Climate Change Data

Milbon Co., Ltd.

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:2888 t-CO2 (2022)
Scope 1 Emissions:1357 t-CO2 (2022)
Scope 2 Emissions:530 t-CO2 (2022)
Renewable Energy Share:100% at Yumegaoka Factory (2023)
Total Energy Consumption:6990 ('000 kWh) (2022)
Water Consumption:50261 m³ (2022)
Waste Generated:415.5 tons (2022)

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Corporate Governance
  • Sustainable Supply Chain
  • Employee Well-being

Environmental Achievements

  • Switched all electricity used at the Yumegaoka Factory to renewable energy.
  • Achieved a 59.7% reduction in CO2 emissions at the Yumegaoka Factory (compared to 2019 levels).
  • Acquired RSPO Supply Chain Certification at the Yumegaoka Factory.
  • Adopted smaller caps for new hair color line, reducing plastic use.

Social Achievements

  • Launched MILBON BEAUTY MOVIES, a short film project.
  • Awarded the MILBON BEAUTY AWARD.
  • Released the 2021–2022 special brand film “Words I Encountered at the Salon”.
  • Appointed two female executive officers for the first time.
  • Donated 100,000 euros to UNHCR.
  • Recognized as a Certified Health & Productivity Management Outstanding Organization for 2022 and 2023.

Governance Achievements

  • Increased the number of outside board directors.
  • Appointed one new female outside board director.
  • Implemented Human Rights Training for board directors and executive officers.
  • Formulated and announced the Milbon Group Human Rights Policy.
  • Established the Risk Management Committee.
  • Established the Governance Committee.
  • Outsourced Milbon’s internal whistleblowing contacts to a third-party organization.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality for the Milbon Group by 2050.
Medium-term Goals:
  • Achieve carbon neutrality at Yumegaoka Factory by 2030.
  • Reduce petroleum-derived virgin plastic use by 30% by 2030.
  • Achieve 80% paid leave utilization rate by 2030.
  • 20% ratio of female in management positions by 2030.
Short-term Goals:
  • Reduce petroleum-derived virgin plastic use by 15% by 2026.
  • Achieve 75% reduction in CO2 emissions at Yumegaoka Factory by 2026 (compared to 2019 levels).
  • Increase paid leave utilization rate to 70% by 2026.

Environmental Challenges

  • Decreasing population and productivity-related industrial problems in hair salons.
  • Difficulty in knowledge-based product sales.
  • Challenges in growing overseas markets due to varying hair types and salon functions.
  • Increased raw material procurement costs due to carbon pricing and regulations.
  • Potential impact of climate change on raw material procurement and operations.
  • Maintaining a low turnover rate, especially among junior employees.
Mitigation Strategies
  • Developed the Salon-based Social Innovation strategy (Smart Salon Strategy and Lifetime Beauty Care Strategy).
  • Developed milbon:iD and Smart Salons to improve customer experience and sales.
  • Implemented a local production for local consumption system in the beauty industry.
  • Set targets for reduction of petroleum-derived virgin plastic and procurement of RSPO certified palm oil.
  • Conducted scenario analysis to identify climate change risks and opportunities and developed response strategies.
  • Implemented measures to prevent mismatches during recruitment and provide follow-up opportunities after placement.

Supply Chain Management

Responsible Procurement
  • Sustainable procurement of palm oil (aiming for 100% RSPO certified by 2030)
  • Reduction of petroleum-derived virgin plastic

Climate-Related Risks & Opportunities

Physical Risks
  • Heavy rainfall, floods, typhoons
Transition Risks
  • Increased raw material costs due to carbon pricing and regulations
  • Increased energy costs
  • Stringent laws and regulations
Opportunities
  • Increased competitiveness due to carbon pricing impact on competitors
  • Increased sales of environmentally friendly products
  • Reduced emissions and energy costs due to in-house power generation

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Certifications: RSPO Supply Chain Certification

Sustainable Products & Innovation

  • Products using plant-derived plastic
  • Capless products
  • Aluminized plastic products

Awards & Recognition

  • Porter Prize 2020
  • Jury’s Award at the Sustainable Cosmetics Award 2021
  • International Award at the Sustainable Cosmetics Award 2021