.Based on these considerations,the financial impacts of the 1.5/2C and 4C scenarios were then analyzed.The influence of carbon tax was identified as the transition risk,with projections pointing toward approximately JPY 0.05-0.87 billion in 2030.For physical risks,JPY 0.89 billion

149、 of floods and JPY 3.5 billion of water shortage GovernanceStrategy(Scenario Analysis)ContentsTop MessageSocietyGovernanceData Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementSUSTAINABILITY REPORT 202320Environmentwere forecasted

150、potentially.As for opportunities,in the 1.5/2C scenario,high awareness by consumers means there is a market for sustainable brands and products.Similarly,the 4C scenario identifies sales opportunities for products that can help people to live with high temperatures.At Shiseido,we aim to leverage the

151、se findings by mitigating risks and making the most of opportunities to provide sustainable products to consumers and promote our beauty innovations.Risks and OpportunitiesClick here for Shiseido Climate/Nature-related Financial Disclosure Report.Risk ManagementRisksOpportunitiesTransition(seen main

152、ly in the 1.5/2C scenario)Carbon tax increase Fuel price increase Loss of sales opportunities for products using single-use plastics Improve energy efficiency Develop more ethical products(e.g.clean beauty)Physical(seen mainly in the 4C scenario)Acute Natural disasters stop operations(e.g.typhoons,f

153、loods)Natural disasters disrupt logistics Develop environment-friendly products Develop climate-adaptive solutionsChronic Changes in rainfall conditions impact the cost of procuring raw materials derived from crops Changes in rainfall conditions impact the cost of procuring raw materials derived fro

154、m crops Risk factor analyzed qualitatively and quantitatively.For nature-related risks and opportunities,we conduct a quantitative analysis of the impact on biodiversity throughout the value chain by means of a Life Cycle Assessment.This revealed that the impact is great,particularly in raw material

155、 procurement.In response,we assumed places of origin of cosmetics raw materials with high dependence on biodiversity in line with the LEAP approach recommended by TNFD.We thus monetized ecosystem services by pollinators,such as honey bees,as physical risk analysis in the aspect of dependencies.At th

156、e same time,we analyzed risks on sustainability-related regulations as transitional risks along with climate change issues.We assess and identify the impactful risks holistically from a mid-to-long-term perspective.“Environmental(Climate Change,Biodiversity,etc.)”and“Natural Disaster,Infectious Dise

157、ase and Terrorism”are listed as the categories related to sustainability.Climate-related and biodiversity-related risks are analyzed based on scientific and socioeconomic evidence and integrated into the enterprise risk management system as one of the elements related to climate change or natural di

158、sasters.According to their significance,the risks and their countermeasures are deliberated by the Global Risk Management&Compliance Committee and the Global Strategy Committee.The material risks are also proposed or reported to the Board of Directors as necessary.ContentsTop MessageSocietyGovernanc

159、eData Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementSUSTAINABILITY REPORT 202321EnvironmentMetrics and TargetsAwards Related to Reduction of CO Emissions*1 Scope 1 and Scope 2 emissions are the targets.Carbon offsets made by usi

160、ng credits are included.*2 SBTi is a global initiative that defines and promotes best practice in science-based target setting and independently assesses companies targets.*3 ICP price as of 2024:USD 130.0/t-COClick here for Shiseido Climate/Nature-related Financial Disclosure Report.CDP A List Enco

161、uragement Award from Life Cycle Assessment Society of Japan(JLCA)In order to mitigate the climate-related risks,we set the reduction of CO emissions as our target.We aim to achieve carbon-neutrality*1 by 2026 for Scope 1 and Scope 2 emissions.For CO emissions reduction targets of the overall value c

162、hain,our 2030 target,which conforms to the 1.5C trajectory,was accredited by SBTi*2 as a science based target,and we are working to reduce CO emissions.With regard to biodiversity,we are replacing paper and palm-derived raw materials,which have a large impact,with certified raw materials.To reduce S

163、cope 1 and 2 CO emissions,we decided to introduce an internal carbon pricing(ICP)system in 2023 and began to apply it for making decisions on decarbonization investments in energy-efficient facilities,renewable energy facilities,and the similar.*3Shiseido was selected by CDP,an international NPO,as

164、one of the companies in the A List 2023 in recognition of its leadership in transparency and performance in the fields of Climate Change and Forests.We were selected for the second consecutive year in Climate Change and for the first time in Forests.We were included in two A Lists for the first time

165、.At the 20th JLCA Awards held in January 2024,Shiseido received the Incentive Award in recognition of its activities for“Climate-and Nature-related Risk Analysis Using LCA:Application to TCFD and TNFD Reports.”Awards ceremony,January 23,2024ContentsTop MessageSocietyGovernanceData Reducing Our Envir

166、onmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementSUSTAINABILITY REPORT 202322EnvironmentIt is estimated that humans can use only 0.01%of all water on earth as fresh water resources.The increasing severity of water shortages has been a global concern

167、 due to population concentrations,which has been caused by changes to the industrial structure and urbanization progressing rapidly in developing and emerging countries in particular,as well as changes in weather conditions associated with climate change.Damage from climate disasters,such as major t

168、yphoons and drought,are also indirect causes of water problems.Sustainable use of water resources is expected to grow more important.According to long-term projections based on climate and weather,rainfall is forecast to remain stable toward the end of this century in Japan,where our major factories

169、 are located.Moreover,the consumption of water resources in the cosmetics industry is lower than in other industry sectors,so we believe that the impact of water shortages will be limited.However,water supports every aspect of our products,including the development of water-containing products such

170、as lotions;the growth of plants as raw materials;temperature control and equipment cleaning at factories;consumption;and waste disposal.As stated in the Shiseido Environmental Policy,we regard an understanding of the water-related environmental impact and sustainable use of water resources as an imp

