Climate Change Data

Environmental Metrics

ESG Focus Areas

• Resolving healthcare challenges through innovation
• Improving access to healthcare
• Reducing the environmental impact of our business operations

Environmental Achievements

• Reduced CO2 emissions per revenue unit by 41% compared to fiscal 2005.
• Achieved an 85% recycling rate at Terumo Group business sites in Japan and overseas manufacturing sites.
• Reduced water use per unit of revenue by nearly 10% compared to fiscal 2016.

Social Achievements

• Launched a public-private partnership to advance measures for infection control of blood used for transfusions in Ghana.
• Supported the first open heart surgery in Zambia performed by Zambian surgeons.
• Implemented Kenko Keiei (Health and Productivity Management) initiatives, reducing the ratio of smokers to 24.7% and the ratio of associates diagnosed with metabolic syndrome to 23.8%.

Governance Achievements

• Established the Corporate Sustainability Department in April 2018.
• Established a whistle-blowing system.
• Implemented the Code of Conduct for the Terumo Group (SAKURA Rules).

Climate Goals & Targets

Environmental Challenges

• Lagging development of medical infrastructure and lack of medical professionals in developing countries.
• Reducing the environmental impact of business activities.
• Maintaining a balance between sustainable growth and the realization of a sustainable society.

Mitigation Strategies

• Public-private partnerships to improve healthcare access and quality in developing countries.
• Implementing an EHS management system compliant with ISO 14001:2015 and ISO 45001 standards.
• Setting CO2 emission reduction targets and improving energy efficiency.

Supply Chain Management

Supplier Audits: 34 audits/year

Responsible Procurement

• Code of Conduct for the Terumo Group (SAKURA Rules)
• Business continuity plans (BCPs) regarding material procurement
• EHS initiatives across the value chain

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 13485, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)
• SDG 17 (Partnerships for the Goals)

Terumo's initiatives contribute to these goals through improved healthcare access, sustainable product development, emission reductions, biodiversity conservation, and public-private partnerships.

Sustainable Products & Innovation

• TERUPACK™ Eco IV solution bag
• TRI Introducer Kit
• Closed Infusion Systems
• Concentrated Liquid Nutrients (Semi-Solid Type)
• Solution Pack™

Awards & Recognition

• Health & Productivity Stock Selection (fiscal 2014, 2015, 2016, 2017)
• Excellent Enterprise of Health and Productivity Management—White 500 (fiscal 2016, 2017)
• Cancer Prevention Partner Award (fiscal 2017)
• Award of Excellence (fiscal 2017)

Environmental Metrics

ESG Focus Areas

• Improving access to healthcare
• Ensuring the safety and quality of products and services
• Managing supply chains that support stable supply / Promoting responsible procurement
• Creating workplace environments where diverse associates can demonstrate their skills and abilities
• Ensuring occupational safety and promoting health / Reducing the environmental impact of our business operations
• Promoting compliance
• Social contribution activities

Environmental Achievements

• Achieved a recycling rate of 86.5% at Terumo Group business sites in Japan and manufacturing sites overseas
• Reduced CO2 emissions per revenue in fiscal 2018 by 41% compared to fiscal 2005
• Recycling rate of 98.4% for Terumo Group business sites in Japan surpassed the medium-term target set for fiscal 2019 (98%) ahead of schedule.

Social Achievements

• Launched a program in 2014 to cultivate staff worldwide knowledgeable on vascular interventional therapies, with approximately 120 people completing the program
• Established training facilities in various countries, including India, providing training to approximately 200 medical professionals in fiscal 2018
• Conducted perfusionist training workshops in Myanmar, training 44 individuals from five hospitals
• Maintained Kurumin certification since 2014, signifying active support for raising children
• In fiscal 2018, 82 male associates (53.9%) took childcare leave
• Hosted Terumo Patient’s Day event globally to reconnect associates with the company's mission
• Supported the Leukemia & Lymphoma Society’s Light The Night campaign, raising over US$235,000 in 2018

Governance Achievements

• Established the Corporate Sustainability Department in April 2018 to coordinate and promote sustainability activities
• Became a signatory to the United Nations Global Compact in 2012
• Established the Terumo Group Procurement Policy and Supplier Guidelines in April 2019
• Revised the Terumo Group Code of Conduct in April 2019 to guide associates in ethical conduct
• Established a whistle-blowing system for reporting compliance violations

