KOSÉ

1. Management and voluntary reduction of environmental pollutants

Environmental Indicators

Cosmetics are applied directly to the body so we do not use harmful chemicals even during the manufacturing process, but in rare cases we may use substances that are subject to laws and regulations, such as the PRTR Law (the Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof).
KOSÉ has built a system to monitor and measure how much of a target chemical substance is released into the environment. By using this monitoring and measurement system, we are strictly complying with the law and strive to reduce the use and emission of these chemical substances.

2. Promotion of the development of environmentally friendly products

Environmental Indicators

KOSÉ is developing environmentally friendly products in accordance with various standards, such as the “Eco Standard for Containers and Packaging” formulated in the voluntary standard “ECO BOOK” and “Accessible Design” promoted by the Japan Cosmetic Industry Association. Regarding the use of plastic, we are working on “Reduce”, “Reuse/Recycle”, and “Recycle/Use new materials” in compliance with the government’s “Resource Circulation Strategy of Plastics”.

Efforts related to products

3. Reduction of waste

Environmental Indicators

KOSÉ aims to contribute to the establishment of a recycling-oriented society by reducing the amount of waste generated from factories and offices and by promoting the reuse and recycling of waste generated inside and outside the company. In addition, our ISO 14001-certified plants provide education on waste materials within the scope of certification, and we conduct internal audits in accordance with the requirements of ISO14001 to enhance the effectiveness of environmental management. Progress toward waste reduction targets is evaluated through management reviews.

Reduction Targets and Results

The production department of KOSÉ Corporation has set a waste reduction target of 0.5% for every year based on the FY2015 standard that made efforts of reducing waste generation and promoting recycling activities (zero emissions).

Sustainability Data
Measures for Circular Economy

4. Climate change

Environmental Indicators

As a member of the international community, we regard the reduction of CO₂ emissions as a very important issue in addressing the climate change to fulfill our corporate responsibility in the sustainability of society and the global environment, which is the foundation of our business activities, and is committed to proactively reducing CO₂ emissions.
For this reason, in the “KOSÉ Sustainability Plan”, we set targets for reducing GHG emissions by 2030 as a 55% reduction in Scope 1 and 2 (obtain SBT 1.5℃ *¹ certification) and a 30% reduction in the entire value chain (Scope 3) (obtain SBT certification *²) (both based on FY2018). We will also strengthen our efforts to address climate change by setting long-term targets of carbon neutrality under Scope1 and 2 in 2040 and Net Zero under Scope1, 2, and 3 in 2050. The KOSÉ Group as a whole is accelerating initiatives to achieve the goal by implementing energy saving activities and conversion to clean energy at each plant. In addition, based on the Energy Conservation Act, which is also a Japanese law, our main plants are striving to reduce energy intensity by an annual rate of 1% through the following initiatives.

• 1. Setting targets for energy conservation at each plant
• 2. Formulation of plans for energy conservation (including medium- and long-term plans)
• 3. Operational improvements and investments in fuel conversion, high-efficiency equipment, and energy conservation
• 4. Posting of energy-saving slogans, employee awareness, and education
• 5. Call for improvement proposals for energy conservation
• 6. Evaluation of progress of energy conservation measures at the time of calculation of CO₂ emissions
• 7. Promoting the introduction of renewable energy

Reducing business cars as well as replacing existing gasoline cars with ecocars, and promoting energy saving activities at each office.

*1:Targets advocated by the Science Based Targets initiative (SBTi), which are consistent with the standards required by the Paris Agreement.Set based on scientific evidence to limit the increase in global average temperature to 1.5°C above pre-industrial levels.

*2: Certification by the international initiative “SBTi (Science Based Targets initiative)”

Overall data on environmental impact
Initiatives to Address Climate Change
Sustainability Plan：Medium-to-Long-term Targets of Activity Themes

Total CO₂ (GHG) Emissions from Business Activities

We have calculated the total amount of CO₂ (GHG) produced by KOSÉ Group as a result of business activities, and promoting measures to reduce the emission. Also, we are taking third party inspections.

Sustainability Data：CO₂(GHG) Emissions

5. Water resources

Based on the recognition that water is an extremely valuable resource in the world and is an essential component in the production of skin care and hair care products, KOSÉ is fully aware of the importance of water resources and is working to reduce water usage (water intake) and conserve water resources. At the same time, we aim to achieve sustainable water use by taking into consideration water resources from a broad perspective, including the human right to safe water and sanitation as well as the culture related to water, and by complying with laws and regulations. These efforts include not only KOSÉ but also all regions where we operate.
Since the production operations have the highest use of water resources, we use the Water Risk Filter provided by the World Wide Fund for Nature (WWF) to assess water-related risks.
Results of Analysis (as of FY2022): We have confirmed that there are four production sites that have been evaluated as having high water stress areas.The Gunma Plant (Isesaki City, Gunma Prefecture, Japan), the Sayama Plant and ADVANCE (Sayama City, Saitama Prefecture, Japan), and the Kumagaya Plant (Kumagaya City, Saitama Prefecture, Japan) are located in water-stressed areas, accounting for 80% of the total number of our production sites. (Water intake at four plants located in water stress areas: 300,851m³) In FY 2020, the four plants located in water-stressed areas took in approximately 286,000 m³ of water. At KOSÉ Group, where water is used as an important raw material, we are keenly aware that our products are manufactured in water-stressed areas, and we recognize the necessity of making efforts to use water resources efficiently, reduce the amount of water used, and take necessary measures. In addition, all of our five production sites have formulated water management plans. Specifically, we are controlling water intake/drainage and recycling volume, condudting water quality management at the time of discharge, etc., and are working to conserve water resources through water saving activities, water reuse, and development of new technologies.
Our ISO14001-certified plants are working to reduce water consumption within the scope of certification. As a company that uses a large amount of water in the production of its products, we believe it is important to raise the awareness of all employees regarding water conservation and water efficiency. Thus we inform and educate relevant employees at the time of evaluating the achievement of targets and communicating the results every year to reduce water consumption.

• Example of water saving activities: When washing mixers, automatic washing equipment is used to save water. Sterilization of production equipment using alcohol instead of hot water. Water saving activities by employees in their daily use of the facility.　etc.
• Examples of water reuse activities: In the cooling process during bulk production, water circulation equipment is used for cooling. Drain water (condensation generated during heat exchange) is used as cleaning water.　etc.

Environmental Indicators

At the Albion Kumagaya Plant, the following initiatives are implemented as examples of water quality improvement and management activities.

<Regulation Value>

• Concentration regulation (mg/L): BOD (25), SS (60), n-Hexane (5)
• Total emission control (kg/day): COD (4.1), N (1.8), P (0.18)

<Voluntary Standards>

• Concentration regulation (mg/L): BOD (20), SS (50), n-Hexane (3)
• Total emission control (kg/day): COD (4.0), N (1.0), P (0.1)

We also maintain the performance of our wastewater treatment facilities by establishing strict voluntary standards and monitoring them on a daily basis, as well as by conducting daily operation management and regular maintenance. In performance management, the previous year and its values are used as the base year and base values, with a goal to decrease the values below the previous year's values every year.

Reduction Targets and Results

The KOSÉ Sustainability Plan sets a medium- to long-term target of reducing total water consumption (intake) by 12% by 2030 (a reduction rate of 1%/year in resource intensity compared to fiscal 2018). Progress toward this goal in fiscal 2022 stood at +5.9%. (Note that the data calculation method was partially revised from fiscal 2022).

Sustainability Data：Water resources
Sustainability Plan：Medium-to-Long-term Targets of Activity Themes

6. Promotion of the environmental management system

Environmental Indicators

We will promote and thoroughly implement an environmental management system based on the international standard “ISO14001″, centering on the production and SCM departments. In addition, we will report to and consult with the Sustainability Promotion Committee as necessary, consider expanding and reviewing the scope of our environmental management system, and link it to company-wide strengthening.

For the Global Environment

7. Status of compliance with environmental laws and regulations

The KOSÉ Group annually evaluates and confirms its compliance with environmental laws and regulations for the entire group. In the last four years (2020-2023), there were no major violations of environmental laws and regulations. The entire group will continue to strive for compliance with laws and regulations.

8. Promotion of awareness-raising activities for environmental conservation

Environmental Indicators

We will promote activities to raise environmental awareness widely for internal and external stakeholders.

For Customers

• Raise awareness of environmental conservation through the “SAVE the BLUE” project

For Other Stakeholders

• KOSÉ Report (integrated report), activity status report on website, etc.
• Clarification of considerations for environmental conservation to suppliers

For Employees

• Various communications from the Sustainability Promotion Committee
• Raising awareness of environmental activities through an in-house newsletter
• Banner posting on in-house infrastructure, etc.

For the Global Environment

Top
Environmental Indicators
Initiatives to Address Climate Change
Low-Carbon Transition Plan
Measures for Circular Economy
Commitment for Biodiversity
Efforts related to products
Efforts in manufacturing
Efforts at offices, logistics operations, and shops
Overall data on environmental impact