Shiseido Sets New CO2 Reduction Targets ~Accelerating Product-Related Environmental Response throughout the Total Life Cycle~

Shiseido has set new CO2 reduction targets for strengthening product-related environmental response throughout the total life cycle*1. Shiseido will also accelerate its environmental initiatives through such measures as proactively adopting plant-based containers or bagasse paper*2 and instituting the use of refills.

*1 Lifecycle: Cycle from research and development and the procurement of raw materials for commercializing products to consumer use and the disposal of product containers after use *2 Bagasse paper: Non-wood paper made from squeezed sugarcane residue after extracting the sugar content that promotes the recycling of waste materials and curbs deforestation

New CO2 Reduction Targets Shiseido is undertaking efforts to reduce CO2 emissions worldwide as “basic environmental activities” underlying our corporate social responsibility. From the current fiscal year, targets have been newly established not only for production sites but for non-production sites in and outside as well. New CO2 reduction targets from fiscal 2011 are as follows.

Target year Business sites Base year Target FY2013 FY2020 Production 15％ 20％ sites CO Absolute

2 Domestic Non- FY2009 reductions reductions amount production 5% 14% sites Production ― 20％ 23％ BAU*3 sites Overseas Non- Absolute production FY2009 4％ 11％ amount sites

*3 BAU (Business As Usual): Comparison of the expected CO2 emission volume in cases where reduction measures are implemented and specific reduction measures are not implemented

In addition, CO2 reduction targets and results up until fiscal 2010 are as follows. · Domestic production sites Achieved target reduction that exceeded 8,000 tons by utilizing emissions trading as a supplemental measure due to changes in the domestic market compared to when the original target was set for achieving a 15% reduction versus fiscal 1990 level (basic unit).

· Overseas production sites Achieved target reduction of more than approximately 20% as a result of introducing solar panels at the U.S. factory of Shiseido America Inc., surpassing the original target reduction of 10% versus fiscal 2007 level (basic unit).

Accelerating Product-Related Environmental Response throughout the Total Life Cycle In addition to “basic environmental activities,” Shiseido will accelerate product-related response throughout the total life cycle from research and development and the procurement of raw materials for commercializing products to consumer use and the disposal of product containers.

1. AdoptingU plant-based containers U Efforts will be actively undertaken to develop and consecutively expand the use of eco-friendly containers, starting with adopting sugarcane-based polyethylene*4 containers for , body care and other products. Furthermore, products using plant-based plastic containers will be labeled with the “Shiseido Earth Care Project” original mark, appealing to the environmental responsiveness of products and helping consumers in selecting products.

*4 Sugarcane-based polyethylene: Sugarcane-derived bioethanol that serves as the raw material for the polyethylene is produced by fermenting a residual liquid (molasses) that is a byproduct of the process of refining sugar by pressing sugarcane. Therefore, the advantage of this polyethylene is that it has less effect on the food supply compared with using soybeans and corn to make bioethanol. In 2008, Shiseido concluded a joint development agreement with Braskem S.A. (head office: Brazil), which is the largest chemical manufacturer in South America, and Tsusho Corporation (head office: Nagoya) in an effort to utilize sugarcane-based polyethylene in cosmetic containers.

2. ActivelyU adopting bagasse paper and accelerating the use of refills U For the domestic cosmetic business, the switch to bagasse paper will be promoted after 2012 for new products and renewal products that use paper. In terms of accelerating the use of refills, the use of refills will be instituted for 100% of *5, and jumbo size shampoo and conditioner products and more than 70% of skincare products (dispenser type emulsions and ) by fiscal 2020.

*5 Except for liquid type and cream type foundation products

3. PromotingU recycling-oriented environmental activities U From October 2011, planting of camellia trees and conservation efforts will start to be carried out by employee volunteers on the Goto Islands in Nagasaki Prefecture. Such “recycling-oriented” environmental activities are being developed in producing areas for camellia oil, which is a product ingredient. Shiseido employees themselves protect and nurture camellia trees, and the oil is extracted from the seeds and formulated in Shiseido’s TSUBAKI products.

Adoption of “Plant-Based Plastic Container” Mark Products whose containers comprise more than 20% (ratio by weight) of plant-based plastics will be labeled with the original “Plant-Based Plastic Container” mark, which was created in 2009 at the same time that the “Shiseido Earth Care Project” was inaugurated, appealing to consumers that these product containers are environmentally friendly.

(Display image)

Using Plant-Based Plastics

2