Unicharm Group

Sustainability Report

2023

The Future We Envision 2-6

A society in which everyone can maximize their individual potential and live life to the fullest.

A society in which people comfortably coexist, helping each other while retaining each other's independence.

Unicharm continually considers every moment of life.

From birth to adulthood, and all the years in between.

From this generation to the next, and many years into the future.

We endeavor to realize a diverse, inclusive, and sustainable world, protecting and supporting life for people and society through "kindness" in various forms.

Baby care that supports and comforts both infants and families. Nursing care that helps people live a full life at any age.

Environments that ensure our partner animals (pets) a warm welcome from the family and neighborhood.

Feminine care that helps lift spirits during menstrual cycles.

Good hygiene that helps enhance and expand pleasant interactions for everyone.

This is the kindness we have always valued.

As we create and extend such kindness, we must emphasize not only the well-being of individuals but also the well-being of society and our planet as a whole.

When we picture the manufacturing that sustains local economies, we imagine the faces of people at work and their families.

When we consider the dynamic switch to renewable energy, we visualize a future with reduced global warming.

We strive for all of our business activities to reflect kindness, thereby contributing to a diverse, inclusive, and sustainable world for our future.

We continue to conduct business while championing the freedom of individuals to pursue their own way of life, based on our corporate philosophy of "NOLA & DOLA."*

In the decades to come, we will continue to affirm this ideal, providing kindness and support at every moment, throughout every lifetime.

  • "NOLA & DOLA" (Necessity of Life with Activities & Dreams of Life with Activities): Unicharm aims to provide all people, from newborns to the elderly, with products and services that provide mental and physical support through gentle care so that they may be free of their burdens and can fulfill their dreams.

Unicharm Group

Introduction

Sustainability

Kyo-sei Life

Environment

Society

Governance

External Partnerships

Third-Party

002

Sustainability Report 2023

Management

Vision 2030

and Evaluations

Assurance Report

CONTENTS

003 Editorial Policy / Contents

004 Overview of the Unicharm Group

Introduction

005 Message from the President & CEO

008 The Unicharm Way

Sustainability Management

009 Message from the Head of the ESG Division

011 Communicating with Stakeholders

Kyo-sei Life Vision 2030

012 Kyo-sei Life Vision 2030

Key Initiatives

018 Safeguarding the well- being of individuals

022 Safeguarding the well- being of society

026 Safeguarding the well- being of our planet

029 Unicharm Principles

Environment

033 Environmental Management

033 Basic Environmental Policy and Environmental Targets

038 Waste and Resource Utilization

038 Recycling-Based Society

041 Plastic Waste Reduction Measures

045 Climate Change

045 Zero-Carbon Society

049 Disclosure Based on the TCFD Recommendations

055 Biodiversity

055 Biodiversity Conservation

061 Water Resources

061 Water Recycling-Oriented Society

063 Environmental Data

Society

069 Innovation Management

069 Product Development

071 Digital Transformation (DX)

073 Intellectual Property

075 Customer Satisfaction

075 Responsibility to Our Customers (Consumers)

078 Quality

078 Quality Assurance

081 Human Rights

081 Respect for Human Rights

086 Human Resources

086 Utilization and Development of Human Resources

092 Diversity and Inclusion

095 Development of Workplace Environments

098 Occupational Safety and Health

102 Supply Chain Management

102 Sustainable Procurement

108 Communities

108 Social Contribution Activities

111 Social Data

Governance

115 Corporate Governance

115 Corporate Governance

124 Compliance

124 Fair Business Practices

127 Tax Compliance

128 Risk Management

128 Risk Management

133 Governance Data

135 External Partnerships and Evaluations

139 Third-Party Assurance Report

Explanation of the Cover

As a company committed to its "NOLA & DOLA" corporate philosophy and helping ensure the mental and physical well-being of each consumer, Unicharm aims to contribute to the realization of a cohesive society in which people of all ages can collectively live their lives in the way they so wish. To realize this objective, we support Paralym Art in its efforts to foster social participation and financial independence. Accordingly, we have adopted works done by artists with disabilities on the cover of Sustainability Report 2023 and Integrated Report 2023. Unicharm has supported the efforts of Paralym Art since 2016, and 2023 marks its eighth year in this engagement.

Title Spring in the Countryside

Artist Hiroko Shibuya

Artist Statement

Spring in the Countryside depicts an image of spring in my hometown and its scenery as the cherry blossoms start to reach full bloom.

Always peaceful and beautifully decorated with flowers, this is a place that brings back fond memories and one that I can return to whenever I want. I hope there is a place like this for everyone.

Unicharm Group

Introduction

Sustainability

Sustainability Report 2023

Management

Editorial Policy / Contents

Kyo-sei Life

Environment

Society

Governance

External Partnerships

Third-Party

003

Vision 2030

and Evaluations

Assurance Report

2-2,2-3

Editorial Policy

Preparation of Sustainability Report 2023

Sustainability Report 2023 was prepared to provide readers with information on Unicharm's sustainability activities. At Unicharm, sustainability is about embodying "NOLA & DOLA,"* our corporate philosophy that is embraced by all of us in the course of our daily business activities.

This year, in addition to reporting in line with the four areas established in our medium- to long-term ESG goals, Kyo-sei Life Vision 2030, we worked to further improve the contents of the report from the viewpoint of strengthening disclosure of ESG- related information.

In preparing Sustainability Report 2023, we referred to the United Nations (UN) Global Compact, GRI Standards, and other sources, while incorporating information that reflects the global needs of society for sustainability reports.

Moving forward, we will take measures to continue to improve the quality of our sustainability report in order to cater to the needs of all of our stakeholders. We hope that you take the time to read this report in conjunction with Integrated Report 2023 and share your honest opinions.

