Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor Practices
• Environment
• Fair Operating Practices
• Community Involvement and Development
• Governance

Environmental Achievements

• Reduced CO2 emissions by 26% from fiscal 2005 level (fiscal 2011)

Social Achievements

• Launched the Takeda Initiative, a 10-year endowment program to support the Global Fund to Fight AIDS, Tuberculosis and Malaria
• Established the Takeda Leadership Institute
• Held Takeda Global Awards for employees
• Implemented the Takeda Well-Being Program

Governance Achievements

• Formulated the Takeda Anti-Corruption Global Policy
• Joined the United Nations Global Compact LEAD program
• Participated in the International Integrated Reporting Council (IIRC) Pilot Program

Climate Goals & Targets

Environmental Challenges

• Impending loss of patent protection on certain leading products
• Strong yen, rising energy costs, and intensified global competition
• Governmental policies to reduce medical costs and the rise of generic drugs in developed markets
• Political unrest in some emerging markets
• Counterfeit drugs

Mitigation Strategies

• Acquisition of Nycomed to expand market presence and strengthen business base
• Focus on R&D in core therapeutic areas and new product launches
• Cost reduction and business model restructuring
• Strengthening of internal controls and compliance
• Formulating the Three-Year Plan for Anti-Counterfeit Measures

Supply Chain Management

Supplier Audits: 209 companies

Responsible Procurement

• Takeda Global Code of Conduct
• Guidelines for Socially Responsible Purchasing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, AA1000, ISO 26000, UNGC, IIRC

Environmental Metrics

ESG Focus Areas

• Access to Healthcare
• Value Chain Management
• Organizational Governance
• Human Rights
• Labor Practices
• The Environment
• Fair Operating Practices
• Consumer Issues
• Community Involvement and Development

Environmental Achievements

• Reduced CO2 emissions from energy sources across the Group by 22% from fiscal 2005 levels by fiscal 2012
• Reduced the amount of waste for final disposal at Takeda Pharmaceutical alone to 29 tons (down 40% compared with fiscal 2010)
• Achieved zero-emissions targets at the Osaka and Hikari plants in fiscal 2009 and maintained efforts
• Reduced the Group’s reported atmospheric release of PRTR substances in Japan by 28% from fiscal 2010 level by fiscal 2012
• First in the Japanese pharmaceutical industry to adopt bio-polyethylene bottles derived from natural plant sources for AZILVA packaging

Social Achievements

• Launched Takeda Well-Being Program supporting Japanese children in long-term treatment and their families
• Launched Takeda Initiative, a 10-year grant program supporting the Global Fund to Fight AIDS, Tuberculosis and Malaria
• Launched Takeda-Plan Healthcare Access Program supporting improved access to healthcare services for children in Asia
• Increased percentage of women in managerial positions in Japan from 2.1% (fiscal 2011) to 2.5% (fiscal 2012)
• Implemented WILL Female Development Acceleration Program to nurture female leaders

Governance Achievements

• Established Global Compliance Office and Global Compliance Committee to promote compliance
• Formulated Takeda Global Code of Conduct and Takeda Anti-Corruption Global Policy
• Established a Global Crisis Management Committee to coordinate responses to major crises
• Implemented the Control Self Assessment (CSA) program for internal control assessment
• Established a Global Human Resources Officer position to oversee HR divisions at all Group companies

Climate Goals & Targets

Environmental Challenges

• Water scarcity in some regions due to global business expansion
• Increasing CO2 emissions due to business growth
• Counterfeit drugs and unauthorized distribution
• Ensuring access to healthcare in developing countries
• Managing risks related to cultural and religious differences in global operations

Mitigation Strategies

• Classified sites into three categories based on water risk and implemented appropriate measures
• Implemented 11th Energy Conservation Program to curb energy consumption rise
• Formulated Three-Year Plan for Anti-Counterfeit Measures and established Global Product Security (GPS)
• Partnered with NGOs and NPOs to improve access to healthcare
• Established Council for Risk Evaluation and Mitigation (CREAM) to manage risks related to cultural and religious differences

