Climate Change Data

Environmental Metrics

ESG Focus Areas

• Clean beauty
• SDGs

Climate Goals & Targets

Environmental Challenges

• Insufficient worker-hours due to recruiting difficulties, resulting in rising outside-processing costs.
• Mounting inflation affecting material costs and various expenses.
• Uncertainty in the economy due to rising prices for goods and energy, triggered by factors such as Russia’s invasion of Ukraine.
• Economic recovery and normalization hampering recruiting and raising personnel costs.

Mitigation Strategies

• Continuing efforts to trim various costs to support profitability and achieve recovery.
• Implementing measures in the Medium-Term Business Strategy Vision (FY2022 to FY2026), prioritizing the rebuilding of the operating base.
• Developing formulas and production technologies geared to cosmetics trends prompted by the COVID-19 pandemic.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Clean Beauty
• SDGs

Climate Goals & Targets

Environmental Challenges

• Labor shortages leading to increased outsourcing expenses
• Inflation affecting material costs and other expenses
• Lingering uncertainty due to geopolitical risks (Russia-Ukraine war, Middle East tensions), rising prices, labor shortages, and currency fluctuations.

Mitigation Strategies

• Continuous efforts to restrain various costs to support and bolster profitability
• Implementing measures from the Medium-Term Business Strategy Vision (FY2022-FY2026)
• Strengthening and expansion of products with a strong competitive edge; vigorous pursuit of the “clean beauty” market; and transformation into a highly profitable constitution.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Eye makeup unaffected by masks
• Lipsticks that do not leave marks on masks

Environmental Metrics

ESG Focus Areas

• Clean Beauty
• Sustainability
• Responsible Sourcing
• Workforce Diversity
• Employee Wellbeing

Environmental Achievements

• Promoting environmentally friendly formulations
• Increased the proportion of certified palm-derived raw materials in company purchases
• Visualization of energy usage and CO2 emissions
• Promotion of paperless initiatives
• Reduction of waste through recycling of production and logistics materials
• Sustainability surveys of suppliers

Social Achievements

• Establishment of a sustainability committee
• Implementation of diversity, discrimination, and harassment training
• Employee wellbeing surveys
• Zero recalls of manufactured products

Governance Achievements

• Establishment of a sustainability committee as an advisory body to the board of directors

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to inflation and global events
• Shortage of workforce due to recruitment difficulties
• Increased external processing due to labor shortages
• Rising raw material, labor, energy, and other costs due to inflation
• Decreased profitability due to inflation

Mitigation Strategies

• Increased utilization of production facilities expanded in Tsukuba Factory Phase 3
• Utilizing outsourcing and contracting to secure necessary workforce
• Close communication with customers to reflect price increases in quotations for new and repeat orders
• Efforts to maintain profitability by reflecting price increases in quotations for new and repeat orders
• Efforts to provide products with value that matches the quotation

Supply Chain Management

Responsible Procurement

• Sustainability surveys of suppliers
• Responsible procurement training
• Heavy metal measurement of new raw materials

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Clean beauty formulations