Value Creation by the Shiseido Group

At present, the world is facing unprecedented fragmentation and uncertainty, including increasing geopolitical risk, growing economic uncertainty, and increasingly severe climate change. Because we are in such an era, it is more important for us to reconfirm the significance of our existence and ask ourselves once again what value we should provide to society.
Believing in the potential of beauty, we have established our vision, "By connecting with people, we pursue, create, and share new beauty, enriching everyone's lives," toward 2030 under our corporate mission, "BEAUTY INNOVATIONS FOR A BETTER WORLD." The value we provide is not limited to our products and services. It is also in our activities nurturing the human spirit and bringing about positive change through beauty. We will strive to sustainably enhance our corporate value by solving social issues while also achieving the growth of our business, with the goal of helping establish a society where everyone is able to live with enriched hearts, respect and stay connected with each other, and live authentically, and a world where people and the Earth coexist with nature and resources cherished and circulated.

Under the 2030 Medium-Term Strategy that we announced in November 2025, we have positioned "Drive sustainable value creation" as one of the cores of our management strategy towards the achievement of our vision.
Through value creation, we will develop a corporate culture that continues to create diverse beauty value and aim to build a world where people experience enhanced Quality of Life (QOL) throughout their lives and achieve coexistence with the Earth, based on the idea of banbutsu shisei,_* which is the origin of our company name. We took the formulation of the 2030 Medium-Term Strategy as an opportunity to review our materiality, which we identified in 2019, in light of changes in society and the industry, as well as risks and opportunities, and we identified 19 material issues through dialogue with diverse stakeholders. To ensure steady progress in our efforts to solve these material issues, we have set three strategic actions and medium-term targets in each of the society and environment areas. Further, we have expanded the scope of our actions in the environmental area and updated our targets toward 2030, driving initiatives across the Shiseido Group.

In the area of society, we set three strategic actions, "Advancing gender equality," "Empowering people through the power of beauty," and "Promoting respect for human rights," and we are pushing forward with these strategies to help establish a society in which everyone can live authentically.
Our great strength lies in our employees who are diverse in terms of their identities and who come together to fully demonstrate their abilities. To enhance this strength further, we first set the target in Japan to increase the ratio of women leaders at all levels to 50% by 2030 to advance gender equality internally. The latest information about the ratio of women in management positions is that 50.0% of the Board of Directors are women, and the percentage of women managers is 60.3% globally and 43.3% in Japan, indicating steady progress. We are leveraging the knowledge of DE&I we have cultivated over many years to share it with society through our businesses and brands, and use this to drive value creation. Further, as a part of our commitment to society, we have set a target of supporting one million people by 2030 in the areas of "Advancing gender equality" and "Empowering people through the power of beauty," and our achievement rates in 2025 are 95% and 40%, respectively. As a specific initiative for the former, we continue to support the education and the independence of socially vulnerable girls. For the latter, we offer Perfect Cover to address deep skin troubles, and we are implementing the ANESSA Sunshine Project aimed at supporting the healthy growth of children's minds and bodies and other measures.

Our actions for the environment are based on the idea of banbutsu shisei._* We are addressing environmental issues throughout the value chain through Circular Product Lifecycle Design.
We are taking three strategic actions. One is "Reducing our environmental footprint, "which we are pushing forward with through collaborations with diverse stakeholders. The second is "Developing sustainable products," which we create values by embracing formulas, ingredients, and packaging. The remaining action is "Promoting sustainable and responsible procurement" to help solve social issues including deforestation and human rights violations. Regarding our response to climate change, we have set 2030 targets of reducing Scope 1 and 2 CO₂ emissions by 46.2% and Scope 3 emissions by 55% (validated by the Science Based Targets initiative (SBTi)). In FY2025, the percentage of renewable electricity at the Shiseido Group reached 94%. Looking ahead, we will focus our efforts on addressing Scope 3 emissions, which represent the largest share of our total emissions. We will accelerate our efforts in this area by further strengthening collaboration with business partners and other stakeholders. We have also been proactively adopting initiatives to address climate change and biodiversity, including initiatives to protect water resources. In recognition of these efforts, we were selected for the CDP's highest-ranking double A list for climate change and water security categories.
Regarding "Developing sustainable products," we implemented initiatives to switch to sustainable packaging. As of the end of 2025, we achieved a 98% switch to sustainable packaging on a design basis.

The steady success of these initiatives would not be possible without the strength of each and every Shiseido Group employee. We regard our people as our most valuable asset and are pushing forward with our new people strategy linked to our Medium-Term Strategy. We will thus establish a culture of supporting our people taking on challenges and be an organization that continues to learn while providing organizational support for the personal development of our people as Shiseido JIN (people), who aspire to share exceptional, enduring value with the world, even in challenging times. As part of these efforts, we have established The Shiseido Way, a common set of values that all employees are expected to embody in their daily operations as they strive to enhance our organizational capabilities on a global basis

Shiseido Group has been operating for more than 150 years. It has established a history of creating value for society through the power of beauty. We will keep proceeding sustainability, which is even more important in this current era, when the future is unknown as uncertainty is growing in various parts of the world. We will continue to create value by solving social issues while also achieving the growth of our business from a long-term perspective. In addition, we will facilitate the continued evolution of our sustainability activities under a steadfast governance structure with increased transparency and effectiveness. We aim to sustainably enhance our corporate value as we move toward the achievement of our vision and the fulfillment of our mission, backed by our outstanding research and development capabilities, brand power, and the capabilities of our diverse people.

Since 1872, the Shiseido Group has continuously created new values, redefining lifestyles, values, and culture through the power of beauty.
This ongoing commitment to value creation now drives a sustainable future, addressing our impact on people, society, culture, and the global environment.