Climate Change Data

Environmental Metrics

ESG Focus Areas

• Cancer prevention and treatment
• Eradication and control of infectious diseases
• Provision of products and services useful for health care
• Business activities in harmony with the global environment
• A vibrant corporation making use of employee’s talent

Environmental Achievements

• Reduced CO2 emissions (Scope 1 + 2) by 35.6% vs FY2018
• Reduced water volume consumed by 35% vs FY2018 (ahead of schedule)
• Increased recycling ratio (including recovered energy) by 54.7%
• Reduced CO2 emissions from incineration by 23% by changing packaging material

Social Achievements

• Launched Eiken Farms for employing people with disabilities
• 100% uptake rate of harassment prevention training
• Improved employee satisfaction score to 58.4

Governance Achievements

• Transitioned to a company structure with committees in 2005
• Outside Directors account for the majority of the Board since 2015
• Introduced remuneration through transfer-restricted shares instead of stock options

Climate Goals & Targets

Environmental Challenges

• Delays in recovering investments in EIKEN CHINA CO., LTD. due to market changes
• Delays in recovering investments and loss of commercialization opportunities due to R&D delays
• Impact on product prices and usage due to changes in medical systems and pharmaceutical regulations
• Damage to plants or facilities due to natural disasters or accidents
• Long-term operational suspension due to pandemics or geopolitical risks
• Delays in responding to IT innovation, system failures, and information leaks

Mitigation Strategies

• Strengthening global expansion through appropriate sales agents and information analysis
• Strengthening planning and development of new businesses, products, and technologies based on medical needs
• Efforts to quickly identify trends in medical systems and pharmaceutical regulations and respond appropriately
• Securing safe product inventories, procuring from multiple sources, and implementing business continuity plans
• Implementing cyber security countermeasures and educational programs to prevent information leaks

Supply Chain Management

Supplier Audits: 100% of major business partners (70% for buyers, 90% for suppliers)

Responsible Procurement

• Supplier sustainability policy
• Human rights policy
• Anti-bribery policy
• Partnership Building Declaration

Climate-Related Risks & Opportunities

Physical Risks

• Damage to plants or facilities due to natural disasters

Transition Risks

• Burden of additional costs caused by introduction of carbon taxes
• Loss of sales opportunities from supply-chain disruption caused by disaster damage
• Loss of sales opportunities from reduced rates of operation at production facilities

Opportunities

• Increased sales and contributions to society derived from early response to changes in disease trends
• Increase in sales opportunities from development of quality-first products

Reporting Standards

Frameworks Used: IIRC’s “International Integrated Reporting Framework”, Ministry of Economy, Trade and Industry’s “Guidance for Collaborative Value Creation”

Certifications: ISO9001, ISO13485, MDSAP (Medical Device Single Audit Program), CASBEE S ranking for new research building

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmentally friendly packaging
• Reagents that can be stored at room temperature
• Devices powered by solar panels

Awards & Recognition

• Certified Health & Productivity Management Outstanding Organization (Large Enterprise Category) for four consecutive years

Environmental Metrics

ESG Focus Areas

• Medical
• Environment
• Social
• Governance

Environmental Achievements

• Achieved 2030 target for decarbonization (56% reduction in Scope 1 and 2 emissions vs. FY2021)
• Reduced sludge to 1/39th of its previous level through waste processing facility replacement
• Obtained SBT certification for GHG reduction targets
• Obtained third-party verification of greenhouse gas emissions
• Received a B score from CDP for climate change

Social Achievements

• Launched a health information website for the public in Japan
• Expanded the number of countries adopting colorectal cancer screening products
• Established EIKEN MEDICAL AMERICA INC. in the U.S.
• Platinum Kurumin certification as a company that supports child-raising
• Three stars in the Eruboshi certification for promoting women's active participation

Governance Achievements

• Transitioned to a company structure with committees in 2005
• Outside Directors have accounted for the majority of the Board since 2015
• Published Integrated Report in 2023
• Conducted an analysis and evaluation of the effectiveness of the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Temporary profit depression due to one-off factors and market trends during the COVID-19 pandemic
• Intensifying competition in the genetic testing field
• Changes in the clinical diagnostics market due to the COVID-19 pandemic
• Decreased sales of genetic test reagents for COVID-19 using the LAMP method in FY2023
• Contracting market in Japan due to aging and dwindling population

Mitigation Strategies

• Focus on main businesses and no major policy changes required
• Planned for genetic testing platform to be applicable to cancer testing
• Focus on multi-target testing methods
• Submitted application for companion diagnostic system (MINtS)
• Expanding overseas markets as growth drivers
• Developing new value such as remote tests using mobile devices
• Establishing a locally incorporated entity in the U.S.

Supply Chain Management

Supplier Audits: 100% (FY2023)

Responsible Procurement

• Supplier sustainability policy
• Human rights policy
• Anti-bribery policy
• CSR questionnaires for major business partners

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: IIRC’s “International Integrated Reporting Framework”, Ministry of Economy, Trade and Industry’s “Guidance for Collaborative Value Creation”, GRI, TCFD, UNGC, ISO 26000

Certifications: ISO 9001, ISO 13485, MDSAP, SBT, Platinum Kurumin, Eruboshi (three stars)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

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

The company's initiatives contribute to these goals through the development and provision of diagnostic products, sustainable business practices, and climate change mitigation efforts.

Sustainable Products & Innovation

• Eco-friendly immunochromatography products
• Modified packaging for Loopamp PURE DNA Extraction Kit
• Immunocatch®-Strep A and Immunocatch®-Adeno detection kit

Awards & Recognition

• Certified Health & Productivity Management Outstanding Organization (Large Enterprise Category) for five consecutive years

Environmental Metrics

ESG Focus Areas

• Medical
• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1 + 2) by 59% year on year in FY2023
• Reduced sludge to 1/39th of its previous level through the replacement of waste processing facilities
• Achieved a B score from CDP 2023 for climate change
• Obtained SBT certification for GHG reduction targets
• Introduced hydroelectric power at Nogi and Nasu Divisions

Social Achievements

• Established Sustainability Committee
• Launched a health information website for the general public
• Expanded investment in human capital
• Introduced training program for developing management team
• Implemented various measures to achieve work-life balance
• Platinum Kurumin certification as a company that supports child-raising
• Three stars in the Eruboshi certification for promoting women's participation

Governance Achievements

• Announced endorsement of TCFD recommendations
• Established EIKEN MEDICAL AMERICA INC. in the U.S.
• Reviewed Scope 1 and 2 targets and set Scope 3 target

Climate Goals & Targets

Environmental Challenges

• Significant decrease in sales of genetic test reagents for COVID-19 using the LAMP method in FY2023
• Slump in performance in FY2023 impacting the final year of the Medium-Term Management Plan
• Intensifying competition for talent acquisition
• Saturation of domestic demand
• Changes in demographic structure
• Widening disparities in income, medical treatment, and education
• Changes in lifestyles
• Digital shift
• Heightened awareness of sustainability

Mitigation Strategies

• Expanding sales of fecal immunochemical test for screening the lower gastrointestinal tract, as well as screening for stomach cancer risk
• Establishing a locally incorporated entity in the U.S. to raise presence and expand sales
• Developing and providing products and services that meet customer needs
• Cutting expenses through improved operational efficiency
• Shortening development time through promotion of R&D
• Improving medical access and medical infrastructure by designing for usability
• Supporting higher levels of healthcare in developing countries
• Accelerate spread of remote treatment and health care using mobile devices
• Enhance DX/IT security countermeasures
• Reduce CO₂ emissions/usage rates for plastics
• Address international standards (compliance with ISO14001, endorse TCFD, obtain CDP score, obtain SBT certification)
• Implement assessments for environmental impact of products
• Develop eco-friendly products
• Continuous monitoring of trends in infectious diseases and development and provision of diagnostics
• Cooperate with supply chain/implement due diligence

Supply Chain Management

Supplier Audits: 100% in FY2024 (target)

Responsible Procurement

• Supplier sustainability policy
• Human rights policy
• Anti-bribery policy
• CSR procurement surveys

Climate-Related Risks & Opportunities

Transition Risks

• Increasingly rigorous environmental laws and regulations
• Investigations into introduction of carbon tax and emissions trading system
• Strengthened environmental regulation of plastics

Opportunities

• Increase in opportunities for the sale of eco-friendly products
• Early response to changes in disease trends, such as spread of new infectious diseases in tandem with climate change

Reporting Standards

Frameworks Used: GRI, TCFD, CDP

Certifications: ISO 14001, SBT

Sustainable Products & Innovation

• Eco-friendly immunochromatography products
• Eco-friendly packaging

Awards & Recognition

• Certified Health & Productivity Management Outstanding Organization (Large Enterprise Category) for five consecutive years since 2020
• Platinum Kurumin certification
• Three stars in the Eruboshi certification