171、ortant environmental issue from the perspective of the value chain,from product development to production and use.We implement initiatives accordingly.While a lot of water is needed at our factories,such as for motive power facilities,the reuse of water will enable a significant reduction in water c

172、onsumption.At Shiseidos factories,we have introduced a Discharged Water Recycling System,with which we use some of the discharged wastewater as makeup water for motive power facilities.At factories,where we consume more water than we do at offices and research centers,we constantly monitor not only

173、water intake but also the amount of water discharged,its temperature,and the quality of treated wastewater.We also conduct water environment research of the watersheds where our factories are located.Thus,we are working on water resource management(Water Stewardship*1)with our stakeholders.STRATEGIC

174、 ACTION 1Reducing Our Environmental Footprint Reducing Water Consumption*1 Using water in a way that is socially equitable,environmentally sustainable,and economically beneficial.Medium-to Long-term Targets and ResultsUse and Reduction of Consumption of Water Resources in Production ProcessRegarding

175、 direct use of water resources,we have set reduction of water consumption at our sites as a target and apply various methods to achieve this target.For example,as each Shiseido factory has various facilities and equipment tailored to the kind of cosmetics it produces,we design specific water reducti

176、on initiatives for each site.Examples of our water-saving initiatives include using automatic cleaning to ensure the manufacturing equipment is cleaned more effectively and consolidating the washing locations of equipment parts.At our Val de Loire factory in Francean area where rainfall is expected

177、to drop in futureinitiatives like reduction of water consumption and redesigning the nozzles on our cleaning facilities successfully reduced the amount of water ContentsTop MessageSocietyGovernanceData Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Res

178、ponsible ProcurementSUSTAINABILITY REPORT 202323EnvironmentWater Stewardship(Initiatives on Water Resources in Communities)used per clean by 30%.At our Shanghai factory in China,we have introduced a system for collecting,storing,and reusing wastewater from production of pure water used for cosmetics

179、 production.We reuse the wastewater as cooling water for cooling tower and for various other purposes.As a result of these aggressive reduction activities,in 2023 the overall water consumption at the Shanghai factory decreased by no less than 20%from the previous year.At our Hsinchu factory in Taiwa

180、n,we reuse 100%of the wastewater from our water purification systems as cooling water for cooling tower.To ensure more effective use of water,we focus on circular systems that clean water and reuse or recycle it within the process.At our Kakegawa factory,we launched a Discharged Water Recycling Syst

181、em in 2023.With this system,we recycle some of the discharged wastewater to use it as makeup water for motive power facilities,in an effort to make efficient use of water resources and reduce their consumption.This has enabled cyclic use of wastewater from production process,which was discharged bef

182、ore.Use of this system enables to reuse approx.12,000 m3 of water every year.It means water reduction equivalent to approximately 15.6%of water consumed at the Kakegawa factory.At our Osaka Ibaraki factory in Japan,we introduced a circular system that utilizes re-used water to cool the manufacturing

183、 tanks.This system enables an annual reduction in water consumption of around 65,000 m3.Other new water utilization initiatives include optimizing our pure water manufacturing equipment as we have done at our Nasu factory in Japan,for example.Pure water manufacturing consumes approximately half of a

184、ll water used at the factory.Through this initiative,as well as other water recycling schemes,we reduced our annual water consumption by around 72,000 m3,an amount that is approximately one third of the factorys annual water usage.At our Gien factory in France,we switched from water-based cleaning t

185、o alcohol-based cleaning for our fragrance manufacturing equipment and transportation components.The alcohol used is cleaned and reused in the process repeatedly.Water treatment facilities at Nasu factory(Japan)To effectively use water resources,we are engaged in the management of water resources as

186、 common property of the water basin,including secondary use in cooperation with communities.Nasu factory,one of our major factories in Japan,is located in a vast fan-shaped area(Nasunogahara),which was formed through the deposition of a highly permeable gravel layer.Rainwater readily permeates the g

187、round in this area,making it difficult to use surface water(river water).Therefore,at our Nasu factory,we use groundwater pumped up from a water-bearing layer that lies 150 meters below the ground surface.In an area like this,used water is also a valuable resource.We therefore treat it appropriately

188、 into wastewater whose quality conforms to our own strict standards,which are tougher than local ordinance standards,before releasing it into local canals.Thus,the water is reused as agricultural water.Reflecting these geographical characteristics of the watershed where the Nasu factory is located,w

189、e believe that understanding the water environment in the overall watershed is important for sustainable use of water resources.Consequently,we are conducting water environment research of the overall Nasunogahara area.We studied Water resources,field investigation:Professor Oki,professor Yoshida an

190、d senior researcher Kiguchi of the University of Tokyo and members from Shiseido.ContentsTop MessageSocietyGovernanceData Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementSUSTAINABILITY REPORT 202324EnvironmentEngaging Stakeholders

191、groundwater sampled at the factory by combining a hydrological model simulation,in which water flows of the overall Nasunogahara area are reproduced on computer,as well as an onsite survey of the watershed around the factory.Findings of the research show that water discharged from the factory nurtur

192、es various living things in the surrounding area as it wets local farmlands and pours into rivers.At our Shanghai factory in Chinawhich is located in a water-stressed*1 areawe participate in a local environmental protection association and proactively obtain environmental information,such as environ

193、mental laws and regulations regarding factory activities.We also report monthly water consumption to the government,which promotes water conservation and is working to improve water utilization rates and strengthen water conservation management.In the area around our Val de Loire factory in France,r

194、ainfall volumes are expected to fall in future.Therefore,we regularly share information with other local industries on good water practices to decrease water consumption.As our Water Stewardship initiative,we have been engaging with local governments and relevant organizations from the watershed of

