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.

We have set a Group target of achieving net zero CO₂ emissions (Scope 1 and 2) by 2050, 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 2024 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.

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 April 2025, we expanded our solar panel capacity at the Shiga factory by installing carport-style solar panels utilizing FANCL Group's first on-site PPA model, built over the factory's parking lot. As a result, we expect the Shiga Factoty's solar power generation to reach about 1.5 million kWh annually, four times the previous level, and anticipate that the factory's self-sufficiency rate for electricity will reach about 50%. With the increased power generation at the Shiga factory, the combined power generation for these four sites reached 2,038 MWh (a 145% increase from the previous year) in 2025, leading to a reduction in CO₂ emissions equivalent to approximately 858 tons.

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.

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.