Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Conservation
• Human Resource Management
• Corporate Governance
• Compliance

Environmental Achievements

• Reduced greenhouse gas emissions by 9.1% from FY2022 to FY2023
• Reduced greenhouse gas emissions by approximately 77% compared with conventional transportation methods through modal shift in pharmaceutical transportation (around 352 t-CO2 reduction annually)
• Introduced renewable energy in-house power generation facilities (roof-top solar panels) at Hanshin ALC
• Switched to eco-friendly electric power at 25 facilities
• Introducing EVs to reduce greenhouse gas emissions associated with in-house fuel consumption

Social Achievements

• Introduced a talent management system in April 2023 to centralize, visualize, and analyze HR data
• Improved employee engagement through various initiatives, including talent management system and work-life balance support
• Increased proportion of female employees to 35.3% (as of March 31, 2023)
• Improved “period presenteeism” by 7.5pt (from 56.9% to 64.4%) and significantly reduced the impact of menstrual-related discomfort on daily life (from 68.1% to 18.2%) through the Shift P medication support system
• Received the highest level of Eruboshi Certification (three stars) for promoting women's activity in business (MEDICEO CORPORATION, ATOL CO., LTD.)
• Recognized as a “2023 Certified Health & Productivity Management Outstanding Organization”

Governance Achievements

• Declared support for TCFD recommendations in October 2022
• Established a Nomination and Compensation Committee in March 2020
• Established a Corporate Compliance Office in June 2020
• Established a Compliance Committee in January 2021
• Improved Board of Directors effectiveness through periodic verification and implementation of improvement measures
• Increased ratio of female directors to 33.3%
• Increased ratio of independent officers to 41.2%

Climate Goals & Targets

Environmental Challenges

• Securing a labor force in the distribution field due to declining population
• Potential for significant increase in employee-related costs
• Risks related to natural disasters (earthquakes, typhoons, pandemics)
• Risks associated with traffic accidents
• Climate change related risks (cost increases, supply shortages)
• Maintaining appropriate inventory levels to reduce product returns

Mitigation Strategies

• Boosting efficiency through labor-saving measures and workstyle reform
• Establishing crisis management systems and a Business Continuity Plan (BCP)
• Introducing vehicles with safety features and promoting safe driving
• Developing alternative sourcing strategies
• Building mutual coordinated distribution center functions and running disaster drills
• Implementing various measures to ensure reliable product delivery during emergencies
• Coordinating across the supply chain to maintain appropriate inventory levels and reduce product returns

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Intensifying extreme weather
• Changes in flooding and weather patterns

Transition Risks

• Government policies (carbon taxes)
• Changes in energy prices

Opportunities

• Growing demand for ethical products, alternative foods, health foods
• Growing need for environmentally friendly distribution model

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• Low Carbon Logistics Award
• 20th Green Logistics Partnership Conference Special Award
• Special Award at the 24th Logistics Environment Awards
• 2023 Certified Health & Productivity Management Outstanding Organizations Recognition Program