Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• Economy
• Society
• Employee Welfare
• Compliance

Environmental Achievements

• Reduced landfill waste by 95% from 1990 levels
• Reduced atmospheric emissions of dichloromethane by 87% from 1995 levels
• Reduced atmospheric emissions of formaldehyde by 77% from 1999 levels
• Reduced BOD emissions by 15 tons from 2004 levels
• Reduced waste generation volume by 360 tons from 2004 levels
• Recycled 11,000 tons of organic solvents
• Recycled 62% of generated sludge (1,290 tons)

Social Achievements

• Established a Patient Association Support Project
• Donated ambulances and wheelchair vans
• Supported various community initiatives (cleanup drives, tree planting, etc.)
• Implemented extensive employee training programs
• Introduced various work schedule alternatives to support work-life balance
• Introduced childcare leave, maternity leave, and nursing leave

Governance Achievements

• Established a Charter of Corporate Conduct and a Code of Conduct
• Established a compliance promotion system with compliance promotion leaders
• Implemented compliance training for 99% of targeted personnel
• Established a helpline for compliance-related issues and counseling
• Established a Human Tissue Research Ethics Investigative Committee
• Established a Clinical Trial Investigative Committee

Climate Goals & Targets

Environmental Challenges

• CO2 emissions still 8% higher than 1990 levels (though decreasing)
• Need to further reduce atmospheric emissions of formaldehyde and chloroform
• Need to improve safety management systems at research facilities
• Increase in work-related injuries in 2005
• Need to further improve green purchasing rates for office supplies
• Need to address issues related to declining birthrate and aging population, gender equality, and employment of physically disabled persons

Mitigation Strategies

• Investigating more efficient research and production systems, promoting use of lower-emission fuels, and introducing energy-saving equipment
• Setting additional targets for reductions in atmospheric release of chloroform
• Developing specific methodologies for systematic implementation of risk management measures
• Implementing measures to uncover potential safety risks and conduct risk assessments
• Focusing more effort on improving the green procurement rate for office supplies
• Introducing systems for ongoing senior employment and developing a general business owner’s action plan

Supply Chain Management

Responsible Procurement

• Green purchasing guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ministry of Environment’s environmental report guidelines

Certifications: ISO 14001

Awards & Recognition

• Award of Merit in Emergency Services

Environmental Metrics

ESG Focus Areas

• Environment
• Economy
• Society
• Employees
• Compliance

Environmental Achievements

• Reached target for reducing CO2 emissions in Japan four years ahead of schedule.
• Reached target for reducing the volume of waste materials subject to final disposal for the third consecutive year.
• Reached target for increasing the percentage of low-pollution vehicles used by sales staff for the second consecutive year.

Social Achievements

• Donated seven wheelchair vans to welfare facilities through the Flying Star Fund.
• Donated four ambulances to local emergency forces.
• Supported patient self-help associations through the Patient Association Support Project on 21 occasions.

Governance Achievements

• Established a Human Tissue Research Ethics Investigative Committee.
• Established a Clinical Trial Investigative Committee.
• Compiled the Charter of Corporate Conduct and Our Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Global warming
• Reducing the amount of landfill waste
• Reducing atmospheric emissions of formaldehyde and chloroform
• Maintaining a high level of awareness of safety issues at production and research facilities
• Ensuring timely relay of messages and proper execution of procedures during emergencies.

Mitigation Strategies

• Set global numerical targets for reducing CO2 emissions.
• Implemented the three R's (reduce, reuse, recycle) at each facility.
• Developed production methods that do not use hazardous chemicals and production processes that limit the use of such chemicals.
• Implemented measures to uncover potential safety risks at facilities and during operations, and conducted risk assessments.
• Regular reviews of procedures and emergency communication networks, and plans for improvements in maintenance.

Supply Chain Management

Responsible Procurement

• Green purchasing guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ministry of the Environment’s environmental accounting guidelines

Certifications: ISO 14001

Third-party Assurance: Azusa Sustainability Co., Ltd. (a subsidiary of KPMG Azusa & Co.)

