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Environment

Global Environment Policy/Environment Challenging Ono Vision(ECO VISION 2050)

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Global Environment

The impact of global warming, including extreme weather events, is increasing year by year, and efforts to prevent global warming have become an important challenges for the international community. The Paris Agreement at COP21 calls for limiting the average global temperature increase to less than 2 degrees Celsius compared to pre-industrial levels, with the goal of essentially reducing greenhouse gas emissions from human activities to zero. To this end, we have established an environmental vision (ECO VISION 2050) based on our "Global Environmental Policy". Recognizing the corporate social responsibility for the environment, we will promote environmentally friendly activities in all of our business activities in order to realize a richer global environment.

ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

Global Environment Policy

Under the corporate philosophy "Dedicated to the Fight against Disease and Pain,” ONO group contributes to the realization of a sustainable and prosperous society by creating innovative medicines and working on solving environmental issues such as climate change.

  1. Recognizing corporate social responsibility for the environment, we conduct environmentally friendly activities at entire stages of product research, development, procurement, production, distribution, sales, use, and disposal.
  2. We comply with environmental laws and agreements in each country and region, and our voluntary standards.
  3. Under the environmental management system, we set goals and action plans, monitor regularly, and disclose information.
  4. We actively introduce the latest science and technology to reduce environmental impacts.
  5. To conserve the natural environment and biodiversity, we pursue efficient use of resources and energy, efficient use of water and appropriate wastewater management, reduction of waste, promotion of recycling, and prevention of pollution.
  6. We communicate with internal and external stakeholders and produce eco-friendly products in cooperation.
  7. We build all employees’ environmentally sensitive minds through education to promote environmentally friendly initiatives.
ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

Environmental Vision

ONO has established a medium- and long-term environmental challenge vision for 2050, named “Environmental Challenge Ono Vision (ECO VISION 2050)” to realize a sustainable society.

ECO VISION 2050

Background for the establishment of vision

In recent years, the global environmental issues including climate change and other issues have become serious. In the future of 2050, it is expected that people's healthy and sound life will be threatened due to various threats such as water and food shortages, increase of new diseases, devastating natural disasters and so on.
In order to promote the creation of a healthy and sound society through the discovery and development of innovative pharmaceutical products under the corporate philosophy to be "Dedicated to the Fight against Disease and Pain", it is important that we recognize that our business activities are supported by a sound global environment and that we will strengthen our activities toward the resolution of environmental challenge. We believe that such activities are not only our corporate responsibility for the environment, but also lead to build the foundation for sustainable business activities.
We will challenge to reduce the environmental burden in anticipation of 2050 based on the ECO VISION 2050 so that people can welcome a healthy and sound society.

ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

Targets (medium-to long-term targets and fiscal year targets) and results

To realize "ECO VISION 2050," we have set 3 priority items: "Realization of a decarbonized society," "Realization of a water recycling society," and "Realization of a resource recycling society," and have set specific medium-to long-term targets for greenhouse gas, water, and waste in 2019. We have also set annual targets.

Greenhouse gas

medium-to long-term targets and fiscal year targets

Our medium- to long-term greenhouse gas reduction targets are classified by the SBTi as the most ambitious "1.5 °C target." For more information, please see here (Environmental Initiatives). As for energy, we will increase the use of renewable energy in line with the RE100 target that we joined in June 2020.

Roadmap for achieving the ECO VISION 2050
Results (progress) against targets
Target FY2020 results
  1. Reduce GHG emissions (Scopes 1+2) (on a market basis*1) by 55% by FY2030 and to zero by FY2050 (compared to FY2017).【ECO VISION 2050】
    • *1  Market-basis GHG emissions volumes are calculated based on emissions coefficients published by each electric power company.
  1. Reduce GHG emissions (Scopes 1+2) by 12.6% compared to FY2017.
  1. Reduce GHG emissions (Scope 3) by 30% by FY2030 and by 60% by FY2050 (compared to FY2017).【ECO VISION 2050】
  1. GHG emissions (Scope 3) decreased by 27.6% compared to FY2017. (Scope 3 results are for FY2019 because the FY2020 CSR reports of our major suppliers and wholesale distributors had not been released  at the time of calculation.)
  1. Increase the share of renewable energy in total electricity consumption to 55% or higher by FY2030 and 100% by FY2050.
  1. Increase the share of renewable energy in total electricity consumption to 13.2%.
  • * Items marked with [ECO VISION 2050] are concrete medium-to long-term targets set to realize the medium-to long-term environmental vision of ECO VISION 2050.

