Health and Safety
of the Shiseido Group

Our mission is “BEAUTY INNOVATIONS FOR A BETTER WORLD.” To that end, we promote initiatives for employees and their families to live beautifully and healthily based on our perception that beauty and health are sources of vitality.

Regarding promotion, the officer in charge of human resources acts as the Health Management Representative (Chief Wellness Officer), and the Wellness Support Group of the People Division and Shiseido Health Insurance Society collaborate to support each office (of the Shiseido Group in Japan) to take the initiative to maintain and promote employee health. In addition, the Health Management Representative and each officer, department manager, and responsible person jointly discuss support for employee voluntary health initiatives.

The Shiseido Group in Japan works to resolve the following health issues.

（1）Reinforcement of the foundation of the occupational health system that supports health-related initiatives.
We are working on various activities, including more frequent workplace inspections by members of the Health Committee, Safety and Health Committee, and occupational physicians, improving the frequency of conducting stress checks, maintaining a 100% health checkup rate, promoting reexamination and/or detailed examinations based on health checkup results to ensure early treatment, improving health guidance rules to render health guidance more effective and efficient, the addition of more information and resources. We are also improving upon multifaceted analysis of health data, mental health care measures, response to infectious diseases, and clarification of issues and reinforcement of the foundation for reducing long overtime work.

（2）Implementation of health-related initiatives
The Shiseido Group in Japan is working with the Health Insurance Society to promote health initiatives that take into account each office’s health issues with the aim of promoting beautiful lifestyles, measures against smoking, improved women's health, mental health care measures, and support for balancing cancer treatment and work.

We have compiled a health management strategy map that presents the linkage between the issues we want to solve through health management and the expected effects of health investments and initiatives. We have also established management indicators that indicate the status of initiatives, awareness and behavior change, and final goal indicators for health-related issues.
In FY2022, we will particularly focus on anti-smoking measures, health events and seminars, and other initiatives aimed at decreasing the smoking rate, increasing the percentage of individuals who exercise, increasing the number of individuals with good sleeping habits, and decreasing the percentage of individuals who habitually miss breakfast.

To promote various initiatives, we have invested a total of 4.9 million yen in anti-smoking measures to increase the smoking cessation rate, 2.4 million yen in health events and measures to increase the percentage of employees who exercise, and 38.58 million yen in mental health measures to prevent the occurrence of mental health problems or detect them early. (Actual results for FY2021)

The status of employees' health efforts is evaluated by setting KPIs. The analyzed employee health data is used to implement health-related initiatives for the Shiseido Group in Japan.

Since our smoking rate has been slightly higher than the national average for some time, we launched a No Smoking Day within the company in 2010, in addition to a program to subsidize the cost of anti-smoking treatment. Shiseido and the Shiseido Health Insurance Society have continued to work together on this initiative. Since 2019, we have been participating in the No Smoking Promotion Business Consortium to collect information and exchange opinions on the advanced practices adopted by other companies and promote smoking cessation based on employee feedback provided through internal surveys and other means.

The implementation rate of health support programs (specific health guidance) stood at 53.2% in FY2020, higher than the national average of 26.9%.

Every year, we hold health fairs tailored to the health issues of each Shiseido Group location in Japan, including health-related measurement sessions, health education, and collaborative projects with cafeterias.

* In FY2021, we did not hold an in-person fair owing to COVID-19 prevention measures, but in FY2022, we are considering holding an in-person fair while implementing preventive measures.

Since FY2019, the company has provided seminars on exercise, diet, and sleep that are designed to address health issues in each organization. These seminars have been well-received by participants. In FY2021, online yoga, stretching, and sleep seminars were organized. This led to efforts to improve employee’s sleep quality toward behavior change, which resulted in a 20% increase in their sleep satisfaction.
We will provide further seminars designed to motivate participants to improve their lifestyles, which include their exercise, sleep, and eating habits.

Percentage of those who exercise regularly (at least 30 minutes of exercise at least twice a week): 20% [2021: 17.8%]
Percentage of those with good sleep habits (well rested from sleep): 70% [2021: 66.4%]
Percentage of those who habitually miss breakfast (skipping breakfast at least 3 times a week): 20% [2021: 26.0%]

Diversity and inclusion is an important pillar of our management strategy, which seeks to create an organizational culture in which employees, regardless of gender, age, or nationality, recognize and respect each other's differences and continue to demonstrate their strengths and generate innovation. We are striving daily to improve employees' understanding of women's health issues (menstruation, pregnancy, childbirth, infertility treatment, menopause, etc.) and create a comfortable working environment for everyone.