Awards & Recognition

• Responsible Care Award (Kerry Plant)
• Minister of Health, Welfare and Labor Award for Meritorious Service (Toyama Plant)

Environmental Metrics

ESG Focus Areas

• Employees
• Environment
• Economy
• Society
• Compliance

Environmental Achievements

• Conducted environmental and safety audits at seven domestic production and research facilities and two domestic offices, identifying areas for improvement.
• Conducted on-site environmental and safety audits at the Norman Plant in Oklahoma, identifying areas for improvement.

Social Achievements

• Provided support to Save the Children for a measles eradication project in Liberia.
• Supported the Markham Stouffville Hospital Legacy 5K Run/Walk.

Governance Achievements

• Established Astellas Pharma Global Development (APGD) as global development headquarters.
• Implemented a corporate governance system aimed at maintaining transparency and social accountability.

Climate Goals & Targets

Environmental Challenges

• Patent expiration in the US of Prograf® in April 2008 and Flomax® (Harnal®) in October 2009.
• Downward pressure on medical costs in Japan (promotion of generic drugs and drug price cuts).
• Yen's appreciation against the dollar and the euro.

Mitigation Strategies

• Expanding sales of Vesicare® globally and Micardis®, Celecox®, and Geninax® in Japan.
• Launching Lexiscan® in the US to strengthen hospital franchise.
• Actively investing in R&D and marketing for new products.
• Offsetting patent expiration effects with expanded sales of Vesicare® and new drugs.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Compliance
• Employees
• Society
• Environment
• Economy

Environmental Achievements

• Formulated medium- and long-term action plans and investment plans for addressing global warming across the entire Astellas Group.
• Introduced biodiversity indexes for comprehensively evaluating the factors behind biodiversity loss.
• Set standards to be achieved in the year ending March 2021 for biodiversity impact.

Social Achievements

• Launched “Changing Tomorrow Day,” with over 7,700 employees participating in volunteer activities.
• Actively promotes diversity management, focusing on opportunities for women in Japan.
• Established the Green Supply Support Office to expand employment opportunities for people with disabilities.

Governance Achievements

• Introduced the Corporate Executives System, separating the roles of Directors and Corporate Executives.
• Established the Nomination Committee and the Compensation Committee as advisory bodies to the Board of Directors.
• Adopted the Corporate Auditors System with a Board of Corporate Auditors including outside auditors.

Climate Goals & Targets

Environmental Challenges

• Generic competition impacting sales of Prograf and Harnal.
• Government policies restraining medical expenditures.
• Tougher regulatory processes and approvals for new drugs.
• The Great East Japan Earthquake causing damage to facilities and temporary production shutdowns.

Mitigation Strategies

• Implementing MTP14, a mid-term management plan to achieve GCL status.
• Developing business continuity plans.
• Investing in R&D to create high-value-added products.
• Expanding into emerging markets.
• Upgrading drug discovery capabilities and global operations.
• Implementing cost efficiency measures.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 4: Reduce child mortality
• Goal 5: Improve maternal health
• Goal 6: Combat HIV/AIDS, malaria and other diseases

Astellas focuses its support on hygiene and medical-related aspects within its field in the provision of ethical drugs.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Resource Recycling
• Pollution Prevention
• Water Conservation
• Waste Management

Environmental Achievements

• Reduced GHG emissions by 6.9% year on year globally (189 kilotons); -8.1% in Japan (147 kilotons); -2.7% overseas (42 kilotons).
• Reduced water consumption by 12.4% year on year globally (12,365 thousand m3), achieving a 27.2% reduction from fiscal 2005.
• Achieved zero waste emissions (excluding certain exceptions) continuously since fiscal 2008; landfill waste amounted to 1.0% of total waste generated and 1.1% of total waste discharged in fiscal 2011.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• The Great East Japan Earthquake impacted operations at Takahagi Facilities and Takaoka Plant, affecting GHG emissions and water consumption.
• Meeting long-term GHG emission reduction targets requires more than independent energy conservation measures.

