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Sustainability

Specific Initiatives

In all business practices, including the procurement of raw materials, Shiseido acts with due consideration of developing together with society while promoting human rights and protection of the environment. We are working on the following to achieve sustainable procurement and fulfill our corporate social responsibility.

Initiatives toward Sustainable Procurement of Palm Oil

Palm oil, an ingredient in cosmetic products, is mainly produced from oil palms in Southeast Asia. It is essential for us to protect the environment of palm oil production areas as well as respect the human rights of people working on the farms in order to establish an ethical supply chain. Shiseido joined the RSPO(Roundtable on Sustainable Palm Oil)(target_blank) and formulated the Shiseido Group Sustainable Raw Materials Procurement Guidelines to procure palm oil and palm kernel oil with due consideration of the environment and society. Also, we are promoting the acquisition of RSPO supply chain certification*1 at factories of the Shiseido Group. Through these efforts, we are promoting the switch to sustainable procurement of palm oil.

Initiatives

2018

- Regarding the sustainable procurement of palm oil and palm kernel oil, we are formulating the Shiseido Group Sustainable Raw Materials Procurement Guidelines and publishing the targets to be achieved by 2020.

  • ≪ Shiseido Group Sustainable Raw Materials Procurement Guidelines ≫
  • [ Palm oil ] For palm-derived raw materials for use in Shiseido products, we will promote procurement with due consideration of environmental conservation at the place of origin, as well as respect for human rights.

    Targets: By the year 2020, for all palm-derived raw materials for use in Shiseido products, we will accomplish procurement with due consideration of environmental conservation at the place of origin, as well as respect for human rights, by procurement of RSPO-certified materials. In addition, the Shiseido Group factories will acquire RSPO supply chain certification.

- Holding dialogue with palm oil farmers in Indonesia

- Acquiring RSPO supply chain certification at the Shiseido Kuki factory and Shiseido Vietnam Inc.

2017

- Holding dialogue with palm oil farmers in Malaysia

- Acquiring RSPO supply chain certification at the Shiseido Kakegawa factory

2013 -

- We have been supporting the production of RSPO-certified sustainable palm oil by purchasing Book & Claim system*2 certificates representing an equivalent volume of all palm oil and palm kernel oil used by the Shiseido Group.

2010 -

- We have been participating in the "RSPO: Roundtable on Sustainable Palm Oil(target_blank)," which was established with the aim of conserving the environment and promoting and operating a sustainable palm oil industry.

*1  RSPOs supply chain certification: Certifying that the mechanism of securely supplying RSPO certified raw materials is in good order.

*2  Book & Claim system: A system for trading the output of palm oil and palm kernel oil produced at RSPO-certified plantations as certified credits. The system has the same structure as green electricity, which means that the purchase of certificates is recognized as the purchase of RSPO-certified oil.

Initiatives toward Sustainable Procurement of Mica

Cases of suspected child labor have come to light regarding Indian mica, an ingredient in cosmetic products. In 2017, Shiseido joined the Responsible Mica Initiative (RMI)(target_blank) aiming toward the solution of a responsible Indian mica supply chain.

Risk Assessment of Raw Materials

Social Risk Assessments for Introducing New Raw Materials

Shiseido is proceeding with social risk assessment of the raw materials we use in order to understand issues relating to human rights and labor in the supply chain in the procurement of raw materials. After analyzing palm oil using the Social Hotspots Database (SHDB)(target_blank) of the nonprofit organization New Earth, we found that the size and type of risks vary by country of origin. We will establish a tool to select social risks by examining raw materials other than palm oil with the SHDB and use it when introducing new raw materials in the future. We will manufacture products our customers can use with the assurance of an ethical background by assessing risks by raw material and appropriately managing them.

Sedex Membership

Shiseido joined Sedex(target_blank) in August 2017 with the intent of building an ethical supply chain based on trust and cooperation with our business partners. Sedex is a global platform which manages human rights, labor, environmental impact, and ethical information with regard to companies. In 2017, the Shiseido Group also registered its Kakegawa factory. The factory carried out self-evaluation regarding respect for human rights and environmental protection, and we will continue to register our factories with Sedex, and make the most of its platform to further promote initiatives for the supply chain in the future. In the third quarter of 2018, we conducted a questionnaire among about 300 companies aimed at investigating actual conditions. Based on the results, we are starting to discuss our approach according to the current situation with a view to using Sedex regarding business and human rights.

Employee Training regarding Business and Human Rights

Human rights issues cover a wide variety of problems. The HR Department, Risk Management Department, and Sustainability Department are making efforts in cooperation with each company in the Shiseido Group to help employees deeply understand respect for human rights and reduce the risks of violation through periodic training regarding business and human rights.

Performance

Training

Theme

Attending parties

Participants

Mar.-May 2018

Human rights promotion

Basic education about business and human rights

Human Rights Promotion Committee members of each department in the Shiseido Group in Japan

258

Aug. 2017

Responsible procurement

Procurement of raw materials considering human rights, corporate social responsibility

Purchasing department, Sustainability department

28

Jul. 2017

Human rights promotion/ Corporate ethics

Basic education about business and human rights

All corporate officers of Shiseido Co., Ltd., and Shiseido Japan Co., Ltd.

25

Please see "Human rights promotion (Education)" for additional human rights promotion training.

Dialogue with Stakeholders

To achieve sustainable and responsible procurement and respect for human rights in all business practices, we engage in dialogue with various stakeholders about both aspects of the environment and society and make efforts for sharing and solving issues.

In August 2018, we participated in the Stakeholder Engagement Program organized by Caux Round Table Japan in Indonesia in order to understand human rights issues in the procurement of palm oil. We deepened our understanding of the risks that result in human rights violation and labor issues through dialogue with the NGO and NPO, as well as small-scale palm oil farmers. Shiseido will reflect these discussions with various stakeholders in the ethical supply chain to become a company that fulfills its responsibility with respect for human rights.

In September 2018, we engaged in dialogue with human right experts (the Danish Institute for Human Rights, Institute for Human Rights and Business, and Verisk Maplecroft), and received advice about how to advance due diligence regarding human rights in Shiseido. We will apply these findings in future efforts.

Photo 1: Exchanging opinions with palm oil farmers in Indonesia

Photo 1: Exchanging opinions with palm oil farmers in Indonesia

Photo 2: Dialogue with human right experts from the Danish Institute for Human Rights

Photo 2: Dialogue with human right experts from the Danish Institute for Human Rights

Initiatives in 2018

Name (host/co-host)

Venue

Stakeholders

Main theme

May-Jul. 2018

Stakeholder Engagement Program (Nippon CSR Consortium)

Japan

Companies, NGO, NPO

Understanding and practicing “United Nations Guiding Principles on Business and Human Rights” by companies

Identifying important human rights issues for each industry

Aug. 2018

Stakeholder Engagement Program
(CRT Japan)

Indonesia

Field work: Small-scale palm oil farmers in Indonesia, companies, NGO (Photo 1)

Human rights issues in the palm oil industry in Indonesia

Workshop: Companies, NGO

Sept. 2018

Global Stakeholder Engagement Program
(CRT Japan)

Japan

Human rights experts, NGO, companies that participated in Stakeholder Engagement Program in Thailand, Malaysia, Indonesia, and Japan

Consideration and key points of business and human rights in Southeast Asia

Sept. 2018

2018 International Conference regarding Business and Human Rights, Individual dialogue (CRT Japan)

Japan

Human rights experts (Danish Institute for Human Rights, Institute for Human Rights and Business, Verisk Maplecroft) (Photo 2)

Exchanging opinions about how to advance due diligence regarding human rights in Shiseido

Initiatives in 2017

Name (host/co-host)

Venue

Stakeholders

Main theme

May 2017

Stakeholder Engagement Program
(CRT Japan/Global Compact Network Malaysia)

Malaysia

Small-scale palm oil farmers in Malaysia, companies, NGO

Considering the environment and society in the procurement of palm oil in Malaysia and present conditions

Malaysia

Government-affiliated companies, NGO

Considering human rights of migrant workers in Malaysia

Jun.-Jul. 2017

Stakeholder Engagement Program (Nippon CSR Consortium)

Japan

Companies, NGO, NPO

Connection between business practices and human rights, important human rights issues, importance of business practices considering human rights, and identifying important human rights issues for each industry

Sept. 2017

Global Stakeholder Engagement Program (CRT Japan)

Japan

Human rights experts, NGO, NPO, companies that participated in dialogue with stakeholders in Thailand, Malaysia, and Myanmar

Consideration and key points of business and human rights in Southeast Asia

Sept. 2017

2017 International Conference regarding Business and Human Rights, Individual dialogue (CRT Japan)

Japan

Human rights experts (Danish Institute for Human Rights, Institute for Human Rights and Business, Sedex)

Exchanging opinions about how to advance due diligence regarding human rights in Shiseido

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