195、Nasunogahara,where Nasu factory is located,based on our scientific understanding of the overall area obtained through our research.We have also had the research findings and direction of our initiatives reviewed by external academic experts.Shiseido aims to build a Water Stewardship in collaboration

196、 with its stakeholders,towards a more comprehensive,sustainable use of water resources,and moreover for protection of biodiversity in watersheds.We ask our suppliers to provide information on their water usage through self-assessment questionnaires such as Sedex and Shiseido SAQ,and strive to ascert

197、ain water-related environmental impacts.*1 A situation where there is not enough water of sufficient quantity to meet the demands of people and the environment.ContentsTop MessageSocietyGovernanceData Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Resp

198、onsible ProcurementSUSTAINABILITY REPORT 202325EnvironmentAs population growth continues and income levels rise,resource consumption and waste increase.To make more effective use and reuse of limited resources,it is important that businesses shift from a disposable,linear economic model to a circula

199、r economy.At Shiseido,we are doing this by optimizing the use of raw materials and reducing waste throughout our entire value chain,while complying with all relevant waste management rules in the countries and regions where we operate.STRATEGIC ACTION 1Reducing Our Environmental Footprint Reducing W

200、asteMedium-to Long-term Targets and ResultsReducing,Reusing and Recycling Waste*1 “zero emissions”is a concept defined by UN university in Japan.Recycled waste:99.5%or higher(excluding waste designated as landfill by law)*2 Excluding waste designated as landfill by lawAt Shiseido,we continuously wor

201、k to reduce,reuse,and recycle the waste we generate.In 2003,we achieved“zero emissions*1”at our domestic factories in Japan,and we continue our waste separation and recycling activities to this day.To give a specific example,we use dehydrators and dryers to minimize the amount of sludge generated by

202、 our factories during wastewater treatment.In addition,at our Nasu factory,we have changed the delivery method of certain liquid raw materials from the use of drum cans to delivery by tank trucks.We have thus reduced the generation of waste drum cans as a waste reduction initiative.We also reuse shi

203、pping boxes,sort waste by material strictly for recycling them,and undertake other activities for reusing and recycling waste.In 2023,we entirely reviewed cardboard boxes,plastic packaging,and other packaging containers used for product transportation,in a project to reduce the outermost packages.We

204、 are moving forward with initiatives to minimize the use of resources while ensuring product quality.We also recycle waste plastics,not to mention cardboard boxes and paper used in transportation,into valuable resources.We compress and melt the waste plastics to reduce their volume before recycling

205、them.While our target was to achieve zero waste*2 to landfill from our factories worldwide by 2022,the actions above enabled us to achieve the target in 2020,two years ahead of schedule,and we have maintained zero waste to landfill to the present.We are also engaging in various initiatives to minimi

206、ze waste generated outside of our factories and branch offices,including streamlining our product containers and packaging,eliminating package inserts,and switching to cardboard boxes with lighter weight.Moreover,we also work to limit product waste by minimizing excess inventory through improved pre

207、cision in demand forecasts and shorter lead times in production and procurement.ContentsTop MessageSocietyGovernanceData Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementSUSTAINABILITY REPORT 202326EnvironmentEmployee EducationEnvi

208、ronmental DataAll our waste reduction initiatives are driven by our PEOPLE.Therefore,we arrange online seminars and training sessions for newly appointed managers and employees in charge of industrial waste in Japan.When we outsource the disposal of waste from our factory or office to a waste dispos

209、al contractor,we make sure to assess the contractor,ensure that industrial waste is disposed of appropriately,ensure that a manifest is delivered,and inform the importance of onsite confirmation to the contractor.Following the seminars and training sessions,each participant should be able to identif

210、y how to effectively manage waste with the help of our internal guidelines and checklists.ContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202327 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentDeveloping S

211、ustainable ProductsWe are facing a crisis stemming from the finiteness of resources,a result of economic activities exceeding the limits of the planets receptiveness and resilience.We also face issues including climate change,biodiversity,other environmental issues,and population explosion.Manufactu

212、rers are expected to follow green chemistry principles towards the development of a circular economy,which is premised on both making effective use of resources to reduce their environmental footprint throughout the product lifecycle and recycling resources.Shiseido positions Sustainability INNOVATI

213、ON as an important research area and one of the three pillars of its Research&Development strategy for 2030.To achieve this,we have adopted Premium/Sustainability as a research approach under DYNAMIC HARMONY,our unique Research&Development philosophy,based on our compliance with high safety and qual

214、ity standards that we have had in place for more than a century.We will step up to the challenge of creating sustainable innovations,which balance satisfaction stemming from the results,high-quality design,and feel of our products with respect for and coexistence between people,society,and the globa

215、l environment.STRATEGIC ACTION 2DYNAMIC HARMONYEnvironmental PolicyShiseido Quality Principle2025By201920202023Disclosed our product development policyRevised in 20242019Disclosed our packaging policy2020Disclosed Shiseido Quality Principle2023Formula/IngredientsFor sale of products with plastic pac

216、kaging2023 Results 69%100%Switching to sustainable packagingPackagingShiseidos 5RsContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202328 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentIn line with green c

217、hemistry principles,we carefully evaluate our raw materials,ingredients and formulas to ensure they are safe for the human,have minimal environmental impact,and use natural and upcycled materials sourced through ethical procurement.We comply with all relevant regulations in each country where we ope

218、rate.In addition,we have our own in-house standards for ingredientsand only select ingredients that meet our strict safety,environmental,and ethical standards.Our Global Innovation Center in Yokohama,Japan,which manages all regional centers,is working to select raw materials and develop formulations

