Unicharm Group Sustainability External Independent

Introduction ESG Goals Environment

Environment Society Governance 022
Sustainability Report 2024 Management Evaluations Assurance Report

Environmental Management

Basic Environmental Policy  2 -1 2 , 2 -1 3 , 2 -2 3 , 2 -2 4

Unicharm Group Basic Environmental Policy

Our Basic Approach and Strategy

In order to pass on a beautiful Earth to future generations, we recognize that we must play a significant role as a manufacturer of disposable products. We are committed to providing
The products and services that Unicharm provides are consum- goods and services that bring comfort, excitement, and joy to people all over the world, thereby contributing to the realization of a sustainable society that protects the global environ-
ables essential to a clean and healthy lifestyle. However, at the ment and brings economic prosperity.

same time, they are closely connected to the global environment

Basic Environmental Policy Guidelines
in terms of resource use and waste emissions. Accordingly, as we 1. Development of Environmentally Friendly Products and Services 1. Development of Environmentally Friendly Products and Services
expand operations in Asia and across all global regions, our role We design and provide consumers with products and services that reduce environ- • We strive to procure and use raw materials that are attuned to local production for
mental impact (energy and resource conservation and waste reduction) at each stage local consumption.
and responsibility in reducing environmental impact continues to
of the supply chain, including concept planning, raw materials procurement, manu- • We will reduce the use of petroleum-derived plastic in our raw materials.
increase year after year. facturing and processing, distribution and sales, product use, and disposal and • We will establish recycling systems for used products and introduce this system in an
As a manufacturer of consumer goods, we recognize the recycling. increasing number of countries and regions.
2. Response to Climate Change 2. Response to Climate Change
importance of our responsibility for protecting the global envi-
With the aim of realizing a zero-carbon society, we work to prevent global warming • We will accurately assess the amount of greenhouse gas emissions along the value
ronment, and we will contribute to the achievement of the by visualizing, accurately assessing, and reducing the amount of greenhouse gases chain, develop a plan to reduce them, and steadily put this plan into action.
Sustainable Development Goals (SDGs), the Paris Agreement, along the value chain. • We will make active use of renewable electricity.
3. Reduction of Waste and Use of Energy and Resources 3. R
 eduction of Waste and Use of Energy and Resources
and other goals through our business, in accordance with the
In order to protect the global environment, we strive to develop technologies that are • We will make effective use of energy and raw materials.
Unicharm Group Basic Environmental Policy. We will also pro- conducive to reducing waste and the use of energy and resources at the product • We will strive to use fewer resources in our products (including packaging) and
mote environmentally friendly manufacturing in all our business development and design stages. We also make every effort to use resources and promote recycling.

activities and provide products and services that bring comfort, energy efficiently, reduce waste and emissions, and recycle in all of our activities • We will reduce waste from all activities along the value chain.
along the value chain. 4. Commitment to Local Communities and to Protecting the Natural Environment
excitement, and joy to people all over the world, thereby con- 4. Commitment to Local Communities and to Protecting the Natural Environment • We strive to protect biodiversity and promote the development, use, and dissemina-
tributing to the realization of a sustainable society that protects When using forest and water resources in our activities along the value chain, we pay tion of technologies that contribute to sustainable use.
the global environment and brings economic prosperity. due consideration to biodiversity, strive to protect local communities and ecosystems, • We contribute to the protection and sustainable use of biodiversity at all stages of
actively work to prevent wastewater and other forms of pollution, and act responsibly the value chain.
Under Environmental Targets 2030, formulated in May 2020,
to ensure that we do not adversely impact these communities and the natural environ- • We strive to use certified lumber and establish traceability to ensure that we do not
we set targets for 2030 based on our 2050 Vision in response to ment. If we find that our business activities are having a negative impact on the contribute to forest destruction.
three environmental issues: plastic waste, climate change, and environment, we will take corrective measures right away with the utmost priority. • We strive to monitor water risk and take appropriate measures when carrying out
5. Compliance with Laws and Regulations business activities in countries and regions with high water risk.
deforestation. Meanwhile, in Kyo-sei Life Vision 2030, our
We will comply with relevant laws, regulations, and ordinances at all stages of the • We address water-related issues by making efficient use of water and preventing
medium- to long-term environmental goals announced in product life cycle, from the procurement of raw materials to the disposal of used wastewater pollution.
October 2020, we established initiatives under the theme of products, while establishing voluntary standards of conduct and striving to protect 5. Compliance with Laws and Regulations
the global environment. • We comply with environmental laws, regulations, and ordinances that pertain to
safeguarding the well-being of our planet and are taking the
6. Strengthening of Communication with Society the Company.
measures necessary to achieve these targets. We will contribute to the realization of a sustainable society by continuing to develop • We establish and comply with voluntary standards as necessary.
partnerships with suppliers and our various stakeholders and becoming a company • We assess compliance with laws, regulations, ordinances, and voluntary standards
P.019 Environmental Targets 2030 (Medium- to Long-Term ESG Goals)
trusted by society. regularly and take corrective action in the event that compliance is inadequate.
P.011 Kyo-sei Life Vision 2030 (Medium- to Long-Term ESG Goals)
6. Strengthening of Communication with Society
• We will promote activities to protect the Earth’s ecosystem together with suppliers,
customers, local communities, external organizations, specialists, and all other
stakeholders by engaging in sincere dialogue.
Unicharm Group Sustainability External Independent
Introduction ESG Goals Environment
Environment Society Governance 023
Sustainability Report 2024 Management Evaluations Assurance Report

Management Structure Director Remuneration System Incorporating ESG Environmental Audits for Preventing Environmental Risk
Assessments and Enhancing Performance

Our environmental activities are collectively managed and over- To ensure that directors and executive officers take the lead in Unicharm conducts three types of environmental audits in order
seen by the ESG Committee, which is chaired by the president & implementing ESG strategies and achieving ESG goals, in fiscal to eliminate environmental risks and enhance environmental
CEO and operated under the Board of Directors. The implemen- 2020, ESG goals were incorporated into the evaluation criteria for performance, including target-focused audits such as:
tation of ISO 14001, which closely relates to our day-to-day directors (excluding those who are Audit & Supervisory Committee (1) regular audits in conformance with ISO 14001;
operations, is pursued independently by each of our business members) and executive officers. ESG goals were also incorpo- (2) on-site confirmations at industrial waste processing
locations and involves a Plan–Do–Check–Act (PDCA) cycle and rated into the evaluation criteria for all employees in fiscal 2023. partners; and
gate control based on preset control points and key performance (3) verification of compliance with laws and regulations.
P.124 Evaluation Criteria for and Basic Policy on Executive Remuneration and Fiscal 2023
indicators (KPIs). The ESG Division is responsible for tasks such as Remuneration Targets and Results

understanding the environmental situation and it reports to the Results of Environmental Regulatory Audits2-27
ESG Committee, which meets four times a year. Information and Environmental Management System Based on
It has been confirmed that surveys, data, and documentation for
discussion points arising in the ESG Committee are also reported ISO 14001 Certification
submission to governments as required by environmental laws
to the Board of Directors. Unicharm has acquired ISO 14001 certification, the international and regulations were submitted correctly in fiscal 2023. No fines
The key themes established for safeguarding the well-being standard for environmental management, at all of its business have been incurred for violations of environmental laws or regu-
of our planet under Environmental Targets 2030 and Kyo-sei Life sites in Japan and overseas and continues to promote environ- lations. There are no environmental matters pending.
Vision 2030, which we have set as key environmental targets, mental conservation activities by implementing and operating an
are translated into targets for each individual division and involve environmental management system (EMS) based on this standard.
finely tuned activities such as individual targets and weekly As of January 31, 2024, 74.2% (76.9% in Japan, 72.2% Indicators and Targets
action plans linked to each division. The key themes in Kyo-sei overseas) of our business sites have acquired ISO 14001
Life Vision 2030 center on the achievement of certain targets by certification. Under Environmental Targets 2030 and Kyo-sei Life Vision 2030,
2030 while Environmental Targets 2030 focuses on ensuring
P.060 Environmental Data > The Unicharm Group’s ISO Certifications Unicharm has formulated key themes for safeguarding the well-
results year after year.
being of our planet, and promotes efforts aimed at achieving
these targets.

P.019 Environmental Targets 2030 (Medium- to Long-Term ESG Goals)

Environmental Management Structure P.017 Kyo-sei Life Vision 2030 > Safeguarding the Well-Being of Our Planet

Board of Directors

ESG Committee
Chair: President & CEO Secretariat: ESG Division Number of meetings held: Four per year

ESG Division
Information gathered from each process on a monthly basis

Product
Marketing Purchasing Manufacturing Distribution Sales Disposal
development

P.009 Sustainability Promotion System

Unicharm Group Sustainability External Independent
Introduction ESG Goals Environment
Environment Society Governance 024
Sustainability Report 2024 Management Evaluations Assurance Report

Initiatives and Results for building a sustainable supply chain and using Sedex. Data CDP
was also provided on the GHG Emissions Visualization Project, In an effort to actively disclose information to its various stake-
aimed at achieving Kyo-sei Life Vision 2030 and Environmental
Partnership with Stakeholders2-28 holders around the world, Unicharm participates in and responds
Targets 2030, and we requested supplier cooperation in quality to questionnaires for CDP, an international non-profit organiza-
Climate change and other environmental issues cannot be control and other efforts aimed at improving customer satisfac- tion that conducts environmen-
resolved through the efforts of Unicharm alone. For that reason, tion through the supply of safe products. tal surveys globally and
we promote and actively take part in various measures and
P.036 GHG Emissions Visualization Project discloses such information
initiatives undertaken by companies, organizations, and
toward the realization of a
governments.
Environmental Education for Employees sustainable society.
Climate • Task Force on Climate-related Financial Disclosures (TCFD) To enhance the environmental awareness of employees, we
Change • Science Based Targets initiative (SBTi) CDP Rating
• Japan Climate Initiative (JCI)
provide environmental education through new employee train-
• RE100 ing and other training programs, the Company intranet, and the Fiscal 2021 Fiscal 2022 Fiscal 2023
• Japan Climate Leader Partnership (JCLP)
sharing of information via email. Unicharm also holds workshops Climate Change A− A− A−
• GX League
• Green x Digital Consortium on a regular basis for employees to acquire the specific skills that
Forests B B A
• Actions by the Business Community on Long-term Global are necessary for their respective duties.
Warming Countermeasures up to 2050 (Keidanren) Water Security B B A
• Keidanren Carbon Neutrality Action Plan

Plastic Issues • Plastic Circular Challenge 2025 Zero Carbon Challenge Cup 2024 Sponsorship web CDP 2023 Questionnaire: Climate Change
• Plastic Smart https://www.unicharm.co.jp/content/dam/sites/www_unicharm_co_jp/pdf/csr-eco/report/CDP_
• Business Coalition for a Global Plastics Treaty (Japan)
The Zero Carbon Challenge Cup, a program that Unicharm has sponsored ClimateChange2023.pdf
• Japan Clean Ocean Material Alliance (CLOMA)
for nine consecutive years, commends the daily work of various organiza-
web CDP 2023 Questionnaire: Forests
Biodiversity • Japan Partnership for Circular Economy (J4CE) tions (including schools, corporations, local governments, and NPOs)
https://www.unicharm.co.jp/content/dam/sites/www_unicharm_co_jp/pdf/csr-eco/report/CDP_
• Voluntary Action Plan for the Formation of a Recycling-Oriented toward preventing global warming and building a zero-carbon society for
Forests2023.pdf
Society (Keidanren) the next generation. In our role as a cosponsor of this program, we have
• Keidanren Declaration of Biodiversity and Action Policy
established the Gentle Care for Life Award of Excellence. web CDP 2023 Questionnaire: Water Security
• Re-Style partner company
In the final round of Zero Carbon Challenge Cup 2024, a total of 50 https://www.unicharm.co.jp/content/dam/sites/www_unicharm_co_jp/pdf/csr-eco/report/CDP_
• Sustainable Green Ecosystem Council (SGEC)/PEFC National
groups from the Student, Junior and Kids, Corporate and Municipal, and WaterSecurity2023.pdf
Governing Body in Japan
Citizens divisions made presentations,
among which the Yokohama City Nishimae
Medium- to Long-Term Policy Briefing Session for Suppliers Elementary School's “Collect Waste Selected for Inclusion in “Environment Sustainable”
Cooking Oil to Make Airplanes Fly!” (Junior
In October 2023, we held the 14th Unicharm Medium- to Long- Category of 5th ESG Finance Awards Japan
and Kids Division) was selected as the
Term Policy Briefing Session for Suppliers with the aim of stabiliz- winner of the Gentle Care for Life Award of
Unicharm selected for inclusion in the “Environment Sustainable” category
ing material quality and disseminating our procurement policies Excellence.
at the 5th ESG Finance Awards Japan in recognition of our unwavering
and guidelines. The 2023 event, which was also streamed promotion of horizontal recycling of used
online, was attended by 371 participants from 143 companies, disposable diapers, climate change responses,
including material suppliers for personal care products, as well as transition to renewable electricity, reduction
of plastic usage, and biodiversity conservation
material suppliers for pet care products and external production
throughout the Company, as well as our
contractors. The session included an overview of the 12th
disclosure of the status of these efforts.
Medium-Term Management Plan and the division and transfer of
production and logistics functions in the pet care business. Data
was provided to aid understanding of our policies and guidelines