The Shiseido Group in Japan has adopted the “Shiseido Hybrid Work Style,” a new working style which places the highest priority on the safety and health of employees with the aim of preventing the spread of COVID-19 and improving the performance and productivity of employees and organizations.
Since the adoption of the Shiseido Hybrid Work Style, which allows employees to work either at the office or home depending on their roles, employee workstyles have become more diverse. The Shiseido Group in Japan has taken measures to address health issues associated with remote work that are different from those previously experienced.

In promoting this, the officer in charge of human resources will become responsible for health and health and safety management, support business areas in Japan and overseas, and actively drive the maintenance and promotion of the health and safety of employees. Under the supervision of the Board of Directors on important occupational health and safety commitments, the health and safety manager will work with each officer, department head, and manager to support employees' voluntary efforts for health and safety.
In addition, at the Shiseido Group's domestic sites, we have set up a hygiene committee as well as a health and safety committee in accordance with laws and regulations to create a safe and comfortable working environment through investigation and deliberation. At laboratories and factories, we have established an occupational health and safety policy and a health and safety committee to improve upon dangerous areas and dangerous actions working toward our ultimate aim of zero lost time accidents at domestic factories.

▼Comparison of the percentage of leave of absence between the domestic Shiseido Group and all domestic industries, chemical industries, and manufacturing industries

In 2021, the Shiseido Group had 110 occupational accidents for domestic employees and contract employees. Of these, 29 were lost time accidents, one of which was a contract employee.
The types of occupational accidents were slipping/tripping, falls from heights, and unreasonable movements, accounting for 46% of the total. There are many accidents such as "lifting a heavy object in an unreasonable posture" and "slipping in a hallway wet with rain", which can occur in daily life. Analysis of the causes of occupational accidents revealed that many occupational accidents occurred when safety in the work environment was neglected or when the work method was improperly abbreviated.. In addition, as 50% of cosmetics sales accidents cause falls, daily cooperation with tenants is important for a better working environment. At affiliated companies, 90% of accidents occur in people in their 50s and 60s, and it is necessary to encourage them to exercise and stretch on a regular basis and to wear comfortable shoes.
In addition, to achieve our health and safety goals by 2030, we must prevent future accidents by implementing company-wide safety education and sharing information beyond the business domain, rather than relying on the governance at each site. Furthermore, it is essential to strengthen safety education especially for people in their 50s and 60s, who suffer many occupational accidents, to comply with the health and safety laws and regulations that will be further regulated in the future, and we need to reduce the risk of damaging society’s trust in us.

To achieve the goal based on the above issues, we have built an "occupational health and safety management system" from 2022, positioned it as an initiative involving management, and are carrying out activities to protect the safe and secure working environment.
As a company-wide initiative, we analyze the occurrence status, factors, and countermeasures of occupational accidents every month and share the reports with the health and safety manager at the Occupational Health and safety Management System Committee meeting, which is held six times a year. In addition, we are planning to carry out comprehensive safety education and training on fostering a culture of safety through health and safety-focused activities, analyzing the results of occupational accidents that have occurred in the past three years, and the characteristics of human behavior, self-preservation measures to prevent future accidents, places and conditions that are likely to occur, etc. We will also work to reduce commuting accidents as well as work-related accidents to protect employees.
The details of future efforts in each business area are as follows.

• Factory / Logistics Center:

The factory / logistics center are promoting the establishment of GSMS (Global Safety Management System), which sets common occupational health and safety standards in Japan and overseas. At the factory / distribution center, various education and trainings are conducted including a review of past occupational accidents, but at the Kakegawa factory, all workers in the production area (including indirect employment and employees with disabilities) are targeted., As a safety experience training, we conducted a training to "sense danger in dangerous settings". We plan to start operating GSMS in 2023 and to obtain ISO 45001 certification at our factory bases around the world by the end of 2024. (Acquisition of factory complete as of December 2021: Shanghai factory, Beijing factory, Vietnam factory) ISO 45001 certified factories have established and implemented the necessary processes to prepare for and respond to possible emergencies. In addition, we carry out systematic education and training, as well as regular internal audits and evaluations for the maintenance and management of the process and continuous improvement.

▼Safety experience training

• Research institute:

The research institute has set up contact persons for health and safety at each base in Japan and overseas to share information on occupational accidents and near-miss incidents that have occurred in Japan and overseas. In addition, domestic research institutes manage their chemical substances with their own IT systems, and by efficiently conducting risk assessments for increasing chemical substances without omission, we have achieved legal compliance and will be a researcher in the future. We aim to protect your health and safety.

• Shops / Sales & Offices:

Shops and offices, we will continue to promote health and safety activities based on the Health Committee. The hygiene committee of each area continuously collects near-miss cases to strengthen PDCA functions such as sharing accident information and countermeasures to other areas and preventing accidents, and we are planning to use signage, etc. in the workplace to inform employees of occupational accidents with a higher possibility of future occurrence.