By making our climate change response and the reduction of CO₂ emissions a top environmental priority, we aim to contribute to the realization of a carbon-free society.

1. We always strive to make energy saving efforts by increasing the efficiency of the energy use required for our business activities.
2. We utilize renewable energy through the installation of solar panels and switched-mode power supplies.
3. Through cooperation with our customers and trading partners, we make efforts to reduce CO₂ emissions across our entire supply chain.
4. We strive to design products and services that are human-friendly, of utmost safety, and which result in low environmental and ecological impact.

Please see our ESG Data Book for information on our CO₂ emissions.

In February 2011, FANCL installed a solar power system at FANCL B&H Co., Ltd.'s Shiga Plant (in Hino-machi, Shiga Prefecture), a cosmetics manufacturing facility of the FANCL Group, which at the time was the largest in the prefecture. In June 2018, a solar power system began operation at the Gunma Plant (Ora-machi, Gunma Prefecture); in June 2021, a solar power system, the largest among the Group's bases, went into full-scale operation at the Kansai Logistics Center (Kadoma, Osaka Prefecture); and in November of the same year, a solar power generation system began operation at the Mishima Plant, a key plant for supplements.
The total amount of electricity generated by these four facilities in the fiscal year ended March 2023 was approximately 1,411 MWh, 122% of the previous year, and an increase of about 2.8 times from the fiscal year ended March 2021, before the additional installation of solar panels at the two sites.

Please see our ESG Data Book for information on the results of our solar power generation efforts.

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.

Please see our ESG Data Book for information on our actual CO₂ emissions.

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.

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.