Sustainability Management

Message from the Head of the ESG Division

Kenji Ueda

Senior Executive Officer, General Manager of ESG Division

Unicharm Corporation

Kyo-sei Life Vision 2035: Accelerating Efforts to Resolve Environmental and Social Issues While Continuing to Grow Our Business

We at Unicharm are deeply committed to realizing a cohesive society. This cohesive society is one in which each person is independent while supporting others in a way that allows just the right sense of distance, enabling everyone to spend their lives in the way they so wish regardless of their situation, including vulnerable members of society and those who are at a disadvantage either temporarily or for an extended period due to aging, illness, childbirth, menstruation, or other factors. Aiming to steadily realize such a society, in 2020 we began promoting our medium- to long-term ESG goals Kyo-sei Life Vision 2030 and Environmental Targets 2030. 

 In October 2025, having advanced these initiatives for five years, we integrated them into Kyo-sei Life Vision 2035 to further accelerate our efforts. In formulating Kyo-sei Life Vision 2035, we incorporated feedback from stakeholders, including the observation that key themes overlap and the advice to make goals and results more concrete and measurable. Based on this feedback, taking into account both feasibility (ensuring rational judgments and concrete results) and effectiveness (degree of contribution to achieving results and objectives), Kyo-sei Life Vision 2035 was formulated with the following three points in mind.

1. Review of Key Themes and Quantification of Indicators and Targets

Through dialogue with internal and external stakeholders, we reviewed the priorities of material issues. As a result, in order to further enhance the connection with business activities, key themes were reorganized and revised from 20 to 16 items with more quantitative and concrete indicators and targets. For example, within the key theme “safeguarding the well-being of individuals,” which closely relates to our line of business, we established the number of users of Unicharm’s products as a new indicator and target value for 2035.

2. Integration of Kyo-sei Life Vision 2030 and Environmental Targets 2030

In formulating Kyo-sei Life Vision 2035, we integrated Environmental Targets 2030, which focuses on environmental issues, and Kyo-sei Life Vision 2030—two initiatives that were promoted in tandem until now. Specifically, in addition to addressing climate change, establishing value chains with consideration for sustainability and biodiversity, and reducing the amount of plastic materials used, we established “expanding the social implementation of RefF,”* which is our proprietary circular business model, as a key theme, enabling us to integrate our resource recycling and environmental impact reduction efforts and advance them in a unified manner.

* Recycle for the Future (RefF) Project: Unicharm’s unique recycling-oriented business model

3. Rapid Implementation of Groupwide Initiatives

No goal can be achieved without the genuine commitment of the employees who execute them. With this in mind, in January 2023 we incorporated ESG criteria into the performance evaluation indicators for all employees, and beginning in fiscal 2026, we will link these evaluation criteria to the key themes of Kyo-sei Life Vision 2035. We will quickly move forward in this process by linking Companywide targets to departmental targets, and further to the goals of sections, groups, and other small organizational units as well as those of each employee. 

 We believe that a concerted Groupwide effort to steadily implement Kyo-sei Life Vision 2035, resolve environmental and social issues through our business activities, contribute to local communities, and ensure proper governance is essential to sustainably enhancing corporate value. By appropriately disclosing the progress and results of Kyo-sei Life Vision 2035, we aim to remain a company that is trusted by all stakeholders, including customers, shareholders and investors, business partners, employees and their families, and society as a whole. 

Management Structure

Sustainability Promotion Structure

Unicharm has established an appropriate system to steadily implement sustainability management, including the formulation and promotion of Kyo-sei Life Vision 2035. Specifically, the ESG Committee, chaired by the president & CEO, meets four times a year to deliberate and decide on all sustainability matters and governance-related policies and activities, and monitors their progress. The ESG Committee is attended not only by directors, executive officers, and other members of management, but also by those in charge of the Sales Division, R&D Division, Marketing Division, Corporate Division, and consolidated subsidiaries in Japan and overseas, and has a system in place to quickly carry out the various sustainability-related activities that are decided by its members. Matters deliberated and decided on by the ESG Committee are reported to the Board of Directors at least once a year.