Mitigation Strategies

• Implemented various initiatives, including conversion to alternative fuels, shutdown of incinerators, and electricity-saving measures to reduce GHG emissions.
• Established the Global Warming Prevention Committee to formulate group-wide strategies and invest in long-term solutions.
• Continued efforts to reduce water usage despite expected increase due to Takahagi Facilities' recovery.

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: Japan’s Ministry of the Environment’s Environmental Reporting Guidelines (2012 edition)

Certifications: ISO 14001 (all domestic and overseas manufacturing plants except Norman Plant)

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

• Economy
• Employees
• Society
• Environment
• Compliance

Environmental Achievements

• Reduced water consumption to 80% or less compared with fiscal 2005 levels by the end of fiscal 2015 (Global).
• Achieved zero emission of waste in fiscal 2012.
• Improved the Company’s biodiversity index compared with the previous year.

Social Achievements

• Launched the Senior Leadership Series (SLS), training sessions to enhance the business skills of group leaders and managers.
• Formulated the Astellas Global Code of Conduct, which stipulates the respect for employees’ human rights.
• Introduced a new time management system with the aim of appropriately managing the working hours of employees and curbing long working hours (Japan).
• Introduced a system giving employees temporary retirement upon notification that a family member is terminally ill (April 2013) (Japan).
• Received the “Excellence Award” at “Mentor Award 2013” for its human resource development program for directors and corporate executives to mentor women in management positions.

Governance Achievements

• Established two new corporate executive positions—Chief Strategy Officer and Chief Financial Officer—to enable the president to delegate authority and expedite management decision-making processes.
• Reinforced global management structure by establishing the Global Human Resources Committee, reinforcing product compliance structure, and creating new organizations aimed at maximizing product value in each therapeutic area.
• Established the new position of Chief Compliance Officer (“CCO”) responsible for compliance across the entire Astellas group.
• Appointed Regional Compliance Officers (“RCO”) in each geographical region.

Climate Goals & Targets

Environmental Challenges

• Growing populations in emerging countries and aging populations in advanced nations.
• Government measures to lower healthcare expenditures, including drug price reductions and promoting the use of generic products.
• Increased adoption of generic products.
• Developing new drugs has become harder.
• Impact of generic drugs on sales in the Americas and Europe.
• Measures to curb medical expenditures in emerging markets.
• Varying market characteristics from country to country.

Mitigation Strategies

• Pursuing a Global Category Leader (GCL) business model.
• Obtaining approval for multiple drugs and launching new products.
• Focusing on establishing oncology as the third Global Category Leader (GCL) area.
• Maximizing the value of the immunosuppressant Prograf.
• Delivering new drugs with high added value.
• Optimizing resource allocation, including reshaping the research framework.
• Promoting operational excellence and resilience.

Supply Chain Management

Supplier Audits: Regular questionnaire-based surveys of all suppliers of materials directly used in our products.

Responsible Procurement

• CSR Procurement Guiding Principles

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative), ISO26000

Certifications: AAALAC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 13: Climate Action

Initiatives to improve access to healthcare in developing countries and measures to combat global warming.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “Very Good” rating by BREEAM for Mirai House
• “Excellence Award” at “Mentor Award 2013”
• Best Workplaces (European headquarters and sales subsidiary in Spain)
• CEO Cancer Gold Standard accreditation (regional headquarters for the Americas)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Resource Recycling
• Pollution Prevention
• Water Conservation
• Waste Management

Environmental Achievements

• Reduced GHG emissions by 26.5% globally compared to fiscal year 2005.
• Reduced CO2 emissions from sales activities by 25.1% in Japan compared to fiscal year 2005.
• Reduced electricity usage at offices to 92% of fiscal year 2005 levels in Japan.
• Reduced water withdrawal to 64.7% of fiscal year 2005 levels globally.
• Reduced final volume of waste for landfill disposal to 0.9% of total waste discharged in Japan.
• Reduced VOCs discharged by 37.3% in Japan compared to fiscal year 2006.
• Increased biodiversity index to 2.27 times the fiscal year 2005 level.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions in Japan due to new facilities and deterioration in electric power coefficient.
• Uncertainty regarding future electricity CO2 emission coefficients.
• Increased landfill waste volume despite overall waste reduction efforts.

