Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment (E)
• Social (S)
• Governance (G)

Environmental Achievements

• Endorsed the TCFD recommendations in March 2022 and joined the TCFD consortium.
• Set a 2030 target of a 30% reduction in GHG emissions (Scope 1 & 2) compared to 2020, aiming for zero emissions by 2050.

Social Achievements

• Focus on improving patients' QOL in an aging society through the supply of highly effective and safe products.
• Respect and acceptance of diversity in workforce and working styles.

Governance Achievements

• Established a Sustainability Committee under the Board of Directors to oversee ESG activities.
• Improved internal controls and risk management, ensuring compliance and fair and honest corporate activities.
• Transitioned to the Prime Market of the Tokyo Stock Exchange, meeting the governance standards and expanding disclosures.

Climate Goals & Targets

Environmental Challenges

• Increased energy and procurement costs due to carbon tax introduction.
• Increased equipment investment costs due to stricter GHG reduction regulations.
• Potential negative impact on stock price due to delayed disclosure of climate change response information.
• Potential damage to buildings, equipment, and inventory due to natural disasters, leading to operational disruptions and supply chain interruptions.
• Potential decrease in sales due to reduced medical system functionality caused by increased infections due to rising temperatures.

Mitigation Strategies

• Improving energy efficiency to reduce costs.
• Introducing renewable energy and gradually introducing electric vehicles.
• Complying with relevant laws and regulations.
• Actively disclosing environmental data.
• Developing environmentally friendly products.
• Strengthening BCP (Business Continuity Plan) measures.
• Regularly reviewing risks and opportunities.
• Product center satellite (reducing logistics lead time) to expand demand.
• Providing products and medical tools that contribute to environmental load reduction.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters
• Increased infections due to rising temperatures

Transition Risks

• Carbon tax introduction
• Stricter GHG reduction regulations

Opportunities

• Energy efficiency improvements
• Development of environmentally friendly products

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Governance
• Diversity & Inclusion
• Sustainability
• Climate Change
• Human Rights

Environmental Achievements

• Not disclosed

Social Achievements

• Achieved 'Erushi' certification (highest level) for promoting women's empowerment under the Act on the Promotion of Women's Participation in the Workplace.
• Implemented various work-life balance initiatives including time-unit acquisition of paid leave, flextime, telecommuting, and combined work systems.

Governance Achievements

• Established a Nomination and Remuneration Advisory Committee with a majority of independent outside directors.
• Implemented a system for evaluating the effectiveness of the board of directors.

Climate Goals & Targets

Environmental Challenges

• Lack of a formalized succession plan and insufficient resources dedicated to leadership development.
• Absence of female directors on the board.

Mitigation Strategies

• Plans to strengthen succession planning and leadership development through a systematic next-generation leader training program.
• Commitment to improving board diversity.

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: TCFD

Certifications: えるぼし (Erushi) certification (highest level) for promoting women's empowerment

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The company aims to contribute to the SDGs through its ESG activities.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• えるぼし (Erushi) certification

Environmental Metrics

ESG Focus Areas

• 医療への貢献
• 環境負荷の低減
• 人権尊重への取組み
• 多様な人材の活躍推進
• 医療ニーズへの高品質対応
• コーポレート・ガバナンスの推進

Environmental Achievements

• 2020年3月期スコープ1、2におけるGHG排出量を基準とし、2031年3月期の削減目標を2020年3月期比30％削減、2051年3月期には「GHG排出量ゼロ」にすることを目標として掲げている。
• CDP気候変動に関する調査において「B－」評価に認定

Social Achievements

• 社員一人一人が自分のキャリアを考え、会社や上司との相互作用でキャリア形成につなげるCMS（キャリア・マネジメント・システム）を導入。
• 多様性を考慮した人材の選抜型研修や人材ローテーション制度を活用した人材育成の仕組みづくりを進めている。
• 時間単位休暇、フレックスタイム勤務、在宅勤務、コンバインドワーク、地域限定勤務、ウェルカムバック、各種研修等の制度を整備

Governance Achievements

• 2022年からUNGCに加盟
• サステナビリティ委員会を設置
• コーポレート・ガバナンス・コードへの対応
• 内部監査（J-SOX）
• リスク管理委員会を設置
• コンプライアンス委員会を設置
• 業績連動型株式報酬制度を導入

Climate Goals & Targets

Environmental Challenges

• 償還価格の引下げ
• 円安
• サプライチェーン問題
• 医療従事者不足
• 気候変動

Mitigation Strategies

• より収益性の高い自社製品の売上高比率を高める
• 自社開発の新製品を導入することによる米国ビジネスの拡大
• 中国WOMA社を活用し、医療工具コストの低減による経費の圧縮
• 三井化学株式会社との業務提携による製品開発
• 部材調達先の多様化や自社製造の比率を高める
• 不具合の発生状況や他社の販売動向について月次でレビューする仕組みを構築
• より収益性の高い自社製品の販売比率を高めることや、自社製造比率を高める等の手段により売上原価の低減
• 在庫品の分散投資による製品供給の安定化
• BCP（事業継続計画）対策強化
• 省エネ・再エネへの投資を強化
• 顧客等のサステナブル志向に合致した施策を実行

Climate-Related Risks & Opportunities

Physical Risks

• 自然災害による建物・設備・在庫への被害、操業停止及びサプライチェーンの寸断
• 気温上昇による感染症の増加

Transition Risks

• 炭素税の導入によるエネルギーコスト・調達コストの増加
• GHG削減規制の強化

Opportunities

• エネルギー効率向上によるコスト削減
• 環境負荷低減に貢献する製品・医療工具などの提供

Reporting Standards

Frameworks Used: UNGC, TCFD

Certifications: ISO13485

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• TCFD Consortium participation
• Disclosure of (consolidated) GHG emission reduction targets
• CDP score level "B-" rating
• Establishment and disclosure of environmental policy

Social Achievements

• Formulation and disclosure of human rights policy
• Promotion of diverse human resources (Career Management System)
• Implementation of CMS (Career Management System) to support employee career development

Governance Achievements

• Sustainability Committee meetings (reported to the Board of Directors)
• Risk Management Committee meetings
• Compliance Committee meetings
• Compliance with the Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Negative impact of the yen's depreciation on ODEV product procurement and sales & administration expenses
• Increase in sales & administration expenses due to increased business activities
• Supply chain issues in the first half of the year (industry-wide) impacting US market performance

Mitigation Strategies

• Cost reduction measures, including review of manufacturing vendors and increased in-house production ratio
• Improving the ratio of high-profitability in-house products (especially in the US market)
• Resumption of new customer acquisition activities in the second half of the year in the US market

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD