FANCL REPORT 2022
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❼Promote sustainable business, ❺Create synergies with the Kirin GroupIn August 2019, we concluded a capital and business alliance agreement with Kirin Holdings Company, Limited. Especially on the frontlines of R&D, this is giving rise to spontaneous exchanges between employees, and mutual understanding is being deepened through a very good relationship.❻Implement human resource development and utilizationFor FANCL to continue to grow into the future, I previously believed that it was essential to resolve all the issues and structural problems that my generation created before passing the baton to the next generation. The changing times are turbulent, however, and it is the people of the future who will face the problems that arise in the years to come. With this in mind, I am now acutely aware that it is important that we now focus on nurturing people, especially in the second year of the COVID-19 pandemic.make lasting SDGs contributions14Against that backdrop, we launched Sleep & Fatigue Care, which contains ornithine from the Kirin Group’s KYOWA HAKKO BIO CO., LTD., in FY Mar/2022. We have also formulated “matured hop extract” which has been jointly researched with Kirin, to be used as a raw material for cosmetics. This material is used to improve the functionality of MILD CLEANSING OIL. Creating synergies in a variety of fields in this way has also been of considerable importance in showing our stakeholders the significance of the capital and business alliance agreement.At the new supplements factory, which commenced operations in April 2021, a system for cooperation from a manufacturing perspective, such as the production of Kirin Group products, has also been created.On the sales side, we received high praise for our D2C know-how and dispatched employees to Kirin. FANCL employees are very active within the Kirin Group, and it is hoped that this aggressive stance toward the dispatch of employees will be ongoing. These exchanges lead to employee development opportunities and self-confidence, which are of significant mutual benefit.Based on this understanding, we have significantly increased human resources investment for employee education from this year. In addition to fostering young digital-generation and global human resources, we will further support the active participation of women Synergy-derived productsfrom the Diversity & Inclusion perspective while providing opportunities to relearn for those in the seniors and veterans group.Then, in January 2022, we implemented large-scale organizational and personnel changes with the aim of fostering the next generation of management. Previously, the tendency had been to have fewer job rotations, but as this was insufficient from the perspective of fostering the next management team personnel, who will need to gain experience in a variety of business areas and make decisions from multiple perspectives, in this instance, we conducted transfers centered mainly on officers and general managers. I am convinced that such a series of human resources strategies will be an absolute necessity for FANCL from now on, and we will continue to actively implement relevant initiatives going forward.In May 2021, we adopted three key activity themes, set quantitative targets, and mobilized the entire Group to take specific actions. Currently being prioritized are “sustainable container packaging” and “cosmetic container collection and recycling.” At FANCL, we are fundamentally aware of the important needs to benefit the world and please people. When it comes to recovering containers, for example, we are merely acting in a manner that is normal for FANCL as a company and doing what comes naturally. We are currently instilling the importance of this concept in-house more firmly than ever before while actively promoting initiatives.And, as a typically FANCL SDGs initiative, in the case of cosmetic container collection and recycling, we are building a system to handle everything except the recycling process on our own. In the years to come, we will achieve horizontal recycling, by which cosmetics are recycled from container to container through chemical recycling, in collaboration with Kirin Holdings, while also planning to take on the challenges of working toward a “society in which plastics remain in circulation.”Limited-edition FACIAL WASHING POWDER, the package design of which was jointly developed with Yokohama Municipal Higashi High School Sustainable Research ClubContainer collection box

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