Our Environmental Approach

Shiseido’s mission from its inception was to create social value. The company’s name “Shiseido” comes from a phrase in a Chinese classic, I Ching, which says, “Praise the virtues of the Earth, which nurtures new life and brings forth significant values.” This demonstrates our respect for the planet, the global environment, and society as a whole. Shiseido aims to contribute to a sustainable society across all value chains in all businesses.

Environmental Policy

The Shiseido Group contributes to the realization of a sustainable society, in line with the principle “With Society and the Earth” advocated in the Shiseido Group Standards of Business Conduct and Ethics. We are promoting eco-friendly product development and sales promotion material development in accordance with our voluntary environmental standards, the Production Eco Standards, and the Sales Promotion Tools Eco Standards.

●Shiseido Group Standards of Business Conduct and Ethics “With Society and the Earth” (Excerpt)

We promote environmental initiatives in line with our own stringent standards, and consider biodiversity as we aim for a sustainable society in which humanity and the Earth coexist beautifully.

1. We strive to mitigate climate change through efforts such as reducing emissions of CO₂ and other greenhouse gases (GHG). We also manage chemical substances properly to prevent air, water and soil pollution.
2. We strive to minimize waste in our business processes and in use by consumers, with emphasis on the 3Rs: reduce, reuse and recycle.
3. We work to develop new products and services that bring out the beauty of consumers and are also eco-friendly.
4. We proactively develop new technologies to balance environmental initiatives with our business activities.

For details, please refer to The Shiseido Group Standards of Business Conduct and Ethics.

●Voluntary environmental standards: The Production Eco Standards and The Sales Promotion Tools Eco Standards

The Production Eco Standards (formulated in 2010)

Item	Descriptions
Design (Outer Packaging)	Select outer packaging and materials that have low environmental impacts. Reduce weight and volume
Design (contents)	Formulation that does not harm environment. Formulation that takes packaging into consideration
Purchasing	Purchasing of raw materials and ingredients
Production	Reduce environmental impacts in the process of production
Logistics	Reduce environmental impacts during the course of distribution and transport
Use	Conserve energy and resources during consumer use. Reduction of emissions that have less environmental impacts at the use stage. Promotion of long-term use
Disposal	Make recycling easier. Make disposal easier

The Sales Promotion Tools Eco Standards (formulated in 2010)

Item	Descriptions
Planning and design	Design that is easy to utilize in the store. Design that can support multiple sales floor sizes. Versatile, multi-deployable design. Select materials that have low environmental impact. Selection of materials for promotional materials. Selection of individual materials. Selection of materials for specific parts. Lightweight and simple design. Design based on standard size. Utilization of templates/models. Design suitable for delivery. Design for easy disposal. Design that is easy to separate. Display of material name
Proof and print	Resource-saving proofs (plate-making). Resource-saving printing plate. Printing method that does not generate waste liquid. Use of ink to save oil resources
Packing and delivery	Simplification of packing. Control of excessive packing

Environmental Management

●System

In the Shiseido Group, we discuss and deliberate on a broad range of environmental issues in the Executive Committee, chaired by the CEO (Chief Executive Officer) and attended by management^*1, audit, and supervisory board members. Important matters are reported to the Board of Directors and approved and supervised by the Board of Directors. In order to promote environmental management throughout the Shiseido Group, the Sustainable Environment Department, the Social Value Creation Division of Shiseido Company, Limited, reports the progress of environmental data and potential future issues to our directors and corporate officers in charge of the environment and receives supervision on environmental management^*2.

*1 Chief Financial Officer, Chief Innovation Officer, Chief Strategy Officer, Chief People Officer, Chief Social Value Creation Officer, Chief Supply Network Officer, Chief Legal Officer
*2 Corporate Officers in charge supervise each relevant field.

Social Value Creation management system (incl. Environment)

Social Value Creation – Internal Collaboration

●Promotional activities

The Shiseido Group's production facilities introduced the ISO 14001 environmental management system for the first time in 1997. All our production facilities worldwide have obtained ISO 14001 certification. We place an Environmental Management Representative in each production facility, set environmental policies and targets, promote environmental activities, confirm compliance with environmental regulations, properly manage chemical substances, educate employees on the environment, and conduct the PDCA cycle. By so doing, we improve the management system and reduce the environmental impact. The progress of these activities is validated through third-party audits.
Under this promotion system, the Shiseido Group had no major environmental incidents, violations of environmental laws or regulations, or lawsuits related to environmental issues in 2018. We will continue our endeavor to maintain appropriate environmental management.

The Shiseido Group Environmental Management Status

Descriptions	Targets	2018 results
Maintain and expand environmental management system	Maintain ISO 14001 certification	Continued ISO 14001 certification (acquired ISO 14001 at all production facilities)

Status of ISO14001 Certification

Production facilities		Date of certification
Shiseido Company, Limited	Shiseido Kuki Factory	October 27, 1997
	Shiseido Kakegawa Factory	October 5, 1998
	Shiseido Osaka Factory	March 24, 1999
Taiwan Shiseido Co., Ltd. Hsinchu Factory		August 31, 1999
Shiseido America, Inc.	East Windsor Factory	March 31, 2000
Shiseido International France S.A.S.	Unité de Gien	August 8, 2000
Shiseido Liyuan Cosmetics Co., Ltd.		August 17, 2000
Shiseido International France S.A.S.	Unité du Val de Loire	February 8, 2002
Shiseido Citic Cosmetics Co., Ltd.		November 9, 2004
Shiseido Vietnam Inc.	―	December 15, 2011

Cooperating companies

Production facilities		Date of certification
Shiseido Honeycake Industries Co., Ltd.^*	―	September 29, 1999

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