Sustainability Promotion System

Roles and Results of the ESG Committee

Roles

・Deliberate and decide on the progress of medium- to long-term ESG goals and the medium-term management plan

・Identify and address risks, opportunities, and key issues related to sustainability across the Group and deliberate and decide on information disclosure

・Report matters deliberated and decided on by the ESG Committee to the Board of Directors at least once a year

Fiscal 2025 Results No. of Meetings Held

Four (February, May, August, and November)

Main Themes of Discussion

・Progress of Kyo-sei Life Vision 2030 medium- to long-term ESG goals,Environmental Targets 2030, and the medium-term management plan

・Formulation of Kyo-sei Life Vision 2035

・GHG Emissions Visualization Project

・Operation of SDGs Theme Guideline—internal guideline for contributing to sustainability

・Policy and progress on production of integrated and sustainability reports

・Sharing of information on external ESG assessments

・Control self-assessments (CSA) and internal audit plan

Core Themes and Categories of ESG Committee Initiatives

ISO 26000
Core Subjects
Organizational governance, human rights, labor practices, the environment, fair business practices, consumer issues, and community involvement and development
Core Themes
E

・Plastic waste: Reduction of plastic use

・Climate change risk: Reduction of greenhouse gases and management of energy use

・Water risk: Reduction of water use, and pollution prevention

・Pollution and resources: Waste reduction, resource usage, recycling, and pollution prevention

・Supply chain: Supplier policy, environmental issues, and sustainable procurement of forest resources and palm oil

・Biodiversity: Forest-derived raw materials and palm oil

・Development of environmentally friendly products

S

・Labor standards: Forbiddance of child and forced labor, prohibition of discrimination, freedom of association, collective bargaining rights, minimum wage, and prevention of harassment

・Health and safety of employees

・Human rights: Due diligence, children’s rights, forbiddance of child labor, community employment, and complaint handling

・Society: Community investment and social contribution activities

・Responsibilities to customers: Responsible advertising and marketing and customer satisfaction

・Supply chain: Forbiddance of child and forced labor, prohibition of discrimination, freedom of association, collective bargaining rights, minimum wage, health and safety, due diligence, and capacity building

・Product quality and safety

G

・Corruption prevention: Bribery prevention, insider trading, whistleblowing system, education, and risk assessment

・Corporate governance

・Companywide risk management: Environment, society, corporate governance

・Compliance

・Tax transparency

Communicating with Stakeholders

Guided by our Beliefs & Pledges, Corporate Code of Conduct, and Multi-Stakeholder Policy, which vow that Unicharm will undertake honest corporate activities that win the fullest confidence of its customers, shareholders and investors, business partners, employees, and society, we are working to increase stakeholder engagement through a range of opportunities. In addition, as a company that provides consumables that are essential to a hygienic lifestyle, we regard the global environment, international community, and next generation as important stakeholders. 

The Unicharm Group’s Stakeholders

Communicating with Stakeholders
Stakeholders Communication Policy (Beliefs & Pledges) Primary Communication Methods Frequency Example Themes

Customers
Customers

We pledge to earn the full support of customers by always doing everything we can.

Customer Communication Center, group interviews, monitoring surveys, exhibitions and seminars, websites, and various social media accounts

Regularly

Quality, safety, and functions of products and opinions and responses concerning products and services

Quality Assurance
Responsibility to Our Customers (Consumers)

Shareholders and Investors
Shareholders and Investors

We pledge to distribute industry-leading returns to shareholders.

General meeting of shareholders

Once a year

Summary explanations of financial results and sound company management

Corporate Governance

Financial results announcements and briefings

Four times a year

Individual dialogue with investors and overseas IR activities

Regularly

Business Partners
Business Partners

We pledge to achieve mutual growth by maintaining fair and equitable relationships.

Growth strategy awareness-raising program

Twice a year

Product and service proposals, supply chain management, quality, safety, and the environment

Sustainable Procurement

Exhibitions and events

Regularly

Medium- to long-term policy briefings

Once a year

Questionnaires and audits

Regularly

Employees
Employees

We pledge to enable the happiness of employees and their family members by filling each of them with confidence and pride.

Management with resonance practical meetings

Once a week

Compensation, health, satisfaction toward work, and introduction of programs and case studies that demonstrate respect for diversity

Development and Utilization of Human Resources
Diversity and Inclusion
Employee Health
Occupational Safety and Health

Employee awareness surveys

Once a year

Labor-management discussions, employee counseling hotline, family day at factories, and in-house intranet and Company newsletter

Regularly

Society
Society

We pledge to contribute to the economic and emotional fulfillment of all people and all of society through our corporate activities.

Activities in local communities, cooperation with governments, local authorities, NGOs/NPOs, and activities in industry associations

Regularly

Disaster assistance, incontinence care, health promotion, health and hygiene, local hiring, and coordination through business activities

Social Contribution Activities

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