Climate Goals & Targets

Environmental Challenges

• Lack of medical professionals capable of treating ischemic heart disease in low-income countries
• Shortage of perfusionists in Myanmar
• Increased incidents of ischemic heart disease in emerging countries
• Stringent quality management systems and regulations
• Global harmonization trends
• Stricter regulations for medical devices (MDR)
• Stringent data integrity requirements in the pharmaceutical industry
• Rising levels of expectations and anticipations for the actions of global companies

Mitigation Strategies

• Developed systems for providing training to medical professionals worldwide
• Established Terumo Medical Pranex training facility
• Established training facilities overseas
• Conducted perfusionist training workshops in Myanmar
• Developed a Groupwide quality management governance structure
• Implemented a PDCA cycle for quality improvement
• Developed Global Quality Policy
• Advanced compliance preparations for MDR
• Aspiring to achieve world-leading levels of data integrity
• Overhauled the Terumo Group Code of Conduct in April 2019

Supply Chain Management

Supplier Audits: 32 audits of waste collection and disposal contractors in FY2018

Responsible Procurement

• Terumo Group Code of Conduct
• Terumo Group Procurement Policy
• Supplier Guidelines
• BCPs for medical supply
• Request to suppliers not to use conflict minerals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 13485, ISO 14001, OHSAS 18001 (transitioning to ISO 45001)

Sustainable Products & Innovation

• Condensed liquid nutrients
• Intravascular ultrasound catheter
• TERUPACK Eco IV solution bag
• TRI Introducer Kit
• Closed Infusion Systems
• Guiding Catheter for TRI
• Solution Pack
• Mercury-free digital thermometers and blood pressure monitors
• PVC-free and DEHP-free products
• Concentrated Liquid Nutrients (Semi-Solid Type)

Awards & Recognition

• Health & Productivity Stock Selection (5 consecutive years)
• Excellent Enterprise of Health and Productivity Management—White 500 (3 consecutive years)
• Awards from Tokyo Metropolitan Government and Ministry of Health, Labour and Welfare for supporting associates with cancer

Environmental Metrics

ESG Focus Areas

• Resolving Healthcare Challenges
• Ensuring the Safety and Quality of Products and Services
• Managing Supply Chains That Support Stable Supply / Promoting Responsible Procurement
• Creating Workplace Environments Where Diverse Associates Can Demonstrate Their Skills and Abilities
• Ensuring Occupational Safety and Promoting Health / Reducing the Environmental Impact of Our Business Operations
• Serving Our Communities
• Promoting Compliance
• Human Rights Initiatives
• Building Relationships of Trust through Dialogue with Stakeholders

Environmental Achievements

• Reduced Group’s overall GHG emissions in fiscal 2020 were down 2.8% year on year, and down 2.6% compared to fiscal 2018.
• Recycling rate (for Terumo Group business sites in Japan and manufacturing sites overseas) was 88.2% in fiscal 2020.
• Overall water use per unit of revenue for the Terumo Group was reduced by 7.3% year on year in fiscal 2020.

Social Achievements

• Launched Japan’s first detachable Insulin patch pump in 2018.
• Implemented its first Group-wide global survey of the Associate Experience in fiscal 2020.
• In fiscal 2020, 89 male associates (63.1% of all applicable associates) took child-care leave.
• Supported 25 camps that screened 2,584 underprivileged and high-risk children susceptible to CHD and provided surgical treatment and care to 74 children diagnosed with CHD by donating 2.04 million India Rupees to the Aishwarya Trust.

Governance Achievements

• Established a Groupwide whistle-blowing system (Terumo Integrity Helpline).
• Established the Group Compliance Violations Reporting and Anti-Retaliation Policy.
• Established the Group Policy for Third Party Anti-Corruption and Anti-Bribery.

Climate Goals & Targets

Environmental Challenges

• Global COVID-19 pandemic impacts on business operations and supply chain.
• Supply chain disruptions due to natural disasters.
• Increasing stringency of global regulatory requirements.
• Maintaining a stable supply of products.
• Reducing GHG emissions.

Mitigation Strategies

• Formulated basic policies to combat the impacts of the global COVID-19 pandemic.
• Developed systems for securing stable supplies together with suppliers.
• Implemented measures to ensure data integrity in the manufacturing of pharmaceuticals.
• Implemented 97 energy efficiency improvement projects.
• Switched over to using 100% renewable energy at the Haasrode Factory.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Terumo Group Code of Conduct
• Terumo Group Procurement Policy
• Supplier Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Damage to buildings, facilities, or inventory in the event of a natural disaster.
• Increased energy costs and reduced labor productivity due to temperature rise or water shortages.

Transition Risks

• Increased energy costs and raw material costs due to carbon tax.
• Increased costs due to tightening environmental regulations.

