Shiseido's Corporate Social Responsibility Back Issues 2015 Shiseido CSR [Shiseido’s Corporate Social Responsibility] Although the target period for the information included in this back number is mainly FY2014 (from April 1, 2014 to March 31, 2015 ), part of the information also includes contents prior to/after the said period. [CONTENTS] ○ What is Shiseido CSR? ··························································································· 1 ○ Top Commitment ························································································ ·········· 10 ○ Beauty ································································· ······························· 12 ● ················································ 12 ● ··········································································· 17 ● ······················································································ 19 ○ Environment ········································································································· 20 ●Environmental policy ························································································ 20 ●Environmental management ·············································································· 23 ●Responding to Environmental Risks ···································································· 24 ●Environmental targets and results ····································································· 26 ●Product initiatives ···················································································· ········ 34 ● ························································································ 42 ● ·································· 47 ●Initiatives to conserve biodiversity ····································································· 50 ●Environmental communication ·········································································· 58 ○ ···················································································· 64 ●Corporate Governance ······················································································ 64 ●Compliance ···································································································· · 129 ●Risk Management ·························································································· · 133 ○ Human Rights ······································································································ 135 ●Policy Related to Respect for Human Rights and Discrimination ····························· 135 ●Promotion System ···························································································· 135 ●Human Rights Enlightenment (Education) ························································· 135 ● Points of Contact for Employee Inquiries ···························································· 136 ○ Labor Practices ····································································································· 137 ●Basic policy regarding personnel affairs ····························································· 137 ●Diversity & Inclusion ······················································································· 137 ●Realize a rewarding workplace ·································································· ········ 142 ●Personnel affairs and fair evaluation ································································· 148 ●Utilization and development of human resources ················································ 150 ●Safety and health of employees ·········································································· 152 ●Employment and Labor ···················································································· 155 ●Good Relationship with labor union ··································································· 158 ○ Fair Business Practices ·························································································· 159 ●Fair Competition and Comprehensive Transactions ·············································· 159 ●Protection of Intellectual Properties ··································································· 161 ●Information Security Management ···································································· 162 Shiseido's Corporate Social Responsibility Back Issues 2015 ○ Consumer Issues ··································································································· 163 ●Promotion of Reliable and Safe Manufacturing ···················································· 163 ●Activities to Enhance Customer Satisfaction ························································ 167 ●Initiatives in Response to Animal Testing and Alternative Methods ······················· 176 ○ Participation in Community and Development ························································· 178 ● ·························································· · 178 ● ················································································· 187 ○ Empowerment of rural Bangladesh women ······························································· 189 ○ Shiseido Aid Initiatives in the Wake of the Great East Japan Earthquake ···················· 195 ○ Engagement with stakeholders ·············································································· 204 ●Stakeholder Dialog ···························································································· 204 ● ····················································································· 204 ○ Evaluations/awards from the outside ······································································ 207 ○ Activity Results Data ···························································································· 209 ●Social Activity-Related Data ················································································ 209 ●Personnel Related Data ····················································································· 211 ●Environmental Activity-performance Data ··························································· 222 ○ / ········································································· 231 Copyright (C) 1995-2015 Shiseido Co., Ltd. All Rights Reserved. Shiseido's Corporate Social Responsibility Back Issues 2015 What is Shiseido CSR? Shiseido's overall image and domains of CSR activities based on the implementation of "Our Way" and “Shiseido Group Standards of Business Conduct and Ethics.” Basic Concept of Shiseido CSR We aim to realize a sustainable society through dialogue and cooperation with stakeholders while also promoting management that contributes to the creation of people's beauty and health by developing activities that address social issues and meet expectations. The Shiseido Group's corporate social responsibility (CSR) activities follow the basic concept of "Our Way" “Shiseido Group Standards of Business Conduct and Ethics,” which denotes action standards that each and every employee should take toward stakeholders based on the Shiseido Group corporate philosophy "Our Mission, Values and Way." Initiatives Related to the United Nations Global Compact In September 2004, Shiseido announced that it was joining the United Nations Global Compact , declaring that it would voluntarily work to .0solve problems and create an international framework for realizing a sustainable society. As a specific example of our initiatives in this area, in March 2006 we adopted the "Shiseido Group Supplier Code of Conduct" (revised in December 2011), a series of standards governing Shiseido procurement activities, based on the Global Compact's ten principles. In this way, we have joined our business partners in making a commitment to society to pursue procurement activities based on high ethical standards. In the area of human rights, we continue to pursue initiatives in the context of our own corporate activities. In addition, we joined the CEO Statement, an initiative launched by the Global Compact on the 60th anniversary of the Universal Declaration of Human Rights in December 2008, as part of our program of support for the Global Compact. The statement declares to the world, "We also reiterate our own commitment to respect and support human rights within our sphere of influence. Human rights are universal and are an important business concern all over the globe." In the area of environmental activities, we have announced our 1 Shiseido's Corporate Social Responsibility Back Issues 2015 participation in Caring for Climate, a climate change initiative also being spearheaded by the Global Compact. In addition to striving to protect the environment in our own business activities, Shiseido is committed to offering support for, and actively participating in, international initiatives to address climate change. Also, in September 2010, Shiseido signed to recognize "the Women's Empowerment Principles," a set of practical guidelines collaboratively developed by UN Women and the United Nations Global Compact for companies and private entities to promote women's empowerment. Declaration of participation in the United Nations Letter of certification Global Compact's Initiative on Climate Change 2 Shiseido's Corporate Social Responsibility Back Issues 2015 Shiseido Group Supplier Code of Conduct (December 2011 version) Foreword In April 2011, Shiseido enacted “Our Mission, Values and Way,” a new corporate philosophy for the Shiseido Group, as operational guidelines