Supply Chain Management

Supplier Audits: 2000 sites audited

Responsible Procurement

• Global Purchasing Policy
• Guidelines for Socially Responsible Purchasing
• CSR Code of Responsible Purchasing Standards
• Green procurement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4, ISO 26000, AA1000, UN Global Compact

Certifications: ISO 14001

Third-party Assurance: Third-party assurance on some labor practices and community involvement data

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• AZILVA packaging using bio-polyethylene bottles

Awards & Recognition

• Kurumin certification (Japan)
• Sustainable Action in 2013 award (Brazil)

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-Corruption
• Corporate Citizenship Activities

Environmental Achievements

• Reduced CO2 emissions from energy sources by 21% from fiscal 2005 level by fiscal 2013 (including legacy Nycomed sites)
• Achieved zero-emissions targets at the Osaka and Hikari plants in fiscal 2009 and maintained efforts
• Reduced the volume of the Group’s final waste disposal in Japan by 26% from fiscal 2010 level by fiscal 2013
• Reduced the Group’s reported atmospheric release of PRTR substances in Japan by 29% from fiscal 2010 level by fiscal 2013

Social Achievements

• Launched Takeda Well-Being Program in 2009 to support civil activities for children undergoing long-term treatment and their families
• Supported the expansion of the IDEEL online diabetes educator course to Spanish-speaking countries
• Implemented Takeda-Plan Healthcare Access Program in 2009 to improve healthcare access for children in several Asian countries
• Provided donations totaling ¥3.9 billion for Great East Japan Earthquake assistance

Governance Achievements

• Instituted Takeda Global Code of Conduct as a baseline standard of compliance
• Formulated Takeda Anti-Corruption Global Policy in fiscal 2011
• Established Global Compliance Committee and appointed a Global Compliance Officer
• Implemented a three-year plan for anti-counterfeit measures

Climate Goals & Targets

Environmental Challenges

• Risk in R&D (failure to meet efficacy and safety standards)
• Risk in intellectual property rights (infringement)
• Risk of sales decrease following patent expirations
• Risk of side effects
• Risk of price-reduction due to movements to curtail drug costs
• Influence of exchange fluctuations
• Risk related to corporate acquisitions
• Country risk in the countries and regions in operation
• Risk related to stable supply
• Risk related to litigation and other legal matters
• Issues surrounding the Candesartan Antihypertensive Survival Evaluation in Japan (CASE-J Study)

Mitigation Strategies

• Rigorous investigations of efficacy and safety
• Strict management of intellectual property rights
• Active measures to extend product life cycles
• Post-marketing surveillance and reporting of side effects
• Active measures to extend product life cycles
• Risk management strategies for each identified risk
• Strengthening global supply chain
• Implementation of crisis management initiatives
• Measures to prevent recurrences of CASE-J study issues (clarifying roles, strengthening checking systems, ensuring employee uninvolvement in investigator-led research)

Supply Chain Management

Supplier Audits: 2,200 sites (as of June 2014)

Responsible Procurement

• Global Purchasing Policy
• Guidelines for Socially Responsible Purchasing
• CSR Code of Responsible Purchasing Standards
• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4, UN Global Compact Advanced Level Criteria, IIRC International Framework for Integrated Reporting

Certifications: ISO 14001 (multiple sites)

Sustainable Products & Innovation

• AZILVA (azilsartan) using bio-polyethylene bottles

Awards & Recognition

• Nadeshiko Brand
• 1st place in Nikkei’s 17th Environmental Management Survey
• Encouragement Prize at the 10th Life Cycle Assessment Society of Japan Awards
• Planners and Inspectors Special Prize for the Low Carbon Cup 2014

Environmental Metrics

ESG Focus Areas

• Access to Healthcare
• Supplier Management
• Human Rights
• Labor Practices
• Environment
• Anti-Corruption
• Corporate Citizenship

Environmental Achievements

• Reduced CO2 emissions by 21% from fiscal 2005 levels by fiscal 2015.
• Reduced fresh water usage by 45% from fiscal 2005 levels by fiscal 2015.
• Reduced NOx emissions by 76% from fiscal 2005 levels by fiscal 2015.
• Reduced SOx emissions by 95% from fiscal 2005 levels by fiscal 2015.

