Initiatives to Improve the Value of Human Capital
Under our 9th Medium-Term Business Plan, we will implement management and governance structured around the dual axes of Regions and Functions.
We have transitioned from a structure where business divisions were segmented by region and brand to a new system that generates synergies between the Pigeon and Lansinoh brands within each region.
Regarding functions, each specialized department will now support the execution of business strategies through a global, cross-functional framework.
Consequently, our employees are expected to collaborate with colleagues from diverse backgrounds and values across various countries and regions. Together, we will embrace new methodologies and value creation, executing our strategies as "One Pigeon" to realize our corporate Purpose. While maintaining and enhancing our corporate culture—defined by a deep resonance with our Purpose—we will strategically invest in the human capital necessary to execute this medium-term plan. This will increase the probability of strategic success while fostering employee growth and engagement.
■ Desired Candidate Profile
In alignment with our Spirit, we have defined the specific actions and mindsets expected of our employees to successfully execute the 9th Medium-Term Business Plan.
■ Four Pillars of Strategy and KPIs
Previously, our business was driven by business divisions separated by region and brand. Under that structure, each division operated independently across development, procurement, production, and sales. However, from the perspective of global optimization, this led to challenges in organizational structure, human resource development, and productivity.
To enhance the likelihood of achieving our medium-term goals through our people and organization, we have established the following pillars for our human resources strategy. We will implement measures in a timely manner and have set key performance indicators (KPIs) to monitor progress and measure outcomes.
- DE&I Promotion: We will promote Diversity, Equity, and Inclusion (DE&I) within our executive ranks to ensure decision-making is based on diverse values and perspectives as we expand globally. Furthermore, we will increase diversity among managers in Japan, which currently lags behind our global standards.
- People: To strengthen and expand the leadership pipeline driving our strategy, we will implement individualized development programs for candidates in core positions based on our succession plan.
- Organization: While optimizing our organization globally, we will enhance digital skills and streamline business processes to improve overall labor productivity.
- Culture: While maintaining a strong resonance with our Purpose, we will create opportunities and systems that allow employees to take on new challenges, fostering a culture where they spontaneously "learn and challenge themselves."
Pillars of Human Resource Strategy and KPIs for Realizing the New Medium-Term Business Plan
Execution of Strategy and Governance Framework
The Pigeon Group includes its human capital strategy as one of the agenda items for the Board of Directors, which deliberates on the human capital strategy and supervises and monitors the status of its execution.
To understand the conditions and challenges of employees and organizations globally, and to implement governance for each business unit, we have, as a first step, assigned representatives from the Human Resources Department to each business unit. Moving forward, we will regularly hold a "People Strategy Leaders Meeting" attended by these Human Resources representatives to share information and discuss and implement measures to address common global HR issues.
Engagement
The Pigeon Group believes that when diverse employees—each possessing unique values, perspectives, and high levels of expertise—work with high engagement and vitality, it directly leads to the enhancement of both economic and social value. To measure the state of employee engagement, we have been conducting a Global Engagement Survey since fiscal year 2023. Given the high correlation between resonance with the "Pigeon Way" and the connection to our corporate Purpose, we have integrated our own original questions into the standard survey provided by Gallup.
In 2025, our engagement scores showed year-on-year improvement; however, they fell slightly short of our targeted KPIs. While scores regarding resonance with our Purpose remain high, the results indicate significant "room for growth" in areas related to Psychological Safety. During the period of the 9th Medium-Term Business Plan, we will intensify our efforts to foster a culture that enhances psychological safety, aiming to drive even higher levels of employee engagement.
Performance against Indicators and Targets in the 8th Medium-Term Business Plan
Under our Purpose—"We want to make the world a more baby-friendly place by furthering our commitment to understanding and addressing babies’ unique needs"—the Pigeon Group strives to enhance corporate value while contributing to the development of a sustainable society through our business activities.
We recognize that our employees are the greatest source of corporate value creation. To clearly demonstrate how we leverage human capital—one of our core drivers of value—to enhance both economic and social value, we have formulated our Human Capital Value Creation Story.
To address our material issues (materiality), we established four strategic pillars and executed eight specific measures:
・Creating a rewarding workplace where employees can achieve self-fulfillment and growth.
・Expanding investment in human resources.
・Promoting DE&I (Diversity, Equity, and Inclusion).
・Cultivating an environment where everyone can take on challenges and thrive in their own unique way.
Metrics and Targets
Pigeon is promoting initiatives aimed at maintaining and improving various metrics toward realization of the key issue of “Managing talent and cultivating the right culture for our Purpose.”
*The survey on engagement covers Pigeon Corporation, Pigeon (Shanghai) Co., Ltd., and Pigeon Singapore Pte. Ltd.
*The target values listed above, excluding the engagement score, are for Pigeon Corporation.
*The rate of paternity leave taken during the fiscal year is determined based on a calculation method publicly disclosed by the Ministry of Health, Labour and Welfare.
*The average number of paternity leave days taken represents the average duration of parental leave taken by male employees before the child reaches the age of one year and six months during the reporting period.