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Sustainability

2018 Performance

Society

Formulation of Shiseido Group Sustainable Raw Materials Procurement Guidelines

In June 2018, we formulated the Shiseido Group Sustainable Raw Materials Procurement Guidelines for sustainable procurement of palm oil and palm kernel oil and disclosed targets up to 2020.

Please check the details in the Responsible Procurement, Ethical Supply Chain Policies, and Standards.

Revision of the Shiseido Group Supplier Code of Conduct

In April 2018, it was revised in order to require business partners to comply with laws and regulations, prevent corruption, respect human rights, provide a safe and healthy working environment, and protect the environment.

Please check the details in the Responsible Procurement, Ethical Supply Chain Policies, and Standards.

Understanding risks throughout the supply chain

In 2018, we discussed the use of Sedex (platform to share supplier ethical data) with our primary suppliers to have them share their ethical information (compliance, environment, human rights, and occupational safety and health) from 45 sites in 31 companies. In addition, we conducted a briefing session on the theme of “Human rights across the businesses” and shared a document describing the theme with our 295 suppliers*1. Specifically, we explained our intentions and changes in the revised version of our supplier behavior standard aimed at realizing responsible procurement in the supply chain, as well as detailing the effectiveness of Sedex.
Furthermore, we shared information based on the Shiseido Group Supplier Code of Conduct Compliance Survey (Shiseido's proprietary SAQ*2), which confirms the compliance status of suppliers with Shiseido Group Supplier Code of Conduct as well as evaluation results of other accreditation organizations and the acquisition status of international standards certifications.

  • *1Suppliers with a trading record with the Global Headquarters in 2017.
  • *2SAQ: Self-Assessment Questionnaire
Type Descriptions 2015 2016 2018 2019
Target
The Shiseido Group Supplier Code of Conduct Compliance Survey Number of suppliers which completed the survey 214 224 197
Response rate(%) 83 90 88 90
Sedex Number of suppliers who set access rights 31
Evaluation/certification other than Sedex Number of suppliers which have obtained evaluations/certification other than Sedex 4
Total Number of monitoring suppliers 214 224 229*
Monitoring rate(%) 83 90 89 90
  • *Excludes 3 duplicated suppliers

Procurement of sustainable palm oil

In order to procure sustainable palm oil, we joined RSPO*1 (Roundtable on Sustainable Palm Oil) in 2010 and have reduced risks since then by procuring RSPO-certified raw materials, which take into consideration environmental protection and human rights during production in the places of origin. In 2018, we worked on the following:

  • We formulated the Shiseido Group Sustainable Raw Materials Procurement Guidelines for sustainable procurement of palm oil and palm kernel oil and disclosed targets up to 2020.
  • In order to support the sustainable production of palm oil, we purchased certificates (credits) equivalent to 100% palm oil and palm-derived materials (achieved targets up to 2020).
  • We had a dialogue with palm oil producers in Indonesia
  • We obtained RSPO supply chain certification*2 for the Shiseido Kuki factory and also for Shiseido Vietnam Inc. (As of June 2019, 7 factories have obtained the certification.)

In addition, changes in palm oil consumption were as follows.

Changes in Palm Oil Consumption

2016 2017 2018
Total (t) of palm oil, palm kernel oil consumption amount 6,788 8,024 9,750
Book & Claim system*3 50 75 9,750
Book & Claim System Coverage Ratio(%) 1 1 100
  • *1RSPO: Roundtable on Sustainable Palm Oil
  • *2RSPO Supply Chain Certification: Certification to ensure logistically reliable delivery of RSPO-certified raw materials.
  • *3Book & Claim system: A system of trading the production of palm oil and palm kernel oil produced on RSPO-certified farms as certified credits. As in Energy Green, purchasing a credit is considered equivalent to purchasing RSPO-certified oil.

Please check the details in Responsible procurement - Procurement of sustainable raw materials (palm oil/mica).

Procurement of sustainable mica

In order to procure sustainable mineral mica, we joined the RMI* initiative with the aim of achieving a responsible mica supply chain in 2017. In 2018, we worked on the following:

  • We expanded the survey target to include mica used by the Shiseido Group and began collecting information on mica procured from home and abroad through various suppliers.
  • We attended the RMI Annual General Meeting held in New Delhi, India. (Oct. 30-Nov. 1)
  • We had dialogues with local mica mining companies.
  • We consulted with NGOs and RMI members to improve the education system of local children.
  • We discussed and formulated the activities to be addressed in 2019. Please check the progress on the RMI website(target_blank).
  • *RMI: Responsible Mica Initiative

Please check the details in Responsible procurement - Procurement of sustainable raw materials (palm oil/mica).