219、 that are not only safe and functional but also respect the environment.Shiseido develops and provides safe and high-quality products and services based on more than a centurys experience in dermatology and material science.At Shiseido,we want to help tackle issues concerning peoples health and the

220、environment.Therefore,we disclosed our Corporate Product Development Policy,in which we have summarized our policies on product development(formulas and packaging)and use of ingredients and raw materials that could be concerning for consumers.We also monitor trends in product-related regulations,suc

221、h as PPWR*1 and ESPR*2 in EU,in developing our products.Cosmetics formulations include natural raw materials.Therefore,sustainable and responsible procurement and the use of raw materials is of the utmost importance from an environmental perspective.Based on the idea of the product lifecycle,we focu

222、s on developing formulas and ingredients,packaging,and circular recycling models that are aimed at making effective use of limited resources,mitigating climate change,and minimizing our impact on ecosystems.At Shiseido,the proportion of CO emissions from raw material procurement are high among Scope

223、 3 CO emissions.This has made it imperative to reduce CO emissions through selection of raw materials.Cosmetics formulations include natural raw materials.We work with our suppliers to reduce CO emissions by shifting to bio-based raw materials in line with the green chemistry principles.STRATEGIC AC

224、TION 2Developing Sustainable ProductsReducing Environmental Impact Based on Our Product Development Policy and the Concept of Product LifecycleRaw Material Development Aimed at Reducing CO Emissions and Switching to Bio-based Raw MaterialsFormulas/Ingredients*1 EU Packaging and Packaging Waste Regul

225、ation*2 Ecodesign for Sustainable Products RegulationClick here for Product Development Policy(About Ingredients/Formulas)Our Approach for Chemical SubstancesContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202329 Reducing Our Environmental Footprint Developing Sustainable Products Prom

226、oting Sustainable and Responsible ProcurementEnvironmentIn 2022,Shiseido joined the MATSURI project,the worlds first corporate joint project to explore how algae can be used to drive a sustainable future,which is led by the CHITOSE Group.Powered by the sun,algae absorb CO through photosynthesis,whil

227、e also generating useful proteins,lipids,and carbohydrates.More extensive use of algae is expected to contribute to lower CO emissions in future,where algae products can replace fossil-derived raw materials.In 2023,Shiseido invested 1.0 billion yen in the CHITOSE Group and signed a strategic collabo

228、ration agreement focused on R&D with the Group.The purposes of this initiative include the development and mass production of cosmetics and container raw materials using algae,as well as the development of raw materials which can be used in the food industry.To maximize the potential of algae,we wil

229、l work together with MATSURI Project partner companies in ending the use of fossil resources for cosmetics.Exploring the Possibilities of Algae in the MATSURI ProjectUV CareWe are accelerating innovation in the field of suncare to protect against UV and pursue coexistence between people,their ecosys

230、tems,and the environment.The effect caused by the climate change,UV exposure for people around the world is expected to increase*1.Exposure to UV rays over extended periods of time causes spots and wrinkles on the skin symptoms of photoaging.Recognizing the importance of innovations for protecting b

231、eautiful skin from UV,we will enhance our research efforts to provide products and services with added benefits.Because suncare products are used in the sea,we believe that we need to address their environmental impact appropriately as a company.We are assessing the impact that UV filters used in su

232、ncare products have on the ocean.This includes working with universities and research initiatives to assess the impact of each UV filter used in our products on coral*2,and performing simulations*3 of how suncare products spread into the ocean when used by people at the seashore.We are utilizing the

233、 results of these assessments for ingredient selection and the development of coral-respecting formulas,while applying them to suncare product development for both SHISEIDO and ANESSA.In 2023,in order to evaluate the impact of cosmetic ingredients on marine ecosystems,we began a partnership agreemen

234、t with Innoqua Inc.,a start-up company with proprietary technology that reproduces ecosystems in an aquarium.The aquarium can reproduce possible future environmental change scenarios,including rising seawater temperatures,which are predicted to have a tremendous impact on marine life.This allows us

235、to evaluate the impact of various cosmetic ingredients,such as those used in sunscreen,on the entire marine environment,including coral and other organisms.Click here for the news release regarding MATSURI.Marine Protection InitiativesClick here for Corporate website:Research on SustainabilityClick

236、here for Brand website:SHISEIDOClick here for Brand website:ANESSAClick here for the news release regarding Innoqua Inc.(In Japanese only)*1 According to an announcement by the Japan Agency for Marine-Earth Science and Technology.*2 Egg-laying size groups of coral,excluding those in the planktonic l

237、arval and juvenile stages.*3 Utilizing the Tokyo Bay risk assessment model developed by the National Institute of Advanced Industrial Science and Technology.Artificial marine ecosystem reproduced in an aquarium using environmental transfer technology developed by Innoqua Inc.Photo:Innoqua Inc.Conten

238、tsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202330 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentNo Animal TestingProcuring Sustainable Raw MaterialsWe strive to provide safe and effective products to cons

239、umers while complying with cosmetics regulations and respecting the principles of animal protection.For more than 40 years after we established a safety research department in 1963,we continued to study alternative methods which do not involve animal testing.In 2013,we abolished animal testing entir

240、ely*1 and shifted to a safety assurance system that does not use animals.We have established a safety assurance system with our unique strict standards.Working together with external stakeholders,we are striving to establish alternative methods,which were developed on our own or jointly with other c

241、ompanies,as official methods.In February 2023,we announced our involvement in the newly launched International Collaboration on Cosmetics Safety(ICCS).A global project involving manufacturers,suppliers,industry associations,and animal protection organizations,ICCSs goal is to promote and implement a

