Kao Releases Integrated, Sustainability Reports

Kao Corporation has published the Kao Integrated Report 2025 on its website, offering shareholders, investors and all stakeholders with a comprehensive overview of the company’s initiatives and strategic direction.

To achieve its Mid-Term Plan “K27,” Kao says it’s advancing its Global Sharp Top strategy. In FY2024, Kao exceeded its targets by strengthening Return on Invested Capital management and strategically investing to build stronger, more robust businesses.

This report offers an in-depth look at Kao’s progress under K27, highlighting how Kao’s dedicated employees—through the Global Sharp Top strategy and agile scrum team approach—are actively creating new value and driving meaningful impact. It also outlines Kao’s ongoing efforts to take on bold challenges by leveraging its unique scientific expertise to address global social issues and help realize a Kirei world where all life lives in harmony.

Kao hopes the report deepens stakeholders’ understanding and fosters meaningful dialogue and collaboration. Further, the company says it’s committed to actively incorporating feedback and insights from diverse partners as it continues to enhance its positive contributions to society and corporate value.

As part of its Mid-Term Plan K27 and Global Sharp Top strategy, Kao aims to use unique leading-edge technologies to address pressing social and environmental challenges. By aligning ESG initiatives with the Global Sharp Top business strategy, Kao says it’s not only expanding business opportunities and reducing risks but contributing to society and enriching the lives of people and planet in-line with its Kirei Lifestyle Plan.

The skin protection business, the leading initiative of Kao’s Global Sharp Top strategy, improves consumers’ quality of life. Kao was able to significantly grow this business, with a 29% increase in sales year-on-year.

Sustainability Report

Kao the Kao Sustainability Report 2025 on its company website, providing a progress report on its ESG strategy, the Kirei Lifestyle Plan. Ensuring products offer not only offer superior functional and emotional value but social value is the key purchasing driver helping consumers achieve more comfortable and sustainable lifestyles, officials said.

The skin protection business is the leading initiative within the Global Sharp Top strategy, helping to improve consumers’ quality of life by combatting rising ultraviolet (UV) rays, air pollution and other environmental factors that can cause skin damage. There has been an increase in global demand in this area and sales have grown significantly. The product range includes UV care products to protect the skin from UV rays, self-tanning (safe color) products to produce a tanned look without UV exposure, and environmental skin protection such as mosquito repellents. These products harness Kao’s unique technologies to address market requirements —not just in Japan, but also Asia, Europe and the Americas.

Part of the ESG strategy is a commitment to “making the world healthier and cleaner.” Sales of products meeting Kao’s strict environmental conformity requirements are increasing, officials report. Just like last year, this rise is attributed to an increase in conforming products in the Attack laundry detergent and CuCute dishwashing detergent brands, which make up a high percentage of total sales and boast excellent environmental performance. Increased sales and market share for these brands also contributed to sales figures for the fabric and home care business.

Kao is committed to sustainably sourcing palm oil, its most important natural resource. Traceability is essential to minimize environmental and human rights risks in the supply chain and to ensure a stable supply of raw materials. Achieving a traceability rate of 88% demonstrates steady progress towards building a sustainable palm oil supply chain.
Accelerating its efforts to reach carbon zero by 2040 and become carbon negative by 2050, Kao is helping to achieve a decarbonized society by introducing low-carbon facilities, expanding the use of renewable energy and reducing CO2 emissions throughout the entire product lifecycle.

Kao has been selected as an A-List company, the highest rating awardable, in all three surveys of Climate Change, Forests and Water Security, carried out by the international non-governmental organization CDP on more than 24,800 companies worldwide. Kao was one of eight companies to achieve the Triple-A rating in 2024 and is the only company in Japan to be selected for five consecutive years.

In recognition of the ethical culture that the company fosters, Kao has been selected by Ethisphere, a global leader in defining and advancing the standards of ethical business practices, as one of the World’s Most Ethical Companies 2025. Kao is one of only six companies worldwide and the only Asian company to have received this award for 19 consecutive years since it was established in 2007.