Mitigation Strategies

• Investment in efficient truck-driving management methods and advanced technologies.
• Using the FEPCJ's target CO2 emission coefficient for 2020 in GHG emission calculations.
• Continued efforts to reduce emissions and improve waste management practices.
• Monitoring GHG emission volumes from overseas employee air travel.

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: Japan’s Ministry of the Environment’s Environmental Reporting Guidelines (2012 edition)

Certifications: ISO 14001 (all production sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New asthma medication with reduced GHG emissions.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Resource Recycling
• Pollution Prevention
• Water Conservation
• Waste Management

Environmental Achievements

• Reduced GHG emissions by 30.2% globally compared to 2005 levels (Action Plan assessment); Achieved a 27.9% reduction in GHG emissions in Japan and 37.1% reduction overseas compared to 2005 levels (Action Plan assessment).
• Reduced water withdrawal to 77.2% of 2005 levels globally.
• Reduced final volume of waste for disposal to 0.6% of total waste discharged in Japan.
• Reduced VOC emissions by 32.5% in Japan compared to 2006 levels.
• Increased biodiversity index to 2.68 times the 2005 level.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Global warming
• Water shortages
• Waste disposal
• Air and water pollution
• Chemical substance emissions
• Biodiversity loss

Mitigation Strategies

• Implementing energy conservation measures, fuel conversion, heat pump technology, energy monitoring systems, and renewable energy sources.
• Setting numerical targets for reducing water withdrawal and waste landfill volume.
• Reducing VOC, SOx, and NOx emissions.
• Managing chemical substances in accordance with PRTR Act.
• Promoting biodiversity through tree planting and ecosystem surveys.
• Developing new products with reduced environmental impact.

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: Environmental Reporting Guidelines (2012 edition) issued by Japan’s Ministry of the Environment

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New inhaler product with reduced GHG emissions.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Resource Recycling
• Pollution Prevention
• Water Conservation
• Waste Management

Environmental Achievements

• Reduced GHG emissions by 30.8% globally (Action Plan evaluation) compared to 2005 levels; further reduction needed to meet target.
• Reduced CO2 emissions from sales fleets by 39.6% compared to 2005 levels.
• Reduced electricity usage in offices by 34.7% compared to 2005 levels.
• Reduced water withdrawal to 76.3% of 2005 levels.
• Reduced final volume of waste for disposal to 0.99% of total waste discharged in Japan.

Social Achievements

• No infractions of environmental laws or regulations in the past five years.
• Various employee training programs on environmental conservation and hazardous operations.
• Tree planting event with over 100 participants, including employees and their families.

Governance Achievements

• ISO 14001 certification covering all production sites.
• Company-wide EHS audit conducted annually.
• Environmental and safety assessment system implemented for product development.

Climate Goals & Targets

Environmental Challenges

• Meeting GHG emission reduction targets.
• Managing water resources in the face of potential future shortages.
• Minimizing the environmental impact of products and supply chain activities.

Mitigation Strategies

• Investments in more efficient facility operation and advanced technologies.
• Shifting to fuels that generate less GHG (city gas, LPG, LNG).
• Introduction of heat pump devices and energy monitoring systems.
• Use of renewable energy sources (wind, solar, wood chip).
• Purchasing electricity from renewable energy sources at overseas plants.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green procurement

Climate-Related Risks & Opportunities

Physical Risks

• Water shortages

Transition Risks

• Changes in environmental regulations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Environmental Reporting Guidelines (2012 edition) issued by Japan’s Ministry of the Environment, GHG Protocol

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New inhalation device products with reduced environmental impact.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Access to Health
• Environmental Preservation
• Compliance and ethical business practices
• Diversity and inclusion
• Health, safety and welfare of employees

Environmental Achievements

• Reduced GHG emissions by 30% (global) and 29% (Japan) compared to fiscal 2005.
• Enhanced water resource productivity by 2.9 times the fiscal 2005 result.
• Improved waste generated per unit of sales to 21% of the fiscal 2005 result.