Social Achievements

• Launched Safe Takeda, a global safety initiative, aiming to reduce the occupational injury frequency rate by 30% compared with fiscal 2014 by fiscal 2020.
• Introduced several initiatives to enhance gender, work-style, age and career diversity.
• Launched three new global CSR programs focused on disease prevention in developing and emerging countries: Global Measles Vaccination for Children, Community Health Workers Training for Maternal and Child Health, and Maternal and Newborn Health for Ethnic Minorities.

Governance Achievements

• Transitioned corporate governance system from a “Company with Board of Corporate Auditors” to a “Company with Audit and Supervisory Committee”, increasing the proportion of outside directors and enhancing Board diversity.
• Established the Global Compliance Helpline, available to all employees 24/7.
• Implemented a comprehensive monitoring program to evaluate adherence with anti-corruption policies and procedures.

Climate Goals & Targets

Environmental Challenges

• Counterfeit medicines
• Access to medicines in developing countries
• Supply chain sustainability
• Workplace accidents
• Water scarcity
• Waste generation
• Climate change

Mitigation Strategies

• Global Product Protection (GPP) initiatives to secure the supply chain and combat counterfeit medicines.
• Access to Medicines (AtM) strategy to improve access to Takeda's medicines in developing countries.
• Supplier Code of Conduct and Sustainable Procurement framework.
• Safe Takeda initiative to improve workplace safety.
• Water Resources Conservation Initiatives to reduce water usage.
• Waste reduction initiatives.
• Initiatives to reduce CO2 emissions and promote renewable energy.

Supply Chain Management

Supplier Audits: 30 supplier assessments planned by the end of fiscal 2016.

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Procurement framework
• Supplier diversity program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4, UN Global Compact Advanced Level

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being

Takeda's CSR activities align with SDG Goal 3 through initiatives focused on access to healthcare, disease prevention, and health capacity building.

Sustainable Products & Innovation

• Use of bio-polyethylene bottles for AZILVA packaging.

Awards & Recognition

• One of the “2016 Global 100 Most Sustainable Corporations in the World Index” by Corporate Knights.

Environmental Metrics

ESG Focus Areas

• Access to Healthcare
• Supplier Management
• Human Rights
• Labor Practices
• Environmental Protection
• Corporate Governance
• Anti-Corruption
• Corporate Citizenship

Environmental Achievements

• 25% reduction in CO2 emissions from fiscal 2005 level
• 42% reduction in CO2 emissions from fiscal 1990 level (Takeda Pharmaceutical Company only)
• 77% reduction in the volume of final waste disposal in Japan from fiscal 2005 level
• 42% reduction in fresh water usage from fiscal 2005 level

Social Achievements

• Launched Global CSR Programs selected by employee vote, focusing on disease prevention in developing countries
• Improved access to medicines through Patient Assistance Programs (PAPs) in multiple countries
• Implemented Safe Takeda initiative, reducing lost time injury frequency rate (LTIFR) by 23% from fiscal 2013 level
• Introduced Takeda’s Leadership Behaviors and Global Core Competencies for employee development
• Accelerated Diversity & Inclusion (D&I) activities globally

Governance Achievements

• Transitioned corporate governance system to a “Company with Audit and Supervisory Committee”, increasing the proportion of external directors
• Established Takeda Ethics Line available 24/7 to all employees
• Implemented a comprehensive monitoring program to evaluate adherence with anti-corruption policies

Climate Goals & Targets

Environmental Challenges

• Access to medicines in developing and emerging countries
• Supply chain risks and sustainability challenges
• Workplace accidents
• Counterfeit drugs
• Climate change
• Water scarcity
• Biodiversity loss
• Corruption
• Ensuring ethical interactions with healthcare professionals and patient organizations

Mitigation Strategies

• Access to Medicines (AtM) strategy with partnerships
• Takeda Supplier Code of Conduct and Sustainable Procurement program
• Safe Takeda initiative and safety training
• Global Product Protection (GPP) initiatives
• CO2 emission reduction targets for 2020 and 2030
• Water usage reduction initiatives and wastewater management
• Biodiversity conservation initiatives including Takeda Garden
• Global Anti-Corruption Policy and compliance training
• Global Policy on Interactions with Healthcare Professionals and Healthcare Entities, and Global Policy on Interactions with Patient Organizations and Patients

