ONO has striven in CSR by defining important areas of focus based on the ISO 26000. In FY2018, in addition to responding to external requirements, we redefined our materiality (important CSR issues) to clarify CSR activity themes which we should emphasize. ONO is actively engaged in CSR according to the new materiality that we have established.
We focused on the ISO 26000, the GRI Standards, the Ten Principles of the United Nations Global Compact and the evaluation items for socially responsible investment to broadly grasp and organize CSR issues in the business activities of ONO.
We analyze the CSR issues by importance from the point of view of ONO and importance based on expectations of our stakeholders, and then map each of those CSR issues on a horizontal and a vertical axis.
The importance from the point of view of ONO was assessed by our directors, executive officers and CSR Committee Members based on our corporate policy, and priority and importance were evaluated for each issue.
The importance based on expectations of our stakeholders incorporates the feedback received from our shareholders and investors in addition to the evaluation items of institutions that practice responsible investment as the representatives of stakeholders outside of ONO in order to determine the importance of each CSR issue. When we review the items and importance of materiality in the future, we will further incorporate the opinions of even greater number of stakeholders.
The results of this materiality analysis were deliberated and determined by the CSR Committee before gaining approval at the management strategy meeting chaired by the CEO.
We engaged in a dialogue with external experts about the process of our materiality analysis, the themes that are set and future initiatives to verify the validity of each important issue.
Materiality Unique to ONOI think the process and flow to define materiality is fantastic. On the other hand, the materiality is hard to see as anything inherent to the “creation of innovative drugs” as a pharmaceutical company to be a bit frank. I think people outside would like to know more about materiality that is unique to ONO.
When revising the materiality, I hope ONO will incorporate ideas through communication with diverse stakeholders outside of the organization. In particular, by integrating ideas from health care providers, patients and employees who have the opportunity to interact with health care providers and patients, the materiality may become more unique to a pharmaceutical company—more unique to ONO.
In the future, the importance of access to healthcare, ethical treatment of animals and issues in the supply chain will grow with a mindset toward global expansion. In terms of access to healthcare, effort is required for the treatment of diabetes and other non-communicable diseases. The level of commitment and effort to address access to healthcare in low-income economies will also potentially become a very important issue as ONO sets its sights on globalization.
Incorporating a Long-term Financial Perspective even in MaterialityONO is going in the right direction with the overall flow of defining its materiality. Specifically, carefully identifying social and environmental issues in the first step of defining materiality is a great choice. ONO has picked up roughly 30 items from points of view that include the value chain and life cycle of its business. Problems I think will impact the pharmaceutical industry are included in the listed items, so I think ONO has taken the necessary steps.
I also do not see any major issues in the flow for defining materiality from social and environmental issues as a whole. However, I would like to see a stronger awareness from a financial perspective. The determination of materiality is a process to clarify the important issues for long-term business growth while taking the necessary steps toward the interests of specific stakeholders who are vital to ONO. I suggest that there is a room to improve the communication so that non-pharmaceutical companies can also understand the fact that ONO can foster its profitability and financial soundness by tackling with the material issues identifies in this occasion.
In the same way, indicating information about what financial impact can be expected, such as long-term business growth is key when setting KPI for the important issues that have been determined as well. I really hope ONO will design its KPI with awareness from a financial perspective too.
We review our materiality every year to adapt to external as well as internal environmental changes. Although we reviewed our materiality map at the beginning of FY2019 and FY2020, there were no changes to be made.
Sustainable Development Goals (SDGs) are composed of 17 goals adopted by the United Nations in 2015 to address the challenges faced by the international community. Each materiality and the relevant SDGs are as follows:
We report and manage the progress of each materiality target each year at the management strategy meeting.
|Materiality||Medium- to long-term targets||Plan and KPI for FY2019||Progress results in FY2019||Targets for FY2020||Relevant SDGs|
|Creation of innovative drugs||Contribute to the health of people all over the world by satisfying unmet needs through the discovery and manufacture of innovative pharmaceutical products||① Speed the drug discovery process and shorten each phase of research and development||Please refer to “Financial Results” for details of our R&D initiatives and their progress.||①Speed up the drug discovery process and shorten each phase of research and development.
