Climate Change Data

Daiichi Sankyo Company, Limited

Climate Impact & Sustainability Data (2010, 2022, 2023-04 to 2024-03)

Reporting Period: 2010

Environmental Metrics

ESG Focus Areas

  • Compliance
  • Social Contribution
  • Environmental Management
  • Human Rights and Labor Practices
  • Communication

Environmental Achievements

  • Reduced environmental burden in every business operation
  • Reduced carbon dioxide emissions
  • Promoted the 3Rs (Reduce, Reuse, Recycle)

Social Achievements

  • Launched new products addressing unmet medical needs
  • Improved patient satisfaction with treatment
  • Strengthened medical services in Madhya Pradesh, India
  • Provided vaccinations and prenatal checkups in Cameroon and Tanzania
  • Realized a working environment which respects employee diversity

Governance Achievements

  • Reinforced strategic decision-making and strategy implementation
  • Secured legal compliance and management transparency
  • Strengthened oversight of management and the conduct of operations
  • Adopted a Kansayaku (Statutory Auditor) system and a corporate officer system

Climate Goals & Targets

Long-term Goals:
  • Sustained business growth through a hybrid business model
Medium-term Goals:
  • Quadruple sales in China to 3 billion yuan by fiscal year 2015
  • Create a world-class drug discovery capability and a more promising oncology pipeline by 2015
Short-term Goals:
  • Increase global sales of olmesartan to ¥300 billion
  • Gain top share of the Japanese market by fiscal year 2015

Environmental Challenges

  • Downward revisions in drug prices in Japan
  • Exceptionally strong yen
  • Launch of generic versions of losartan in the U.S.
  • Return of sales rights on certain products in Japan
  • Decline in export sales of levofloxacin
  • Intensifying competition for olmesartan franchise in the U.S.
  • Decline in Ranbaxy sales
  • Regulatory issues with U.S. authorities regarding Ranbaxy
Mitigation Strategies
  • Launched new products in Japan (Rezaltas, Inavir) and overseas (Tribenzor, Sevikar HCT)
  • Strengthened sales promotion measures for Effient in the U.S.
  • Optimized the value of existing products
  • Started new initiatives in emerging markets (India, China)
  • Expanded the pipeline by sharpening focus and reinforcing R&D efforts
  • Integrated Ranbaxy’s drug discovery and research capabilities with Daiichi Sankyo’s research function
  • Implemented cost-reduction programs based on joint procurement
  • Established a joint task force to resolve Ranbaxy’s regulatory issues

Supply Chain Management

Responsible Procurement
  • Practice CSR procurement through partnerships with suppliers

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

  • Goal 4: Reduce child mortality
  • Goal 5: Improve maternal health
  • Goal 6: Combat HIV/AIDS, malaria and other diseases

Initiatives in Africa and India through mobile healthcare field clinics

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:109,735 tCO2e/year (Scope 1+2)
Scope 1 Emissions:66,798 tCO2e/year
Scope 2 Emissions:64,388 tCO2e/year
Scope 3 Emissions:1,809,230 tCO2e/year
Renewable Energy Share:78.1% of total energy use
Total Energy Consumption:678,890 MWh/year
Water Consumption:8,090,000 m3/year
Waste Generated:7,194 tons/year
Carbon Intensity:2.03 t-CO2/ ¥100 million (Global)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Achieved a 49.6% reduction in global CO2 emissions (Scope 1 + Scope 2) against a FY2025 target of a 42% reduction from FY2015.
  • Achieved a 78.1% renewable electricity utilization rate against a target of at least 60% in FY2025.
  • Completed construction of a new administration building at Daiichi Sankyo Chemical Pharma’s Onahama Plant, receiving Nearly ZEB certification.
  • Solar power generation facility in operation at Shanghai Plant, covering the electricity consumption of the office building.

Social Achievements

  • Launched new projects in Honduras and Vietnam to improve healthcare access.
  • Continued participation in the Access Accelerated initiative, improving healthcare access for 700 million people.
  • Introduced an hourly paid leave system in October 2022.
  • Restarted the Career Challenge Program to support employee career development.

Governance Achievements

  • Established the EHS Management Committee, chaired by the CEO, to oversee environmental, health, and safety management.
  • Introduced a global hotline for anonymous reporting of compliance issues.
  • Revised the policies for handling whistleblowing in response to the revised Whistleblower Protection Act in Japan.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
  • 100% recycling rate by 2050.
  • Minimization of environmental risks by 2050.
Medium-term Goals:
  • Reduce CO₂ emissions by 63% in FY2030 compared to FY2015 emissions.
  • Achieve a renewable electricity utilization rate of 100% by FY2030.
  • Achieve a DOE ratio of 8% or more in FY2025.
Short-term Goals:
  • Reduce CO₂ emissions by 42% in FY2025 compared to FY2015 emissions.
  • Have more than 70% of business partners set targets based on the 1.5°C scenario by 2025.

Environmental Challenges

  • Supply chain disruptions due to worsening weather-related disasters.
  • Potential impact of carbon taxes on procurement costs.
  • Intensifying weather disasters affecting stable supply.
  • Loss of biodiversity leading to raw material unavailability.
Mitigation Strategies
  • Promoting climate change measures aligned with the 1.5°C target.
  • Shifting to renewable energy for 100% of electricity used by FY2030.
  • Working with business partners to reduce Scope 3 emissions.
  • Strengthening inventory control to ensure stable supply in the event of a disaster.
  • Purchasing from multiple suppliers and considering alternative suppliers.
  • Conducting flooding risk evaluations and strengthening BCP.
  • Implementing preventive measures to enhance supply chain stability.
  • Promoting drought countermeasures such as rainwater tanks and recycled water.

Supply Chain Management

Supplier Audits: 403 major business partners surveyed, 399 (99%) responded.

Responsible Procurement
  • Sustainable procurement survey
  • Business Partner Code of Conduct
  • Business Partner Management System

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
  • Drought
  • Water shortages
Transition Risks
  • Carbon taxes
  • Regulatory changes
  • Increased costs of renewable energy
Opportunities
  • Shift to renewable energy
  • Development of energy-efficient products
  • Enhanced corporate value from decarbonization efforts

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 45001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

  • Goal 17

Contributions to the GHIT Fund for combating infectious diseases in developing countries.

Awards & Recognition

  • Selected as ‘A List’ Companies in CDP Climate Change 2022 for Three Consecutive Years
  • White 500 for 2023
  • Gold at PRIDE Index 2022
  • Kurumin / Platinum Kurumin certification
  • Eruboshi Certification (three stars)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:109,239 t-CO2e/year (Scope 1+2)
Scope 1 Emissions:85,245 t-CO2e/year
Scope 2 Emissions:23,994 t-CO2e/year
Scope 3 Emissions:4,430,241 t-CO2e/year (Cat.1)
Renewable Energy Share:80%
Total Energy Consumption:736,789 MWh/year
Water Consumption:8,191,000 m3/year
Waste Generated:10,909 tons/year
Carbon Intensity:242.7 t-CO2/billion yen (Scope 3, Cat.1)

ESG Focus Areas

  • Climate Change
  • Pollution
  • Water
  • Biodiversity
  • Resource Use and Circular Economy
  • Human Rights
  • Access to Healthcare
  • Safety of Pharmaceuticals
  • Compliance
  • Protection of Whistle-blowers
  • Animal Welfare
  • Relationship with Business Partners
  • Prevention of Bribery and Corruption
  • Our Group Employees
  • Corporate Governance

Environmental Achievements

  • Reduced CO2 emissions (Scope1 + Scope2) by 49.8% from FY2015
  • Reduced CO2 emissions intensity based on sales (Scope3, Cat.1) by 6.3% from FY2020
  • Renewable electricity utilization rate of 80.0%
  • Maintained waste plastic recycling rate of over 70%
  • Reduced disposal of hazardous waste by 2.4% from FY2020

Social Achievements

  • Launched DS Academy to develop future global leaders
  • Increased positive response rate on engagement survey for corporate culture & work environment to 79%
  • Increased positive response rate on engagement survey for development & growth opportunities to 76%
  • Expanded access to investigational drugs through Expanded Access Program
  • Implemented various training programs to promote women’s empowerment

Governance Achievements

  • 100% compliance with all the principles of the revised Corporate Governance Code in Japan
  • Established a global unified whistleblowing hotline
  • Established Business Partner Code of Conduct
  • Established Daiichi Sankyo Group Anti-Bribery & Anti-Corruption Policy
  • Zero significant compliance violations

Climate Goals & Targets

Long-term Goals:
  • Net-zero GHG emissions by 2050
Medium-term Goals:
  • Reduce CO2 emissions by 63% by 2030 (compared to FY2015)
  • Achieve renewable electricity utilization rate of 100% by 2030
  • Have more than 70% of business partners set targets based on the 1.5°C target by 2025
Short-term Goals:
  • Reduce CO2 emissions by 42% by 2025 (compared to FY2015)
  • Reduce CO2 emission intensity based on sales by 15% by 2025 (compared to FY2020)
  • Achieve renewable electricity utilization rate of 60% or more by 2025

Environmental Challenges

  • Supply chain disruptions due to extreme weather and geopolitical risks
  • Securing sufficient talent with high levels of expertise
  • Addressing antimicrobial resistance
  • Expanding access to healthcare in low- and middle-income countries
  • Combating counterfeit pharmaceuticals
Mitigation Strategies
  • Strengthening production infrastructure
  • Implementing various talent acquisition and development initiatives
  • Contributing to the AMR Action Fund
  • Partnering with NGOs and other organizations to improve access to healthcare
  • Reconsidering sealing materials and changing specifications of individual packaging

Supply Chain Management

Supplier Audits: Sustainable Procurement Survey (approximately 6,400 companies)

Responsible Procurement
  • Business Partner Code of Conduct
  • Sustainable Procurement Survey
  • Engagement with suppliers on 1.5°C targets

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Damage to facilities
Transition Risks
  • Changes in regulations
  • Shifting market demands
Opportunities
  • Development of energy-efficient products
  • Transition to renewable energy

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: AAALAC International

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

  • Goal 3: Good Health and Well-being
  • Goal 7: Affordable and Clean Energy
  • Goal 13: Climate Action
  • Goal 17: Partnerships for the Goals

Initiatives contribute to these goals through drug discovery and development, renewable energy use, climate change mitigation, and partnerships with various organizations.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • CDP Climate Change A List
  • SX (Sustainability Transformation) Brands
  • Digital Transformation Stocks (DX Stocks)
  • FTSE4Good Global Index
  • FTSE Blossom Japan Index
  • FTSE Blossom Japan Sector Relative Index
  • MSCI Japan ESG Select Leaders Index
  • SOMPO Sustainability Index