Water

medium-to long-term targets and fiscal year targets
  1. Reduce water resource consumption (water intake) per production volume unit by 15% in FY2030. <compared to FY2017>
  2. Reduce water resource consumption (water intake) below the previous year. <FY target>
Results (progress) against targets
Target FY2020 results
  1. Reduce water resource consumption (water intake) per production volume unit by 15% by FY2030 (compared to FY2017).【ECO VISION 2050】
  1. Water resource consumption (water intake) per production volume unit increased by 4.6% compared to FY2017.
  1. Reduce water resource consumption (water intake) to below that of the previous year (FY2019: 296.7 km3)  <FY target>
  1. Water resource consumption (water intake) decreased by 17.2% (51.1 km3) compared to FY2019.
  • * Items marked with [ECO VISION 2050] are concrete medium-to long-term targets set to realize the medium-to long-term environmental vision of ECO VISION 2050.

Waste

medium-to long-term targets and fiscal year targets
  1. Maintain the final landfill disposal rate of industrial waste 1% or less every year.
    • * Defining the ratio of non-recycling (landfill and simple incineration) to less than 1% of the total amount as a standard of our “zero emission.”
  2. Reduce the volume of industrial waste per production volume unit by 15% in FY2030. <compared to FY2017>
  3. Promote reduction of environmental impact through business activities.
  4. Reduce the volume of industrial waste below the previous year. <FY target>
Results (progress) against targets
Target FY2020 results
  1. Maintain a final landfill disposal rate of 1% or less every year【ECO VISION 2050】
    • *  Zero emissions are defined as the percentage of non-recycled waste (sent for landfill disposal or simple incineration) being 1% or less of the total volume of waste.
  1. The final landfill disposal rate of industrial waste was 0.2%, continuing to achieve zero emissions.
  1. Reduce the volume of industrial waste per production volume unit by 15% by FY2030 (compared to FY2017).【ECO VISION 2050】
  1. Industrial waste volume per production volume unit increased by 13.2% compared to FY2017.
  1. Promote reduction of environmental impact through business activities.【ECO VISION 2050】
  1. Reduce the environmental impact of product packaging by changing packaging materials and forms (for details, please refer to "Initiatives to Promote Reduction of Environmental Impact").
  1. Reduce the volume of industrial waste below the previous year. (FY2019: 430.8 tons) < FY target>.
  1. Industrial waste volume increased by 71.9 tons compared to FY2019.
  • * Items marked with [ECO VISION 2050] are concrete medium-to long-term targets set to realize the medium-to long-term environmental vision of ECO VISION 2050.
ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

Towards a decarbonized society

Disclosure of climate change-related information (in line with TCFD recommendations)

The realization of a decarbonized society is one of our key priorities in our business activities, and we are undertaking various company-wide initiatives toward this end. Regarding the risks and opportunities associated with climate change, we expressed our support in October 2019 for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)(click here for details). The TCFD is a task force established by the Financial Stability Board (TSB) to help companies understand and disclose the financial impact of climate change on their business. In June 2017, the TCFD announced its recommendations on how companies should detail climate-related impacts in their financial reports. In accordance with the TCFD recommendations, we will evaluate and manage climate change-related risks and opportunities and disclose information appropriately.

Governance

We appoint a corporate officer in charge of the environment as the officer responsible for climate change issues. The officer serves as the chairperson of the Environmental Management Committee, which meets at least once a quarter to discuss climate change issues. The officer, who also serves as the chairperson of the CSR Committee and a member of the Management Meeting, presents a report at least once a half year on the results of the Environmental Management Committee’s activities to the CSR Committee and the Management Meeting for discussion. The results of discussions at the CSR Committee and the Management Meeting are reported by the officer at the Board of Directors’ meeting and shared with all directors more than once a year.