②Use open innovation to expand the development pipeline focusing on key areas of research including cancer, immune diseases, central nervous system diseases and specialty domains.
Please refer to “Financial Results” for details of our R&D initiatives.
|② Use open innovation to expand the development pipeline focusing on key areas of research including cancer, immune diseases, central nervous system diseases and specialty domains|
|Intellectual property strategies||
In addition to uncovering company-internal intellectual property, strengthen product lifecycle management from the standpoint of maximizing intellectual property value
Consider proactive utilization of intellectual property in order to improve healthcare access
|① Spread awareness of the crucial nature of intellectual property, and hold talks and exchanges of views in every department in order to create opportunities to uncover company-internal intellectual property||The department in charge of intellectual property conducted awareness-raising sessions on intellectual property within relevant departments and held more than 10 discussions.||①Spread awareness of the crucial nature of intellectual property by holding talks and exchanges of views in each department to uncover new company-internal intellectual property, with the aim of continuing to develop innovative pharmaceutical products while respecting others’ patents.
③Engage in external information exchange to build a foundation for intellectual property utilization in order to improve healthcare access.
|② Establish specific lifecycle management strategies for each compound in order to maximize product value||We updated the lifecycle management strategies for compounds under development from the perspective of intellectual property strategies.|
|③ Engage in external information exchange to build a foundation for intellectual property utilization in order to improve access to healthcare||We engaged in continuous information exchange with the World Intellectual Property Organization.|
|We updated and disclosed our approach to intellectual property rights and patents in countries with difficulties ensuring healthcare access.|
|Promotion of human resource development||Develop human resources able to actively participate on the world stage so that each and every employee can take their own initiative in their duties and carrier and take action as passionate challengers to deliver better pharmaceutical products to patients.||① Engage in activities to raise awareness about our mission statement.
KPIPrepare and conduct awareness raising efforts at four overseas sites and for all employees in Japan who are mid-career employees
|· We conducted awareness-raising efforts at all four overseas sites.
· Awareness-raising efforts for mid-career employees in Japan: Conducted at a 100% level (54 persons)
· We held employee training programs at medical institutions and lectures delivered by patients to deepen their understanding of medical needs.
|①Continue to engage in activities to raise awareness about our mission statement.
KPIRate of employees who are highly aware that the company’s mission statement is their principle for taking action: At least 50%②Conduct cross-sectional training for seven ranks of employees, from new employees to managers, in order to develop human resources that behave according to the behavioral characteristics required of each rank, with the aim of facilitating changes in their behavior.
KPIRate of behavior change recognized in the evaluation made by their superiors after the training: At least 80%③Develop human resources that can act independently by expanding elective training in which employees can choose to participate, and enhancing support for self-improvement of employees. ONO also nurtures a climate of growth where employees are stimulated by learning from each other.
KPIAttendance rate for self-improvement programs: At least 33%④Develop human resources and build an organization able to adapt to harsh environmental changes worldwide.
|② Conduct cross-sectional training for seven ranks of employees, from new employees to managers, in order to develop human resources that behave according to the behavioral characteristics required of each rank, with the aim of facilitating changes in their behavior.
KPI100% acceptance rate.
|Attendance rate: 100%
Total No. of attendees: 603 persons
|③ Develop independent human resources by expanding elective training that employees can choose to participate in and enhance support for self-improvement by employees. ONO also nurtures a climate of growth where employees stimulate learning in one another.
KPIAt least 20% for the participation rate in self-improvement programs
|Participation rate: 27.8% (910 persons / 3,272 persons)|
|④ Develop human resources and build an organization able to adapt to harsh environmental changes worldwide.
KPIProvide global development programs that include language education and future management candidate training
|No. of attendees for the global development programs: 87 persons
No. of attendees for the future management candidate training: 69 persons
|Assurance of product reliability and safety||Raise awareness in each and every employee about the importance of the reliability and safety of products by properly promoting quality management and safety management operations.||Accurately and reliability execute quality management and safety management operations.||
|① Identify and eliminate the causes of problems as well as prevent recurrence in addition to strengthening Corrective and Preventative Actions (CAPA) that measure potential factors that cause those problems.
KPIReduce the number of incidents and recurrence of problems in quality management and safety management operations compared to FY2018.
|· Safety management operations: The incidence of deviation from safety standards that should be improved fell below the in-house limit of 0.01% (also decreased compared to FY2018).
· Quality assurance operations: The incidence of deviation from quality standards at each production site fell below the predetermined limit. There was a case where the incidence of deviation exceeded the in-house limit of 0.01% and which required the consideration of a response, including possibly improving the drug formulation of the relevant product. However, the deviation was so slight as to have no impact on safety, and the necessary measures have been taken.
|①Keep the rate of incidents in safety management operations below a certain level.
Quality management training: CMC-Production Division and Quality Assurance Department
Safety management training: Other programs to be undertaken by implementing departments in addition to employees companywide
|② Conduct internal training.
KPIConduct training at least once a year with a 100% attendance rate as follows:
Quality management training: CMC - Production Division and Quality Assurance Department;
|All of the target employees participated the internal training. (Attendance rate: 100%)|
|Implementation of responsible marketing and promotion activities||Engage in activities that properly disseminate information in accordance with the guidelines for activities to disseminate marketing information about pharmaceutical products.||① Use materials reviewed and approved by the department auditing activities to disseminate marketing information for promotional purposes.
KPIAchieve a 100% usage rate of reviewed and approved materials
|We achieved a 100% usage rate of reviewed and approved materials.||Implement the following initiatives, with the aim of reducing the number of significant compliance violations※1 to zero.
※1 Compliance violations that have a great impact on sales and profits
KPINo. of significant compliance violations: Zero①Conduct internal training for all employees involved in sales activities so that they act in compliance with the guidelines for activities to disseminate marketing information.
KPIFour times a year②At company-hosted lectures, request that presenters provide information appropriately in keeping with internal company rules that conform to the guidelines, and check slides in advance.
KPIRate for prior confirmation of slides: 100%
③The director of each sales office conducts an assessment to check whether the following activities are appropriately conducted at the time of accompanying his/her office members.
1) Activities to disseminate information at the time of interview
2) Check slides used at company-hosted lectures in advance
If the activities are inadequate, clarify the reasons for such activities and consider countermeasures against them. Then report the countermeasures to the Head Office for discussion.
KPIConduct an assessment once a month.
|② At company-hosted lectures, request that presenters provide information appropriately in keeping with company-internal rules that conform to guidelines.
KPIAcceptance rate: 100%.
|The acceptance rate was 100%. (The rate for prior confirmation of slides was 61%.)|
|③ Conduct internal training for all employees involved in sales activities.
KPIFour times a year
|The training was conducted six times a year.|
|Provision of a stable supply of high-quality, easy-to-use products||Create product designs able to ensure reliable quality and establish a stable supply system.||Actively use frameworks to rapidly extract on-site medical demand as well as treatment needs to employ the medical needs that we discover in new products and product modifications.||We incorporated medical needs obtained from medical sites into product designs for four products.
For advice on medical needs, we collected views from 10 institutions with which we signed an advisory agreement.
|①Continue to incorporate on-site medical demand as well as treatment needs into product improvements and new products.
KPIReset and ensure proper inventory levels according to product characteristics.
|Understand new medical needs and expand product designs.|
|Building a work environment that ensures and sustains employment as well as fosters motivation||Instill pride in all of our employees about working in the pharmaceutical industry, help employees reach their full potential in diverse situations, and further establish a workplace environment where everyone can actively participate to aid in ensuring and sustaining employment.||① Work to promote diversity and improve work-life balance as well as build a workplace environment in which diverse human resources can actively participate with motivation by establishing and operating human resource policies as well as other programs.
KPIAcquire the Platinum Kurumin Certification and improve employee use of annual paid leave.
|· We acquired the Platinum Kurumin Certification.
· The rate of employee use of annual paid leave increased from 57.5% in FY2018 to 65.0% in FY2019.
|①Work to promote diversity and improve work-life balance as well as build a workplace environment in which diverse human resources can actively participate with motivation by establishing and operating human resource policies as well as other programs.
|② Promote awareness and engage in health management initiatives.
