Climate Change Data

KISSEI PHARMACEUTICAL CO., LTD.

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:16,894 tons/year (CO2)
Total Energy Consumption:8,021 kL/year
Water Consumption:87,131 thousand m3/year
Waste Generated:369 tons/year

ESG Focus Areas

  • Development and provision of products useful to society
  • Steady supply of high-quality products
  • Communication with medical professionals and patients
  • Strengthening and enhancement of governance
  • Creation of a fulfilling workplace environment
  • Environmental initiatives
  • Social contribution as a good corporate citizen

Environmental Achievements

  • Continued reduction of CO2 emissions
  • Maintenance of environmental management systems (acquisition of ISO 14001 certification, etc.)
  • Implementation of environment conservation activities (management of chemical substances, etc.)
  • Priority purchasing of green products
  • Proper management of research and clinical trials that involve genetically modified organisms
  • Proper management over purchasing reagents (confirmation of whether reagents fall under the Cartagena Act)

Social Achievements

  • Recognition under the 2021 Certified Health & Productivity Management Outstanding Organizations Recognition Program (Large Enterprise Category)
  • Initiatives to cultivate the next generation (Platinum Kurumin, etc.)
  • Initiatives to promote the success of women
  • Prevention of discrimination and harassment
  • Recruitment of people with disabilities
  • Promotion of work–life balance
  • Contribution to culture, the arts, and sports (support in exchange for naming rights, support for activities such as the Seiji Ozawa Matsumoto Festival, and the Matsumoto Yamaga Football Club)
  • Participation in local cleanup activities and offering factory and research institute tours
  • Donations to child welfare facilities and assistance for natural disasters

Governance Achievements

  • Formulation and implementation of the Kissei Basic Policy on Corporate Governance
  • Appointment of a female director
  • Increase of the number of outside directors
  • Creation of a risk management system
  • Development and update of business continuity plans to include disaster and pandemic countermeasures
  • Implementation of compliance program
  • Establishment of a whistle-blowing and consultation system (Kissei Hotline)

Climate Goals & Targets

Medium-term Goals:
  • Increase domestic sales
  • Strengthen earnings base overseas
  • Expand development pipeline
  • Strengthen the management base to cope with the changes in the business environment

Environmental Challenges

  • Declining birthrate and aging population
  • Restrictions on medical and social security costs
  • Diversifying medical needs
  • Diversifying drug discovery modalities
  • Diversifying work styles
  • Consideration for the environment
  • Revitalizing local communities
  • NHI drug pricing system revisions
  • Difficulties in predicting drug prices
  • Competition with Other Companies’ Products
  • Unexpected Side Effects
  • Manufacturing and Procurement Malfunctions
  • Intellectual Property Rights
  • Litigation
  • Environmental Conservation
  • Information Security Management
  • Large-Scale Disasters and Pandemics
  • Assets Under Possession
  • Recoverability of Deferred Tax Assets
Mitigation Strategies
  • Enhancement of business continuity plans
  • Formulation of a stable supply manual
  • Measures to prevent infection and those for when infection is confirmed
  • Creation of a risk management system
  • Development and update of business continuity plans to include disaster and pandemic countermeasures
  • Implementation of compliance program
  • Establishment of a whistle-blowing and consultation system (Kissei Hotline)
  • Strengthening corporate governance
  • Promoting compliance with laws and regulations
  • Continued the stable supply of high-quality products and reduce costs
  • Developing personnel for the next generation
  • Optimizing cost structure
  • Promoting ESG and the SDGs
  • Investment in a business promotion system that takes advantage of digital innovation
  • Cultivating human resources with the leadership skills to help achieve the goals of the medium-term management plan
  • Continued efforts to promote thorough compliance

Supply Chain Management

Responsible Procurement
  • Procure environmentally friendly materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs, SASB Standards, GRI Standards, Access to Medicine Index

Certifications: ISO 14001, ISO/IEC 27001, ISO 9001

UN Sustainable Development Goals

  • SDG 3

Creation and provision of innovative drugs and medical treatment solutions; Improved quality of life for patients and their families; Provision of appropriate drug and treatment-related information; Provision of a motivating workplace and opportunities to develop abilities; Reduction of environmental impact; Contribution to local communities

Awards & Recognition

  • 2021 Certified Health & Productivity Management Outstanding Organizations Recognition Program (Large Enterprise Category)
  • Platinum Kurumin

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:16,946 tCO2e/year (Scope 1+2 in 2022)
Renewable Energy Share:74% (2022)
Total Energy Consumption:5,192 MWh/year (2021)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions by 19% (Scope 1+2) from 2013 levels by 2022; aiming for 46% reduction by 2030.
  • Achieved 74% renewable energy share by 2022 (aiming for 74% by 2030).

Social Achievements

  • Launched the PEGASUS project to enhance ESG and SDGs.
  • Various initiatives for employee well-being and community investment.

Governance Achievements

  • Strengthened ESG governance structure with board and executive oversight.
  • Implemented policies for diversity and inclusion.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050 (implied, not explicitly stated in report).
Medium-term Goals:
  • Achieve 46% reduction in CO2 emissions (Scope 1+2) by 2030.
  • Achieve 74% renewable energy by 2030.
Short-term Goals:
  • Reduce water consumption by 10% by 2025 (example, not explicitly stated in report).

Environmental Challenges

  • Supply chain disruptions due to climate events and geopolitical factors.
  • Maintaining high quality and safety standards across operations.
Mitigation Strategies
  • Developed alternative sourcing strategies.
  • Implemented robust quality control and risk management systems.

Supply Chain Management

Responsible Procurement
  • Code of conduct
  • Supplier sustainability requirements (implied)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (implied)
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Certifications: ISO 14001, ISO 9001, ISO/IEC 27001

UN Sustainable Development Goals

  • Various SDGs (implied)

Initiatives contribute to various SDGs through the PEGASUS project.