Dialogues with stakeholders

In order to ensure sustainable and responsible procurement and respect for human rights in the course of our business activities, Shiseido works with various stakeholders to discuss both the environment and society and share and resolve issues.

Dialogues with NGOs/NPOs and small palm oil farmers

In August 2018, in order to understand human rights issues in palm oil procurement, we participated in Stakeholder Engagement Program in Indonesia held by Caux Round Table, Japan. Through dialogues with NGOs/NPOs and small palm oil farmers, we deepened our understanding of the human rights risks, violations, and labor issues. In order to be a company that fulfills our responsibility to human rights, we will reflect these dialogues with various stakeholders in the construction of an ethical supply chain.

Dialogues with human rights experts

In September 2018, we talked with human rights experts (Danish Institute for Human Rights, Institute for Human Rights and Business, and Verisk Maplecroft) and received advice on how to proceed with human rights due diligence in our company. We are implementing this knowledge in our efforts.

Please check the details in Responsible Procurement - Dialogue with Stakeholders.

Employees

Human rights risk assessment

Since FY2017, Shiseido has been conducting the Shiseido Group Engagement Survey for employees throughout Shiseido Group, encompassing Japan and overseas countries, to investigate human rights risks in the workplace, such as discrimination and harassment.

Reporting and consultation center for employees

A consultation center was set up to handle consultations and reports on various employee human rights and labor issues. We set up the In-house Shiseido Consultation Office and the External Shiseido Hotline to receive a broad range of consultations and reports from various workplaces. The Compliance Committee Hotline specializes in receiving reports and Report Mail to Auditors receives reporting on officers.

Operating performance of reporting and the consultation center for employees(The reporting and consultation numbers include consultations on issues other than human rights)

Reporting/consultation center Target 2016
performance
2017
performance
2018
performance
The In-house Shiseido Consultation Office Employees of the Shiseido Group in Japan 230 cases 224 cases 241 cases
External Shiseido Hotline Employees of the Shiseido Group in Japan
Compliance Committee Hotline Employees of the Shiseido Group in Japan

Human rights education training for employees

Since human rights issues are diverse, the Human Resources Department, Risk Management Department, and Social Value Creation Division are playing the central role in the initiative, working in partnership with the Shiseido Group companies. With regard to the Shiseido Group Standards of Business Conduct and Ethics and related policies and rules, we conduct regular training and education according to position and job type to deepen our understanding of the human rights of employees and to work to reduce human rights risks. We hold training sessions for top-level employees including the Global Headquarters officers and department directors in Japan, division/department heads of domestic and overseas offices, employees in various divisions/departments, and new employees once a year.

Achievements of human rights education and training for top management

Name of the training Target Goal 2016
performance
2017
performance
2018
performance
Human rights enlightenment and corporate ethics training All Corporate Officers of Shiseido Company, Limited and Shiseido Japan Co., Ltd. 100% 87.1%
(27/31 targets)
89.3%
(25/28 targets)

(Not implemented)

Target and performance of human rights education training for employees

Name of the training Target Goal 2016
performance
2017
performance
2018
performance
Human rights enlightenment training (for Human Rights Enlightenment Promotion Representative) Human Rights Enlightenment Promotion Representative of each department of the Shiseido Group in Japan 150 people 258 people 250 people
(93% attendance rate)
Human rights enlightenment training (for domestic employees) Employees of the Shiseido Group in Japan 100% 92% 93% 95%

Other human rights education training performance

  Name of the training Primary theme Target Number of attendees
November 2018 Business and human rights Business and human rights Human Resources representatives in overseas regional headquarters 4 regions (Europe, Americas, Asia Pacific, Travel Retail)

Future challenges

Challenges to human rights risk assessment

The Shiseido Group has endeavored to respect and consider the human rights of customers and employees. However, at this point, we were not able to elucidate the full range of human rights risks among the various stakeholders involved in the activities of the entire business. Our future challenges are to identify potential human rights risks brought out by the Shiseido Group's business activities, to take appropriate measures, and to disclose to stakeholders how we manage the risks.

Challenges to reducing human rights risks

Our challenge is to apply the results of human rights risk assessment (employee engagement surveys and performance evaluations for suppliers) conducted internally and externally by each department to various human rights risk reduction efforts.



Materiality Core Activities
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