Climate Change Data

Environmental Metrics

ESG Focus Areas

• Solve medical issues through innovative medical devices
• Reduce environmental impact
• Create a workplace where employees can work with comfort
• Develop human resources and provide opportunities for them to play an active role
• Secure product quality and stable supply
• Strengthen corporate governance
• Promote compliance

Environmental Achievements

• Reduced Scope 1 & 2 CO2 emissions by 3.3% (FY2022) and 4.9% (FY2023) compared to FY2021. Achieved 96% industrial waste recycling rate (non-consolidated).

Social Achievements

• Increased education and training expenses per employee by 39.8% year-on-year in FY2023. 353 employees (37% of the company's employees) obtained CDR certification as of June 30, 2023.
• Conducted employee satisfaction surveys with over 90% response rate.

Governance Achievements

• Complied with the Corporate Governance Code. Appointed one additional outside director to the Nomination and Remuneration Advisory Committee.
• Established a whistleblower system that complies with the Whistleblower Protection Act.

Climate Goals & Targets

Environmental Challenges

• Unexpected loss of market share for major products due to competition.
• Slower-than-expected growth in case numbers and market size.
• Greater-than-expected decline in insurance reimbursement prices.
• Launch delays or cancellations due to failure to meet product introduction milestones.
• Soaring costs/expenses due to high inflation and the weak yen.

Mitigation Strategies

• Expect certain market share loss, but maintain dominant market share after 5 years.
• Incorporate market growth data by product category into sales plans.
• Assume reasonable declines based on past declines.
• Product milestones for each product.
• Expect an annual inflation rate of 2 to 3% and an FX rate of 1 USD to 130 JPY

Supply Chain Management

Supplier Audits: Conduct risk assessments of suppliers; secure multiple suppliers for important parts.

Responsible Procurement

• Procurement Policy formulated in March 2023 focusing on fairness, compliance, advanced technology, and win-win coexistence.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events
• Changes in rainfall patterns

Transition Risks

• Pricing progression of GHG emissions
• Replacement of existing products with low-carbon options
• Changes in consumer behavior
• Soaring raw material costs

Opportunities

• Resource efficiency
• Development and expansion of low-carbon products/services
• Access to new markets
• Participation in renewable energy programs

Reporting Standards

Frameworks Used: GRI, IIRC, Ministry of Economy, Trade and Industry Guidance for Collaborative Value Creation

Certifications: ISO 13485, MDSAP

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmentally friendly products (low carbon emissions during manufacturing and use)
• Products that contribute to the efficiency of medical institutions

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced Scope 1 & 2 CO2 emissions by 15.6% compared to FY3/2021 levels.
• Achieved 97% industrial waste recycling rate (non-consolidated).
• Installed solar power generation systems at three Japan plants, generating an estimated 396.2 MWh annually and reducing CO2 emissions by 171.2 tons.

Social Achievements

• Obtained MDSAP certificate.
• Conducted surveys for doctors on product quality.
• Conducted a Human Rights Survey for major suppliers and third-party product providers.

Governance Achievements

• Complied with the Corporate Governance Code.
• Established a whistleblower system.
• Implemented various training programs to raise compliance awareness.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks)
• Supply chain disruptions
• Human rights risks in the supply chain

Mitigation Strategies

• Scenario analysis based on TCFD recommendations to identify and mitigate climate change impacts.
• Business continuity plan (BCP) for business interruptions due to natural disasters.
• Risk assessments and diversification of purchasing sources for important components.
• Human Rights Survey for suppliers to assess and mitigate human rights risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green procurement standards
• Human Rights Survey

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Policy/Regulations
• Pricing progression of GHG emissions
• Technologies
• Changes in Consumer Behavior
• Markets
• Soaring raw material costs

Opportunities

• Development of environmentally friendly products
• Development of products that contribute to the efficiency of medical institutions
• Development of medical devices to treat new diseases
• Access to new markets

Reporting Standards

Frameworks Used: GRI, SASB, SDGs, TCFD

Certifications: ISO 13485:2016, MDSAP

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented a performance-linked bonus system that returns 20% of above-budget operating profit to employees, enhancing team performance.

Governance Achievements

• Strengthened the linkage between directors’ compensation and EPS and undertaken share buybacks.

Climate Goals & Targets

Environmental Challenges

• Shortage of logistics workers, impacting reliable product delivery, especially for urgent patient needs.
• Lower insurance reimbursement prices for medical devices in Japan compared to Western countries.
• Increased competition in the market for core products (Intracardiac Defibrillation Catheter and Frozen Elephant Trunk).

Mitigation Strategies

• Highly attentive to ensuring reliable product delivery, especially for urgent patient needs.
• Expanding product market overseas, leveraging yen depreciation.
• Enhancing and expanding product lineup to maintain competitiveness.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Improved versions of existing products, new products in neurovascular and gastrointestinal areas.

Awards & Recognition

• Not disclosed