ONO Pharmaceutical Co., Ltd.
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:16.0 thousand t-CO2 (Scope 1+2)
Renewable Energy Share:48.5% of total energy use
Water Consumption:189.9 thousand m3
ESG Focus Areas
- Environmental Conservation
- Realizing a Society in Which Everyone Can Play an Active Role
- Establishing a Highly Transparent and Robust Management
- Respect for Human Rights
- Improving Access to Healthcare
- Strengthening of Corporate Governance
- Realization of Sustainability Management with Business Partners
- Promotion of Diverse Partnerships
- Thorough Compliance
Environmental Achievements
- Scope 1 + 2 emissions (compared to FY2017) reduced by 46.2%, renewable energy utilization rate in purchased electricity reached 48.5%
- Water resource consumption (water intake) reduced by 3.3% year-on-year
- Recycling rate of unnecessary materials 70.3%
Social Achievements
- Launched ONO Bridge Project to improve healthcare access in Cambodia and Myanmar.
- Obtained indications of OPDIVO intravenous infusion for the treatment of rare diseases.
- No significant findings from regulatory inspections or recall of products.
Governance Achievements
- Established an Executive Appointment Meeting and an Executive Compensation Meeting composed primarily of Outside Directors to ensure independence and objectivity.
- Implemented a global quality manual based on the ICH Q10 Pharmaceutical Quality System Guideline.
- No significant compliance violations.
Climate Goals & Targets
Long-term Goals:
- Greenhouse gas emissions reduction by 60% (Scope 3) by 2050
- Reduce the ratio of cross-shareholdings to less than 10% over the medium to long term
Medium-term Goals:
- Zero greenhouse gas emissions by 2035
- Greenhouse gas emissions reduction by 30% (Scope 3) by 2030
- Recycling rate ≥ 80% by 2030
- Disclose the results of the aquatic life impact assessment for developing compound by 2030
- Conduct water-related risk assessment and comprehensive risk management for important business partners by 2026
- Conduct human rights due diligence within the Group (up to 2026)
- Conduct human rights risk assessments for high priority suppliers (up to 2026)
Short-term Goals:
- Achieve carbon neutrality (virtually zero greenhouse gas emissions by offsetting with voluntary carbon credits) by 2025
- Renewable energy utilization rate in purchased electricity: 100% by 2025
- Conduct an aquatic life impact assessment for 100% of wastewater by 2025
Environmental Challenges
- Intensifying competition for renewable energy procurement.
- Climate change-related risks (natural disasters, regulatory changes, market shifts).
- Water shortage risks in the supply chain.
- Biodiversity-related risks (impact of water shortages on production, regulatory changes, market shifts).
- Human rights risks in the supply chain.
- Compliance violations.
Mitigation Strategies
- Implementing energy conservation measures and conducting renewable energy procurement.
- Transitioning to environmentally friendly vehicles.
- Working with business partners to reduce Scope 3 emissions.
- Thoroughly implementing BCP measures.
- Identifying natural disaster and water shortage risks in the business partner selection process.
- Conducting human rights due diligence.
- Establishing a compliance system and conducting regular compliance training.
Supply Chain Management
Supplier Audits: 1 on-site audit conducted in FY2023
Responsible Procurement
- ONO Sustainable Procurement Code for Business Partner
Climate-Related Risks & Opportunities
Physical Risks
- Natural disasters (torrential rains, floods, typhoons)
Transition Risks
- Increased tax burden due to carbon tax
- Restrictions on vehicle use due to emission regulations
- Increased climate change countermeasure costs
- Lost opportunities due to delays in complying with regulations
Opportunities
- Cost savings through efficient use of electricity
- Utilization of subsidies for energy conservation and renewable energy
- Development of new products and services for new health hazards
- Enhancing corporate value through advanced measures against climate change
Reporting Standards
Frameworks Used: TCFD, TNFD, UN Global Compact
Certifications: GMP, PIC/S GMP, FSC®
UN Sustainable Development Goals
- SDG 3 (Good Health and Well-being)
- SDG 6 (Clean Water and Sanitation)
- SDG 7 (Affordable and Clean Energy)
- SDG 8 (Decent Work and Economic Growth)
- SDG 10 (Reduced Inequalities)
- SDG 12 (Responsible Consumption and Production)
- SDG 13 (Climate Action)
- SDG 15 (Life on Land)