At Shiseido, we are committed to creating a sustainable world and enhancing people’s sense of happiness and fulfillment via value creation through beauty innovations, as we have done since our founding. To select environmental and social issues to be addressed through our business, we compiled a list of sustainability issues based on interviews, surveys, and discussions with stakeholders. We first examined the importance of these issues to Shiseido’s business and to all of our stakeholders, from employees and consumers to business partners , shareholders, and society and the Earth. We then categorized and prioritized the issues along two axes and defined 18 material issues.
The following process was implemented to define materiality.
Experts in environmental and social fields in Japan and overseas
Consumer feedback (from company surveys conducted in five countries)
External surveys, reports from major international organizations and investor feedback
Employee and board member feedback (in Japan and overseas)
Discussions are held with corporate officers and board members and various divisions to select issues highly relevant to business management. The selected issues are subjected to impact assessment based on two perspectives―importance to all stakeholders (employees, consumers, business partners, shareholders, society and the earth) and Shiseido’s businesses. The assessment scores are used to narrow down the list and finalize the 18 material issues. The details and strategic actions for the 18 issues are confirmed by the board members.
At Shiseido, we work to promote sustainability across the entire company, including our brands and regional businesses.
In 2020, we launched the Sustainability Committee, a dedicated body to ensure timely management decisions related to sustainability and their company-wide implementation. The committee decides on Group-wide sustainability strategies, policies, and discusses specific topics such as disclosure contents of TCFD and actions for human rights, as well as monitors the progress of medium-to-long-term goals. The committee consists of the Group CEO and executive officers in charge of Corporate Strategy, R&D, Supply Network, Corporate Communications, and our brands, as well as other executive officers from different fields to ensure discussions of a range of issues from different perspectives.
In 2021, besides the regular Sustainability Committee meetings, we held additional meetings to discuss and decide on measures for implementation with the relevant executive officers and those in charge of promoting sustainability in major departments in order to incorporate sustainability issues into management, thereby strengthening promotion across the Group. In addition, the Global Strategy Committee and the Board of Directors are consulted when a decision is needed on important matters related to business execution.
In January 2022, Shiseido underwent organizational reform to bolster and expand its sustainability activities and seamlessly incorporate and promote them in our management and business strategies. Specifically, the Sustainability Strategy Acceleration Department was established within the Corporate Transformation Acceleration Division to take charge of the Group-wide sustainability strategy and its acceleration. At the same time, the D&I Strategy Acceleration Department was created to accelerate Shiseido's diversity and inclusion (D&I) initiatives both internally and externally.
Moreover, in a bid to promote sustainability initiatives, we have revised indicators for the long-term performance-linked remuneration of internal directors and executive officers, increasing the weight of social value indicators from 10% to 20%. Also, in order to accelerate environmental efforts, from this year we have newly set an environmental indicator related to reducing CO₂ emissions, an important initiative under the Company’s sustainability strategy.
Shiseido has established six strategic actions, three each in the areas of environment and society. To implement these initiatives, we are distributing management resources on a priority basis in each department across the entire company.
Area | Strategic Action | Corresponding SDGs |
---|---|---|
Environment | Reducing our environmental footprint | ![]() |
Developing sustainable products | ![]() | |
Promoting sustainable and responsible procurement | ![]() | |
Society | Advancing gender equality | ![]() |
Empowering people through the power of beauty | ![]() | |
Promoting respect for human rights | ![]() |
Items | Targets (2020) | Target Year | 2021 Results |
---|---|---|---|
CO₂ emissions | Carbon neutral*1 | 2026 | 18% reduction from 2019 |
Water | Water consumption reduced by 40%*2 | 2026 | 22% reduction from 2014 |
Waste | Zero landfill*3 | 2022 | We achieved zero landfill waste at all 12 factories worldwide in 2020 ahead of schedule |
Packaging | 100% sustainable packaging*4 | 2025 | Plan to disclose in 2022 |
Palm oil | 100% sustainable palm oil*5 | 2026 | 27% (palm oil equivalent basis)*6 |
Paper | 100% sustainable paper*7 | 2023 | 72% (paper weight basis) |
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