Social Achievements

• Launched AECEP program for social contribution in emerging countries.
• Supported ACTION ON FISTULATM program in Kenya.
• Improved Access to Health through various initiatives.
• Conducted engagement survey with 90% response rate, showing high employee satisfaction in several key areas.

Governance Achievements

• Transitioned to a Company with an Audit & Supervisory Committee.
• Increased transparency in corporate governance.
• Strengthened compliance program globally.

Climate Goals & Targets

Environmental Challenges

• Patent expiration of several major products.
• Increased competition in the pharmaceutical industry.
• Higher hurdles for new drug approval and insurance reimbursement.
• Pressure to reduce medical expenditures.
• Counterfeit medicines.

Mitigation Strategies

• Launched Strategic Plan 2018 to address patent cliff and achieve sustainable growth.
• Implemented Focus Area approach to identify new business opportunities.
• Developed Rx+ programs to expand beyond prescription pharmaceuticals.
• Pursued operational excellence to improve efficiency and reduce costs.
• Strengthened anti-counterfeiting measures.

Supply Chain Management

Supplier Audits: On-site audits conducted in high-risk countries.

Responsible Procurement

• Astellas Business Partner Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and renewable energy use.

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), GRI Standards, Environmental Reporting Guidelines (Japan’s Ministry of the Environment)

Certifications: AAALAC International

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being

Improving Access to Health through innovation, enhancing availability, strengthening healthcare systems, and improving health literacy.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• SEAI Award (Ireland)

Environmental Metrics

ESG Focus Areas

• Environment
• Health & Safety

Environmental Achievements

• Reduced GHG emissions (Scope 1 + 2) by 18.5% compared to the base year (fiscal 2015)
• Reduced GHG emissions (Scope 3) per unit of revenue by 11.4% compared to the base year (fiscal 2015)
• Improved water resource productivity 3.4 times compared to fiscal 2005
• Improved waste generated per unit of revenue to 21% of the fiscal 2005 result
• Increased biodiversity index 3.1 times compared to fiscal 2005

Social Achievements

• No work-related fatalities since 2005
• Implemented safety initiatives to reduce work-related accidents, resulting in 18 injuries requiring leave of absence in 2019

Governance Achievements

• No infractions of environmental laws or regulations in the past five years (except for one incident exceeding agreed values in a pollution prevention agreement, which was reported and is being addressed)
• Established an EHS management system with audits and risk assessments

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business operations
• Water resource depletion risks
• Waste management challenges
• Potential for environmental pollution from accidents

Mitigation Strategies

• Adoption of Science Based Targets (SBT) for GHG emission reduction
• Investment in energy-saving measures and renewable energy
• Implementation of water recycling and resource productivity improvement initiatives
• Waste reduction and recycling programs
• Emergency response plans and pollution prevention measures

Supply Chain Management

Supplier Audits: 13 companies in 8 countries in fiscal 2019

Responsible Procurement

• Audits of Contracted Manufacturing Organizations (CMOs)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in international policy trends and emissions trading systems

Opportunities

• Energy-saving measures and renewable energy adoption

Reporting Standards

Frameworks Used: GRI, Science Based Targets initiative (SBT)

Certifications: Null

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

• Access to Health
• Environment (Climate Change)

Environmental Achievements

• Reduced GHG emissions (Scope 1 + Scope 2) by 39% compared to the base year (fiscal 2015)
• Reduced GHG emissions (Scope 3) per unit of revenue by 21% compared to the base year (fiscal 2015)
• Enhanced water resource productivity by 3.2 times compared to fiscal 2005
• Improved waste generated per unit of revenue to 23% of the fiscal 2005 result
• Increased biodiversity index by 3.5 times compared to fiscal 2005

Social Achievements

• Supported ACTION ON FISTULA™ program, providing surgery to over 6,200 obstetric fistula patients
• Launched a new initiative in India to improve access to anticancer products
• Supported the City Cancer Challenge initiative in Cali city, Colombia
• Participated in Access Accelerated
• Implemented diversity and inclusion initiatives, with a focus on women's career advancement in Japan

Governance Achievements

• Expressed support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
• Established the Sustainability Advisory Panel and ESG Working Groups
• Maintained a severity rate of work-related injuries at or below 0.005

