Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Human capital and diversity

Environmental Achievements

• Reduced CO2 emission intensity per net sales by 11% from FY2019 to FY2024 (89% of FY2019 level)

Social Achievements

• Increased the number of newly promoted women in management positions (from 2 to 6)
• Maintained a percentage of employees with disabilities at not less than the statutory employment rate in Japan (2.6%)
• Implemented mid-career hiring to acquire a more diverse workforce (134 employees since FY2021)
• Expanded the number of nurseries in cooperation with companies (from 3 to 5)
• Obtained Kurumin and Eruboshi certifications
• Implemented mental health care training for all employees in managerial positions

Governance Achievements

• Established the Takara Bio Group Sustainability Promotion Committee
• Revised the Sustainability Promotion Committee Regulations
• Approved the Sustainability Plan 2026 and the FY2024 Activity Plan
• Established policies related to sustainability activities
• Revised Human Rights Policy

Climate Goals & Targets

Environmental Challenges

• Persistent inflation and high policy interest rates in the U.S. and Europe, impacting life science R&D activities
• Impact of reduced academic research funding in China due to economic recession
• Rapidly changing business environment in Japan due to competitor entry into the biopharmaceutical CDMO business
• Expected increase in CO2 emissions due to expanded business activities
• Risks to human rights in the Takara Bio Group and its value chain

Mitigation Strategies

• Developing strategies to understand the business implications of climate-related risks and opportunities using scenario analysis (2°C and 4°C scenarios)
• Energy conservation and equipment upgrades at manufacturing sites
• Introduction of renewable energy (under review)
• Responding to trends in laws, regulations, and new environmental regulations
• Development and use of alternative products (under review)
• Promoting decentralization and optimization of manufacturing bases to ensure stable product supply
• Refinement of raw materials inventory controls and consideration of purchasing from multiple suppliers
• Utilizing the crisis management system based on the Business Continuity Plan (BCP)
• More global business development
• Research and development of new products and services
• Promotion of CO2 emissions reduction aiming to reduce CO2 emission intensity per net sales by 50% from fiscal 2019 by 2026
• Strengthening the disclosure level of TCFD
• Promoting human rights due diligence to reduce human rights risks

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (torrential rain, flooding, etc.)
• Droughts
• Pandemics of infectious disease

Transition Risks

• Rising energy costs
• Mandates and regulations for products and services

Opportunities

• Opportunities to expand business through the development of new products and services related to climate change

Reporting Standards

Frameworks Used: TCFD

Certifications: Kurumin, Eruboshi

Environmental Metrics

ESG Focus Areas

• Wellness
• Safety
• Environment
• Human Resources
• Governance
• Human Rights
• Procurement
• Community

Environmental Achievements

• Reduced CO2 emissions per unit of revenue (emissions intensity) to 89% of that of fiscal 2019.
• Switched from single-sided aluminum pouches to aluminum-free pouches for some products.
• Promoted a switch from paper boxes to FSC-certified materials and materials using plant-based oil ink.

Social Achievements

• Obtained Kurumin certification for active support for child-rearing.
• Obtained Eruboshi certification (3 stars) for promoting women’s participation in the workplace.
• Increased the number of women newly appointed to management positions (from 2 to 6).

Governance Achievements

• Established an optimal corporate governance structure.
• Reinforced the compliance promotion structure.
• Properly operated the whistle-blowing system.

Climate Goals & Targets

Environmental Challenges

• Sharp decline in demand for PCR tests.
• Downturn in the global life science research market due to high inflation and interest rates.
• Flagging Chinese economy and geopolitical risks.
• Increased competition in the biopharmaceutical CDMO business.
• Risks inherent in the supply chain, such as global disruption of logistics.

Mitigation Strategies

• Transformation of business structure.
• Development of platform technology for biologics development.
• Sustained growth of the Reagents and Instruments businesses.
• Rapid growth of the CDMO business.
• Region-based glocal strategy (global and multipolar marketing, manufacturing, and sales strategy).
• Transferring manufacturing of reagents from Dalian, China to hubs in Japan, the US, Europe, and India.
• Decentralization and optimization of manufacturing sites.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable procurement guidelines.

Climate-Related Risks & Opportunities

Physical Risks

• High tides
• Floods
• Droughts
• Infectious disease outbreaks

Transition Risks

• Rising energy costs
• Regulations on products and services

Opportunities

• Development of new products and services related to climate change

Reporting Standards

Frameworks Used: IFRS Foundation, “International Integrated Reporting Framework”, Ministry of Economy, Trade and Industry, “Guidance for Collaborative Value Creation 2.0”, TCFD

Certifications: ISO 9001, ISO 13485, CAP-LAP, Kurumin, Eruboshi (3 stars)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmentally conscious product packages and packaging

Awards & Recognition

• Kurumin certification
• Eruboshi certification (3 stars)