Since our foundation in 1717(Kyoho 2nd year of the Edo period), we have fully committed to the pharmaceutical business, under the corporate philosophy “Dedicated to the Fight against Disease and Pain”. In FY2021, we have newly established sustainable management policy, to realize a sustainable society.
ONO has striven to develop our CSR by defining important areas of focus based on ISO 26000. In FY2018, we redefined our materiality as “important CSR issues” to clarify CSR activity themes that we should emphasize. ONO is actively engaged in CSR in accordance with the materiality that we have established.
In FY2021, based on the newly established sustainable management policy, we changed the materiality from “important CSR issues” to “important management issues” to analyze and manage financial and non-financial management issues in more integrated way. The materiality thus defined has been clearly linked to the strategy of the mid-term management plan and has been developed into a more dynamic management system.
We believe that the disclosure of integrated financial and non-financial information and dialogues will be possible so that stakeholders outside of ONO can understand our sustainability initiatives.
Steps in materiality analysis
In the materiality analysis conducted in FY2021, we conducted a management environmental analysis in conjunction with the formulation of the mid-term management plan to extract potential management issues. This analysis identified important opportunities and risks for creating value and achieving sustainable growth of our company. Our directors, executive officers, and senior management from all divisions participated in the external/internal management environmental analysis, which included analysis of the management environment surrounding the business and analysis of gaps between our long-term vision and current status. In addition, management issues were extracted based on requests and expectations of stakeholders that were confirmed by each division in its daily business activities. As for non-financial issues, we extracted issues related to intangible assets such as human capital and intellectual capital that are needed to realize our growth strategies.
Non-financial issues were updated based on ISO 26000, the GRI Standards, the SASB Standards, the Ten Principles of the United Nations Global Compact, evaluations by ESG-rating agencies, dialogues with investors, etc. Analysis of issues was conducted while the progress of deliberation was reported to and confirmed by the Board of Directors.
In identifying materiality, we first classified the issues extracted in Step 1 into “value creation,” “foundation for value creation,” or “value preservation (erosion risks).” We recognized that “value creation” and “foundation for value creation” are opportunities and “value preservation” is a risk for our company. Furthermore, at the Management Meeting and other occasions, 18 materiality issues were defined as the most important issues from the perspective of importance to stakeholders and business. Materiality issues were deliberated and finalized by the Board of Directors.
For the materiality analysis in FY2018, 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.
Also, in FY2021, we engaged in a dialogue with the same external experts, about the validity and future challenge of our new materiality analysis.
With regard to each materiality issue that was redefined in FY2021, we will establish mid-term targets and plans, and confirm the progress. Furthermore, in conjunction with the mid-term management plan, each issue will be linked to a corresponding division, organization, and committee, and a company-wide PDCA management cycle will be established and managed by the Board of Directors and via Management Meetings.
Please see below for reason for being a priority issue, targets and actions for each materiality. Progress toward the targets will be disclosed every fiscal year starting with the results in FY2022.
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 the 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 to development of new therapeutic medications, 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. Long 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 promoting communication/constructive dialogues with all stakeholders including patients, healthcare professionals, shareholders, investors, suppliers, local communities, employees, relevant governmental agencies, and industrial associations, and disclosing to them necessary information accurately, fairly, impartially, and promptly.
|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 Keidanren (Japan Business Federation)|
|NPOs/NGOs||Collaboration through various programs to improve medical access|
|Participation in various initiatives|
As an R&D-based pharmaceutical company, we will understand the expectations of stakeholders, and continue to meet various challenges that face us to become a company undergoing growth in middle and long term.
On November 12, 2021, we concluded an agreement with Osaka Prefecture on cooperation and collaboration for the promotion of health promotion among residents in Osaka prefecture.
The public and private sector work together to solve social issues through cooperation between government initiatives and CSV*1 activities by private company. We have been promoting "Dialogues with local communities" as one of an important theme of our business activities. As a pharmaceutical company headquartered in Osaka prefecture, we will continue to cooperate in promoting the health of the residents in Osaka prefecture by working together with Osaka Prefecture to solve social issues related to health, taking advantage of the mutual strengths of the government and company.