Climate Goals & Targets

Environmental Challenges

• Cybersecurity risks
• Supply chain management risks
• Risks related to pharmaceutical regulatory changes
• Risks related to research and development uncertainty
• Risks related to intellectual property
• Risks related to drug side effects
• Risks related to commercial litigation
• Risks related to natural disasters
• Risks related to exchange rate fluctuations
• Counterfeit/falsified medicines

Mitigation Strategies

• Implementing various countermeasures against cyberattacks
• Establishing GMP and GDP standards for manufacturing and quality control
• Creating Business Continuity Plans (BCP) to ensure supply during emergencies
• Carefully monitoring trends in pharmaceutical pricing policy
• Implementing robust intellectual property protection
• Strengthening pharmacovigilance (PV) system
• Implementing product serialization and other anti-counterfeiting measures
• Establishing a recall system

Supply Chain Management

Supplier Audits: 274 quality audits of external partners globally (FY2020)

Responsible Procurement

• Basic Policy for Procurement Activities
• Astellas Business Partner Code of Conduct
• Sustainability risk assessment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), UN Global Compact

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Initiatives related to Access to Health and climate change are aligned with SDGs Goal 3 and Goal 13, respectively. Partnerships are leveraged to achieve Goal 17.

Awards & Recognition

• FTSE4Good Index Series (10 consecutive years)
• Constituent in all ESG investment indexes adopted by the GPIF
• SEAI Energy Team of the Year award (Kerry plant)

Environmental Metrics

ESG Focus Areas

• Environment, Health & Safety (EHS)
• Climate Change
• Biodiversity
• Resource Recycling
• Pollution Prevention
• Occupational Health & Safety

Environmental Achievements

• Reduced GHG emissions (Scope 1+2) by 39% compared to the fiscal year 2015 baseline (Emissions: 123 kilotons)
• Reduced GHG emissions (Scope 3) by 21% per unit of revenue compared to the fiscal year 2015 baseline
• Enhanced water resource productivity by 3.2 times compared to the fiscal year 2005 baseline
• Improved waste generated per unit of revenue to 23% of the fiscal year 2005 baseline
• Increased biodiversity index by 3.5 times compared to the fiscal year 2005 baseline

Social Achievements

• No work-related fatalities since 2005
• Six cases of work-related injuries requiring leave of absence in 2020

Governance Achievements

• Established EHS Committee to discuss EHS matters, including climate change mitigation measures
• Support of Task Force on Climate-related Financial Disclosures (TCFD) recommendations
• Investment of ¥760 million in energy-saving measures resulting in a reduction of 741 tons of GHG

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business operations
• Supply chain emissions (Scope 3)
• Water resource risks
• Waste management
• Maintaining a safe work environment

Mitigation Strategies

• Adoption of Science Based Targets (SBT) initiative
• Implementation of Environmental Action Plan
• Investment in energy-saving measures and renewable energy
• Waste reduction and recycling initiatives
• Risk assessments and safety training programs

Supply Chain Management

Supplier Audits: On-site assessments of two companies in Japan in fiscal 2020

Responsible Procurement

• Requesting cooperation with EHS activities from outsourced manufacturers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in international policy trends and emissions trading systems

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD, SBT initiative, GHG Protocol

Certifications: Science Based Targets (SBT) certification for Climate-Related Measures (November 2018)

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

• Climate Change
• Biodiversity
• Resource Recycling
• Pollution Prevention
• Occupational Health & Safety

Environmental Achievements

• Reduced GHG emissions (Scope 1+2) by 41% compared to the fiscal 2015 baseline (Emissions: 119 kilotons)
• Improved water resource productivity by 17% compared to the fiscal 2016 baseline
• Biodiversity index 3.8 times higher than the fiscal 2005 level

Social Achievements

• No work-related fatalities from 2005 to 2021
• 10 cases of work-related injuries requiring leave of absence in 2021

Governance Achievements

• Established EHS Committee to discuss environmental issues, including climate change
• Reports to the Board of Directors on disclosure in line with TCFD recommendations

