Shiseido’s Growth Strategy
For a Sustainable WorldSustainability
Since its founding in 1872, Shiseido has pursued unprecedented new value and worked to deliver it across society. The establishment of Japan’s first Western-style private pharmacy, the introduction of the soda fountain, and the creation of the cosmetics business are all examples of how Shiseido has incorporated Western lifestyle practices and culture into Japanese society to realize new value.
The name “Shiseido” comes from a passage in the ancient Chinese divination text Yi Jing. The passage reads, “Praise the virtues of the earth, which nurtures new life and brings forth significant value.” We have always felt that our ongoing business activities are only possible thanks to the abundance of nature and the sustainability of the environment. To that end, we firmly believe that our business activities must place importance on the creation of social value, in addition to economic value. We also believe that a sustainable society is a prerequisite for sustainable business. Guided by these beliefs, we are engaging in a broad range of activities to create a virtuous cycle for a better society.
This virtuous cycle is put into motion by our corporate mission, BEAUTY INNOVATIONS FOR A BETTER WORLD. Our sustainability strategy centers on ESCG. “ESG” stands for “environment,” “society,” and “corporate governance” and is a concept on which modern society places value, while “C” represents “culture,” a unique strength of Shiseido. Accordingly, we are working to promote the Sustainable Beauty Initiative, which aims to realize a better world, and have defined the following key areas that require our attention as a beauty company.
Clean EnvironmentStriving for the ideal of a global environment that supports lives of vibrancy.
Respectful SocietyAdvancing a society that embraces diversity through respect, and supports lives of beauty.
Enriched CultureCreating new value to enrich culture by transforming beauty.
Trustworthy GovernanceStriving to maintain and improve transparency, fairness and agility of management, while maximizing corporate value over the medium to long term, for all stakeholders.
In regard to environmental areas, we are focusing efforts on establishing targets and timelines for reducing our environmental footprint, such as CO₂ emissions, palm oil, paper, and water resources, as we aim to achieve further sustainable growth. We are prioritizing measures to address climate change, in particular, and promptly expressed our support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in April 2019. In addition, we are strengthening initiatives such as reducing marine pollution through the development of eco-friendly packaging. Also, we continue to protect people’s skin and bodies from the damage of UV rays by leveraging our sunscreen technologies, which have garnered high praise.
For social areas, we are leading the way in terms of empowering women, a major issue facing Japanese society. With regard to our offices in Japan, we are currently aiming to raise the ratio of female leaders to 40% by the end of 2020. In addition, President and CEO Masahiko Uotani has been appointed as the inaugural chair of the 30% Club Japan, a chapter aiming to boost female representation on company boards. Amid the current conditions in Japan, which ranks 121st* in gender equality, we are working together with other companies to resolve issues that impede the empowerment of women. Globally, we will expand activities unique to a beauty company to empower senior citizens and those with serious concerns about their skin and appearance, including changes in skin color caused by the side effects of cancer treatment, through the power of beauty.
In areas related to culture, where the Company boasts strengths, we will pass on our long-cultivated corporate culture and DNA to future Group employees, as we strengthen our unity through shared value and evoke our power to innovate that has enabled us to constantly transform in response to changing times. By doing so, we will explore and discover new aesthetic sensibilities and create new value through collaboration with our businesses.
As for governance, we have adopted a monitoring board structure under which the Board of Directors exercises supervisory functions with respect to the Shiseido Group’s business execution. We have also ensured the diversity of the Board to improve the quality of our global management. Moreover, the Board listens carefully to the feedback received from consumers and consistently brings attention to and deliberates issues based on the motto, “bad news fast.” In these ways, our management maintains its transparency.
Positioning these efforts as important elements of its ESCG management, Shiseido will strive to remain vital for the next 100 years and be the world’s most trusted beauty company.
The Global Gender Gap Report 2020, World Economic Forum (released in December 2019)
Jun AokiExecutive Corporate Officer
Chief Social Value Creation Officer
Shiseido’s Material Issues
As a framework for creating social value unique to a beauty company, we defined the Shiseido Group’s material issues in April 2019 based on interviews and discussions with our stakeholders.
