Response to climate change and reduction of CO2 emissions

We have positioned responding to climate change and reducing CO2 emissions as our top environmental priorities and aim to contribute to the realization of a decarbonized society.
We will strive to save energy by making the energy usage required by our business activities more efficient, and we will also make use of renewable energy.
Furthermore, we will work to reduce CO2 emissions throughout the entire supply chain in partnership with our customers and trading partners.
We will design products and services that are user-friendly, extremely safe, and that have a low impact on the environment and ecosystems.

Target

  • Reduction of CO2 emissions

    By FY 2050Net zeroFY 2024 : 4,066t-CO2

Scope is consolidated companies in Japan.

Basic Policy on Reducing CO2 Emissions

We have set a Group target of achieving net zero CO2 emissions (Scope 1 and 2) by the fiscal year ending March 2051, and we will be proactive in reducing emissions by establishing solar power generation systems and using electricity from renewable sources.
Furthermore, we will also work steadily to reduce CO2 emissions generated as a result of all business activities associated with the Group and its supply chains (Scope 3), from the procurement of raw materials through to manufacturing, distribution, sales, and waste. We have formulated a specific emissions reduction plan for the fiscal year ending March 2025 and beyond, with priority on reducing emissions from purchased goods and services (Category 1) and upstream transportation and distribution (Category 4). We will maintain close communication with trading partners as we work to reduce these emissions.

FANCL Group CO2 emissions (Scope 1 and 2)

Initiative Report

Solar power generation

In February 2011, we installed a solar power generation system at FANCL B&H Co., Ltd.'s Shiga Plant (in Hino-machi, Shiga Prefecture), one of the Group's cosmetics manufacturing facilities. At the time, it was the largest solar power generation facility in the prefecture. In June 2018, we began operation of a solar power system at the Gunma Plant (Ora-machi, Gunma Prefecture) and in June 2021, the largest solar power system to be installed at any of the Group's business locations went into full-scale operation at the Kansai Logistics Center (Kadoma, Osaka Prefecture). Then, in November 2021, we began operation of a solar power generation system at the Mishima Plant, a core supplement manufacturing plant. In the fiscal year ended December 2024, these four systems generated a combined total of approximately 1,374 MWh, equivalent to a reduction of about 486 tons of CO2 emissions.

Use of electricity from renewable energy

In December 2021, the FANCL Group converted the power used at its Head Office building in Yokohama City, Kanagawa Prefecture to 100%-renewable-sourced electricity. Following on from this initiative, in April 2022 we completed the conversion at all 12 domestic facilities (6 plants, a logistics center, our Head Office, and other offices) to use renewable energy-derived electricity.

Electricity installation locations for renewable energy generation (installed December 2021 - April 2022)
FANCL Building (Yokohama City, Kanagawa) Chiba Plant (Nagareyama City,Chiba)
FANCL Research Institute (Yokohama City, Kanagawa) Shiga Plant (Hino Town, Shiga)
FANCL Ginza Square (Chuo-ku, Tokyo) Gunma Plant (Oura Town, Gunma)
Kansai Logistics Center (Kadoma City, Osaka) Mishima Plant (Mishima City, Shizuoka)
Iijima Building (Yokohama City, Kanagawa) Yokohama Plant (Yokohama City, Kanagawa)
Shonan Training Center (Hayama Town, Kanagawa) Nagano Plant (Toumi City, Nagano)

Use of carbon-neutral gas

Our efforts to become carbon-neutral have also focused on the gas we use in the boilers and air-conditioning plants at our factories. From June to October 2022, we converted from city gas used at the Chiba Plant, Gunma Plant, and Mishima Plant, and liquefied natural gas (LNG) and liquefied propane gas (LPG) used at the Shiga Plant, to carbon-neutral gas.
Note. "Carbon-neutral gas" is where the greenhouse gases generated during the process from the mining of the raw materials to the eventual combustion of the gas are offset against CO2 credits created by environmental conservation projects around the world. This procedure renders the CO2 emissions from carbon-neutral gas to be net zero.

Initiatives to reduce CO2 emissions generated by logistics

Designated Delivery Place service: in front of a home's entrance
Designated Delivery Place service: in front of a home's entrance

We launched the Designated Delivery Place service which allows customers to designate a specific delivery location so deliveries can be made regardless of whether the customer is home to receive it or not and without the need for a receipt or stamp in 1997. Through this service, customers can designate a location that is suitable for their individual living situation and personal convenience, such as their home's entrance or a nearby gas meter box, in order to receive deliveries even when they are not home. As an online retailer, we have launched this service in partnership with courier companies to solve customer issues related to parcels arriving during the daytime on weekdays having to be redelivered. At the same time, this service is thought to reduce the burden placed on delivery workers, and is also expected to contribute to reduced CO2 emissions.
Starting in February 2025, FANCL customers are able to specify the time and date for deliveries when using the Designated Delivery Place service.
By allowing customers to choose their preferred delivery time, they will know exactly when to expect their products, enhancing satisfaction among service users. For example, selecting a time shortly before returning home can reduce the period that packages are left unattended or exposed to heat during the day.
We are committed to providing greater convenience and peace of mind. By making the service more accessible and secure while encouraging the use of designated delivery, we also contribute to reducing CO2 emissions.

Wind power generation

The "Hama Wing" towering over one corner of Yokohama Port

There is a large windmill in one corner of Yokohama Port, which is close to FANCL's Head Office building, serving as a wind power plant that was set up by the city, and which is commonly known as Hama Wing. As a company, FANCL supports these aims and has been co-sponsoring such efforts since FY Mar/2008. Wind power is obtained as a natural source of energy and results in reduced CO2 emissions as compared with thermal power. Also, since wind is a non-depletable energy source, as long as necessary equipment continues to function properly, it will be possible to continue generating electricity. Amid climate change risks caused by global warming, wind power continues to be the subject of global research and development efforts as one form of environmentally friendly renewable energy. FANCL is utilizing wind power not only in Japan, but also in the Inner Mongolia Autonomous Region of China. Carbon offset has been introduced to offset the CO2 emissions resulting from the PGA Senior Tour "FANCL Classic," as well as from our "FANCL Kids Baseball" event. The CO2 emitted during the preparation and execution of these events is offset by the wind energy generated as part of the "Inner Mongolia Zhuozi 40MW Wind Power Generation Project 1327," which is conducted in the Inner Mongolia Autonomous Region of China and has been UN-certified for its production of green energy.

Participation in the Japan Climate Initiative

Extreme weather is occurring all over the world due to the effects of climate change. It is estimated that by the year 2100, the average temperature will be 5°C greater than during the Industrial Revolution in the latter half of the 18th Century, and nearly 4°C higher than it is today if no countermeasures are taken. To keep this temperature rise as low as possible, national governments, corporations, local governments, and NGOs around the world are beginning to join forces. In July 2018, the Japan Climate Initiative was established with the declaration of "Joining the front line of the global push for decarbonization from Japan." Many organizations are participating in this initiative, including FANCL. We will make serious efforts to achieve a decarbonized society.

Sustainability