CSR

TOP COMMITMENT

Yoshinori Iwase

President and Representative Director

Iwase Cosfa Co., Ltd.

Iwase Cosfa Corporation was founded in 1931 by Kenjiro Iwase, who adhered to the traditional philosophy of the Omi merchants, the “Sanpo Yoshi”. During its 90 years of existence, the company have been striving to contribute to society through the development of its corporate business, by respecting its corporate philosophy of “Harmony and Progress”, and its corporate ethics of “Giving greater happiness to a greater number through beauty and health”.

During the 21st century, various values and questions have emerged concerning the importance for companies to contribute to society.

To this date, Iwase Cosfa has been working on several responsible projects, such as developing a comfortable work environment, promoting ISO 14001’s environmental conservation activities as well as enhancing ISO 900’s customer satisfaction and corporate governance, contributing to local communities and providing honest information about its products.

From now on, the company will pursue its sustainable activities by promoting corporate social responsibility based on the following seven items:

① Corporate Governance

② Human Rights

③ Work Conditions

④ Environment

⑤ Compliance

⑥ Consumer Rights

⑦ Contribution to Local Communities

To that end, we will implement considerations to social responsibility in our management policy and communicate openly about it. The CSR Promotion Office will be established in order to ensure this implementation.

Based on our corporate philosophy, we will work together to promote CSR activities.

Download our full CSR Report – 2022

IWASE COSFA SUPPLIER : CODE OF ETHICS

Established in December 2019

1. CSR Promotion, Social Contribution and Organizational Governance

・ Promote CSR activities by accurately recognizing your social responsibility and the impact of your corporate activities on society

・ Respect stakeholders and consider their CSR, thereby contributing to the sound and sustainable prosperity of society as a whole

・ Create a system that reflects CSR perspectives in management decision-making and actively work on organizational governance

2. Legal Compliance, Fair Trade and Corporate Ethics

・ Conduct business fairly and impartially and do not violate international and social norms

・Comply with laws and regulations of each country (commercial law, antitrust law, subcontract law, labor relations law, personal information protection law, foreign exchange law, etc.)

・ Comply with laws and regulations regarding the import and export of goods, establish a clear management system, and carry out appropriate import and export procedures

・ Prohibit bribery of all interested parties (illegal gifts, payments, consideration, monetary or non-monetary benefits, etc.)

・ Block any relationship with antisocial forces. Providing capital and responding to unjust demands from such forces shall also be prohibited

3. Respect of Human Rights, Labour, Safety and Health

・ Prevent inhumane treatment such as discrimination and harassment regarding nationality, race, beliefs, social status, gender, age, religion, lineage, disability, marriage, pregnancy, childcare/nursing, sexual orientation, etc. Implement measures such as training for that purpose

・ Prohibit all discrimination and human rights violations such as child labor, slave labor, forced labor, abuse and human trafficking

・ Regarding conflict minerals, promote responsible procurement and refrain from using them as a matter of principle

・ Comply with laws and regulations regarding occupational safety and health, and strive to achieve a safe and comfortable workplace by appropriately managing the health of all employees

・ Prevent long working hours by managing working hours and paying appropriate wages

・ Recognize workers’ right to organize and bargain collectively, make efforts to resolve labor disputes, and regularly communicate with workers and worker representatives

4. Environmental Protection

・ Make efforts to preserve the environment, such as complying with environmental standards stipulated by laws and regulations, and conduct proper disposal of industrial waste

・ Pursue energy efficiency and resource consumption minimization as a countermeasure to climate change. In addition, grasp the current state of greenhouse gas emissions at a corporate level and work to reduce them

・ Establish environmental policies and work on obtaining certification for environmental management system standards such as ISO14001

・ Promote green procurement and green purchasing to reduce environmental impact

・ Promote biodiversity conservation initiatives such as nature conservation

5. Quality and Safety Assurance

・ Promote quality assurance activities such as obtaining certification for quality management system standards (e.g. ISO9001) and strive to make continuous improvements

・ Meet the safety quality standards and industry standards established in each region. In addition, properly manage the chemical substances contained in products, comply with laws and regulations, work to reduce possible risks and ensure product safety

6. Confidential and Information Security measures, Intellectual Property Protection

・ Acquire confidential information and personal information in a legitimate way and manage it appropriately to prevent leakage and loss of information

・ Protect and respect the intellectual property rights of third parties and ensure compliance with relevant laws and regulations to avoid infringement

7. Information disclosure, Communication and Community

・ Timely disclose the details of your business activities, financial status, business performance and risk information to stakeholders and strive to build collaborative relationships based on trust

・ Establish and maintain a system (e.g. consultation/reporting contact, etc.) which protects consultants and whistleblowers, and which allows them to be consulted and to report without fear of retaliation

・ In communities where business activities are conducted, actively contribute to local communities by utilizing the company resources to implement support activities after having determined their range, with the aim of promoting dialogue with residents and engaging with the community

※In order to enhance the value of the entire supply chain, you must take proactive measures, communicate the contents of this code to your business partners, promote compliance and verify its sound application. We request your understanding and cooperation so that we can work together on CSR.

