FANCL Group

Yokohama, Japanwww.fancl.jp/
Invested through
  • Triodos Global Equities Impact Fund
  • Triodos Impact Mixed Fund - Defensive
  • Triodos Impact Mixed Fund - Neutral
  • Triodos Impact Mixed Fund - Offensive
Asset ClassesListed equity
Impact strategyImpact Equities and Bonds
Bloomberg ticker4921 JP
ISIN codeJP3802670004
Industry groupHousehold & Personal Products
Aligned with SDGs
  • Good health and well-being

Fancl develops, manufactures and sells additive-free, preservative-free and chemicals-free skincare products, cosmetics, nutritional supplements and agricultural products. The company is active through two main segments: the cosmetics business (57% of sales) and nutritional supplements business (36% of sales). The cosmetics business includes basic skin care and cleansing creams, hair care goods such as shampoos and conditioners, and facial make-up products. The nutritional supplements business manufactures and distributes nutritional supplements and health foods.

Fancl was founded in 1980 and has 1,300 employees.

Investment rationale

All products of Fancl are free of preservatives, fragrances, artificial colors, petroleum surfacants, and ult-absorbing agents. While preservatives play an essential role in ensuring that cosmetic formulations remain safe via control of microbial contamination, certain preservatives can cause skin problems and irritation.
To make sure its products will last Fancl uses smaller packages that are hermetically sealed to keep the ingredients fresh and effective. And the company is actively promoting re-filling systems to minimize waste and is increasingly using bio-based packaging.

Fancl also has a good fit with the Sustainable Food & Agriculture theme. In the supplement business Fancl manufactures and sells supplements and food product with health benefits that are approved under the Japanese Food with Functional Claims (FFC) certification. In Japan claiming health benefits on food products is only allowed under the FFC certification and the claims need to be backed up by scientific research or evidence.

To ensure safety, reliability and functionality Fancl has researched and developed its ingredients and products in its own research laboratories for over 40 years. The company does not conduct animal testing.