Policy and Basic Approach

Our basic philosophy on sustainability is “Sustainability for Smiles.” Sanrio values the spirit of caring, supporting and helping one another based on the belief since its founding that “no one can live in isolation.” We will continue to co-create smiles that will last for generations to come through our efforts to be close to all people and societies around the world.
In October 2004, we also codified our principles of behavior of not stealing from others, not engaging in violence, not engaging in deception, following the law, and employees working together in harmony as the Sanrio Compliance Charter, which serves as a universal code that all Sanrio Group officers and employees are required to comply with and practice.
We are also actively addressing environmental issues such as climate change as well as issues related to respect for human rights, consideration of employee health and work environments, fair and appropriate treatment of employees, fair and appropriate transactions with business partners, and management of natural disasters and other crises as issues that affect our sustainability. We view these as critical management issues that both reduce business risk and increase profit opportunities and as areas that will enhance our corporate value over the longer term. While monitoring our activities in terms of the basic philosophy and principles of behavior, we also seek to ensure the sustainability of our business activities with self-assessments of our ESG status.

Strategy

To achieve our corporate philosophy of Minna Nakayoku, which means Getting Along Together, and continue sustainably enhancing our corporate value over the long term, we analyzed the business environment with a view to 2035 and identified "Sanrio Materiality," 10 key global issues that we will work to resolve from the two perspectives of value creation and ESG.
For more information, please refer to Sanrio Materiality

Structure and Governance

Sanrio has long approached sustainability as a management issue including consideration of environmental and social issues, labor practices, and human rights, based on our corporate philosophy, “Minna Nakayoku” (Getting Along Together). With the aim of contributing to the realization of a sustainable society as a Group, we have identified 10 key issues as Sanrio Materiality that we will focus on as a company and are actively addressing these issues from the perspective of improving corporate value. The Sustainability Committee was established to strengthen the Group's sustainability management initiatives. The committee is chaired by the President and CEO and vice-chaired by the Director of the Corporate Strategy Division. The committee consists of members selected from each department as well as officers in charge of the Human Resources Division and Sales Division, and presidents of group companies. The committee holds regular discussions (four times a year) on measures, policies, and the status of initiatives related to environmental issues, such as climate change, including identifying and updating items related to sustainability, and social issues, such as diversity, labor conditions, and human rights.

Important matters are deliberated and discussed at management meetings and reported to the Board of Directors (four times a year). The Board of Directors is responsible for overseeing the setting of targets and the progress of measures.

Sustainability Promotion Structure

Risk management

We maintain the Sanrio Joint Compliance Committee as a meeting body to manage risks from a company-wide perspective. The committee is composed of a chairperson (managing executive officer responsible for the Internal Control Division and Human Resources Division), a vice-chairperson (managing executive officer responsible for the Corporate Management Division), an outside director who does not serve as an Audit and Supervisory Committee member, an outside director who serves as an Audit and Supervisory Committee member, and an outside attorney. The Sustainability Committee also monitors sustainability risks, and if any risks that require a response are discovered, the committee works with the Sanrio Joint Compliance Committee to consider and implement appropriate countermeasures.
For more information, please refer to Risk Management

Metrics and targets

For more information, please refer to Sanrio Materiality

Main initiatives

Stakeholder engagement

The Sanrio Group applies its corporate philosophy of Minna Nakayoku (Getting Along Together) by actively creating opportunities for dialogue and by seeking to maintain and build good relationships with all stakeholders.

Main Activities for Stakeholders

Stakeholder	Initiative	Frequency
Customers	Sanrio Gift Gate stores	Daily
	Theme parks	Daily
	Sanrio online shops (Japanese)	Daily
	Communication via social networking	Daily
	Sanrio character ranking	Annually
	SANRIO Festival	Annually
	SANRIO Virtual Festival in Sanrio Puroland	Annually
	Portal website	As needed
	Corporate website	As needed
	Contact Center (Japanese)	Daily
Shareholders and investors	General Meeting of Shareholders	Annually
	Financial results meetings	Twice annually
	Briefing sessions for individual investors (domestic)	As needed
	Meetings with domestic and foreign investors	As needed
	Visits to foreign investors	As needed
	Shareholder relations interviews	As needed
	Small meeting with managers, including the president	As needed
	Conferences hosted by securities companies	As needed
	Facility tours for institutional investors	As needed
	Annual Securities Report (Japanese)	Annually
	Corporate Governance Report	Annually
	Integrated Report	Annually
	Responses to surveys from investors and valuation organizations	As needed
	Corporate website	As needed
Domestic and Overseas Business Partners (Suppliers, Licensees)	Fair and equitable transactions	Year-round
	Supply chain management	Year-round
	Sanrio Supplier/Licensee Code of Conduct	Year-round
	UK Modern Slavery Act Statement	Year-round
Local communities, NPOs/NGOs, future generations	Sanrio Nakayoku Project	Year-round
	Participation in KEIDANREN (Japan Business Federation)	Year-round
	Cooperation with the United Nations (UN)	As needed
	Participation in the Shinagawa CSR Promotion Council	As needed
	Contribution to the promotion of sports	Year-round
	Company visits for middle and high school students	Irregular
Employees	Human resources development	Daily
	President's Dialogue	Irregular
	Publication of the T'smart monthly newsletter from the president	Monthly
	Communication via the company intranet	Daily
	Consultation desks	Daily
	Engagement survey	Twice annually
	Stress checks	Annually