In FY2019, the TCFD Study Working Group was established, which considered issues related to the identification and evaluation of climate change-related risks/opportunities and countermeasures. The identified risks and opportunities are reviewed by the TCFD Working Group on a yearly basis. The TCFD Working Group, which is headed by the corporate officer in charge of the environment, is joined by the heads of major relevant departments (Finance and Corporate Strategy & Planning) and the head of Risk Management Office in order to integrate climate-related issues into our business strategy.

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We also joined the TCFD Consortium, which is a platform for companies, financial institutions, etc. expressing support for the TCFD recommendations to discuss initiatives for effective disclosure of information and utilization of disclosed information for appropriate investment decisions by financial institutions. In FY2020, we participated in small-scale round table dialogue sessions with institutional investors hosted by the TCFD Consortium.

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Strategy
—Analysis and evaluation of risks and opportunities related to climate change—

Analysis and evaluation of climate change-related risks and opportunities were performed using the 1.5°C and 4°C scenarios, under the leadership of the TCFD Study Working Group. In FY2020, we reviewed the amount of financial impact of physical risks*2 based on changes in our product structure, suppliers, etc. Meanwhile, the amount of financial impact of transition risks*3 was not revised since there were no specific changes in assumptions of calculation. Our analysis revealed no financially significant risks in both the 1.5°C and 4°C scenarios. We will continue to check trends in the international community and closely monitor the impact of risks and opportunities that may have a relatively material financial impact.

  • *2 Physical risks: Acute or chronic damage due to disasters, etc. caused by climate change with decarbonization policy not clearly defined
  • *3 Transition risks: Risk resulting from enhancement of decarbonization policy on a global scale (e.g. climate change policy/regulation, technology development, market trend, changes in evaluation in the market)

<Risks related to climate change>

Factor Value
chain
Risk and
impact
Financial impact Management
approach
Society
aiming
for
below
1.5°C
Regulatory
risk
ONO Increased carbon tax burden Our burden of carbon tax levied on greenhouse gas emissions may increase due to the possible tightening of climate change-related regulations. JPY 1.9
billion

Mitigation

・Achieve the greenhouse gas emissions reduction target (Scope 1+2) in line with the 1.5°C target.
・Implement energy saving and renewable energy investment plans to achieve the target.
Suppliers Carbon tax passed on to procurement prices Suppliers’ burden of the carbon tax levied on greenhouse gas emissions may increase due to the possible tightening of climate change-related regulations, and suppliers may pass on the carbon tax burden to us through higher procurement prices, potentially resulting in an increase in our materials costs. JPY 0.6
billion

Mitigation

・Achieve greenhouse gas emissions reduction target (Scope 3).
・Strengthen engagement with suppliers to achieve the target.
If the
temperature
rises by
4°C
Physical
risk
ONO,
manufacturing
contractors,
suppliers
Flood risk (acute) Acute damage (flood) risk from typhoon, etc. may increase, and an interruption of operations caused by damage to production facilities or damage to storage facilities may potentially result in a decrease in revenue. JPY 3.4
billion

Adaptation

・Introduce emergency power generators at main bases and conduct periodic maintenance.
・Integrate climate risks into enterprise risk management (ERM).
・Maintain a cooperation system with business partners (review of waterproofing measures by product storage service provider and business partners, etc.).
・Secure multiple suppliers.
・Consider the impact of flood due to climate change in the business partner selection process.
Water shortage risk (chronic) Since sufficient inventory is maintained, it is not likely at present that water-use restrictions due to long-term depletion of water resources will cause an interruption of our operations, resulting in a decrease in revenue. JPY 0
billion

Adaptation

・Secure proper inventory to avoid loss of opportunities.
・Maintain a cooperation system with business partners
  • Financial impact is the maximum value during the period from 2020 to 2030 in the 1.5°C or 4°C scenario (Regulatory risk is cumulative.)

Mitigationmeasures to reduce emissions of greenhouse gases that cause climate change, Adaptationmeasures to prevent or mitigate damage caused by the effects of climate change that have already occurred (or are expected to occur in the future).

