Since our founding in 1980, the FANCL Group has grown as a group of companies that consistently provides solutions to social issues. Our founding philosophy is to work to eliminate the 'negatives' with a sense of justice, and this spirit has been carried on through to the present day. In 2018, we developed the FANCL Group Sustainable Declaration, "Building a Bright Future Together," which expresses our desire to contribute to building a sustainable society in line with the Sustainable Development Goals (SDGs). Furthermore, we have redefined the key material issues (Materiality) for the Group and we are advancing specific initiatives to address each issue.
FANCL Group's Sustainable Declaration
FANCL Group's "Sustainable Declaration"
Building a Bright Future Together
Guided by our founding philosophy of "Eliminating the 'Negatives' with a
Sense of Justice," FANCL is confronting key issues of concern that will
impact people's future lives, including the global environment and society,
as well as working together with our stakeholders to engender hope.
We aim to contribute to the creation of a sustainable society that brings
happiness to people now and in the future.
The FANCL Group has established the following three items as key themes in line with its efforts to
contribute to the realization of a sustainable society and the achievement of sustainable growth for
the Group as a whole. For each of these themes, we are setting goals and taking specific actions.
Sustainable Declaration
Building a Bright Future Together
The FANCL group has identified the following key themes
A Prosperous Environment
Responding to climate change is our top priority. We will show gratitude for the blessings of nature and contribute to the preservation of an abundant natural environment in all aspects of our corporate activities.
Healthy Living
We will continue to contribute to extending healthy life expectancies and improving quality of life of people around the world through our unique products and services
A Thriving Society For All
We aim to build a society where differences are recognized and mutually respected, where everyone is included, and where each individual can find a place to shine.
FANCL Group Material Issues (Materiality)
Understanding of the External Environment
We anticipate that global climate change will result in the tightening of political policy and regulations, intensification of natural disasters, and will also impact agricultural production and increase the risk posed by infectious diseases. This will lead to greater geopolitical risk, raw material price rises, and instability in supply chains. Also, while global population growth will foster concerns about food instability, Japan will see the decline and ageing of its population become more severe. We forecast that these changes to the global environment and society will drive the diversification of peoples' needs and awareness in regard to beauty and health.
In this social environment, the FANCL Group will work to realize sustainable development and growth alongside society by re-identifying and redefining the FANCL Group material issues (Materiality).
The FANCL Group material issues (Materiality) are the priority issues to be addressed by Group management with the aim of putting our philosophy of "eliminate the 'negatives' with a sense of justice" into practice and become a company that is loved by stakeholders over the long term.
Steps for Revising the FANCL Group Material Issues (Materiality)
※Below are the review steps taken before delisting.
Materiality matrix
We evaluated the identified Materiality from two perspectives, impact on stakeholders and impact on the FANCL Group, and then arranged them into a Materiality matrix. In addition to issues concerning the environment and society, we are also tackling issues concerning the management foundation that supports our sustainability efforts as Materiality.
In recognition that our Materiality will change in accordance with changes in society, we plan to revise them every three years.
The FANCL Group's three key themes and the management foundation that supports them
We have established three key themes in accordance with our vision for the FANCL Group in 2030 and also added management foundation as a theme. Material issues (Materiality) have been classified accordingly.
Targets and performance indicators for key Materiality
In order to achieve VISION2030, we have set targets and performance indicators for key issues within the FANCL Group Materiality. Group employees will unite and work together to achieve these targets.
A Prosperous Environment
Materiality
Target
Target year
Performance indicators
FY 2024 results
1
Response to climate change and reduction of CO2 emissions
Reducing of CO2 emissions
By FY 2050
Net zero
4,066t-CO2
2
Promotion of resource recycling and waste reduction
4R for containers and packaging using plastic packaging materials※1
By FY 2030
100%
55.8%
Percentage of plant-based and recycled plastics used in FANCL cosmetic containers
By FY 2030
50%
42.9%
Number of customers participating in the collection and recycling of cosmetics containers (Total number of participants from January 2023)
By FY 2027
100,000 customers
63,000 customers
3
Sustainable use of biological resources
Procurement of sustainable palm oil
By FY 2027
Maintained 100%
100% (RSPO Mass Balance 85.4% RSPO Book & Claim 14.6%)
Reduce (reduction in the amount of plastic used for our containers), Reuse (reuse of containers), Recycle (recycling of container recovery), Renew (switch to recycled or plant-based materials)
Certified paper, non-wood paper, recycled paper, etc.
The scope of "Reduction of CO2 emissions" is consolidated companies in Japan. The scope of "4R compatibility in container packaging materials in which plastic is used," and "Procurement of sustainable palm oil" includes the cosmetics and health food products of FANCL Corporation and ATTENIR CORPORATION.
Ratio of female employees aspiring to hold management positions
By FY 2030
70%
69.9%
Overall rating in women's proactiveness in the workplace
By FY 2030
Maintained 12.5 points
12.6 points
(1) Ratio of male employees taking paternity leave (2) Ratio of male employees taking longer than 30 days of paternity leave
By FY 2030
(1) Maintained 100% (2) 50%
(1) 100% (2) 66.7%
Employment rate of people with disabilities
By FY 2030
5%
4.66%
2
Contribution to community and society
Number of participants in activities leading to a healthy future (Total number of participants from 2025)
By FY 2027
19,000 participants
7,872 participants
Number of participants in activities aimed at helping people with disabilities to live brighter, more positive lives (Total number of participants from 2025)
By FY 2027
1,400 participants
360 participants
The table above covers FANCL Corporation alone. "Overall rating in women's proactiveness in the workplace" covers consolidated companies in Japan. "Employment rate of people with disabilities" covers the entire FANCL Group.
Stress check score average (utilizing the Lively Workplace Comprehensive Assessment)
Latest 3 years average
12.0 points or higher
13.2 points
2
Developing and utilizing human resources for innovation
(1) Global human resources consisting of: a) Employees who have completed cross-cultural understanding and management training b) Employees with language skills other than Japanese
By FY 2027
(1) a) 1,000 employees b) 250 employees
(1) a) 1,211 employees b) 160 employees
(2) Digital/DX human resources consisting of: a) Employees who obtained IT Passport certification and completed basic skills training b) Employees who have completed data analysis and utilization training
(2) a) 600 employees b) 100 employees
(2) a) 452 employees b) 17 employees
(3) Marketing human resources consisting of: a) Employees who have completed basic skills training b) Employees who have completed of digital marketing training
(3) a) 1,000 employees b) 180 employees
(3) a) 477 employees b) 170 employees
3
Achieving health management
(1) Health checkup rate through
By FY 2030
(1) Maintained 100%
(1) 100%
(2) Stress check results rate (general health risk level of 120 or higher for sector)
(2) 3.0% or below
(2) 3.9%
4
Ensuring occupational health and safety
(1) Occupational accident rate (lost time)
By FY 2030
(1) 1.0% or below
(1) 0%
(2) Occupational accident rate (fatalities)
(2) Maintained 0%
(2) 0%
Co-existence Co-prosperity
1
Building relationships of co-existence and co-prosperity with business partners
Satisfaction rate of on supplier surveys *Percentage of companies that did not provide negative responses to the survey
By FY 2030
90% or higher
95.3%
The table above covers FANCL Corporation alone. "Stress check score average" covers consolidated companies in Japan.
Responding to climate change is our top priority. We will show gratitude for the blessings of nature and contribute to the preservation of an abundant natural environment in all aspects of our corporate activities.
We aim to build a society where differences are recognized and mutually respected, where everyone is included, and where each individual can find a place to shine.