Iwase Cosfa will conduct a questionnaire to monitor your commitment to CSR initiatives. Based on the results of the survey, we may request suppliers with issues to make improvements.

Download our Supplier Code of Ethics

IWASE COSFA MODERN SLAVERY STATEMENT (FY 2019)

This statement has been published in accordance with the UK Modern Slavery Act 2015. It sets out the steps taken by Iwase Cosfa Corporation and its subsidiaries (hereafter the “Iwase Cosfa Group”) during the financial year ending December 2019 to prevent slavery and human trafficking in its business and supply chain.

1. Business overview, Organization and Supply Chain

Iwase Cosfa has been supplying raw materials to a wide range of fields from pharmaceuticals cosmetics to health foods since its founding in 1931.The Iwase Cosfa Group consists of 8 companies worldwide, including Iwase Cosfa Europe SAS which regularly conducts business with the UK. Iwase Cosfa employed 247 employees as of the end of FY2019.

Regarding the sourcing of raw materials, the Iwase Cosfa Group procures through multiple business partners in the global market (more than 500 companies as of the end of FY2019).

2. Iwase Cosfa’s policies in relation to human rights

The Iwase Cosfa Group fulfills its responsibilities as a member of society by advocating its corporate philosophy of “Giving greater happiness to a greater number through beauty and health”. The Iwase Cosfa Group also entirely opposes slavery and human trafficking in its business and supply chain operations.

In December 2016, Iwase Cosfa signed the Charter of corporate behavior of the Keidanren (Japanese Business Federation), which obliges signatories to respect human rights. Additionally, Iwase Cosfa’s “Compliance Charter” was established, stipulating that all executives and employees of the company must observe human rights. It also specifically states the Company’s support for and compliance with laws and regulations prohibiting forced, compulsory, and child labor.

In November 2019, The Iwase Cosfa Group signed the United Nations Global Compact and endorsed its principles. In regard to human rights, the Compact states that “Businesses should support and respect the protection of internationally proclaimed human rights” and “make sure that they are not complicit in human rights abuses.”

3. Due Diligence

The Iwase Cosfa Group recognizes that its supply chain may be exposed to the risk of human rights violation. Thus, as part of its initiative to identify risk and ensure supplier adherence to its values, it has taken the following steps across the Iwase Cosfa Group.

The Iwase Cosfa Group has created a “Supplier Code of Ethics” in order to ensure appropriate business operations and to increase its supply chain’s values.

The terms of the Iwase Cosfa Supplier Code of Ethics prohibit:

• All forms of discrimination and human rights violations, including child labor, slave labor, forced labor, abuse and human trafficking
• Promote responsible procurement and do not use conflict minerals as a principle.

We believe such practices will enable us to mitigate the risk of slavery and human trafficking in our entire supply chain.

The Iwase Cosfa Supplier Code of Ethics is publicly available on the Iwase Cosfa Corporate website.

We will work to collect signatures of our Code of Ethics from at least 50% of our major suppliers.

4. Evaluation and Control of Risks

At the Iwase Cosfa Group, risks are evaluated and controlled by the Compliance Committee established in accordance with the Group Compliance Promotion Regulations. Modern slavery and other risks to human rights will be evaluated and controlled under this framework.

5. Monitoring Framework

The Iwase Cosfa Group has several means for reporting and addressing concerns regarding modern slavery. A Compliance Promotion Office has been set up and a whistle-blowing system has been established, allowing employees to confidentially report any suspicions of wrongdoing (which extends to human-rights violations) through internal and external hotlines.

In addition, we conduct a survey for each of our supply chain’s companies, in order to monitor their commitment to CSR, as well as their respect to human rights. Based on the results of the survey, we may request suppliers with issues to make improvements.

In the course of monitoring the situation within the Iwase Cosfa Group, it has not received any information concerning any issue of child labor or forced labor.

6. Trainings

The Iwase Cosfa Group implements training for new employees on compliance so that they are familiarized with and fully comply with the Iwase Cosfa Groupe Compliance Charter.

Moreover, a Compliance Handbook containing the Compliance Charter has been distributed to all officers and employees to ensure thorough awareness and to make the Charter easily accessible.

Iwase Cosfa believes that the promotion of respect for human rights is an important task in sustainability. Going forward, Iwase Cosfa will continue to take action to prevent modern slavery from arising.

I, Yoshinori Iwase, hereby certify that the content of the “FY2019 Slavery and Human Trafficking Statement” is true and has been approved by Iwase Cosfa’s Board of Directors.

January 16, 2019

Yoshinori Iwase

President and Representative Director

Iwase Cosfa Co., Ltd.

Download our Modern Slavery Statement

CHARTER OF COMPLIANCE

Objectives

Article 1. The Compliance Standards stipulate matters that you should observe when acting on behalf of Iwase Cosfa or as an individual affiliated with the company in the performance of your duties. The top priority of the company is to carry out its business based on these Compliance Standards.

Definition

Article 2. Compliance means abiding by relevant laws and regulations, as well as internal rules and business etiquette, and taking responsible actions in accordance with social rules. Iwase Cosfa gives the highest priority to compliance when executing business. In addition, regarding international indicators, the Group promotes the SDGs (Sustainable Development Goals) that were adopted during the UN Sustainable Development Summit of 2015, the 10 Principles of the UN Global Compact related to 4 domains (Human rights, Labour, Environment, Anti-Corruption), the ETI (Ethical Trading Initiative) Charter, and the Section 54 of the Modern Slavery Act 2015.

Target

Article 3. The Standards apply to all executives and employees of Iwase Cosfa (including contract employees, commissioned employees, seconded employees, temporary workers, and other persons engaged in the company’s operations).

Charter Standards

Article 4. Iwase Cosfa’s Charter standards are as follows:
1. Maintain high business ethical standards and respect human rights
・Be aware of being a member of the international community, maintain high ethical standards and act with good business sense whilst taking responsibility for your actions;
・Respect fundamental human rights and do not discriminate based on ethnicity, beliefs, gender, social status, religion, nationality, age, physical or mental disabilities, etc.
・Recognize employees’ rights to organize trade unions and bargain. In addition, promote regular communication between executives and employee representatives.
2. Work environment
・Respect others mutually so that all executives and employees can fully display their abilities and build a creative, efficient, and comfortable work environment where freedom of opinion is ensured;
・Refrain from performing acts that violate public order and morals such as sexual harassment and workplace bullying;
・Strive to keep the work environment clean and safe and prevent work-related accidents. Workers should also aim to maintain their own health.
3. Comply with laws and regulations and prohibit illegal activities
・Strictly observe and comply with law and regulations;
・Do not perform any illegal acts, including premeditation;

・Do not instruct, order, instigate, or force other executives or employees to perform illegal acts;
・Do not permit or give explicit or implicit approval to other executives or employees to perform illegal acts.
4. Sales activities
・Deal sincerely, justly, and fairly with all business partners and conduct transactions under appropriate terms and conditions;
・Conduct business activities in accordance with sound business practices and social norms, as well as in compliance with laws and ordinances.
5. Avoid conflicts of interest and ensure the separation between public and private life.
・Do not use the company’s resources and information for purposes other than business;
・Do not cause damage to the company or serve your own or third parties’ interests by using the company’s information inappropriately, whether during your service at the company or after retirement;
・Do not engage in any other occupation of a professional nature without the company’s approval;
・Do not acquire shares in unlisted business partners or in entities in which Iwase Cosfa has invested or is considering investing.
6.Exchange of gifts and entertainment
・Do not provide public officials or their equivalents with money, gifts, entertainment, or other economic benefits;
・Do not make payments to agents, advisors, consultants, etc. if such payments are expected to be used for illegal approaches to public officials or their equivalents;
・Do not exchange with executives or employees of business partners money, gifts, entertainment or other economic benefits that exceed socially accepted standards. Regarding monetary standards, do not make exchanges worth more than 1000 US dollars.
7. Handling of information
・Keep the company’s confidential information and customer information under strict control and do not divulge it to third parties. Do not use such information for purposes other than Iwase Cosfa’s business;
・Strive to protect personal information and do not divulge it or use it for purposes other than the ones it was meant for;
・Handle confidential information disclosed by third parties in the same way as Iwase Cosfa’s confidential information;
・Do not violate the intellectual property rights of others, such as copying computer software programs without permission;

・If you happen to know important facts about Iwase Cosfa or its business partners which might significantly affect investors’ investment decisions, do not sell or buy shares of the company in question until the information is released in order to prevent insider trading problems;
・Do not engage in unfair competition by obtaining or using others’ confidential business information inappropriately.
8. Internal controls
・In principle, meetings of the Board of Directors and the Management Council shall be held once a month. The Board of Directors shall promptly make decisions on important matters related to management, based on relevant laws and regulations and in accordance with management principles and managers’ duty of care. The Management Council shall coordinate the execution of business operations, deliberate on matters related to management, and propose it to the Board of Directors;
・Minutes, ringisho (documents circulated for approval by all meeting members), forms and other key documents for important meetings such as the General Meeting of Shareholders and the Board of Directors shall be stored and managed appropriately in order to allow direct and immediate consultation.
9. Company’s funds and accounting

・Manage the company’s funds and assets appropriately and use them only for legitimate business purposes. Do not hold off-the-book funds and assets;
・Keep the accounting of funds and assets accurate at all times and report it appropriately in time. Do not make false or misleading book entries;
・Implement internal control systems for sales and accounting and correct them continuously as required in order to ensure appropriate accounting and to maintain the reliability of financial and accounting reports.
10. Political donations
・Comply with the Japanese Political Funds Control Act of 1948 and other related laws and regulations and apply a formal method when making political contributions and donating funds to associations or other organizations.
11. Contribution to society
・Strive to maintain harmony with local communities as well as communities inside and outside Japan, build friendly relationships with stakeholders, and contribute actively to building an affluent and enjoyable community both in Japan and around the world.
12. Environmental protection
・Comply with laws and regulations regarding environmental protection and actively engage in environmental protection through activities aimed at maintaining ISO14001 certification.

13. Response to antisocial forces
・Do not seek out easy monetary solutions if you receive unreasonable demands from antisocial forces;

・Do not conduct any transactions with antisocial forces and business partners associated with such forces.
14. Elimination of forced and child labor
・Comply with international standards and treaties advocated by the United Nations and the International Labor Organization (ILO), as well as the Japanese Labor Standards Act of 1947. All forms of forced labor and child labor being harmful, dangerous and hindering the sound development of children, business partners shall not be allowed to engage in such practices. Do not purchase raw materials and products produced by such labor.
15. Reporting and disciplinary measures
・If you discover that an executive or employee performed or is suspected of performing an act that violated any of the Compliance Standards, you must report to or consult the Secretariat of the Compliance Committee (Compliance Promotion Office) or the internal or external section of the Compliance Counter;
・Executives and employees must fully cooperate in investigations into such violations.

Education and guidance

Article 5. The Company, executives as well as other positions shall be responsible for observing the Code, provide appropriate training for employees to comply with the Code, and provide guidance and supervision.Actions regarding violation
Article 6. If an investigation reveals a violation has been committed by an executive or an employee, the offender as well as the supervisor may be subject to disciplinary measures in accordance with the employment rules of the company. The company and the management shall not unfairly treat executives and employees who have reported any violations, as well as executives and employees who have cooperated with the initial internal investigation. In addition, reporting parties must not subject themselves to such unfair treatment.

Revision

Article 7. The revision of this Charter will be drafted by the Compliance Promotion Office and will be implemented by resolution of the Board of Directors after consultation of the Compliance Committee.

Download our Charter of Compliance

CDP : Carbon Disclosure Project

Iwase Cosfa receives “B” rating from the CDP for actions taken to prevent global warming.

In 2020, Iwase Cosfa has taken part for the second time to the CDP (formerly known as the Carbon Disclosure Project). Every year, the CDP analyzes several thousand companies worldwide regarding their strategic approach to the issues of climate change and rates their climate management activities based on a comprehensive list of criteria.

Iwase Cosfa obtained a B rating, which ranks higher than the Asian regional average (D), assessed peer companies average (C) and the global average (C).

The B rating lands in the “Management” band and indicates that the company is taking coordinated action on climate issues.

Iwase Cosfa aims to continue to be an environmentally responsible organization, making continuous improvements in managing the impact that its operations have on the environment. The Group will further develop its energy and CO2 reporting, responding to calls from stakeholders for greater transparency and comparability in its reporting on CO2 emissions.

RSPO : ROUNDTABLE ON SUSTAINABLE PALM OIL

Iwase Cosfa is member of the RSPO since 2017. You can see it on the RSPO website.

ECOVADIS

Iwase Cosfa received the Ecovadis gold medal in 2022 !

PARENT CHARTER

Iwase Cosfa signed and recognizes the parent charter of corporations.

DIVERSITY CHARTER

Iwase Cosfa signed and recognizes the Diversity Charter.