KPIConsistently earn recognition as a Certified Health & Productivity Management Outstanding Organization (Health and Productivity Management 500), encourage employees to stop smoking during work hours as well as achieve at least a 95% rate of employees undergoing physical examinations and stress checks
|· We were selected for inclusion in the 2020 Health & Productivity Stock for the first time and continued to be recognized as a Certified Health & Productivity Management Outstanding Organization (White 500).
· We implemented a non-smoking policy during work hours.
· Rate of employees undergoing physical examinations: 99.7%
· Rate of employees undergoing stress checks: 99.8%
|Response to climate change||Reduce CO2 emissions by 55% by 2030 (compared to FY2017 figures)||Establish goals that integrate scientific knowledge, and undertake CO2 emissions reductions toward meeting those goals
KPIObtain approval of the SBT target set A 4% reduction in CO2 emissions compared to the previous year
|①We obtained approval of the SBT target set.
②We achieved a 4% reduction in CO2 emissions compared to the previous FY year (Scope 1 and 2).(8.4% reduction relative to FY2017)
|①Continue to work to reduce GHG emissions.
KPIA reduction of 12.6% compared to FY2017 (Scope 1 and 2)②Increase the usage rate of renewable energy.
KPIIncrease the usage rate by 12.6% compared to FY2017.③Announce our participation in RE100 (an international initiative that aims for 100% usage of renewable energy in business operations by 2050).
|Promotion of CSR procurement in supply chain management||Promote CSR activities together with our suppliers to build a sound and robust (resilient) supply chain.||Conduct surveys for our business partners about CSR procurement.
KPIConduct surveys of business partners that make up 70% of purchases
|We conducted surveys of our business partners that make up 86% of purchases.||①Improve initiatives for CSR procurement in the companies that were subject to the survey conducted in the previous FY year.
KPIIncrease the overall average score of all companies subject to the survey in FY2020, compared to FY2019.②Support the companies that have not met our standards to improve their initiatives.
KPIIncrease the overall score of each company subject to the survey in FY2020, compared to FY2019.
|Thorough Compliance||Improve awareness about organizational compliance and strengthen auditing systems in an effort to eliminate any regulatory or compliance violations.||① Conduct compliance training.
KPIAchieve a 100% attendance rate of all employees
|We achieved 100% of the target. (All employees participated in the training.)||Implement the following initiatives with the aim of maintaining no occurrence of significant compliance violations※2.
· Conduct all department leader training based on the legislation covering prevention of power harassment.
· Conduct an employee awareness survey on compliance and harassment to incorporate survey results on the formation of measures by each department.
· Conduct sales department training (rules, guidelines, code of conduct).
· Conduct e-learning training (twice a year).
· Distribute an email magazine on compliance.
②Hold a compliance meeting in which members of company management participate every quarter to work through the companywide compliance PDCA cycle.
|② Work through the companywide compliance PDCA cycle with a compliance committee in which members of company management participate.
KPIAt least four times a year
|We held four compliance meetings.|
|We acquired the whistleblowing compliance management system certification (self-declaration of conformity registration system) administered by the Japan Institute of Business Law.|
* ONO’s efforts against the spread of the coronavirus infection (COVID-19), which has had a strong impact on our materiality in this FY year
The spread of the coronavirus infection (COVID-19), which began in FY2019, has had a strong impact on our CSR issues, identified as materiality (improvement of access to healthcare, provision of a stable supply of high-quality, easy-to-use products, implementation of responsible marketing and promotion activities, the building of a work environment that ensures and sustains employment as well as fosters motivation, etc.). As a life-related pharmaceutical company, we are implementing the efforts in a stable supply of products and contribution to the R&D of therapeutic drugs. We are also taking various measures to ensure the safety and health of employees, their families, and all of our stakeholders, as well as to prevent the spread of infection.
In order to challenge toward the realization of the corporate philosophy of “Dedicated to Man’s Fight against Disease and Pain”, we all work together to ensure a stable supply of products, and continue to provide the necessary support for the treatment and early end of coronavirus infection of this situation.
To promote CSR activities, we have the CSR Committee in place, chaired by the Corporate Executive Officer in charge of CSR / Head of Corporate Communications, with the President, Representative Director, and Chief Executive Officer serving as the responsible person. The Committee, which mainly consists of managers from various divisions, deliberates and makes decisions on important issues and subjects for CSR activities. The activities of the Committee are regularly reported to the management. Important matters requiring consideration and decision-making by the management and further important subjects are reported to and discussed at the management strategy meeting and by the Board of Directors, respectively.