<Opportunities related to climate change>

Factor Value
chain
Opportunity and impact Financial
impact
Management approach
Society
aiming
for
below
1.5°C
Opportunity
from
resource
efficiency
ONO High-efficiency pharmaceutical manufacturing process Introduction of high-efficiency pharmaceutical process (green sustainable chemistry *4 etc.) technology can be an opportunity to reduce raw material costs.
  • *4 Green Sustainable Chemistry is a concept that aims to reduce environmental impacts throughout the life cycle of chemical substances in order to realize a sustainable society.
JPY 2.3
billion
・Define indicators for assessing resource efficiency.
・Develop systems.
If the
temperature
rises by
4°C
Business opportunity Customers Preventive/treatment products If disease trends change due to global warming, demand for existing drugs (for melanoma, etc.) may increase, or the development and sales of new drugs may have a favorable impact on revenue. JPY 0.5
billion
・Additional indications for existing pharmaceuticals.
・Enhance the new compound library.
・Make use of open innovation, etc.
Society
aiming
for
below
1.5°C
Reputation opportunity Investors, customers, recruitment market Corporate value improvement It is possible that our efforts to tackle climate change will help us earn customer trust, retain employees, improve our reputation in the recruitment market, and improve ESG investors’ evaluation of our performance, thus contributing to the creation of corporate value. (Contributing to the creation of corporate value) Appropriately disclose the results of activities undertaken to the public.
  • Financial impact is the maximum value during the period from 2020 to 2030 in the 1.5°C or 4°C scenario (Opportunity from resource efficiency is cumulative.)

<Analysis method>

Selection of climate change scenario

Analysis and evaluation were performed using the 1.5°C and 4°C scenarios in which progress toward a decarbonized society and intensification of global warming are projected, respectively.

  • * For the 1.5°C scenario, the “Sustainable Development Scenario” developed by the International Energy Agency (IEA) was used; for the 4°C scenario, the “RCP 8.5 Scenario” (one of the Representative Concentration Pathways [RCP] scenarios, where global average temperature is predicted to increase by approximately 4°C by 2100) developed by the Intergovernmental Panel on Climate Change (IPCC), the “Stated Policies Scenario” of the IEA, etc. were used.

[Concept of climate change scenarios]

graph

(Prepared by ONO based [Global average surface temperature change] of “Climate Change 2013: The Physical Science Basis – Summary for Policymakers” [IPCC, 2013, page 19])

Rationale for scenario selection
  • The RCP 8.5 scenario is one of the Representative Concentration Pathways (RCP) scenarios developed by the Intergovernmental Panel on Climate Change (IPCC), where global average temperature is predicted to increase by approximately 4°C by 2100. Since this scenario has widely been used as a 4°C scenario globally, it was selected as one of our 4°C scenarios.
  • The Sustainable Development Scenario is one of the scenarios referred to in the “World Energy Outlook (WEO),” the flagship publication of the International Energy Agency (IEA) which is widely recognized as the most trusted information source of global energy forecast and analysis. The Sustainable Development Scenario is fully aligned with the Paris Agreement that aims to hold the increase in the global average temperature to well below 2°C or possibly 1.5°C. Since the Sustainable Development Scenario is in line with our 1.5°C target, it was selected as our 1.5°C scenario.
Scope of analysis and key points
  • The scope of analysis includes our domestic plants and contract manufacturers, suppliers, investors, customers, recruitment, etc. at home and abroad. The target period and area are FY2020-2030 and the pharmaceutical manufacturing industry, which is our major business, respectively.

Risk and opportunity management

The risk/opportunity identification process involves identifying potential risks and opportunities and analyzing each risk and opportunity in terms of the timing and probability of occurrence and the extent of the consequences. We determine the priorities for risks comprehensively by also evaluating risk mitigation measures. We prioritize and identify risks that would have a high impact on our business, those that have a high probability of occurrence, and those whose measures have high cost effectiveness. These risks are managed effectively by the Environment Management Committee. Regarding the identified risks, the Company-Wide Risk Management Committee discusses and develops measures and presents them to the Management Meeting for approval. The measures approved by the Management Meeting are communicated to the responsible persons at production sites and research institutes, who will then implement the measures at their respective organizations. The risks are thus managed in a systematic and comprehensive manner. The impacts of risks and opportunities are reviewed each year, and the risk and opportunity management status is reported to the CSR Committee and the Management Meeting.

