Shiseido launches beauty wellness fund while keeping its spot in Dow’s sustainability index

11 Dec 2023 --- Shiseido holds a spot for a third straight year in the Dow Jones Sustainability World Index and the Dow’s Sustainability Asia Pacific Index. The S&P Dow Indices and international asset manager RobecoSAM developed the indices jointly.

In the World Index for 2023, about 3500 global companies were assessed, with the top 10% seen by the Dow as leaders in the ever-growing Environmental, Social and Governance (ESG) space. 

Many companies see this inclusion as an affirmation that their strategies align with global sustainability initiatives and that, hopefully, it will help attract more investment from ESG-conscious investors.

Out of the 321 companies in the World Index, 38 are from Japan, with Shiseido being recognized in all of the following three “dimensions”:

• “Transparency and Reporting” and “Innovation Management” in Governance and Economic Dimension
• “Environmental Policy ＆ Management Systems” and “Product Stewardship” in Environmental Dimension
• “Human Capital Development” and “Talent Attraction ＆ Retention” in Social Dimension

Shiseido says it will “leverage the power of the beauty business — [its] core business — to resolve social issues and contribute to a sustainable world where everyone can enjoy a lifetime of happiness.”

Investing in beauty wellness innovation
Shiseido is also launching a venture fund to dive deeper into the beauty wellness space. The new Shiseido Long Term Investments for the Future (LIFT) Ventures is described as a “vehicle for investing in innovative early-stage companies…[with] novel technologies, innovative platforms, high-growth brands and new business models.”

Shiseido's Shisai Pavilion.The Japanese cosmetics giant says it will focus on advancements “in the Western hemisphere, while maintaining a global lens.”

Shiseido is not wasting any time and says it has already made inaugural investments in Phi Therapeutics. It sees the San Francisco-based company as a pioneer in bacteriophage technology. Shiseido has also funded Patrick Kidd Holdings, a men’s grooming brand from Sydney, Australia.

LIFT Ventures will operate in New York City.

China sales struggle
Shiseido looks to the West at a time when it is seeing much weaker sales from the influential and massive Chinese market. 

Shiseido was recently forced to slash its full-year profit forecast due to weakened demand from China where many consumers seem concerned about the discharge of treated radioactive wastewater at the Fukushima Daiichi nuclear power plant in August. 

Edited by Anita Sharma