In November 2017, we participated in the United Nations Global Compact (UNGC), which is composed of 10 principles advocated by the UN concerning human rights, labour, environment, and anti-corruption. We comply with relevant laws and disseminate the Ten Principles of the Global Compact through our daily activities to ensure that all employees follow them.
We contribute to Goal 3, Goal 9 and Goal 17 in the SDGs through the creation of innovative drugs.
We strive to realize Goal 3: Ensure healthy lives and promote well-being at all ages as a research and development company specializing in prescription drugs based on our corporate philosophy to be dedicated to man’s fight against disease and pain. In response to the mortality rate of non-communicable diseases raised as a goal of the SDGs, we began to concentrate our research area into diseases such as cancers, immunological diseases and central nervous system disorders to contribute to the creation of original and innovative therapeutic medications for diseases for which medical needs have still not yet been satisfied. Furthermore, in addition to aid for diphtheria, whooping cough, diphtheria toxoid and tetanus toxoid vaccines as well as the hepatitis B vaccine to address infectious diseases, ONO contributes to therapeutic medications with low marketability, such as malaria, tuberculosis, neglected tropical diseases, as well as new development, such as vaccines and diagnostic pharmaceuticals, through participation in the Global Health Innovative Technology Fund.
In terms of Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation, ONO contributes to encouraging innovation and building research and development infrastructure. To vitalize research and development in order to create new drugs, we of course not only invest in internal research and development but also provide grants, such as those for investigator-initiated clinical trials. Furthermore, the ONO Medical Research Foundation and ONO Pharma Foundation promote research to help build a bedrock for innovation through research grants to researchers overseas.
Moreover, we cannot separate ourselves from the duty to promote innovation or from Goal 17: Strengthen the means of implementation and revitalize the global partnership for sustainable development. We will not only provide innovative drugs independently but also seek out and achieve a wide range of partnerships. Before “open innovation” became a commonly used phrase, ONO advanced the development of new drugs through the use of state-of-the-art technology and expertise from various fields worldwide. At the same time, we have been actively working to introduce and draw on new candidate compounds for pharmaceuticals. In addition to alliances with venture companies and other pharmaceutical companies, we form partnerships with a wide range of stakeholders from universities and research institutes to government agencies, local communities and NPOs in an effort to resolve problems via open innovation. A list of our main partnerships can be found here.
We have to ensure legal compliance, corporate governance, and transparency. We believe that we also have to build and continue strengthening relationships with all stakeholders through business activities respecting their interests and dialogues with them, to attain sustained growth toward becoming a Global Specialty Pharma.
We adhere to the policy of disclosing necessary information accurately, fairly, impartially, and promptly to all stakeholders including patients, healthcare professionals, shareholders, investors, suppliers, local communities, employees, relevant governmental agencies, and industrial associations to promote communication/constructive dialogues with them.
|Stakeholder||Opportunity to Build/Strengthen Relationship|
|Patients and healthcare professionals||Discovery of pharmaceutical products that bring true benefit to patients|
|Stable supply of high-quality pharmaceutical products|
|Information collecting and provision for proper drug usage|
|Shareholders and investors||Stable return on investment through sustained growth|
|Information disclosure and dialogues to promote understanding|
|Provision of information on R&D and ESG|
|Suppliers||Offering fair and transparent competitive opportunities|
|Promoting CSR procurement|
|Local communities||Contributing to economic development|
|Activities for environmental conservation and for local communities|
|Employees||Provision of opportunities for personal growth|
|Creating an environment where employees work with peace of mind|
|Promote health maintenance and promotion|
|Provide information through internal publications and intranet|
|Governments and industry organizations||Information provision and dialogue|
|Information exchange and activities at related organizations such as the Federation of Pharmaceutical Manufacturers' Associations of JAPAN|
|NPOs/NGOs||Collaboration through various programs to improve medical access|
|Participation in various initiatives|
As an R&D-based pharmaceutical company, we would like to fulfill the expectations of stakeholders. We continue to meet various challenges that face us to become a company undergoing growth in middle and long term.