Supply Chain Management

Supplier Audits: 3,400 suppliers underwent standard diligence, 28 underwent enhanced sustainability on-site assessments

Responsible Procurement

• Takeda Supplier Code of Conduct aligned with PSCI Principles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC) International Framework for Integrated Reporting, United Nations Global Compact Advanced Level Criteria, GRI Sustainability Reporting Standards

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Various initiatives align with multiple SDGs

Sustainable Products & Innovation

• Bio-PE bottles for AZILVA®

Awards & Recognition

• Global 100 Most Sustainable Corporations in the World Index (2 consecutive years)
• ESQR’s Quality Achievements Award

Environmental Metrics

ESG Focus Areas

• Patients at the Center
• Health Promotion
• Environmental Impacts
• Ethics & Compliance
• Social Impact

Environmental Achievements

• 3% reduction in Greenhouse Gas emissions compared to the previous year.
• 436,648 kWh reduction in energy consumption compared to the previous year.
• 18% reduction in waste production compared to the previous year.
• Achieved Zero Landfill status at the Jaguariúna plant.

Social Achievements

• 2,942 people benefited from Patient Support Programs (PSP).
• Supported 80 patient association projects (70 fully implemented).
• Provided over 3,000 medical services through the Health Truck project.
• Over 200 employees participated in volunteer activities, impacting over 4,000 people.
• Won 5 awards for Customer Service (SAC).
• Received an award for Best Compliance Company in the Pharmaceutical Sector.
• Established 5 Diversity and Inclusion Committees.
• Signed 3 Diversity and Inclusion commitments (LGBTI+, UN Women’s Empowerment Principles, Business Initiative for Racial Equality).

Governance Achievements

• Received an award for Best Compliance Company in the Pharmaceutical Sector.
• Implemented mandatory anti-corruption training for all employees (1,241 participated in Global Anti-Corruption Policy training and 1,126 in Bribery and Corruption Prevention training).

Climate Goals & Targets

Environmental Challenges

• Determining the emissions of scopes 1, 2, and 3 with precision and comprehensiveness.
• Reducing water consumption and becoming less dependent on external water sources.

Mitigation Strategies

• Developing the Zero Carbon project to neutralize carbon emissions.
• Implementing the Zero Effluent project to reduce water consumption and reuse treated water.
• Implementing water management projects to automate the system and reduce consumption.

Supply Chain Management

Supplier Audits: Annual on-site audits.

Responsible Procurement

• Code of Conduct for suppliers; rigorous selection process; due diligence checks.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Compliance Company in the Pharmaceutical Sector (Guia Exame); 5 Customer Service awards; ABT Award for Excellence in Customer Relationship; GEM President’s Awards 2019; 9 HR certifications and awards (GPTW, Valor Econômico WILL, Glassdoor, Top Employer, Época 360).

Environmental Metrics

ESG Focus Areas

• Patient health
• People (employees)
• Planet (environment)
• Data and Digital

Environmental Achievements

• Achieved carbon neutrality across its value chain for FY2019 greenhouse gas emissions.
• 5% reduction in Scope 1 GHG emissions from FY2016.
• 39% reduction in Scope 2 GHG emissions from FY2016 (market-based).

Social Achievements

• Global organization comprises 52% women; 40% of managers are women.
• Launched its first Global DE&I Council.
• Launched R&D Center for Health Equity and Patient Affairs (CHEPA).

Governance Achievements

• Essentially completed integration of Shire.
• Achieved Global Top Employer certification for 2021 (fourth year in a row).
• Earned a perfect score on the Human Rights Campaign’s (HRC) Corporate Equality Index (CEI) for the fifth consecutive year.

Climate Goals & Targets

Environmental Challenges

• Sustaining healthcare investment in a post-COVID world.
• Expanding frontiers of science, technology, and information.
• Sweeping calls for social change.
• Far-reaching health effects of climate change.

