Climate Change Data

AIN Group

Climate Impact & Sustainability Data (2022-05 to 2023-04, 2023)

Reporting Period: 2022-05 to 2023-04

Environmental Metrics

Total Carbon Emissions:687.0 thousand t-CO2e/year
Scope 1 Emissions:1.1 thousand t-CO2e/year
Scope 2 Emissions:18.0 thousand t-CO2e/year
Scope 3 Emissions:667.9 thousand t-CO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:426.9 TJ/year
Water Consumption:3.7 TJ/year
Waste Generated:Not disclosed
Carbon Intensity:540 tCO2e/million yen (fiscal year 2023)

ESG Focus Areas

  • Contribute to local healthcare
  • Provide beauty and happiness
  • Safety, peace of mind and trust
  • Protect the environment and reduce environmental impact
  • Ensure sound management base
  • Cooperate with local communities and businesses

Environmental Achievements

  • Reduced CO2 emissions by 9.0% (total) and 19.4% (emissions per unit of production) compared to fiscal year 2022.
  • Reduced power consumption by 797,454 kWh and CO2 emissions by 1,456 t-CO2 through energy-saving initiatives.

Social Achievements

  • Launched the official AIN Pharmacy app, Anytime AIN Pharmacy, providing online pharmaceutical guidance and other convenient services.
  • Received Platinum Kurumin certification for exceptional childcare support.
  • Received Eruboshi certification (third level) for supporting women’s participation and career advancement.
  • Held 275 community health events.
  • Implemented an employee engagement survey in 2022.

Governance Achievements

  • Endorsed the TCFD recommendations and joined the TCFD Consortium.
  • Implemented all principles of Japan’s Corporate Governance Code.
  • Established a Compliance Committee to manage compliance across Group companies.
  • Established the AIN Group Human Rights Policy.
  • Formulated the AIN Group CSR Procurement Policy and Guidelines.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality (net-zero CO2 emissions (Scope 1 and 2)) by 2050.
Medium-term Goals:
  • Reduce Scope 1 and 2 CO2 emissions by 30% compared to fiscal year 2022 by 2030.
  • Achieve 30% renewable energy by 2030.
  • Increase return on sales to 3.1 to 4.1% and ROE to around 9 to 12% by 2026.
  • Increase female manager ratio to 40% by April 2026.
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Shortages of pharmacists.
  • Rapid digitalization in healthcare.
  • Risks of loss of trust in the company.
  • Fluctuations in interest rates.
  • Outbreak of infectious diseases.
  • Natural disasters.
  • Climate change.
  • Increasing complexity of corporate governance.
  • Growing need for diverse work styles.
Mitigation Strategies
  • Actively hiring and training new pharmacist graduates.
  • Promoting Groupwide digital transformation.
  • Reinforcing information security.
  • Implementing measures to prevent the spread of infection and ensure business continuity.
  • Reinforcing BCP and conducting regular training.
  • Implementing measures to address climate change issues.
  • Introducing a field manager system.
  • Revamping personnel system to establish evaluation standards and enable diverse work styles.
  • Conducting employee engagement surveys and implementing appropriate measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • AIN Group CSR Procurement Policy and Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Increasingly severe abnormal weather events
  • Pandemics caused by climate change
  • Changes in rainfall and weather patterns
Transition Risks
  • Increased restrictions on greenhouse gas emissions
  • Other tighter restrictions on energy and resources
  • Shifts in markets and technologies
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), TCFD

Certifications: Platinum Kurumin, Eruboshi (third level)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 3: Good Health and Well-being
  • Goal 8: Decent Work and Economic Growth
  • Goal 10: Reduced Inequalities
  • Goal 11: Sustainable Cities and Communities
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action

The Group's initiatives contribute to these goals through its business activities in healthcare, beauty, and sustainability.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Outstanding Health and Productivity Management Organization for 2023 (three consecutive years)
  • FTSE Blossom Japan Sector Relative Index
  • MSCI Japan Empowering Women (WIN) Select Index
  • Morningstar Japan ex-REIT Gender Diversity Tilt Index

Reporting Period: 2023

Environmental Metrics

Scope 1 Emissions:1.1 (t-CO2, thousand)
Scope 2 Emissions:18.0 (t-CO2, thousand)
Scope 3 Emissions:667.9 (t-CO2, thousand)

ESG Focus Areas

  • Sound Management Base
  • Cooperation with Local Communities and Businesses
  • Contribution to Local Healthcare
  • Provide Beauty and Happiness
  • Safety, Peace of Mind and Trust
  • Protect the Environment and Reduce Environmental Impact

Environmental Achievements

  • Achieved a 75% reduction in CO2 emissions from deliveries
  • Achieved a 75% reduction in delivery inspection time by cutting the number of deliveries
  • Pharmaceutical disposal rate of 0.06%

Social Achievements

  • Formulated and disclosed the human rights policy in December 2021
  • Received Kurumin certification / Platinum Kurumin certification / received Eruboshi certification (third level)
  • Received certification as an Outstanding Health and Productivity Management Organization for 2023 (large enterprise category)
  • Held 275 community events
  • Formulated and disclosed CSR Procurement Policy and Guidelines in November 2022
  • Held briefings for companies in the supply chain in July 2023
  • Deployed primary care pharmacists to 86.2% of pharmacies
  • Maintained generic drug usage rate at 70.8% of pharmacies
  • Achieved a 95.8% response rate for safety verification drills
  • All stores with outstanding ratings (70.0%)

Governance Achievements

  • An average of 4.4 out of 5 points for all categories in Board of Directors evaluation points
  • One third of board (4 out of 12 members) are female directors
  • One quarter of board (3 out of 12 members) are outside directors
  • Major security incidents: 0 (excluding one incident of personal information leakage)

Climate Goals & Targets

Medium-term Goals:
  • Reduction rate of 30% compared to the reference year (fiscal year ending April 2022) for Scope 1 and 2 CO2 emissions by 2030

Environmental Challenges

  • Reducing greenhouse gas emissions
  • Reducing industrial waste
  • Improving employee health
  • Reinforcing systems to protect corporate information assets and increase system security
Mitigation Strategies
  • Building processes to ascertain the Group’s greenhouse gas emissions
  • Implementing CSR procurement initiatives
  • Securing certification (White 500)
  • Overhauling the management framework to ensure secure system operation

Supply Chain Management

Responsible Procurement
  • CSR Procurement Policy and Guidelines

Climate-Related Risks & Opportunities