Climate Change Data

Environmental Metrics

ESG Focus Areas

• Women's Healthcare
• Sustainability
• Human Resources
• Environmental Conservation
• Compliance

Environmental Achievements

• Observance of environmental laws and regulations (Act on the Rational Use of Energy, Air Pollution Control Act, Water Pollution Prevention Act, etc.)
• Establishment of an Energy Conservation Committee to monitor energy consumption and implement reduction measures.

Social Achievements

• Launch of LiLuLa app supporting women's health.
• Educational activities for female athletes on menstrual cycle management and hormone balance.
• Official sponsorship agreement with Toyama Grouses basketball team.
• Internship program for junior and senior high school students.

Governance Achievements

• Establishment of a Nomination and Remuneration Committee.
• Annual survey of directors and audit & supervisory board members to assess Board effectiveness.
• Establishment of a Compliance Committee and implementation of compliance training.

Climate Goals & Targets

Environmental Challenges

• Decline in net sales due to transfer of contrast medium sales and generic competition.
• Government policies encouraging generic drug use and annual drug price revisions.
• Increasingly adverse business environment due to rising medical expenses and aging population.

Mitigation Strategies

• New drug development in Women's Healthcare, biosimilars, and anticancer drugs.
• Focus on priority products and efficient resource allocation.
• Strategic investments in accordance with the Mid-Term Business Plan.
• Global expansion into ASEAN and North America.

Supply Chain Management

Supplier Audits: 20 to 30 on-site audits and the same number of written audits annually.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000

Environmental Metrics

ESG Focus Areas

• Women's well-being
• Sustainable growth
• Environmental conservation
• Work-life balance
• Health and productivity management
• Diversity and inclusion
• Corporate governance
• Climate change
• Human rights

Environmental Achievements

• Reduced CO₂ emissions to 11,727 tCO₂ in FY2021 from 14,271 tCO₂ in FY2016 (a decrease of approximately 18%)
• Reduced energy consumption to 5,812 kL (crude oil equivalent) in FY2021 from 5,979 kL in FY2016 (a decrease of approximately 3%)
• Obtained ISO14001 and ISO45001 certifications for Toyama Plant, Toyama Research & Development Center, and Toyama Distribution Center.

Social Achievements

• Launched a smartphone app, “LiLuLa,” to support women’s health.
• Supported various women’s health-related seminars and events.
• Increased percentage of females in management positions to 21.3% in FY2021.
• Certified as “2022 Health & Productivity Management Outstanding Organization” by the Ministry of Economy, Trade and Industry and NIPPON KENKO KAIGI.
• Improved percentage of employees taking parental leave to 52.6% in FY2021.
• Improved percentage of employees taking paid vacations to 64.9% in FY2021.

Governance Achievements

• Established a quality policy in July 2021.
• Established a Compliance Committee and Risk Management Committee.
• Established the Nomination and Remuneration Committee.
• Implemented a whistleblowing system.
• Transitioned to the “Prime Market” in the listed securities exchange in April 2022.
• Linked Directors' remuneration to business performance and stock price.

Climate Goals & Targets

Environmental Challenges

• Impact of drug price cuts.
• Decreased number of tests using contrast media.
• Partial impact on CMO business due to the pandemic.
• Product recalls due to inconsistencies between actual products and approval documents.
• Difficulties in attracting and retaining human resources.
• Slow response to digitalization.
• Risks related to upfront payments for exclusive distribution rights.
• Risks related to investment in partners.
• COVID-19 pandemic impact on research and production activities.
• Risks related to IT security and information management.

Mitigation Strategies

• Continuous development of new products and enhancement of their value.
• Implementation of cross-departmental measures to ensure sales accumulation.
• Establishment of Stable Supply Committee and development of multiple supply chains.
• Introduction of “Quality Management Review” for quality control.
• Establishment of Risk Management Committee and formulation of alternative supply plans.
• Launch of specific initiatives in three areas (Sales Division, Toyama Plant/Toyama R&D Center, and Head Office corporate functions) to address digitalization.
• Implementation of appropriate evaluation by an outside specialist on long-term advance payments and unlisted shares.
• Formulation and implementation of Company policy for dealing with COVID-19.
• Delivery of regular information security training for all employees.

Supply Chain Management

Responsible Procurement

• Procurement Policy and Procurement Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• All 17 SDGs

See Materiality and SDGs section

Sustainable Products & Innovation

• F-meno® capsules
• FSN-013

Awards & Recognition

• Special award at the eighth NIPPON Women’s Body Meeting
• 2022 Health & Productivity Management Outstanding Organization

Environmental Metrics

ESG Focus Areas

• Quality assurance & Safety management
• Research & Development
• Stable supply
• Human resource development
• Employee’s health management
• Compliance
• Work-life balance
• Human rights
• Workers’ safety & health
• Women’s health support
• Information provision activity
• Diversity & Inclusion
• Production management
• Risk management
• Information security
• Corporate governance
• Supply chain management
• Climate change & Energy reduction

Environmental Achievements

• Introduction of Offsite Solar PPA in November 2022 to procure electricity from renewable energy sources, reducing CO2 emissions.
• Introduction of Solar Power Generation Facility at OLIC (Thailand) to reduce CO2 emissions and electricity costs.

Social Achievements

• Launched the Fuji Well-being Project in October 2022 to create a comfortable work environment for women.
• Won a special award at the NIPPON Women’s Body Meeting® 2022 for contributions to women’s health education.
• Certified as a 2023 Health & Productivity Management Outstanding Organization by the Ministry of Economy, Trade and Industry.
• Certified as Toyama Women’s Participation and Advancement Corporation by Toyama Prefecture.

Governance Achievements

• Endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and started disclosing information based on those recommendations.
• Improved the effectiveness of the Board of Directors through annual self-evaluation and addressing identified issues.

Climate Goals & Targets

Environmental Challenges

• Annual NHI drug price revisions leading to lower drug prices.
• Competition from numerous rival manufacturers.
• Rising prices of raw materials.
• Potential supply chain disruptions due to technical or regulatory issues, natural disasters, or reliance on specific products.
• Unexpected adverse drug reactions or product quality issues.
• Risks related to IT security and information management.
• Difficulties in attracting and retaining human resources.
• Risks related to digitalization.
• Risks related to exclusive distribution rights and upfront payments.
• Risks related to investment in partners.
• COVID-19 pandemic impact on research and production activities.

Mitigation Strategies

• Implementation of cross-departmental measures to ensure sales accumulation, such as reducing costs by lowering raw material procurement costs and reviewing production methods.
• Establishment of Stable Supply Committee to regularly check the procurement status of raw materials and to promptly take group-wide measures when risks arise.
• Gradual development of multiple supply chains for important products.
• Introduction of “Quality Management Review” for quality control.
• Supervision and confirmation of the possibility of foreseeable quality problems arising by a dedicated section within the Regulatory Compliance Department.
• Establishment of Risk Management Committee and formulation of alternative supply plans and supply recovery procedures in the event of disaster.
• Having the Supply Chain Management Department report directly to the President to strengthen supply chain management.
• Reduction of reliance on a specific product by launching new products to expand the portfolio.
• Continuous cost reductions.
• Checking of litigation risks by intellectual property department in relation to patents and legal department in relation to laws and regulations to lower the possibility of risks materializing.
• Formulation and implementation of Company policy for dealing with COVID-19.
• Delivery of regular information security training for all employees of the Company.
• Focus on attracting, retaining and developing human resources in line with a corporate culture which has always attached importance to human resources.
• Launch of specific initiatives in three areas Sales Division, Toyama Plant/ Toyama Research and Development Center, and Head Office corporate functions, in line with goal of digitalization under the current Mid-Term Business Plan.
• Implementation of appropriate evaluation by an outside specialist, where necessary, on the recording of long-term advance payments.
• Recording of upfront payments for exclusive distribution rights under contracts under “long-term advance payments”.
• Continued evaluation in an appropriate manner every period thereafter.
• Implementation of evaluation and verification of development progress and distribution plans, including putting the Business Development Department in charge of such business creating opportunities for discussion based on regular reports.

Supply Chain Management

Responsible Procurement

• CSR procurement based on our Supply Chain Procurement Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• F-meno ® capsules
• FSN-013 (under development)

Awards & Recognition

• Silver Medal in the EcoVadis Sustainability Assessment (FY2022)
• Special award at the NIPPON Women’s Body Meeting® 2022

Environmental Metrics

ESG Focus Areas

• Women's health
• Climate change
• Human rights
• Employee well-being
• Supply chain sustainability

Environmental Achievements

• Signed an offsite solar power purchase agreement (PPA) with the Hokuriku Electric Power Group to shift 50% of Toyama Plant electricity to renewable energy by 2030.
• Set up a solar power generation facility at OLIC's plant in Thailand, generating 1,200 MWh annually and reducing CO2 emissions.
• Reduced contracted power at Toyama Research & Development Center by 15% through demand control.

Social Achievements

• Launched a smartphone app, "LiLuLa," providing accurate information on women's health issues.
• Held online seminars for LiLuLa users to improve familiarity with obstetrics and gynecology.
• Donated 10 million yen to the Japanese Red Cross Society to support those affected by the 2024 Noto Peninsula Earthquake.
• Revised Human Rights Policy to advance human rights initiatives and conducted human rights due diligence.

Governance Achievements

• Endorsed TCFD recommendations and started a scenario analysis to assess climate-related risks and opportunities.
• Established the Nomination and Remuneration Committee to ensure transparency and fairness in decision-making.
• Implemented an executive officer system to speed up information sharing.

Climate Goals & Targets

Environmental Challenges

• Annual NHI drug price revisions creating a harsh business environment for contrast media.
• Delays in strengthening overseas business, particularly in expanding to other ASEAN countries.
• Sales shortfalls for key products such as F-meno capsules and SULPREP.

Mitigation Strategies

• Introduced a dual-base system for contrast media, sourcing syringe formulations from Japan and vial formulations overseas.
• Switched to European drug ingredient suppliers to reduce costs and build a more stable supply system.
• Expanding contract manufacturing operations to improve capacity utilization.
• Negotiating sublicensing terms for Nextstellis™ in several countries.

Supply Chain Management

Supplier Audits: 45 manufacturing sites inspected in the previous fiscal year

Responsible Procurement

• CSR procurement based on Supply Chain Procurement Policy
• Establishment of Stable Supply Committee to regularly check raw material procurement status

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (e.g., earthquakes)

Transition Risks

• Regulatory changes impacting drug prices
• Market shifts affecting demand

Opportunities

• Development of energy-efficient products
• Increased demand for renewable energy solutions

Reporting Standards

Frameworks Used: TCFD, SDGs

Certifications: ISO 14001, ISO 45001, Health & Productivity Management Outstanding Organization (3 consecutive years)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Fuji Pharma’s materiality has been established with a view to contributing to the achievement of the Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EcoVadis Silver Medal (2 consecutive years)
• Toyama Women’s Participation and Advancement Corporation