Climate Goals & Targets

Environmental Challenges

• Climate change risks (transition and physical)
• Supply chain disruptions due to extreme weather events
• Increased cost of energy and raw materials
• Potential obsolescence of existing facilities due to GHG emission regulations

Mitigation Strategies

• Investing in energy-saving measures (¥900 million in 2021)
• Switching to renewable energy sources
• Implementing inventory control for stable supply
• Analyzing supply chain risks using in-house system
• Shifting to EVs for sales fleets and trucks
• Using gaseous and biomass fuels for boilers

Supply Chain Management

Supplier Audits: On-site assessments of one company in 2021; risk assessments of CMOs

Responsible Procurement

• Requiring cooperation from outsourced manufacturers in implementing EHS guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, droughts)
• Changes in precipitation patterns
• Rising mean temperatures

Transition Risks

• Policy and legal changes (carbon pricing)
• Increased cost of energy and raw materials
• Obsolescence of existing facilities
• Technology costs to transition to lower emissions technology

Opportunities

• Development of energy-efficient products
• Access to new markets

Reporting Standards

Frameworks Used: TCFD

Certifications: Science Based Targets (SBT) for Climate Change Mitigation Measures

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives to reduce GHG emissions, increase renewable energy use, and improve water resource productivity contribute to these goals.

Sustainable Products & Innovation

• PTP packaging using biomass plastic

Environmental Metrics

ESG Focus Areas

• Access to Health
• Responsible supply chain management
• Fulfilling unmet medical needs by creating novel healthcare solutions
• Transformative treatment through innovative therapeutic methods
• Value-based pricing
• Compliance and ethical business practices
• Product quality assurance and product safety
• Talent and organizational culture for realizing innovation
• Safe and appropriate use of products
• Reduction of environmental burden
• Climate change and energy
• Diversity, Equity & Inclusion

Environmental Achievements

• Achieved approximately 41% reduction in GHG emissions (Scope 1+2) in FY2021
• Achieved approximately 22% reduction in GHG emissions (Scope 3) per sales revenue in FY2021
• Obtained SBT certification for 1.5°C target emissions reduction (November 2022)
• Declared net zero goal (February 2023)

Social Achievements

• Increased the ratio of female managers: Global 44% (+3%), Japan 13% (+2%)
• Increased the ratio of female board members from 9% (1/11) in FY2021 to 30% (3/10) in FY2022
• Launched a company-wide “feedback tool” to promote an innovative, high-performing culture of continuous feedback (Oct 2022) with 4,324 submissions
• Improved engagement score from 71 to 75% and response rate from 71% to 82% in Global Engagement Survey (Oct 2022)
• Implemented various patient centricity programs impacting millions of patients

Governance Achievements

• Incorporated sustainability indicators into compensation system for directors & officers from FY2023
• Adopted the organizational structure of “Company with Audit & Supervisory Committee” in June 2018
• Comprehensive revision of the compensation system for directors and officers in FY2019

Climate Goals & Targets

Environmental Challenges

• Supply chain risks from geopolitical conflicts and natural disasters
• Power shortages and high energy costs
• Globalization of business impacting employee composition and compensation systems

Mitigation Strategies

• Inventory management for stable supply
• Securing secondary suppliers and sites
• Considering introduction of solar power
• Setting up emergency power supplies
• Introducing backup power supplies for manufacturing and research sites in Japan
• Supply chain segmentation
• Global integration of HR policies including evaluation, rewards, and grading

Supply Chain Management

Responsible Procurement

• Securing secondary suppliers and sites
• Supply chain segmentation

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Rising energy costs

Opportunities

• Introduction of renewable energy

Reporting Standards

Frameworks Used: Science Based Targets (SBT)

Certifications: SBT certified for 1.5°C target emissions reduction

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Resource Recycling
• Pollution Prevention
• Occupational Health & Safety

Environmental Achievements

• Reduced GHG emissions (Scope 1+2) by 42% compared to the fiscal year 2015 baseline.
• Improved water resource productivity by 48% compared to the fiscal year 2016 baseline.
• Achieved a Biodiversity Index 4.6 times higher than the fiscal year 2005 baseline.