Opportunities

• Reduced costs due to enhanced energy efficiency.
• Provision of products contributing to enhanced efficiency in medical settings or GHG emissions reduction.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, SASB, TCFD

Certifications: ISO 13485, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Initiatives described throughout the report contribute to these SDGs.

Sustainable Products & Innovation

• TRI Introducer Kit
• Guiding Catheter for TRI
• Drug-Eluting Stents
• Intravascular Ultrasound Catheter
• Condensed Liquid Nutrients
• Angiographic Kit
• Mercury-free digital thermometers and digital blood pressure monitors
• PVC-free and DEHP-free products
• Concentrated Liquid Nutrients (Semi-Solid Type)
• IV (Intravenous) Solution Bag
• Closed Infusion Systems

Awards & Recognition

• FTSE4Good Index Series
• FTSE Blossom Japan Index
• S&P/JPX Carbon Efficient Index
• SOMPO Sustainability Index
• Health & Productivity Stock Selection
• Corporate Governance of the Year 2020
• Cancer Prevention Partner Award

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Effective use of resources
• Quality, safety, and stable supply of products and services
• Sustainable supply chain management
• Associate Experience
• Diversity, Equity, and Inclusion
• Compliance

Environmental Achievements

• Reduced GHG emissions by 21.7% compared to FY2018 (Scope 1+2)
• Increased renewable energy share to 32.1% of total electricity use
• Reduced water use per unit of revenue by 30.5% compared to FY2018
• Achieved 90.4% recycling rate

Social Achievements

• Launched Growth Mindset initiative
• Established Terumo Group Human Rights Policy
• Increased ratio of female managers in Terumo Group to 30.8%
• Increased ratio of male associates taking childcare leave to 68.8%

Governance Achievements

• Established Sustainability Committee
• Revised executive performance evaluation system to include Future Corporate Value Targets
• Zero major violations of environmental laws and regulations
• Zero critical findings from regulatory authorities (excluding one warning letter)

Climate Goals & Targets

Environmental Challenges

• Rising costs of purchased materials due to supply chain disruptions and inflation
• Increased energy costs
• Temporary earnings downturn due to increased fixed costs and production transfer delays
• Stringent European Medical Device Regulations (MDR)
• Competition from low-priced products
• Uncertain business environment
• Climate change related physical and transition risks

Mitigation Strategies

• Group-wide VC2 project to improve profitability
• Production transfer to Costa Rica
• Production automation and inventory optimization
• Proactive price policy
• Strengthening internal development capabilities
• Exploring M&A opportunities
• Realigning corporate R&D organization
• Implementing measures to adapt to climate change scenarios
• Business Continuity Management (BCM) Policy and Business Continuity Plans (BCP)

Supply Chain Management

Supplier Audits: 45 audits in FY2022

Responsible Procurement

• Terumo Group Procurement Policy
• Supplier Guidelines
• Self-Assessment Questionnaire (SAQ)
• Joint transportation initiatives
• Shift to eco-friendly transportation

Climate-Related Risks & Opportunities

Physical Risks

• Damage to buildings and facilities from natural disasters
• Increased energy costs and reduced productivity due to climate change
• Increased demand for products due to climate events

Transition Risks

• Increased energy and raw material costs due to carbon tax
• Increased costs due to stricter environmental regulations
• Increased demand for GHG emission reduction and environmentally friendly products

Opportunities

• Provision of products to strengthen healthcare system resilience
• Reduced costs due to enhanced energy efficiency
• Provision of products contributing to enhanced efficiency in medical settings

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, SASB Standards, TCFD, Japanese Ministry of the Environment, Environmental Reporting Guidelines 2018

Certifications: ISO 14001, ISO 45001, ISO 13485

Third-party Assurance: Third-party assurance provider (name not specified)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 8: Decent Work and Economic Growth

Terumo's initiatives contribute to these SDGs through its products, services, and sustainability efforts.

Sustainable Products & Innovation

• TRI introducer kit
• Guiding catheter for TRI
• Drug-eluting stents
• Intravascular ultrasound catheter
• Infusion pump
• IV solution bag
• Closed infusion systems
• Mercury-free products
• PVC-free and DEHP-free products
• Syringe for vaccine

Awards & Recognition

• Terumo Human × Eco Awards
• Chairperson’s Award of the Japan Greenery Research and Development Center
• FTSE4Good Index Series
• FTSE Blossom Japan Index
• FTSE Blossom Japan Sector Relative Index
• S&P/JPX Carbon Efficient Index
• SOMPO Sustainability Index
• ISS ESG Corporate Rating (Prime)