Shiseido Becomes First Company in the Cosmetics Industry to Receive Eco-First Company Certification from the Ministry of the Environment

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1 March Shiseido Becomes First Company in the Cosmetics Industry to Receive Eco-First Company Certification from the Ministry of the Environment On March 9, 2009, Shiseido became the first company in the cosmetics industry to be certified under the Japanese Ministry of the Environment s Eco-First Company. At 5:00 p.m., Shiseido President Shinzo Maeda presented Shiseido s Eco-First Commitment detailing the Company s targets for its environmental protection initiatives to Minister of the Environment Tetsuo Saito. About the Eco-First Program The Eco-First Program was created by the Ministry of the Environment in April 2008 to encourage leading companies in each industry to redouble their environmental protection activities by having them make a commitment to the Minister for the Environment concerning their environmental protection initiatives such as global warming countermeasures geared toward compliance with targets mandated by the Kyoto Protocol. Certified companies are permitted to use the Eco-First Mark (Figure 1) in publications and advertising. Shiseido s Eco-First Commitment Shiseido made the following commitments to the Minister of the Environment. (The Company s commitments are presented in summary form. For details, see the attached reference information.) 1. Shiseido will actively pursue initiatives to prevent global warming. 2. Shiseido will actively pursue initiatives to realize a recycling-oriented society. 3. Shiseido will actively propose activities for realizing a society characterized by the beautiful coexistence of humankind and the planet Earth, both inside and outside the company. In addition to verifying the progress of these initiatives and reporting the results to the Ministry of the Environment, Shiseido will officially announce these results through its website and other channels.

2 Shiseido s Environmental Activities Shiseido has pursued an array of environmental activities based on the philosophy of striving to protect the Earth s environment in all its business activities since adopting the Shiseido Eco Policy, the Company s management policy on the environment, in These programs include practicing environmentally responsible product design, establishing a recycling system for used cosmetics glass containers (expanded nationwide in 2001), implementing a zero emissions policy at its manufacturing factories (achieved at all domestic cosmetics factories in 2003), and installing a solar power generation system (at its U.S.-based East Winder Factory in New Jersey in 2007). In line with acquiring certification as an Eco-First Company, Shiseido will redouble its focus on fundamental environmental activities and unique Shiseido environmental activities in accordance with its corporate social responsibility and its corporate message of This moment. This life. Beautifully. The Company will also strive to increase the transparency of these activities and disseminate related information globally to all stakeholders. (Figure 1) Eco-First Mark 2

3 Reference Eco-First Commitment Pursuing Environmental Protection Initiatives as an Eco-First Company March 9, 2009 Mr. Tetsuo Saito Minister of the Environment Mr. Shinzo Maeda President & CEO (Representative Director) Shiseido Co., Ltd. Shiseido Co., Ltd., has cultivated a sense of gratitude for the blessings of the Earth and a spirit of cultural creativity throughout the 136 years since its founding. What can Shiseido, which has helped people create beauty through their daily skincare routines, do for the Earth s environment? The answer lies in proposing a new connection between beauty and the environment, and undertaking a program of activities based on that link. Shiseido will bring together initiatives ranging from fundamental environmental activities through to environmental activities that are unique to Shiseido, and transform them into a company strength in accordance with its corporate social responsibility and corporate message of This moment. This life. Beautifully. 1. We will actively pursue initiatives to prevent global warming. a. We will work to reduce CO 2 emissions from business activities in an effort to realize a low-carbon society (Fukuda Vision: Reduce by 60% to 80% by 2050). Our domestic factories will meet our 1997 commitment to reduce CO 2 emissions by 15% by fiscal 2010 (per unit production compared with fiscal 1990). 3

4 Our overseas factories will reduce CO 2 emissions by 10% by fiscal 2010 (per unit production compared with fiscal 2007). b. We will reduce CO 2 emissions derived from products by actively utilizing carbon-neutral plant-based materials as raw materials for products. c. In addition to utilizing natural energies at business sites to the extent feasible given advances in the development of solar power technology (improvements in efficiency, etc.), we will contribute to the reduction of CO 2 emissions throughout society by pursuing initiatives to prevent global warming outside our business sites including through afforestation programs and participation in the Clean Development Mechanism (CDM). d. We will pursue ongoing reductions by developing a mechanism for helping employees families cut CO 2 emissions. 2. We will actively pursue initiatives to realize a recycling-oriented society. a. We will work to recycle waste products from our business activities toward realizing a recycling-oriented society. We will continue an initiative to recycle at least 99.5% of waste products (including heat recovery) that has been achieved by all domestic factories, four overseas factories, the Head Office, and research facilities. We will also expand the program to other overseas factories and non-manufacturing business sites (sales, etc.). b. Concerning product development, we will proactively practice environmentally responsible raw material selection and material design by refining existing environmental design standards (resource-saving and recycling provisions, etc.) as a means of combating environmental problems such as global warming and increases in waste. We will also establish the goal of commercializing at least one environmental product each year as described in the following sections. c. Concerning product containers and packaging, we will reduce our use of containers and packaging by expanding availability of refill products and developing more lightweight containers in accordance with the 3Rs (reduce, reuse, recycle). Concerning refills, we will establish the goal of completing at least one project each year such as by expanding the use of refills into product categories where commercialization has proven difficult in the past or developing a new refill container that simplifies the refilling process. 4

5 d. Concerning polyethylene plastic, which is the primary material used in containers, we will work with material manufacturers to transition to plant-based plastics in an effort to conserve the planet s limited petroleum resources. This process will be implemented consecutively in tandem with the start of mass production of plant-based plastics in fiscal 2011 as well as substituting at least 50% of the volume of plastic currently being used (approximately 2,000 tons in the domestic cosmetics business) by fiscal We will actively propose activities for realizing a society characterized by the beautiful coexistence of humankind and the planet Earth, both inside and outside the company. a. We will launch an internal Environment Project and propose new lifestyles in which eco responsibility and beauty can coexist (e.g., through toiletries and beauty care methods capable of maintaining and improving effectiveness and value while conserving resources and energy) from a flexible standpoint that is not limited to products alone, and disseminate this information globally to society and customers. This Environment Project will select and keep an ongoing record of outstanding products, services, and corporate activities that excel under standards such as being the industry s first in a category or offering added value ahead of competitors. b. We will continue to solicit Eco Ideas from employees and strive to implement at least 10 suggestions each year (including at least one that is counted as described in the preceding section). c. Concerning the Tsubaki Afforestation Program, which originated as an Eco Idea, we will move beyond simple tree planting efforts to use harvestable products as raw materials and implement a recycling paradigm, including linking the program to sales efforts. In addition to verifying the progress of these initiatives and reporting the results to the Ministry of the Environment, Shiseido will officially announce these results through its website and other channels. 5