ExternalAssessmentsandCooperationwithSociety

Milbon endorsed the United Nations Global Compact (UNGC) proposed by the United Nations and signed it in May 2020.
UNGC is a voluntary initiative in which companies and organizations participate in the creation of a global framework for sustainable growth by acting as good members of society through responsible leadership.
Based on its own basic sustainability policy, Milbon supports the UNGC’s 10 principles related to human rights, labor, environment, and anti-corruption as a participating company that works with salons and haircare professionals to solve social issues, thereby contributing to the realization of a sustainable society.

In March 2022, Milbon was approved as an Ordinary Member of the Roundtable on Sustainable Palm Oil (RSPO), which was established by concerned organizations including the World Wide Fund for Nature.
Milbon has also been a member of the Japan Sustainable Palm Oil Network (JaSPON), participating in information exchange and other activities, since January 2020.
The Yumegaoka Factory has also acquired certification from the Supply Chain Certification System (SCCS), a system that certifies that products made with certified palm oil meet SCCS certification requirements in the manufacturing, processing, and distribution processes.
Check out RSPO progress at here.

Related web page: Use of RSPO-Certified Palm Oil

In January 2023, Milbon declared its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and became a member of the TCFD Consortium, a Japanese organization comprised of corporations supporting TCFD recommendations.
. We view action on climate change as a pressing issue for management and have incorporated it into the Five Key Challenges for achieving sustainability. We will continue to set goals and promote initiatives to reduce our environmental impact and proactively disclose information to our stakeholders.

Related web page: Response to Climate Change

Milbon joined the 30by30 Alliance for Biodiversity on October 10, 2023.
The Alliance is based on the G7 2030 Nature Compact adopted at the G7 Summit held in June 2021, and aims to conserve and protect at least 30% of terrestrial and marine areas by 2030 to halt and restore biodiversity loss. Japan’s Ministry of the Environment (MOE) is the initiator of this alliance, and was established by a group of companies, local governments, nonprofit organizations, and others to promote the expansion of national parks, satoyama (rural areas where nature and people coexist), corporate forests, etc. to be registered in the international database as OECM* and to actively disseminate these efforts.
As a manufacturer dedicated to enriching the spirit through beauty, Milbon will continue to value the bounty and abundance that biodiversity offers to society at large, and actively engage in activities for protecting our global environment.

Other Effective area-based Conservation Measures refers to areas being conserved through private-sector efforts, and areas where management not aimed at conservation has contributed to protection of the natural environment.

Related web page: Together with the Community (Japanese only)

In 2020, Milbon was awarded the 2020 20th Porter Prize, sponsored by the School of International Corporate Strategy, Hitotsubashi University Business School.
Having consistently focused our business on stylists and salons since our establishment in 1960, at the time of receiving the award, we had maintained high profitability, recording 23 consecutive years of revenue growth since the companyʼs listing in 1996, and Milbon has been recognized for the uniqueness of its business strategy that continues its sustainable growth.
Going forward, we will continue to maintain a business model focused on stylists and salons, while taking a social perspective and contributing to the realization of an en-riching society through beauty.

Milbon’s Yumegaoka Factory received a Silver rating in 2022, followed by a Gold rating in 2023, placing ourselves in the top 5% of all companies evaluated.
EcoVadis ratings evaluate a company’s sustainability efforts according to 21 CSR criteria across four themes—Environment, Labor & Human Rights, Ethics, and Sustainable Procurement—for the purpose of promoting sustainability within global supply chains. More than 100,000 companies spanning 200 industries in 175 countries and regions have been assessed to date.

Related web page: Supply Chain Management

Milbon has been selected as a constituent of the FTSE Blossom Japan Index and the FTSE Blossom Japan Sector Relative Index.
Both the FTSE Blossom Japan Index and the FTSE Blossom Japan Sector Relative Index are indices developed by FTSE Russell, a leading ESG rating agency, to identify companies excelling in ESG (Environmental, Social, and Governance) practices. FTSE Russell's evaluation covers areas such as corporate governance, health and safety, anti-corruption measures, and climate change. Companies included in the FTSE Blossom Japan Index are recognized for meeting various ESG criteria across environmental, social, and governance domains.

Milbon has been selected as a constituent of the Sompo Sustainability Index, independently developed by Sompo Asset Management by combining ESG evaluations with equity value assessments.
The index comprises approximately 300 companies recognized for their outstanding ESG (Environmental, Social, and Governance) initiatives. It is utilized in “ SOMPO Sustainable Management”, designed for pension funds and institutional investors. This product aims to support long-term asset formation by investing broadly in companies with high ESG ratings. By uncovering management quality and hidden risks that may not be reflected in financial statements, it seeks to evaluate corporate value from a long-term perspective.

Milbon was selected as a constituent stock in the MSCI Japan Empowering Women (WIN) Select Index, produced by MSCI, a leading financial services company in the United States.
It is one of the ESG indices developed by MSCI and looks at the top 700 Japanese companies by market capitalization (based on the MSCI Japan IMI Top 700 Index),and selects outstanding companies based on their disclosure information on gender diversity, such as the ratio of female managers and the ratio of female employees to new hires.

The inclusion of Milbon Co., Ltd. in any MSCI index, and the use of MSCI logos, trademarks, service marks, or index names, do not constitute a sponsorship, endorsement, or promotion of Milbon by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.

Related web page: Supporting Women's Empowerment

Milbon was selected as a constituent stock in the S&P/JPX Carbon Efficient Index.
As an ESG index jointly developed by global index provider S&P Dow Jones Indices (S&P) and Japan Exchange Group (JPX), the S&P/JPX Carbon Efficient Index is a stock price index focused on the E (environment) in ESG. Composition of the index is limited to constituent stocks of the Tokyo Stock Price Index (TOPIX), with the ratio of each stock determined based on the company’s environmental information disclosures and its carbon efficiency level (carbon emissions per sales).