Climate Change Data

Daewoong Pharmaceutical Co., Ltd

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:54,875 tCO2eq/year
Scope 1 Emissions:14,582 tCO2eq/year
Scope 2 Emissions:40,293 tCO2eq/year
Total Energy Consumption:1,157,997 GJ/year
Water Consumption:563,596 tons/year
Waste Generated:10,233 tons/year
Carbon Intensity:2.98 tCO2eq/KRW 100 million

ESG Focus Areas

  • R&D and Innovation
  • Drug Safety and Quality
  • Securing Talent and Improving Organizational Culture

Environmental Achievements

  • Reduced energy consumption for three consecutive years to 64.54GJ/KRW 100 Million
  • Reduced carbon emissions for three consecutive years to 2.98tCO2eq/KRW 100 Million
  • Energy cost savings of about KRW 6.6 billion from 2012 to 2022
  • Installation of solar power generation facilities reducing greenhouse gas emissions by approximately 12 tCO2eq
  • Achieved a hazardous waste recycling rate of 95% in 2022

Social Achievements

  • Achieved company-wide zero accidents in 2022
  • Donated 20 million won to children with rare diseases through the Hopeful Steps Campaign
  • Awarded the Best Workplaces 2022 certifications by Great Place to Work (GPTW)
  • Selected as the Supreme Family-friendly Company 2022

Governance Achievements

  • Acquired ISO 37001 Anti-bribery Management System certification
  • Acquired ISO 27001 Information Security Management System certification and ISO 27701 Security Techniques certification
  • Zero problems identified in the Ministry of Food and Drug Safety GCP fact-finding survey

Climate Goals & Targets

Short-term Goals:
  • Improve water reuse rate by 5% annually
  • Reduce energy consumption by 5% annually
  • Reduce GHG emissions by 5% annually

Environmental Challenges

  • Demand for actual reduction beyond declaring carbon neutrality
  • Safety and quality requirements extended for the entire cycle of drug production
  • Increased need for recruiting talented people
  • Demand for the formation of a corporate culture of anti-bribery and transparency
  • Expanding scope of business partner management for building a sustainable supply chain
  • Post-COVID-19, higher expectations for business role in promoting public health
Mitigation Strategies
  • Promotion of eco-friendly management through ISO14001 certification
  • Development of clinical research that complies with international ethical regulations
  • Operating a pharmacovigilance system
  • Promotion of anti-bribery management through ISO37001 certification
  • Establishment of an operating system to promote CP compliance for sales agencies
  • Bolstering R&D capabilities through open innovation and cooperation

Supply Chain Management

Responsible Procurement
  • Strict standards for business partner registration
  • Regular audits of business partners
  • Quality agreements based on supply chain traceability

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB standards, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 27701, ISO 37001

Third-party Assurance: Korean Standards Association (KSA)

UN Sustainable Development Goals

  • Goal 3
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 12
  • Goal 13
  • Goal 17

Activities contributing to these goals are described in the report.

Sustainable Products & Innovation

  • Eco-friendly drug materials
  • Eco-friendly packaging materials

Awards & Recognition

  • Best Workplaces 2022
  • Supreme Family-friendly Company 2022
  • Money Today IR Grand Prize 2021
  • Grand Prize at the Social Contribution Corporate Awards 2022

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:32,971 tCO2e/year (Scope 1+2)
Scope 1 Emissions:9,675 tCO2e/year
Scope 2 Emissions:23,296 tCO2e/year
Renewable Energy Share:2.6% of total energy use (2024 Goal)
Total Energy Consumption:723.8 TJ/year
Water Consumption:327,819 tons/year
Waste Generated:1,126 tons/year
Carbon Intensity:2.57 tCO2e/KRW 100 million (2024 Goal)

ESG Focus Areas

  • Climate Change
  • Drug Safety and Quality
  • Sustainable Supply Chain Management
  • R&D and Innovation
  • Human Rights and Labor
  • Work-Life Balance
  • Workplace Safety and Health
  • Ethical Management
  • Responsible Marketing and Customer Satisfaction

Environmental Achievements

  • Reduced HDPE plastic usage by 1.680 tons through packaging simplification.
  • Achieved 100% LED lighting in factories.
  • Zero exceeding standards for industrial accidents and hazardous substance exposure.

Social Achievements

  • Achieved five awards related to best workplaces (GPTW).
  • Launched Korea’s 34th new drug (Fexuclue) and 36th new drug (Envlo).
  • Received the 2023 Ministry of Employment and Labor Equal Employment Contribution Award.

Governance Achievements

  • Established a group-level ESG committee.
  • Successfully passed ANVISA inspection with zero findings.
  • Obtained ISO27001 and ISO27701 certifications.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
Medium-term Goals:
  • Achieve unspecified renewable energy percentage.
  • Establish a dedicated organization for major accident management.
Short-term Goals:
  • Reduce water consumption by unspecified percentage.
  • Reduce waste volume and increase recycling rates.
  • Install greenhouse gas reduction facilities.

Environmental Challenges

  • Increasing demand for eco-friendly drug materials and packaging.
  • Strengthening of environmental laws and regulations.
  • Increased risk of property damage due to extreme weather events.
  • Potential loss of trust and corporate reputation damage due to inadequate climate change response.
Mitigation Strategies
  • Developing sustainable packaging materials and recyclable materials.
  • Establishing mid-to-long-term environmental goals and regular performance checks.
  • Establishing stability enhancement measures within worksites.
  • Accurate disclosure of environmental performance and goals based on third-party verification.
  • Implementing a systematic response scenario for environmental accidents.

Supply Chain Management

Supplier Audits: 323 partners (2024)

Responsible Procurement
  • Stringent quality assurance and quality control standards.
  • Fair and transparent partner registration system.
  • Regular audits.

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons, heavy rainfall, rising average temperature
Transition Risks
  • Expansion of demand for environmentally friendly pharmaceuticals.
  • Increasing pursuit of supply chain sustainability.
  • Increasing demands from stakeholders for climate change response.
Opportunities
  • Potential to reduce overall carbon footprint through recyclable packaging.
  • Potential to reduce carbon footprint by minimizing the environmental impact of the supply chain.
  • Improvement in reputation and brand value through enhanced climate change response.

Reporting Standards

Frameworks Used: GRI Standards 2021, ISSB, SASB, TCFD, UNGC, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 27701

Third-party Assurance: Korea Management Registrar (AA1000AS v3)

UN Sustainable Development Goals

  • Goal 3: Good Health and Well-being
  • Goal 7: Affordable and Clean Energy
  • Goal 8: Decent Work and Economic Growth
  • Goal 9: Industry, Innovation, and Infrastructure
  • Goal 10: Reduced Inequalities
  • Goal 11: Sustainable Cities and Communities
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action
  • Goal 17: Partnerships for the Goals

Various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Eco-friendly packaging materials.

Awards & Recognition

  • Korea New Drug Development Awards (Envlo, Fexuclue)
  • GPTW awards (Best Companies to Work For, Innovation Leader, Best Companies for Working Moms, Best Companies for Millennials, Most Respected CEO)
  • 2023 Employment Equality Contribution Award
  • Various other awards