  • "NOLA & DOLA" (Necessity of Life with Activities & Dreams of Life with Activities): Unicharm aims to provide all people, from newborns to the elderly, with products and services that provide mental and physical support through gentle care so that they may be free of their burdens and can fulfill their dreams.

Contents

Coverage

The contents of Sustainability Report 2023 are based on the activities of the Unicharm Group (Unicharm Corporation and its domestic and overseas consolidated subsidiaries). However, the report also contains information on certain non-consolidated subsidiaries and affiliated companies.

In the report, "Unicharm" or "the Company" refers to "the Unicharm Group." Company names are stated individually when there is a need to specify the scope.

Intended Audience

All Unicharm stakeholders inclusive of customers, shareholders, investors, business partners, employees, and society in general

Reporting Period

January 1, 2022, to December 31, 2022 (the report focuses on results from 2022 and includes some of the latest information from 2023)

Information Disclosure System

Investor Relations

Investor Relations

https://www.unicharm.co.jp/en/ir.html

Annual Securities Report

https://www.unicharm.co.jp/en/ir/library/securities.html

Presentation Materials for Investors https://www.unicharm.co.jp/en/ir/library/investors.html

Date of Issue

May 2023

Next issue scheduled for May 2024 (previous issue: May 2022)

Available at

"Sustainability" section of Unicharm's corporate website

Third-Party Assurance

Unicharm has received third-party assurance from PricewaterhouseCoopers Sustainability LLC for the environmental information contained in this report.

P.139 Third-Party Assurance Report

Reference Guidelines

  • GRI Standards
    (GRI disclosure numbers have been noted for each corresponding disclosure item)
  • Environmental Reporting Guidelines 2018 of the Ministry of the Environment
  • TCFD recommendations
  • SASB Standards

ESG/Sustainability

Sustainability

https://www.unicharm.co.jp/en/csr-eco.html

Kyo-sei Life Vision 2030

https://www2.unicharm.co.jp/english/csr/kyoseilifevision/

index.html

GRI Standards Comparison Table

https://www.unicharm.co.jp/en/csr-eco/gri.html

SASB Content Index

https://www.unicharm.co.jp/en/csr-eco/sasb.html

Sustainability Report

https://www.unicharm.co.jp/en/csr-eco/report.html

Corporate Governance Report

https://www.unicharm.co.jp/en/company/corporate-

governance.html

Integrated Report  https://www.unicharm.co.jp/en/ir/report.html

Unicharm Group

Introduction

Sustainability

Kyo-sei Life

Environment

Sustainability Report 2023

Management

Vision 2030

Overview of the Unicharm Group​

Company Profile

As of December 31, 2022

Society

Governance

External Partnerships

Third-Party

004

and Evaluations

Assurance Report

2-1,2-2,2-7

Primary Consolidated Subsidiaries and Affiliates

As of December 31, 2022

Corporate Name

Unicharm Corporation

Date of Establishment

February 10, 1961

Capital

¥15,993 million

Number of Shares Issued

620,834,319

Head Office

Sumitomo Fudosan Mita Twin Bldg. West Wing, 3-5-27, Mita, Minato-ku, Tokyo, Japan (until June 2023)

Sumitomo Fudosan Tokyo Mita Garden Tower, 3-5-19, Mita, Minato-ku, Tokyo, Japan (from July 2023)

Japan

Unicharm Products Co., Ltd.

Unicharm Kokko Nonwoven Co., Ltd.

Cosmotec Corporation

Uni-charm Mölnlycke K.K.

Unicare Corporation

Peparlet Co., Ltd.

United Charm Co., Ltd.

Uni-Charm (Thailand) Co., Ltd.

LG-Unicharm Co., Ltd.

Registered Company Office

182 Shimobun, Kinsei-cho, Shikokuchuo City, Ehime, Japan

Asia (Excluding Japan)

Unicharm Consumer Products (China) Co., Ltd. PT. UNI-CHARM INDONESIA Tbk

Number of Employees

16,206

Number of Production Bases

41 factories (Japan: 18, Asia (excluding Japan): 20, other: 3)

Listed Exchange

Prime Market of the Tokyo Stock Exchange

Wellness care products

Partner animal (pet) care products

Major Business Lines

Feminine care products

Other

Unicharm India Private Limited

Diana Unicharm Joint Stock Company

DSG International (Thailand) Public Co., Ltd.

Uni.Charm Mölnlycke B.V.

Unicharm Gulf Hygienic Industries Co., Ltd.

Unicharm Australasia Holding Pty Ltd.

The Hartz Mountain Corporation

Baby care and childcare products

Kirei care products

Commercial-use food packaging materials

URL

https://www.unicharm.co.jp/en/home.html

Total

51 subsidiaries and affiliates

Primary Management Indicators

Consolidated Net Sales

(Billion yen)

898.0

800

727.5

782.7

162.1

714.2

688.3

124.2

111.9

105.8

110.5

600

428.3

363.7

302.9

329.9

323.1

400

200

279.6

273.8

292.4

294.9

307.6

0

2018

2019

2020

2021

2022

(FY)

Japan 

Asia (excluding Japan) 

Other

Consolidated Core Operating Income

(Billion yen)

150

114.7

122.5

119.6

100

95.1

89.8

50

0

2018

2019

2020

2021

2022

(FY)

Number of Group Employees

(People)

18,000

16,207

16,304

16,665

16,308

16,206

4,198

3,886

4,028

4,206

4,179

12,000

9,121

9,032

9,160

8,804

8,770

6,000

3,200

3,244

3,307

3,298

3,257

0

2018

2019

2020

2021

2022

(FY)

Japan  Asia (excluding Japan)  Other

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Disclaimer

Unicharm Corporation published this content on 07 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2023 07:28:07 UTC.