Our Environmental Policy and Environmental Management

Shiseido Environmental Policy_*1

Shiseido will promote sustainability throughout our business including the activities in our sites, to realize a rich global environment where people and nature can coexist in harmony. We will produce and market products and services based on a circulation model at every step of the value chain, from product development and procurement of raw materials to production, logistics, distribution, use and disposal. To realize this commitment, we will collaborate with our stakeholders such as employees, consumers, suppliers and other business partners, and society. In the event of mergers or acquisitions, we will conduct due diligence based on this policy.

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：Approved by the Sustainability Committee
*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”

Our company name ‘Shiseido’ comes from a phrase in the classical Chinese text, I Ching: “Praise the virtues of the Earth, which nurtures new life and brings forth significant values.” While Shiseido’s business activities rely on nature’s rich biodiversity, we also recognize that natural resources are limited. In recent years, many scientists and non-government 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 engage in biodiversity conservation activities. They are also encouraged to ensure transparent information disclosure regarding the impact of their activities on the natural environment.
At Shiseido, we use the Taskforce on Nature-related Financial Disclosures’ (TNFD) framework to assess and analyze risks/opportunities around our dependency and impact on nature. The results of these analyses have shown that palm oil-derived raw materials and paper have a significant impact on biodiversity on land. Therefore, we support the principles of the NDPE（No Deforestation, No Peat and No Exploitation）Policy^*1 for palm oil and paper and strive to minimize the negative impact on biodiversity by complying with the laws and regulations of each country and international treaties and agreements^*2 and switching to certified and recycled raw materials. We have organized challenges in biodiversity according to the hierarchy approach^*3 and have set goals to switch to 100% sustainable paper by 2023 and 100% sustainable palm oil by 2026. To achieve these goals, we believe it is important not only to conduct our own operations but to also collaborate with our suppliers and other partners, etc. and promote sustainable procurement together with stakeholders.
We understand that recovering and regenerating biodiversity toward no net loss/net positive is essential, and we will continue to contribute to a future in which business and a diverse natural environment exist in harmony.

*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：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：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”

Water supports various aspect of our products, including the development of water-containing products such as lotions; the growth of plants as raw materials; temperature control; equipment cleaning; consumption; and waste disposal.
In light of the unique characteristics of water resources, such as its circularity and uneven distribution, we want to respect and promote a healthy water cycle, culture, and the human right to water and sanitation. We aim for a sustainable consumption for not only regulatory compliance but to also be in alignment with initiatives such as SDGs.
We aim to reduce water consumption by 40%^*1 by 2026 (versus 2014). In addition to promoting technological innovations, we promote water saving and recycling activities — especially in areas with high water stress and areas where rainfall is expected to decrease due to climate change. Furthermore, in collaboration with local stakeholders, we promote “water stewardship”^*2 as a common property. To make effective use of water resources we focus on circular usage, where water used is purified and reused or recycled.

*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

The Shiseido Group's production sites introduced the ISO 14001 environmental management system for the first time in 1997. Our eleven production sites worldwide all have obtained ISO 14001 certification. We are reducing our environmental impact and improving our management system by placing an Environmental Management Representative in each production site responsible for environmental initiatives including, setting policies and targets, promoting activities, confirming compliance with regulations, properly managing chemical substances, educating employees, and conducting the PDCA cycle. The progress of these activities is validated through third-party audits.

We are also advancing our global efforts in environmental management. For instance, the headquarters office and departments responsible for environmental management at various sites convene on a regular basis to discuss the reduction of CO₂ emissions, improvement of energy efficiency, reduction of water consumption, and enhancement of its effective use, as well as waste reduction. By exchanging best practices and sharing improvements among all sites, we aim to foster the development and environmental awareness of our employees.

Status of ISO14001 Certification

Production sites		Date of certification
Shiseido Company, Limited	Shiseido Kakegawa Factory Certificate of Registration［PDF：81.8KB］	October 5, 1998
	Shiseido Osaka Factory^* *Adjustments are underway for integration into the Osaka Ibaraki factory by the first half of 2026.	ー
	Shiseido Nasu Factory Certificate of Registration［PDF：65.1KB］	June 13, 2022
	Shiseido Osaka-Ibaraki Factory Certificate of Registration［PDF：72.5KB］	March 24, 2023
	Shiseido Fukuoka Kurume Factory Certificate of Registration［PDF：68.3KB］	November 13, 2023
Taiwan Shiseido Co., Ltd. Hsinchu Factory	Certificate of Registration［PDF：2.63MB］	August 31, 1999
Shiseido America, Inc.	East Windsor Factory Certificate of Registration［PDF：494KB］	March 31, 2000
Shiseido International France S.A.S.	Unité de Gien Unité du Val de Loire Certificate of Registration［PDF：287KB］	August 8, 2000 February 8, 2002
Shiseido Liyuan Cosmetics Co., Ltd.	Certificate of Registration［PDF：284KB］	August 17, 2000
Shiseido Cosmetics Manufacturing Co., Ltd.	Certificate of Registration［PDF：674KB］	November 9, 2004