Categorizing issues taking into consideration their impact on our stakeholders (consumers, business partners, employees, shareholders, and society and the earth) and their impact on the Company’s businesses, we established an order of priority and selected 18 material issues. In addition, we revised our definition of social value from the perspectives of the environment, society, and culture. The details and positioning of each mapped issue are reviewed as necessary through discussions by the dedicated management board called the Sustainability Committee, etc.
The Shiseido Group’s Materiality Map
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Social Issues Addressed by Shiseido and Corresponding SDGs
We promote the Sustainable Beauty Initiative and contribute to the achievement of the Sustainable Development Goals.
Clean Environment Striving for the ideal of a global environment that supports lives of vibrancy.
Shiseido regards response to climate change as an important measure and has carried out initiatives designed to reduce its CO₂ emissions. Please see the following table for details.
In April 2019, we expressed our support for the recommendations of the TCFD established by the Financial Stability Board (FSB).
Going forward, we will actively promote information disclosure based on TCFD recommendations.
CO₂ Emission Reduction Initiatives to Date
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| Measure launch (FY) | Site | Initiative |
|---|---|---|
| 2019 | Nasu Factory | Use of renewable energy (hydroelectric power generation; equivalent to 100% of Scope 2 emissions) |
| 2018 | Kakegawa Factory, Kuki Factory, Osaka Factory | Use of renewable energy (TEPCO Energy Partner, Inc.’s Aqua Premium plan) |
| 2019 | Shiseido America, Inc., East Windsor Factory (New Jersey, U.S.) | Use of renewable energy (equivalent to 100% of Scope 2 emissions) |
| 2010 | Installation of solar tracker-type solar power generation equipment (solar power generation accounts for more than 15% of the factory’s annual power use) | |
| 2007 | Introduction of fixed-angle solar power generation equipment |
Main Targets
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| Item | Target | Timeline |
|---|---|---|
| CO₂ emissions | Carbon neutrality | 2026 |
| Palm oil | 100% sustainable palm oil (RSPO certified - more than Mass Balance type) | 2026 |
| Paper | 100% sustainable paper (certified and recycled paper)*1 | 2023 |
| Water | Water consumption reduction by 40% (vs 2014)*2 | 2026 |
| Waste | Zero landfill*3 | 2022 |
- For products
- For the entire Shiseido Group, per unit of sales
- For owned factories
Related SDGs
Reducing our environment footprint
Sustainable packaging and formula
Sustainable and responsible procurement
Respectful Society Advancing a society that embraces diversity through respect, and supports lives of beauty.
The 30% Club Japan, which aims to increase female representation at the board and senior management level, began its activities in May 2019, with Masahiko Uotani, Shiseido’s representative director, president and CEO, appointed as its inaugural chair. At the end of 2019, the TOPIX Presidents’ Committee was launched, comprising members of senior management drawn principally from TOPIX 100 companies who endorse this aim. Based on a belief that accelerating the participation of women in management is indispensable to sustainable corporate growth, the committee commenced discussions on fundamental issues that impede the empowerment of women. Going forward, we will help to bridge the gender gap in cooperation with other companies.
Related SDGs
Gender equality
Empowering people
Human rights and human resources
Enriched Culture Creating new value to enrich culture by transforming beauty.
Shiseido is strengthening its efforts to pass on its corporate culture that facilitates a deep understanding about its founder’s philosophy and DNA. At the Shiseido Corporate Museum in Kakegawa, Shizuoka Prefecture, which is also open to the public, we display corporate artifacts, such as products we have offered since our founding as well as advertising and other materials. Many people use the museum for research on cosmetics culture and other topics.
The Company’s art gallery, the Shiseido Gallery in Ginza, Tokyo, celebrated its 100th anniversary in December 2019. The exhibition Shuta Hasunuma ～ ing, held at the gallery in 2018, was highly acclaimed, and Hasunuma was awarded the 2019 Art Encouragement Prize for New Artists by the Minister of Education, Culture, Sports, Science and Technology.
In addition to the Japanese version of the Shiseido corporate culture magazine, Hanatsubaki, we have begun issuing an English version in Europe and the U.S. Shiseido will continue to create and promote new value originating in Japan.
