Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee satisfaction and development
• Customer satisfaction and loyalty
• Product development and innovation

Environmental Achievements

• Used plant-based inks for printing the report

Social Achievements

• Opened a new C’BON BeautyOasis store in Tokyu Department Store Tama Plaza.
• Launched the "C’BON College" for employee training and development.
• Recognized excellent salons with "Hospitality Mind Excellent Stores" awards.
• Implemented a customer co-creation project for "Beauty Leg Treatment".

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased new customer visits due to a shift in customer acquisition methods and the post-consumption tax increase effect.
• Decreased customer purchase unit price due to the prolonged effect of the consumption tax increase.

Mitigation Strategies

• Improved cost efficiency in customer acquisition methods.
• Enhanced customer satisfaction through point service expansion and improved customer service based on email surveys.
• Launched new products and store concepts to attract new customers.
• Improved customer service quality through the renewal of counseling tools and skin analysis systems.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Women's empowerment
• Employee well-being
• Brand strengthening

Environmental Achievements

• Not disclosed

Social Achievements

• Selected as a "Jun-Nadeshiko" company (a company with high potential for future growth and promoting women's empowerment)
• Achieved the highest rank in the "Erushi" certification for promoting women's empowerment
• Received the 2nd place in the "JAPAN WOMEN AWARD 2016" corporate category and the runner-up in the leader development category
• Ranked 1st in the "Top 50 Companies Actively Promoting Women Directors and Women Managers" ranking by Toyo Keizai

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decrease in new customers in FY2016 leading to a decrease in returning customers in FY2017, resulting in a decrease in overall sales despite an increase in new customer acquisition.

Mitigation Strategies

• Strengthening brand power through event promotions and cost rationalization, resulting in increased operating profit and net income.
• Implementing a new three-year plan focusing on acquiring new customers, improving existing store performance, and strengthening the brand.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: えるぼし (Erushi) certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Jun-Nadeshiko company selection
• Highest rank in Erushi certification
• 2nd place in JAPAN WOMEN AWARD 2016 (Corporate Category)
• Runner-up in JAPAN WOMEN AWARD 2016 (Leader Development Category)
• 1st place in Toyo Keizai's ranking of companies actively promoting women directors and managers

Environmental Metrics

ESG Focus Areas

• Workforce Diversity
• Employee Wellbeing
• Customer Satisfaction

Social Achievements

• Introduced maternity uniforms (2008), extended childcare leave (to age 3), extended childcare part-time work (until elementary school enrollment), implemented a welcome-back system (re-employment system), introduced a refresh leave system, established an ES improvement promotion office, implemented internal communication for employee education, introduced a short-time regular employee system, developed childcare/nursing care leave manuals, raised the retirement age (from 60 to 65), held a Seaborn. Family Day, conducted surveys on childcare awareness and second career awareness, selected as a "quasi-nadeshiko" brand, launched initiatives to encourage male participation in childcare.
• Achieved top rank in "Elboshi" enterprise under the Act on the Promotion of Women's Participation in Society

Climate Goals & Targets

Environmental Challenges

• Decrease in returning customers due to a decrease in new customers in the previous fiscal year, resulting in lower than planned after-sales.
• Impairment loss of 102 million yen (partially due to impairment of fixed assets and telephone subscription rights).

Mitigation Strategies

• Cost reduction measures
• Focus on revitalizing existing stores and building a foundation for regrowth (FY2018)
• New store openings and other initiatives to aim for regrowth (FY2019 and beyond)

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Forbes JAPAN WOMEN AWARD 2016 (2nd place in Corporate Division Overall Ranking, runner-up in Leader Development Division)

Environmental Metrics

ESG Focus Areas

• Human Capital
• Customer Satisfaction
• Brand Enhancement

Social Achievements

• Introduced maternity uniforms in 2008, extended childcare leave to age 3 in 2011, and further extended it to elementary school entrance. Implemented a welcome-back system (re-employment system) and a refresh leave system in 2012. Established an ES improvement promotion office and introduced a cafeteria plan in 2013. Launched the "C’BON Family Day" in 2015. Achieved top ranking in "Companies actively promoting the employment of female executives" and "Companies actively promoting the employment of female managers" in the Toyo Keizai "CSR Corporate Overview 2017 Edition". Received the highest rank of "Erushi" enterprise based on the Act for the Promotion of Women's Participation in Society.

Governance Achievements

• Increased the retirement age from 60 to 65.

Climate Goals & Targets

Environmental Challenges

• Maintaining growth in a mature market
• Attracting new customers

Mitigation Strategies

• Strengthening direct-operated salon expansion and polishing the C’BON brand. Developing new channels such as online sales and overseas salon expansion. Enhancing marketing capabilities, improving on-site capabilities, and developing stronger products. Implementing various promotional activities, including events, to attract new customers. Improving customer satisfaction through enhanced services and loyalty programs.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• 2nd place in the "JAPAN WOMEN AWARD 2016" Corporate Division Overall Ranking
• Runner-up in the Leader Development Division

Environmental Metrics

ESG Focus Areas

• Workforce Diversity
• Customer Satisfaction
• Sustainable Business Practices
• Digital Transformation
• International Expansion

Environmental Achievements

• Not disclosed

Social Achievements

• Received the runner-up prize in the 2017 Woman Empowerment Supporting Companies award.
• 92.3% of employees and 85.7% of managers are women.
• All employees in directly managed stores are women.
• Implemented a new skin counseling system in all stores to provide personalized beauty programs.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Stable growth needed despite increased revenue and profit in FY2018.
• Difficulty in recruiting employees due to a seller's market.
• Maintaining high productivity and employee satisfaction while adapting to business changes.

Mitigation Strategies

• Focus on three key tasks: developing new customers, improving on-site capabilities, and strengthening the brand.
• Strengthening the education system for facialists and PR staff.
• Implementing a new skin counseling system.
• Improving IT infrastructure for faster response to business changes.
• Developing a two-shift system to standardize working hours.
• Establishing a system to maintain high productivity and employee satisfaction.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Runner-up prize in the 2017 Woman Empowerment Supporting Companies award.

Environmental Metrics

ESG Focus Areas

• Workforce Diversity
• Customer Satisfaction
• Brand Building
• Innovation
• Sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Launched "C’BON Beauty Fes," a brand experience event.
• Improved employee training and education.
• Developed a new system for collecting customer feedback.
• Received second place in the “Forbes JAPAN WOMEN AWARD 2018” in the corporate category for companies with over 1,000 employees.
• Established the "Shibon Meister" system to recognize top-performing facialists.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decrease in new customers (-7.7% compared to the previous year).
• Difficulty in expanding event promotions due to human resource constraints.
• Need to improve understanding of the C’bon brand among new customers.

Mitigation Strategies

• Strengthened research and development capabilities.
• Enhanced advertising and web promotion strategies.
• Improved the content of customer acquisition tools.
• Expanded advertising in various media, including web and magazines.
• Developed new product sets to improve customer understanding of C’bon's offerings.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Forbes JAPAN WOMEN AWARD 2018 (2nd place)