242、nimal-free safety assurance in the development of cosmetics and personal care products.Shiseido will promote and implement the safety assurance of cosmetics without animal testing through the sharing of technologies and knowledge on alternative methods of animal testing,discussions and collaboration

243、 with related companies and organizations,and approaching the regulations of each country and region.Shiseido strives to procure environmentally friendly,sustainable raw materials.Palm oil is used in cosmetics and household goods for a range of purposes,including as a humectant and as an oil.However

244、,palm oil production can have a significant impact on the environment.We have disclosed our medium-to long-term targets for the procurement of sustainable palm oil,as well as our goal to switch from palm oil to more sustainable raw materials.Click here for Safety Assurance Without Animal TestingProm

245、oting Sustainable and Responsible Procurement*1 Except when required by governmental and regulatory authorities.ContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202331 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementE

246、nvironmentBrands That Cater to Consumer NeedsWhen selecting a product,consumers increasingly place importance on a companys approach to social responsibility,environmental protection,and ethical raw material sourcing.At Shiseido,in addition to disclosing our corporate policy on ingredient and raw ma

247、terial sourcing,we work to develop brands with a strong environmental,social and ethical profile.Drunk Elephant originating in the US,for example,is a leading brand in the clean beauty market sold in 40 countries and regions,known for its sustainable and responsible raw material procurement as well

248、as its promotion of sustainable action.Taking this stance,the brand has gained significant support from Millennial and Generation Z consumers.In 2022,we launched the Ul skincare brand in France.Based on plant-derived ingredients,Ul promotes beauty both inside and outside the body.The brand emphasize

249、s responsible procurement,product efficacy and safety,lower environmental impact,and transparency.To ensure clearer raw material traceability and reduce environmental impact from transportation,the brand buys its three botanical treasures(centella,coleus and tulsi)and produces all its products local

250、ly in France.The names and origins of the raw materials can be found on the brand website.UlContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202332 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentWe underst

251、and that the Earths resources are limited.In line with Shiseidos 5Rs packaging development policy,we are reducing the amount of plastic we use and reducing our impact on the environment by such as optimizing the size of packaging to suit the product,reducing packaging weight and offering refillable

252、packaging.Refillable packaging significantly reduces resource use.By encouraging the reuse of main packaging,it is possible to reduce the total amount of plastic Climate change and marine plastic waste are pressing environmental issues that need to be addressed on a global scale.It is expected that

253、the Global Plastics Treaty(a resolution of the United Nations Environment Assembly approved by over 175 countries in Nairobi in 2022 which calls for urgent action to end plastic pollution globally by 2040)will be signed by the end of 2024.Shiseido aims to realize a circular economy where all materia

254、ls are responsibly managed during production through efforts such as recycling to minimize the impact on our ecosystem.It is expected that the interest of consumers and other stakeholders in climate change and other environmental issues will continue to rise.Adapting to changes in societal awareness

255、 through product development and other means,is extremely important for the sustainability of our business.Based on the Shiseido 5Rs packaging development policy*1,Shiseido is working to reduce its environmental footprint and contribute to realize a circular economy.To achieve our goal of 100%sustai

256、nable packaging*2 by 2025,we are adopting recyclable and reusable designs,using bio-based and post-consumer recycled(PCR)materials,reducing packaging weight and encouraging refills to promote reused packaging.We have also started initiatives designed to reduce the amount of virgin petroleum-based pl

257、astic used by adopting non-plastic alternative materials,and we are introducing mono-material packaging to improve recyclability.*3 In addition,we aim to build a Shiseido circular business model that recycles used packaging as new resources in collaboration with consumers and external partners.Susta

258、inable PackagingSTRATEGIC ACTION 2Developing Sustainable ProductsMedium-to Long-term Targets and ResultsProducts with PackagingReduce and ReuseRespectReduceReuseRecycleReplaceShiseidos 5Rs*1 Packaging development policy:respect,reduce,reuse,recycle and replace.*2 For sale of products with plastic pa

259、ckaging.*3 Amount of plastic packaging used in Japan in 2023(Including estimates):9,600t.ContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202333 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentused for pack

260、aging.Our Life Cycle Assessment confirms that refillable packaging lowers resource use and waste and significantly reduces CO emissions compared to the continuous disposal of regular(primary)packaging.To significantly contribute to the reduction of the environmental impact,we aim to promote the deve

261、lopment of these products widely,not only in Japan but also on a global scale.Since we launched our first refillable product in 1926,we have provided refillable packaging in a wide range of product categories,including skincare and makeup.In 2023,we offered refillable packaging for about 740 stock k

262、eeping units(SKUs)within 31 brands globally in an effort to reduce the amount of plastic and ultimately,to reduce the environmental footprint.This included increasing the amount of refillable packaging in our prestige skincare brand Cl de Peau Beaut and launching refillable packaging for the cream L

263、A CRME,which uses 95%*1 less plastic than its regular(primary)packaging.In 2023,the brand launched new refillable packaging for five new products,including SRUM RAFFERMISSANT SUPRME n.In 2023,sales of refillable packaging from Cl de Peau Beaut increased approximately 23%year on year.Before launching

264、 a refill option for the IPSA loose powder that became available in 2023,we redesigned the main container to improve durability and to make it more suitable for repeated use.We are also incorporating innovative technologies to reduce environmental impact.In 2023,the brand SHISEIDO,which operates in

265、88 countries and regions around the globe,became the first company to sell cosmetics using container made with LiquiForm technology.*2 It is a one-step technology for manufacturing bottles and filling them with liquid content.Refillable cosmetics container made using LiquiForm can reduce plastic usa

266、ge per container*3.Moreover,this technology,inclusive of the reduction of energy consumption through the one-step technology,can reduce CO2 emissions by approximately 70%*4 throughout the supply chainfrom raw materials procurement and production to use and disposalcompared to our standard convention

267、al refillable container of the same volume.We will raise awareness of refillable products by launching them not only in Japan but also in other Asian countries and regions,including China.We will also strengthen our activities to achieve toward a circular economy that seek the cooperation of consume

268、rs.In 2024,Ul,a skincare brand that promotes beauty both inside and outside the body,launched a refillable option made from 100%recyclable materials for cleansing gel Dream of Pure.The refill helps reduce plastic and aluminum usage by 23%and 100%respectively,as opposed to purchasing new packaging.In

269、 2023,the luxury brand Serge Lutens launched a fragrance that strikes a delicate balance between sustainability and luxury.The refill packaging is made from 100%recyclable aluminum in consideration of environmental impact.IPSA and Ul.Left:main container,Right:refill/refill container.*1 Weight ratio

270、of regular(primary)packaging*2 The new packaging technology was developed chiefly by Amcor.Shiseido worked with Yoshino Kogyosho,a company that has put the technology to use,to jointly develop cosmetic packaging.*3 Comparison with a refillable container of the same volume,not including contents*4 CO

271、2 emissions per unit for both our existing refillable container and the Liquiform-based refillable container(not including contents)have been verified by the SuMPO Environmental Label Program(in accordance with ISO/TS14067:2013).Figures were compared by Shiseido.Cl de Peau Beaut and SHISEIDO.Left:ma

272、in container,Right:refill/refill container.ContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202334 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentRecycleReplacePOSMTo realize a circular economy,it is impor

273、tant to select materials and design products with the reuse of resources in mind.To reduce our consumption of single-use plastic,we are developing packaging made from a material that can be more easily sorted and reused/recycled after use without compromising the quality of the packagings design.In

274、2023,a number of our brands launched products with packaging that is easier to recycle,including SHISEIDO and Cl de Peau Beaut.In addition,the tube packaging for SIDEKICK a cosmetics brand launched for young male consumers in 2022 is made of easily recyclable aluminum.To mitigate climate change and

275、marine plastic pollution,we are focusing on the research of post-consumer recycled(PCR)materials,plastic alternatives,and bio-based materials with low environmental impact and promoting their use.For example,packaging of some Cl de Peau Beaut and ELIXIR products is made from recycled plastic.Over 72

276、%of the PET in the bottles of ELIXIR facial lotion and emulsion is recycled.In 2023,as part of our global sustainability initiatives,a limited edition design of facial lotion and emulsion featuring Doraemon has been released to demonstrate our commitment to enhancing not only the beauty of individua

277、ls skin but also ensuring a radiant future for our world.Again,over 72%of the PET used in these bottles is recycled.The facial lotion and emulsion refills help reduce plastic usage by over 85%*1 and CO emissions by 85%.*2We also use some plant-derived bio-based plastic in the outer packaging of our

278、ANESSA suncare brand.BAUM,which celebrates and honors our connection with nature,offers environmentally friendly products.Packaging,for example,use sustainable raw materials such as upcycled wood left over from furniture industry,plant-derived or recycled plastic,and recycled glass.Additionally,many

279、 containers are refillable.Products secondary packaging that is made from plastic is being replaced with paper alternative.In addition,Point of Sale Materials(POSM)used at retail stores,such as drug stores,and counters that are made from plastic will also be replaced with paper alternatives in due c

280、ourse to further reduce the amount of plastic we use.In 2022,we switched approximately 70%*3 of our plastic POSM in Japan to paper.At Shiseido,we published the POSM Eco Design Guideline in 2023 for the purpose of reducing the environmental impact related to the lifecycle of promotional materials,inc

281、luding in-store display tools and shopping bags.Based on the guideline,we promote the development of POSM materials in line with the Shiseidos 5Rs*1.We will work with our stakeholders to reduce our environmental impact in the manufacturing of not only our products but also promotional materials.SIDE

282、KICKELIXIR facial lotion and emulsion and a limited edition design of same products featuring DoraemonBAUM facial lotion*1 Comparison between the existing main container and refill*2 Comparison of the existing main container and refill in terms of CO emissions per packaging.The evaluation was carrie

283、d out by Shiseido using Japan EPD Program by SuMPO(which complies with ISO/TS14067:2013)Calculated using the container of the facial lotion sold in September 2022 and onward*3 For promotional materials of premium Japanese brands,such as set cases and hooks.*1 Packaging development policy:respect,red

284、uce,reuse,recycle and replace.ContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202335 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentParticipation in Related InitiativesR Plus Japan Ltd.Click here for Pres

285、s Release:R Plus JapanIn March 2020,Shiseido became the first WIPO GREEN*1 partner company from the cosmetics industry.In 2022,we granted Toyo University a license to use our low-energy manufacturing technology,which is listed in the WIPO GREEN database.In 2022,the university developed a prototype o

286、f an environmentally friendly product that uses the extract from boysenberries,a local specialty of Tatebayashi City,Gunma Prefecture.The product began to be sold via crowdfunding in 2023.Initiatives with External InstitutionsGranting Technology License to Toyo University for Environmental Impact Re

287、ductionTo play a part in solving the global plastics recycling challenge,Shiseido invested in R Plus Japan in 2022 and engaged in recycling used plastics.By bringing together companies across the plastic packaging industry from monomer and polymer manufacturers to packaging producers,trading,food an

288、d beverage companies R Plus Japan aims to commercialize an efficient,low-environmental impact recycling technology by 2030.*1 The World Intellectual Property Organization(WIPO)is a specialized agency under the United Nations,responsible for developing international intellectual property systems.WIPO

