Climate Change Data

ASKA Pharmaceutical Holdings Co., Ltd.

Climate Impact & Sustainability Data (2020-04-01 to 2021-03-31, 2022, 2023)

Reporting Period: 2020-04-01 to 2021-03-31

Environmental Metrics

Total Carbon Emissions:13,214 t-CO2 (FY2020)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions by 3.6% at the head office building through switching to LED lighting and other energy-saving efforts.
  • Significantly reduced CO2 emissions per unit of energy at the Iwaki Factory despite increased energy use due to new building operation, through improvements in cogeneration system and manufacturing process efficiency.

Social Achievements

  • Co-sponsored public lectures with Women’s Health Action and other organizations to support women’s healthcare.
  • Participated as a supporting company in a project to reform working styles for women.
  • Continued registration as a Barrier-Free Mindsets Support Corporation.

Governance Achievements

  • Established an ESG Committee to formulate ESG strategies and promote and assess activity plans.
  • Improved the functions of the Board of Directors by establishing independent nomination and compensation committees and having outside directors account for half of the members.

Climate Goals & Targets

Medium-term Goals:
  • Increase the proportion of new drugs to 70% of total sales by fiscal 2025.
  • Achieve net sales of ¥70 billion, operating profit margin of 8%, and ROE of 8% by FY2025.

Environmental Challenges

  • Annual reductions in National Health Insurance (NHI) drug prices in Japan.
  • Shrinking domestic prescription pharmaceutical market.
  • Impact of the COVID-19 pandemic.
Mitigation Strategies
  • Reducing manufacturing costs and utilizing digital transformation (DX) to improve operational efficiency.
  • Focusing on new drug development to address unmet medical needs.
  • Reviewing selling, general and administrative (SG&A) expenses to improve operating profit margin.
  • Upgrading IT environment and rolling it out to sales, R&D and production sites, utilizing digital transformation (DX), including the introduction of robotic process automation (RPA).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:10780 t-CO₂ (FY2022)
Scope 1 Emissions:9287 t-CO₂ (FY2022)
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:103412 GJ (FY2022)
Water Consumption:139.12 thousand m³ (FY2022)
Waste Generated:264.3 t (FY2022)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate change
  • Environmental Management
  • Human Resources Management
  • Corporate Governance
  • Anti-Corruption
  • Community Investment
  • Occupational Safety and Health
  • Diversity & Inclusion
  • Human Rights

Environmental Achievements

  • Reduced CO₂ emissions by 46% by FY2030 (compared to FY2013)
  • 100% of institutions are ISO 14001 certified

Social Achievements

  • Invested 270 million yen in construction costs to improve wastewater processing capacity at Iwaki Factory (FY2020)
  • 100% of employees received health checkups in FY2021 and FY2022
  • 100% of employees received stress checks in FY2021 and FY2022

Governance Achievements

  • Signed the United Nations Global Compact
  • Established an ESG Committee

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce CO₂ emissions by 46% by FY2030 (compared to FY2013)
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Scope 3 emissions calculation under preparation
Mitigation Strategies
  • Not disclosed

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: UNGC

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:8,997 tCO2e/year
Scope 1 Emissions:6,052 tCO2e/year
Scope 2 Emissions:2,945 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:100% at Shonan Research Center; partial at Iwaki Factory and Head Office
Total Energy Consumption:11,754,000 kWh/year (equivalent to 5,694 kl of crude oil)
Water Consumption:170,620 m3/year
Waste Generated:185.0 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Environmental Management
  • Resource Conservation
  • Waste Reduction
  • Chemical Substance Management
  • Biodiversity
  • Green Procurement

Environmental Achievements

  • Reduced CO2 emissions by 49.2% from FY2013 levels by FY2023 (aiming for 46% reduction by FY2030)
  • Achieved 89.0% recycling rate of waste generated at the factory and research center in FY2023
  • Introduced CO2-free electricity at the Iwaki Factory in April 2023, expecting to reduce annual CO2 emissions by approximately 2,200 tons.
  • Renovated head office building to promote efficient use of space and paperless operations, switching to renewable energy sources.

Social Achievements

  • Not disclosed

Governance Achievements

  • Established an ESG Committee, ESG Promotion Meeting, and Promotion Managers Committee to oversee ESG initiatives.
  • Reports on climate change-related risks and opportunities to the Board of Directors.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Reduce CO2 emissions by 46% by FY2030 compared to FY2013.
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Risk of unexpected pandemics and drug price reductions.
  • Risk of rising raw material prices due to climate change.
  • Increased stakeholder concerns due to delays in climate change action.
  • Risk of increased operating expenses due to climate change.
  • Risk of supply chain disruptions due to extreme weather events.
Mitigation Strategies
  • Building a foundation to withstand drug price reductions and focusing on specialty fields.
  • Implementing thorough risk management based on experience from the Great East Japan Earthquake to ensure multiple supply routes.
  • Actively promoting ESG management and addressing climate change countermeasures.
  • Implementing various measures to handle unprecedented events and improve operational efficiency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Green procurement prioritizing environmentally friendly raw materials.

Climate-Related Risks & Opportunities

Physical Risks
  • Chronic wind and flood damage
  • Supply chain disruptions due to extreme weather events
Transition Risks
  • Unexpected pandemics
  • Drug price reductions
  • Rising raw material prices
  • Increased stakeholder concerns due to delays in climate change action
Opportunities
  • Increased demand for products due to climate change-related increases in disease
  • Share price appreciation due to proactive climate change initiatives

Reporting Standards

Frameworks Used: TCFD

Certifications: FIT Non-Fossil Certificate, Renewable Energy Certificate

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed