CREATE SDHD
Climate Impact & Sustainability Data (2022, 2022-06 to 2022-11)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Continued ISO 14001 certification at all stores for over 20 years
- Waste reduction (plastic bottle tops, cardboard recycling)
- Efficient use of resources (less plastic bags, energy-saving air conditioning and lighting)
- Reduced CO2 emissions by improving efficiency of distribution
- Less food waste by improving order accuracy
Social Achievements
- Creation of a work environment that is comfortable for women to work in
- Childcare leave system and shortened work hours system above statutory requirements
- Percentage of female managers increased to 15.6%
- Achieved statutory employment rate of 2.30% for persons with disabilities
- Promotion of family pharmacies
- Social contributions in the nursing care field, collaboration with home medical care
- Disaster cooperation agreements with local governments
Governance Achievements
- Establishment of the Sustainability Promotion Committee
- Establishment of the Nomination and Remuneration Committee consisting primarily of independent outside directors
- Revisions to whistleblowing regulations following the amended Whistleblower Protection Act
- Establishment of new helpline for head office employees in addition to whistleblowing system
Climate Goals & Targets
Medium-term Goals:
- Net sales 420 billion yen, Ordinary margin 5.0%, No. of stores 850, In-store pharmacy rate 55% by FYE May 2028
- Net sales 500 billion yen, Ordinary margin 5.0%, No. of stores 1,000, In-store pharmacy rate 65% by FYE May 2028
Short-term Goals:
- In-store pharmacy rate 46.9% (+7.0 pts) by May 31, 2023
- In-store pharmacy rate 50% by May 31, 2024
Environmental Challenges
- Increased utility costs due to soaring fuel prices
- Maintaining high growth for prescription drug stores while managing increased hiring of pharmacists and minimum wage increases
Mitigation Strategies
- Controlling man-hours at each store, optimizing staffing
- Installing solar panels (power purchase agreements)
- Reviewing business hours to meet customer needs while considering employee safety and work environment
- Optimizing staffing, including a review of business hours and operating labor schedules
Supply Chain Management
Responsible Procurement
- Development of eco-friendly private brands
- Adoption of wider range of eco-friendly products (Biomass plastics, recycled PET, etc.)
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 14001
Sustainable Products & Innovation
- Eco-friendly private brands
Reporting Period: 2022-06 to 2022-11
Environmental Metrics
ESG Focus Areas
- Climate Change
- Sustainability
Environmental Achievements
- Endorsed TCFD recommendations and disclosed climate change-related information on website including governance, risk identification, risk management system, and Scope 1 and Scope 2 emissions trends.
Climate Goals & Targets
Medium-term Goals:
- Net sales of 420 billion yen
- Ordinary margin of 5.0%
- No. of stores 850
- In-store pharmacy rate 55.0%
Environmental Challenges
- Uncertainty over the future due to COVID-19
- Concern over weaker consumption arising from a rush to raise product prices and soaring utility expenses
- Reduction of the basic dispensing fee and premium for the local support system due to last year’s revision of medical fees (starting in April 2023)
Mitigation Strategies
- Strong results expected in allergy products (pollen levels this year predicted to be double what they were the previous year)
- Strong results in products to combat infection and common cold-related products due to the recent spread of COVID-19
- Streamlining of sales promotion materials consolidation, sorting, and delivery to reduce CO2 emissions and improve work efficiency at stores.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: TCFD