289、 GREEN is an international framework for promoting innovation in environment-related technologies,and has more than 150 partner companies.As of April 2023,Shiseido had licensed out 11 patented technologies registered in the WIPO GREEN database.ContentsTop MessageSocietyGovernanceDataSUSTAINABILITY R

290、EPORT 202336 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentShiseido started a new scheme to collect used plastic cosmetics packaging in stores,utilizing a wide range of business partners and consumer touchpoints.As we

291、ll as increasing consumer awareness about the value of used containers as a recyclable resource,we hope the scheme will help drive wider behavioral change in society and encourage competitors and companies in other industries to implement circular models.Initiatives to Build a Circular ModelSTRATEGI

292、C ACTION 2Developing Sustainable ProductsTo support and promote recycling,we collect used cosmetics packaging in-store and recycle it as new materials.We work with multiple parties to ensure containers are recycled fully and correctly,including customers,waste collection companies,and other companie

293、s.In 2023,in Japan,we collected around 49,000*1 used containers through 88 AEON stores in collaboration with Aeon Retail Co.,Ltd.,TerraCycle Japan*2,and other companies.In-store Collection and RecyclingWhen developing cosmetic containers,protecting the contents,ensuring ease of use,and giving the pr

294、emium look and feel are considered and designed.As a result,they have to be made from a wide variety of plastics,which can make it challenging to recycle them back into reusable plastic resources.To solve this issue,Shiseido launched an initiative in 2022 in collaboration with SEKISUI CHEMICAL CO.,L

295、TD.and Sumitomo Chemical Co.,Ltd.The initiative involves creating a circular economy in which plastic cosmetics containers are collected and recycled without separating the materials.We are planning to manufacture recycled plastics in the future by collecting used cosmetic packaging,which we then tu

296、rn into new cosmetic packaging.The three companies will be advancing this cross-sectoral alliance,while also calling on related industries and companies to join the effort to create a circular economy.Collaborating to Build a Circular Model for Plastic Cosmetics ContainersClick here for Press Releas

297、e:Collaborating in Building a Circular Economy for Plastic Cosmetics Containers*1 Collection period:January 2023-December 2023.*2 TerraCycle is a US-based social enterprise whose mission is“Eliminating the Idea of Waste“.ContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202337 Reducing O

298、ur Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentIn April 2023,we launched the“BeauRing”project a circular model project to collect and recycle plastic containers into new ones for reuse.We began collecting used containers from se

299、veral Shiseido product retailers in Yokohama and the Shiseido Global Innovation Center in Yokohama.The POLA brand of POLA ORBIS HOLDINGS INC.joined in the project.As well as driving in-house initiatives,we are encouraging other companies to join the project to expand the circle of resource circulati

300、on and,ultimately,create a sustainable society in which consumers use cosmetics with a more positive mindset.“BeauRing”Circular Model Project for Plastic Cosmetics ContainersClick here for Press Release:Circular Model Project“BeauRing”In 2023,Shiseido launched a joint recycling initiative in China w

301、ith a packaging material supplier.We recycle used plastic bottles for the cosmetics of the AUPRES brand,which we market in China.The bottles were made into desks and chairs by applying the suppliers recycling technology.They were donated to Hope Elementary School in Sichuan province.Recycling Initia

302、tives in ChinaBeauRing BOXBeauRing logoContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202338 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentPromoting Sustainable and Responsible ProcurementSTRATEGIC ACTI

303、ON 3Value chain,or procurement in particular,involves various sustainability issues including CO emissions,water resources,biodiversity,and human rights at suppliers.Companies are required to check for problems in operating their businesses and to strengthen cooperation not only internally but also

304、with suppliers to ensure the traceability of raw materials.At Shiseido,we utilize the worlds natural resources,which are finite,to develop products and operate our business.To our suppliers,we present a policy,standards,and guidelines,the links to which are indicated below.Shiseido Group Procurement

305、 Policy defines our expectations to suppliers in terms of environmental and human rights,outlining a strict and objective process for identifying and correcting supplier risk through third-party audits and supplier sustainability evaluations.Shiseido Group Procurement PolicyShiseido Group Supplier C

306、ode of ConductShiseido Group Sustainable Raw Materials Procurement Guidelines202220192026BySupplier managementPaperSuch as certified paper and recycled paper,paper weight basis2023 Results 100%achieved100%Replacement with sustainable paperRevised Shiseido Procurement PolicyShiseido Group Sustainable

307、 Raw Materials Procurement Guidelines2022Disclosed Shiseido Group Supplier Code of Conduct2019Palm oil100%Replacement with sustainable palm oilCertified based on RSPOs physical supply chain model:identity preserved,segregation,and/or mass balance,palm oil equivalent basis2023 Results 51%ContentsTop

308、MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202339 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentShiseidos business activities rely on natures rich biodiversity.In recent years,many scientists and non-government

309、al organizations have warned of rapid biodiversity loss.As a result,from both a species conservation and sustainable business perspective,companies are being called upon to ensure transparent information disclosure regarding the relationship between business and the natural environment and to engage

310、 in biodiversity conservation activities.Generally,in raw material production areas,there are concerns over not only the loss of biodiversity caused by overexploitation but also violations of the human rights of the people working there.STRATEGIC ACTION 3Promoting Sustainable and Responsible Procure

311、mentBiodiversity Initiatives and Procurement of Raw MaterialsBiodiversity Initiatives andProcurement of Raw MaterialsMedium-to Long-term Targets and ResultsAt Shiseido,we have analyzed the relationship of our business with terrestrial,freshwater and marine biodiversity and found that our business ha

312、s a significant dependence and impact on terrestrial ecosystems,especially in the procurement of raw materials.In particular,palm oil and paper have a material impact,so companies are required to be proactive in taking measures.In 2020,we published our medium-to long-term targets for the sustainable