Social Achievements

• No work-related fatalities since 2005.
• Implemented various safety initiatives to maintain a safe work environment.

Governance Achievements

• Incorporated sustainability performance targets into bonus for Directors (fiscal 2023).
• Established a cross-functional team for disclosures and scenario analysis.
• Regularly reports on climate change initiatives and transparent disclosure to the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (transition and physical risks)
• Rising energy and raw material prices
• Waste management (16% deterioration in waste generated per unit of revenue compared to fiscal year 2016 baseline).

Mitigation Strategies

• Investment in energy-saving measures, renewable energy sources, and flood countermeasures.
• Use of renewable energy-derived power to reduce the impact of rising fossil fuel prices.
• Optimizing the use of raw materials and promoting energy efficiency.
• Reducing business travel and promoting recycling and reuse of waste materials.

Supply Chain Management

Supplier Audits: 18 on-site assessments in fiscal year 2022

Responsible Procurement

• Assessments of Contracted Manufacturing Organizations (CMOs) based on Astellas EHS Guidelines.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods)
• Changes in precipitation patterns
• Rising average temperatures

Transition Risks

• Increased pricing of GHG emissions (carbon tax)
• Obsolescence and impairment loss on existing facilities
• Increased cost of energy and raw materials

Opportunities

• Resource efficiency
• Use of lower-emission sources of energy
• Development and/or expansion of low-emission goods and services

Reporting Standards

Frameworks Used: TCFD

Certifications: Science Based Targets initiative (SBTi)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Blister sheets made from biomass plastic

Awards & Recognition

• Minister of Environment Award of the 5th Japan Open Innovation Prize (February 2023)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Resource Recycling
• Pollution Prevention
• Occupational Health & Safety

Environmental Achievements

• Reduced GHG emissions (Scope 1+2) by 40% from the fiscal year 2015 baseline (Emissions: 122 kilotons)
• Improved water resource productivity by 65% compared with the base year of fiscal 2016
• Completed the treatment of all high-concentrate PCB-contaminated waste in 2023

Social Achievements

• No work-related fatalities since 2005
• Maintained a severity rate of work-related injuries at or below 0.005 at all business sites in 2023

Governance Achievements

• Incorporated sustainability performance targets into bonus for Directors (excluding Audit & Supervisory Committee Members and Outside Directors) starting fiscal 2023
• Regularly monitors climate change initiatives and reports to the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions (largest source of GHG emissions)
• Achieving reductions in Scope 3 emissions
• Heavy rainfall during construction exceeding effluent standards
• Exceeding upper limit of agreed values in a pollution prevention agreement

Mitigation Strategies

• Established the Sustainable Procurement Pledge to work with suppliers to reduce Scope 3 emissions
• Promoted the installation of solar panels at research facilities and conversion of purchased electricity to renewable energy
• Promptly reported incidents to government and implemented response measures
• Bolstering efforts to optimize wastewater treatment systems and monitor water quality

Supply Chain Management

Supplier Audits: Four on-site assessments of suppliers in fiscal 2023

Responsible Procurement

• Sustainable Procurement Pledge

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, hurricanes, floods)
• Changes in precipitation patterns
• Rising average temperatures

Transition Risks

• Increased pricing of GHG emissions (carbon tax)
• Obsolescence and impairment loss on existing facilities
• Costs to transition to lower emissions technology
• Increased cost of energy and raw materials

Opportunities

• Resource efficiency
• Use of lower-emission sources of energy
• Development and/or expansion of low-emission goods

Reporting Standards

Frameworks Used: TCFD

Certifications: Science Based Targets (SBT)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Blister packaging made from plant-derived raw materials

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Patient Access
• Environmental Initiatives

Environmental Achievements

• Achieved close to zero Greenhouse Gas emissions at the Kelly Plant, Ireland (world’s first, applied to limited products).

Social Achievements

• Patient Access Initiatives: Early Access Program (XOSPATA®) in 35 countries, 235 sites, over 900 cancer patients; Contribution to the development of pediatric formulations; International Pharmacy Program; Post-trial Access Program

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed