Climate Change Data

Kyowa Hakko Bio Co., Ltd.

Climate Impact & Sustainability Data (2019-2023, 2020, 2023)

Reporting Period: 2019-2023

Environmental Metrics

Total Carbon Emissions:305000 tCO2e/year
Scope 1 Emissions:33000 tCO2e/year
Scope 2 Emissions:96000 tCO2e/year
Scope 3 Emissions:176000 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:2136 TJ/year
Water Consumption:19264000 m3/year
Waste Generated:29000 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Water Stewardship
  • Waste Management
  • Supply Chain Sustainability
  • Compliance
  • Employee Engagement
  • Workforce Diversity
  • Human Rights
  • Occupational Health and Safety

Environmental Achievements

  • Reduced GHG emissions by 34% from 2019 to 2023 (477 to 305 thousand tCO2e)
  • Reduced water usage by 49% from 2019 to 2023 (38,465 to 19,264 thousand m³)
  • Improved waste recycling rate from 98.7% in 2019 to 96.7% in 2023

Social Achievements

  • 100% of procurement staff received training on sustainable procurement policy in 2022 and 2023
  • Improved employee engagement score from 68% in 2020 to 72% in 2023
  • Increased percentage of female managers from 17.5% in 2019 to 19.7% in 2023
  • Increased percentage of women in new hires from 27.5% in 2019 to 31.2% in 2023
  • 100% of employees covered by medical insurance

Governance Achievements

  • Increased compliance training participation rate from 93% in 2022 to 96.8% in 2023
  • 100% of sites conducted compliance risk assessments in 2022 and 2023
  • 20% female representation on the board of directors in 2022 and 2023

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Sustainable procurement policy training for 100% of procurement staff in 2022 and 2023

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: ISO14001 (multiple production sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2020

Environmental Metrics

Renewable Energy Share:25% (at Thai Kyowa)

ESG Focus Areas

  • Climate Change
  • Renewable Energy

Environmental Achievements

  • Reduced GHG emissions from electric power consumption by about 25% at Thai Kyowa Biotechnologies Co., Ltd. through the introduction of renewable energy certificates (I-RECs), resulting in an annual GHG reduction of 5,300t.

Climate Goals & Targets

Long-term Goals:
  • Kirin Group aims to achieve net zero GHG emissions throughout the entire value chain by 2050.
  • Kirin Group aims to achieve 100% renewable energy use by 2040.
Medium-term Goals:
  • Kirin Holdings aims to reduce Scope 1 and Scope 2 emissions by 30% by 2030 compared to 2015 levels and Scope 3 by 30%.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science-Based Targets initiative (SBTI), Task Force on Climate-related Financial Disclosures (TCFD)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:305 thousand tCO2e
Scope 1 Emissions:33 thousand tCO2e
Scope 2 Emissions:96 thousand tCO2e
Scope 3 Emissions:176 thousand tCO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:2,136 TJ
Water Consumption:19,264 thousand m3
Waste Generated:29 thousand t
Carbon Intensity:5.9 tCO2e/million yen in 2023

ESG Focus Areas

  • Health and Well-Being
  • The Environment
  • Human Rights
  • Sustainable Procurement
  • Occupational Health and Safety

Environmental Achievements

  • 47% reduction in Scope 1 and 2 GHG emissions compared to 2019
  • Yamaguchi facility began using solar power through a PPA in March 2024, aiming to reduce GHG emissions by approximately 900 tons annually
  • Reduced annual natural gas consumption by approximately 8% at BioKyowa by replacing boilers with high-efficiency ones.

Social Achievements

  • Launched HMOs, reaching 2 million users of HMO-containing products in Japan and overseas in 2023.
  • Citicoline reached 1.91 million users of Citicoline-containing products in Japan and overseas in 2023.
  • Implemented flexible working arrangements such as flextime and remote work.
  • Increased number of men taking parental leave.

Governance Achievements

  • Established a CSV Promotion Team within the Corporate Strategy Department.
  • 97% of Kyowa Hakko Bio Group employees participated in compliance training in 2022.
  • Established a hotline for reporting compliance and human rights violations.

Climate Goals & Targets

Long-term Goals:
  • Net-zero GHG emissions across the entire value chain by 2050 (Kirin Group target)
  • 100% renewable energy ratio in used electricity by 2040
Short-term Goals:
  • Achieve 55% reduction in Scope 1+2 GHG emissions compared to 2019 by 2024
  • Achieve 96% acquisition rate of international food safety certification by 2024 (Kirin Group target)

Environmental Challenges

  • Water stress at Thai Kyowa Biotechnologies
  • Reducing the use of natural gas at BioKyowa
  • High human rights risks in raw material procurement (although none were found to be high risk in 2023).
Mitigation Strategies
  • Introduced water-saving equipment at Thai Kyowa Biotechnologies’ HMOs production facility.
  • Replaced boilers with high-efficiency package boilers at BioKyowa.
  • Utilized Sedex’s Radar assessment tool to identify and prioritize raw materials with high human rights risks and implemented further investigation and communication with suppliers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Kirin Group Sustainable Procurement Policy and Kirin Group Sustainable Supplier Code
  • Compliance clauses incorporated into supplier contracts
  • Regular surveys using the Kirin Group Self-Assessment Questionnaire (SAQ)

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (Kyowa Hakko Bio, Kyowa Pharma Chemical, Thai Kyowa Biotechnologies, Shanghai Kyowa Amino Acid), FSSC 22000 (Kyowa Hakko Bio, BioKyowa, Thai Kyowa Biotechnologies), GMP (Kyowa Hakko Bio, Kyowa Pharma Chemical, Shanghai Kyowa Amino Acid)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • 2.2
  • 2.4
  • 3.3
  • 3.4
  • 6.4
  • 7.2
  • 9.5
  • 13.1
  • 13.3
  • 15.4

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

  • HMOs
  • Citicoline

Awards & Recognition

  • 2023 EcoVadis silver medal
  • 2024 Certified Health & Productivity Management Outstanding Organizations (Kyowa Hakko Bio, Kyowa Pharma Chemical)
  • CSR-DIW Continuous Award (Thai Kyowa Biotechnologies)