Mitigation Strategies

• Continued innovation, flexible pricing, and advocacy for value-based healthcare.
• External partnerships in R&D and digital.
• Commitment to diversity, equity, and inclusion (DE&I).
• Carbon neutrality strategy with a goal of eliminating all GHG emissions from operations by 2040.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with key suppliers to help them establish science-based carbon reduction goals.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Global Top Employer

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Biopolyethylene bottles for products sold in Japan.

Awards & Recognition

• ISPE’s “Facility of the Year” award for ALC system at Hikari plant.

Environmental Metrics

ESG Focus Areas

• Patients
• People
• Planet

Climate Goals & Targets

Environmental Challenges

• ongoing uncertainty caused by the COVID-19 pandemic and disruptions in the global supply chain

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Patient
• People
• Planet
• Values-Based Governance

Environmental Achievements

• 27% reduction in GHG emissions from direct operations (Scopes 1 and 2) from a FY2016 baseline.
• Achieved carbon neutrality across its value chain in 2020.

Social Achievements

• Launched Takeda Center for Health Equity and Patient Affairs.
• 52% women in the global organization, 41% women in manager population.
• Global Top Employer certification for 2022 (fifth year in a row).

Governance Achievements

• Disclosed Board of Directors Charter and Committee charters.
• 11 of 15 Board members are independent external directors.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and geopolitical instability.
• Health inequities in access to and outcomes of healthcare.
• Climate change and its impact on health.
• Difficulty measuring actual Scope 3 emissions.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Collaborated with diverse partners to address health inequities.
• Committed to achieving net-zero GHG emissions by 2035 (Scopes 1 and 2) and 2040 (entire value chain).
• Implementing water risk mitigation plans at high-risk sites.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Engaging with suppliers to establish science-based targets.

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts on disease transmission.

Transition Risks

• Regulatory changes, market shifts.

Opportunities

• Development of climate-related treatments and technologies.

Reporting Standards

Frameworks Used: Integrated Reporting Framework, SASB Biotechnology & Pharmaceuticals Sustainability Accounting Standard, Biopharma Investor ESG Communications Guidance, Stakeholder Capitalism Metrics (WEF), UN Global Compact, TCFD framework

Certifications: Global Top Employer

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Bio-PE bottles

Awards & Recognition

• WorldStar Global Packaging Awards
• Global Top Employer
• Science 2021 Top Employer
• Human Rights Campaign Foundation’s Corporate Equality Index (perfect score)
• Gold in the PRIDE Index 2021

Environmental Metrics

ESG Focus Areas

• Governing Purpose
• Ethical Behavior
• Risk and Opportunity Oversight
• Climate Change
• Freshwater Availability
• Resource Availability
• Dignity and Equality
• Health and Well Being
• Employment and Wealth Generation
• Community and Social Vitality

Environmental Achievements

• Launched carbon neutrality strategy in January 2020
• Announced commitment to accelerate net-zero GHG emissions from operations (Scopes 1 and 2) before 2035 and net-zero for Scope 3 emissions before 2040.

Social Achievements

• Implemented specific mitigating measures for third-party labor rights in 2022.
• Continued investment in R&D to support potential in pipeline, resulting in approval for dengue vaccine, QDENGA.

Governance Achievements

• 100% of employees trained on Takeda’s anti-corruption policies and procedures in FY21, 98% in FY22.
• Implemented ongoing monitoring program that samples and evaluates high-risk transactions.

Climate Goals & Targets

Environmental Challenges

• Potential future impacts from climate change (physical and transitional risks)
• Managing human rights risks and impacts throughout operations and business relationships.

Mitigation Strategies

• Undertook climate risk and opportunities analysis in FY2020, including modeling three climate scenarios.
• Implemented specific mitigating measures for third-party labor rights in 2022 through enhancement of existing third-party risk management framework.

Supply Chain Management

Responsible Procurement

• Endorsed PSCI Principles for Responsible Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Changes in the physical environment

Transition Risks

• Changes in policy, energy markets, and technology

Opportunities

• Potential opportunities not explicitly stated

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Apex Companies, LLC and KPMG AZSA Sustainability Co., Ltd

Sustainable Products & Innovation

• QDENGA (dengue vaccine)