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Sustainability Management

Material Issues

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.

Materiality Map

The following process was implemented to define materiality.

Step1>Identify social issues in consideration of all stakeholders based on their expectations and demands along with various perspectives collected from:

  • 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)

Step2>Shortlist the identified issues based on their relevance to business management and make an advanced analysis by following the process below:

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.

Step3>Submit the finalized materiality list to the management committees for approval

A System for Promoting Sustainability

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.

Strategic Actions and Corresponding SDGs

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 Reducing our environmental footprint
Developing sustainable products Developing sustainable products
Promoting sustainable and responsible procurement Promoting sustainable and responsible procurement
Society Advancing gender equality Advancing gender equality
Empowering people through the power of beauty Empowering people through the power of beauty
Promoting respect for human rights Promoting respect for human rights

Medium-Term Environmental Targets

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)
  • *1:At all our sites / Scope 1 and 2.
  • *2:For all our sites, intensity per sales, compared with 2014.
  • *3:For owned factories.
  • *4:For sale of products with plastic packaging.
  • *5:Physical supply chain options, identity preserved, segregated, and/or mass balance
  • *6:The remainder continues to be covered by the RSPO Book & Claim model.
  • *7:Such as certified paper and recycled paper.

Approval and support for international norms

Approval and support for international norms[PDF:142KB]