Kao Receives the Highest Evaluation from CDP for Climate Change and Water Security

Tokyo—Kao Corporation, a leading manufacturer of personal care, household and cosmetics products, has been selected for inclusion in the A List for climate change and water by CDP, a leading international NPO. This is a list of companies receiving the highest evaluation for taking proactive measures in relation to the environment, based on a global survey of business enterprises' response to climate change and their activities in relation to water security. The number of respondent companies in the survey was 8,361 for climate change and 2,435 for water security. This was the first time that Kao had been chosen for inclusion in the climate change A List, but the third time that Kao had been included in the water security A List, following on from 2016 and 2019.

"We are honored to have been awarded an A in both climate change and water security. This recognition demonstrates our commitment to driving innovations from an ESG (Environmental, Social and Governance) perspective to help people live more sustainable, Kirei Lifestyles—a beautiful life inside and out." said Dave Muenz, Executive Officer in charge of ESG at Kao Corporation.

Recognizing its responsibility as an enterprise that provides products which people use on a regular basis in their daily lives, the Kao Group takes active steps to reduce the environmental footprint of its products throughout the entirety of the product lifecycle. In April 2019, Kao launched the Kirei Lifestyle Plan, its ESG strategy, which incorporates 19 key leadership actions. By integrating ESG into the core of its company management, Kao will drive business growth and better serve consumers and society through its enhanced products and services.

The inclusion of Kao in the climate change and water security A Lists can be seen as reflecting a positive evaluation of the following points:

● Kao's setting of CO₂ reduction targets for the entire product lifecycle, its "eco together" activities that involve collaboration with various stakeholders, including consumers and business partners, and its proactive disclosure of the climate change related risks and opportunities affecting the business.

● Kao's positioning of water conservation as a key action item in its global ESG strategy, its efforts to reduce water usage in both its domestic and international production facilities and to provide water-saving products, its "eco together" activities that involve collaboration with various different stakeholders, including consumers and business partners, and its proactive disclosure of the water related risks and opportunities affecting the business.

In the future, the Kao Group will continue to implement its unique ESG activities globally, for example by taking active steps in relation to climate change and the safeguarding of water resources, so as to deliver satisfaction and enriched lives for people around the world, and to contribute to the sustainability of society.