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