313、 procurement of palm oil and paper,and we are currently in the process of switching to more sustainable raw materials.For the procurement of palm oil and paper,we support the principles of the No Deforestation,No Peat,No Exploitation(NDPE).We request suppliers to ensure compliance with NDPE as state

314、d in the Shiseido Group Sustainable Raw Materials Procurement Guidelines.We are also strengthening our efforts to solve issues related to the mining of mica.By clarifying our own procurement policy and building a support system in collaboration with other companies,we aim to create positive change i

315、n the mica mining industry.At Shiseido,we use the Taskforce on Nature-related Financial Disclosures(TNFD)framework and the LEAP Approach to analyze risks and opportunities around our business activities dependence and impact on nature.To fulfill the responsibilities of business site managers,we requ

316、ested MS&AD InterRisk Research&Consulting,Inc.,which has TNFD members,to conduct detailed surveys focused on rare species habitats and reserves and the status of water resources in areas around our sites,including factory premises.We analyzed them from the perspectives of preciousness and importance

317、(identified sensitive locations and material locations).We also analyzed them by means of a Life Cycle Assessment for the purpose of assessing indirect impacts given via the value chain.For raw materials originating from agricultural products,which were identified as a factor with a significant impa

318、ct,we converted the value of Corporate Initiatives on BiodiversityContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202340 Reducing Our Environmental Footprint Developing Sustainable Products Promoting Sustainable and Responsible ProcurementEnvironmentClick here for Environmental Policy(

319、Biodiversity/Forests)Click here for the details on the activities of the SHISEIDO BLUE PROJECTClick here for the news release regarding the nature conservation activities on Mt.Ibuki.(In Japanese only)ecosystem services by pollinators,such as honey bees,into monetary values and thus visualized the l

320、evel of our dependence on biodiversity in procurement.We summarized and disclosed results of these analyses in a Shiseido Climate/Nature-related Financial Disclosure Report in 2023Based on the results of the analyses we conducted,going forward we will drive sustainable business activities which are

321、in harmony with nature and biodiversity by working together with suppliers,external experts,and other stakeholders,with a strong awareness that recovering and regenerating biodiversity is essential.Shiseido Group Sustainable Raw Materials Procurement GuidelinesClick here for Shiseido Climate/Nature-

322、related Financial Disclosure ReportShiseido engages in a wide range of biodiversity protection activities through many of its brands and business operations in regions.Since 2019,brand SHISEIDO has been implementing the SHISEIDO BLUE PROJECT,a global initiative to protect the oceans under the theme

323、Respect for the Ocean.”As a Global Sustainability Partner for the global home of surfing World Surf League,the brand has worked together with local communities and NGOs to implement activities including beach clean-ups and dune planting to create even more beautiful oceans.In 2023,the fifth year of

324、this partnership,WSLs official suncare partner SHISEIDO co-sponsored the Tahiti Pro held in Tahiti,French Polynesia as its title sponsor,while also continuing environmental conservation activities.BAUM was established to celebrate and honor our coexistence with trees.In October 2023,the brand plante

325、d seedlings at BAUM Oak Forest in Morioka City,Iwate Prefecture for the third time,in collaboration with Iwate-ken Shinrin Seibi Kyodo Kumiai(Iwate Prefecture Forest Development Cooperative)and Sumitomo Forestry Co.,Ltd.Since launching in 2020,the brand has carried out these plantings as a way to gi

326、ve back to nature rather than only receiving the blessings of trees.As part of its sustainability efforts,BAUM will continue to use wood from its forests in product packaging.In Japan in 2022,we began nature conservation activities on Mt.Ibuki*1,an area where medicinal herbs have been cultivated for

327、 centuries.In addition to opening our own medicinal herb garden and cultivating herbs,we are working alongside the Reiho Ibukiyama Associationwhich works to protect the nature around the mountainto restore vegetation and preserve the abundant nature in the mountains foothills.In 2023,to make full us

328、e of unused herbs from Mt.Ibuki,we developed SOYU,herb bath powder,jointly with Matsuda Chemical Industries.We used this product as a reciprocal gift in crowdfunding for nature conservation activities on Mt.Ibuki.Biodiversity Initiatives by Brands and Other Activities*1 A semi-independent peak among

329、 the Ibuki Mountains,which connect Maibara City in Shiga Prefecture and the Ibi/Fuwa districts in Gifu Prefecture.1,377 meters high and one of the 100 famous Japanese Mountains.ContentsTop MessageSocietyGovernanceDataSUSTAINABILITY REPORT 202341 Reducing Our Environmental Footprint Developing Sustai

330、nable Products Promoting Sustainable and Responsible ProcurementEnvironmentBees play an important role in the pollination of crops.There are concerns around the declining population of honeybees.So our Val de Loire and Gien factories in France have incorporated the protection of honeybees and the co

331、nservation of ecosystems into their sustainability plans.As well as setting up beehives onsite,both factories prohibit the use of agrochemicals on factory grounds.In 2023,the factories beehives produced around 179kg of honey.Palm oil is a highly versatile raw material used in a variety of products f

332、rom food to cosmetics.However,its production has caused significant challenges,including deforestation and human rights issues.Therefore,it is essential for companies to ensure sustainable and responsible procurement of this raw material.In 2010,as part of our efforts in this area,we joined the Roun

333、dtable on Sustainable Palm Oil(RSPO),an international non-profit organization.In 2023,we purchased RSPO credits equivalent to 100%of the palm oil-derived raw materials we procure.In 2020,we disclosed our medium-to long-term target of reaching 100%sustainable palm oil in our products by 2026.The relevant teams in our global and regional headquarters have been working to achieve this target ever sin