Our Environmental Policy and Environmental Management

Shiseido Environmental Policy_*1

• Reducing Our Environmental Footprint and Promoting Sustainable and Responsible Procurement

  CO₂_*2

  We will strive to mitigate and adapt to climate change and respond to short- and medium-to-long-term risks and opportunities through our business. Regarding climate change mitigation, we aim to achieve our science-based net-zero emissions targets, and to achieve our scope 1 and 2 targets, we will promote the efficient use of energy, including the reduction of energy usage, the installation of solar power generation equipment and the expansion of the use of renewable energy. To achieve our scope 3 targets, we will work with stakeholders to reduce indirect CO₂ emissions from the value chain. To adapt to climate change, we will work on natural disaster countermeasures in our operations and supply chain and develop products and services that respond to climate change.

  Water

  In view of the importance of water resource management, we will cooperate with stakeholders (Water Stewardship) to promote the sustainable use of water resources by working to understand the water cycle and the environment of watersheds, reduce water consumption, increase the effectiveness of its use, and ensure thorough control of water quality.

  Resources and Waste

  Aim to optimize resources by incorporating a circular economy approach and promoting “Shiseido’s 5Rs” (Respect, Reduce, Reuse, Recycle, Replace).

  Biodiversity and Forests

  We will strive to conserve biodiversity (terrestrial, freshwater, and marine biodiversity) by assessing the environmental impact of our value chain and implementing mitigation measures such as measure to avoid or reduce activities that impact biodiversity. Regarding our direct impact on biodiversity, we will conduct biodiversity risk assessments at our sites such as factories and engage in conservation activities and other activities as appropriate in the region. Regarding our indirect impact, we will support zero deforestation and work with stakeholders to achieve sustainable and responsible procurement including traceability, since the procurement of key raw materials has the greatest impact on biodiversity.

• Developing Sustainable Products and Services

  Based on the principles of Lifecycle Thinking and Green Chemistry, we will strive to create sustainable value unique to Shiseido, which balances the satisfaction stemming from the results, high-quality design, and feel of our products with respect for and coexistence between people, society, and the global environment. We will promote the development and implementation of circular formulas, ingredients, packaging, and business models using innovative technologies, process innovation and through collaboration with stakeholders.

• Compliance with Laws and Regulations

  We comply with the relevant environmental laws and regulations of each country and region in which we operate, in line with international standards and our own standards.

• Governance and Environmental Management

  We set environmental policies, targets, and objectives, establish management systems and work to continuously improve our environmental performance. These are promoted and supervised on a regular basis by the Sustainability Committee consisting of executive officers from sustainability-related fields of the Global Headquarters. Particularly important matters are proposed or reported to the Board of Directors. Under this framework, we strive to appropriately manage chemical substances and prevent air, water, and soil pollution.

• Communication and Engagement

  We endeavor to increase the trust we have earned from society by sharing the contents of this policy with various internal and external stakeholders including consumers and investors, disclosing transparent and reliable information, and promoting proactive communication. We will also promote employee awareness and training to increase internal awareness.

1. *1：Approved by the Sustainability Committee
2. *2：C0₂, CH₄, N₂0, HFCs, PFCs, SF₆, NF₆ and other gasses are commonly considered greenhouse gases, but in this policy they are collectively referred to as CO₂.

Our Thoughts Regarding "Biodiversity”

1. *1：Comply with the principles and criteria of our sourcing-the RSPO’s for palm oil and forest-related certification systems for paper, respectively. Preserve High Conservation Value (HCV) areas and High Carbon Stock (HCS) forests. Prohibit new peatland development regardless of depth and field burning for plantation or development. Respect and protect the rights of indigenous peoples and local communities and guarantee Free, Prior and Informed Consent (FPIC).
2. *2：Washington Convention, Convention on Biological Diversity, OECD Guidelines for Multinational Enterprises, ILO Fundamental Conventions, The Ten Principles of the UN Global Compact, United Nations Declaration on the Rights of Indigenous Peoples, etc.
3. *3：An approach to prioritize avoidance and reduction as steps to reduce environmental impact and to use offsets to offset the environmental impact that remains after these steps are taken.

Our Thoughts Regarding "Freshwater Resources”

• *1：intensity per sales
• *2：Using water in a way that is socially equitable, environmentally sustainable, and economically beneficial

Our Thoughts on “Environmental Considerations for a Circular Economy”

Promoting Environmental Management

Status of ISO14001 Certification

• *The acquisition rate of ISO 14001 certification for our domestic and overseas factories is 100%.

Cooperating Companies

• *Although Shiseido Honeycake Industries Co., Ltd. is not a consolidated subsidiary it obtained certification in 1999 in line with Shiseido policies.