Shiseido Company

Lobbying
The company discloses a list of industry associations of which it is a member.

Stakeholder engagement
The company discloses its process for engaging with stakeholder groups.

Sustainability strategy and accountability
The company discloses its process for identifying and prioritising its most relevant sustainability impacts in relation to its sustainability strategy.

Ecosystem conversion and restoration
The company supports zero deforestation for palm oil and paper, and strives to minimize the negative impact by switching to certified and recycled raw materials

GHG emissions
The company reduces its scope 1, 2, and 3 greenhouse gas emissions. The company has a time-bound target to reduce its scope 1, 2 , and 3 emissions, and reports progress against these targets. The targets are aligned with a 1.5-degree trajectory.

Impact and dependencies assessment
The company has conducted an initial screening analysis with the ENCORE tool. The company quantifies its impacts on nature, including biodiversity.

Solid and air pollution
The company discloses that it has made a commitment to reduce products containing SVHC substances, and has reduced certain substances ahead of schedule. The company has set targets to increase the proportion of reusable or refillable packaging, and reports progress against the targets. The company reports regularly on air quality parameters of emissions of harmful air pollutants.

Water
The company demonstrates it is reducing water withdrawal in its own operations. The company reports the proportion of water withdrawn for its own operations in water-stressed areas. The company reports a quantitative reduction in its COD emissions from previous year, and regularly reports on water pollution metrics.

Indigenous Peoples’ and land rights
The company discloses its support to the UN Declaration on the Rights of Indigenous Peoples, and expects its suppliers to respect and protect the rights of indigenous peoples and local communities and guarantee Free, Prior, and Informed Consent (FPIC).

Act ethically
The company has a publicly available policy prohibiting bribery and corruption, ensuring no form of bribe, including political contributions and kickbacks, is offered or accepted. This prohibition extends to all executives and employees. Additionally, the company includes anti-bribery and anti-corruption clauses in contracts with business partners, mandating that suppliers neither pay nor receive bribes, and must report and rectify any violations of this code. Furthermore, the company maintains a strict stance against making political contributions to prevent any suspicion regarding its operations.

Provide and promote decent work
The company commits to health and safety through a policy that expects business relationships to respect worker safety, with facilities maintained and hygiene standards such as safe drinking water ensured. It uses tools like EcoVadis, Sedex, or its Self-Assessment Questionnaire to assess supplier sustainability and health, conducting third-party audits for high-risk suppliers. It also commits to paying living wages, exceeding the 2021 RENGO Living Wage Report standards for its employees, and ensuring suppliers consider necessary wage levels. Gender equality is supported with a goal of 50% women in leadership by 2030; currently, 58.1% of leadership positions are held by women group-wide, with 40% of its board members being female.

Respect human rights
The company upholds human rights through multiple policies, all approved by its highest governance body, which include commitments to respect the fundamental rights at work as defined by the ILO. It has established a robust human rights due diligence process to identify, prevent, and mitigate potential human rights issues. This includes collaboration with external experts, adoption of international codes, and a comprehensive assessment of human rights risks across its operations and supply chain. Specific concerns addressed include forced and child labor, freedom of association, collective bargaining, and discrimination. The company rigorously assesses both potential and actual human rights impacts, consulting stakeholders globally and utilizing third-party assessments to evaluate risks such as discrimination, privacy breaches, and occupational safety. It actively manages and mitigates these risks through targeted training for executives and staff, corrective actions for ethical misconduct, and detailed plans for addressing supplier violations.

Lobbying
The company has an opportunity to disclose a clear and detailed framework for assessing alignment of its trade associations with its sustainability targets, as well as potential misalignments between the lobbying activities of its trade associations and its sustainability targets.

Stakeholder engagement
The company has an opportunity to discloses an overview of the issues raised by each stakeholder group during its stakeholder engagement activities.

Sustainability strategy and accountability
While the company has set some targets, it does not disclose group-wide, time-bound targets on all key sustainability topics for the most material parts of its value chain, nor does it report against all of its targets. No evidence was found that the company links performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. The company does not disclose whether its highest governance body has expertise regarding nature-related topics.

Ecosystem conversion and restoration
The company does not have a commitment to ensure zero conversion. The company does not disclose activities to achieve conversion-free supply chains. The company discloses its target to reach 100% sustainable palm oil in its products by 2026 and to use 100% sustainable paper by 2023. However, no evidence found that the company has time-bound targets to achieve zero conversion for all relevant high-risk commodities or across all material realms (i.e., land, freshwater, and marine). The company does not disclose activities to minimise ecosystem conversion. The company is not committed to restoring ecosystems. The company does not disclose details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers.

Impact and dependencies assessment
While the company discloses using the ENCORE tool to identify its impacts and dependencies, no evidence found that the company discloses the complete results of the assessment conducted. No evidence found that the company assesses its dependencies on the nature of its upstream business relationships.

Invasive species
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Key areas and species
The company does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.

Resource exploitation and circularity performance
No evidence was found regarding the company’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Solid and air pollution
No evidence found that the company provides qualitative evidence of reducing the production of hazardous waste. No evidence found that the company reports on the amount of plastic waste generated, and proportions directed from or to disposal. The company does not report time-bound targets to reduce air pollutants across the most material parts of its value chain.

Water
While the company has a target to reduce water withdrawal, the target is intensity based and does not necessarily result in an absolute reduction of water withdrawal. The company asks suppliers to disclose information, but does not show evidence of engaging to reduce water withdrawal. The company does not report its processes for managing and monitoring discharge water quality. The company does not report targets to reduce water pollution. The company has an opportunity to publicly commit to the right to water and to provide its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Indigenous Peoples’ and land rights
The company could improve in this area by disclosing its processes to identify and recognise the rights of Indigenous Peoples when activities in its own operations may impact their rights, a commitment to respect ownership and use of land and natural resources and related legitimate tenure rights, and requirements for its business relationships to have a process to identify legitimate tenure rights holders paying particular attention to vulnerable or marginalised tenure rights holders, and to negotiate with them to provide adequate compensation.

Safe, clean, healthy and sustainable environment
The company has an opportunity to commit to respecting local communities’ right to a safe, clean, healthy and sustainable environment, and to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders. Moreover, it should track its actual or potential negative impacts on the health of local communities.

Act ethically
The company evaluates bribery risks periodically and has established whistleblowing hotlines, but it is unclear whether these mechanisms are accessible to all stakeholders. It lacks a public policy detailing its approach to lobbying and political engagement, and it is unclear if it discloses total lobbying expenditures. The company has an opportunity to ensure its grievance mechanisms are inclusive, define and publish its anti-bribery processes, and enhance transparency in its lobbying activities and expenditures.

Provide and promote decent work
Despite stating intentions to maintain safe work environments, the company has not publicly committed to specific health and safety policies. It also lacks public data on significant types of work-related injuries and fatalities. The company reports some gender pay data in specific regions but does not provide a comprehensive account of wage equity across its operations. There is also an absence of a clear strategy or timeline for ensuring the payment of a living wage. The company has the opportunity to enhance transparency and commitment in health and safety, wage equity, and gender equality policies.

Respect human rights
The company has an opportunity to strengthen the integration of its human rights assessments into all internal functions, ensuring consistent application across all operations and locations. The company could further focus on increasing transparency and accountability in the implementation of corrective measures for identified risks, particularly in supplier management and in handling violations. There is also scope to enhance the effectiveness of its training programs, ensuring they are tailored to the specific risks and cultural contexts of its global operations.