Indicators and targets

We have created a road map to achieve the greenhouse gas emission reduction targets based on our medium- to long-term environmental vision. We discuss measures to be taken to achieve the targets and estimate the costs. Our medium- to long-term greenhouse gas reduction targets have been approved as science-based by the international initiative “Science Based Targets initiative (SBTi)*5.” For Scope 1+2, our targets are classified by SBTi as the strictest, “1.5°C target.” To achieve our medium- to long-term targets, we set a single-year target and evaluate the results (progress) against the target (FY2020 target: at least a 12.6% reduction compared to FY2017). We also calculate greenhouse gas emissions across the entire value chain (Scope 3). Since FY2014, we have calculated greenhouse gas emissions for our business sites in Japan by dividing Scope 3 emissions into 15 categories, in accordance with the guidelines of the Ministry of the Environment.
As for water risks, we conduct risk assessment once a year. Recognizing water risks as “disaster/climate change risks” among the company-wide risks, we implement measures based on our business continuity plan (BCP), including maintaining a proper stock. In the future, we will also work to establish a collaborative relationship with our business partners, to secure multiple suppliers, and to consider the impact of flood/shortage of water due to climate change in our business partner selection process.

  • * Details on risks/opportunities regarding climate change, as well as greenhouse gas emissions are described in our CDP Climate Change’s response (Japanese only). These can be confirmed at the CDP website (CDP ID required).
  • *5 SBTi: An international initiative that prompts private corporations and other types of organizations set science-based greenhouse gas emission reduction targets in accordance with the Paris Agreement

Carbon Pricing

We have incorporated carbon pricing*6 into our environment-related investment decisions. We review and implement carbon pricing on a periodic basis.

  • *6 Carbon pricing: To put a price on greenhouse gas emissions from facilities that is incorporated in management decisions in order to promote decarbonization of activities

Progress towards a decarbonized society

For the targets and progress, please click here.

As for the results (progress) against the greenhouse gas (GHG) emission reduction targets established based on our medium- to long-term environmental vision, our Scopes 1 and 2 GHG emissions (on a market basis*7) for FY2020 were reduced by 12.6% against the reduction target of 12.6% or more compared to FY2017 (FY2017, 29.8 kt-CO2; FY2020, 26.1kt-CO2). Meanwhile, our Scope 3 GHG emissions were reduced by 27.6% compared to FY2017 (FY2017, 75.1kt-CO2; FY2019, 54.4kt-CO2).
Regarding the use of renewable energy, in line with the RE100*8 international initiative (we joined in June 2020), we worked to promote the use of renewable energy and attained the share of renewable energy in total electricity consumption of 13.2%, thereby achieving the FY2020 target (increasing the share by at least 12.6%).

  • Regarding Scope 3 emissions, figures were calculated based on FY2019 emissions because the FY2020 data for our major business partners have not been published at the time of calculation.
  • *7 Market basis: GHG emissions calculated using the emission factors released by each electric power company
  • *8 RE100: An international initiative which aims to have companies utilize 100% renewable energy for electricity used in their operations

Progress towards a decarbonized society (data)

GHG emissions (Scopes 1+2)

graph
  • * Sites where data on GHG emissions were collected: Fujiyama Plant, Joto Pharmaceutical Product Development Center, Yamaguchi Plant (added from FY2018), Minase Research Institute, Fukui Research Institute, Tsukuba Research Institute, Head Office, sales offices and other offices, etc.
    GHG emissions are calculated using the following formula.
    GHG emissions = Purchased electricity × adjusted emission factor published by the electric company + Σ (Fuel consumption × Unit calorific value × Carbon emission factor × 44/12)+Σ (Fluorocarbon leakage amount x global warming potential)
    The amount of green electric power certified under the Green Energy Certificate and renewable energy certified under J-Credit Scheme are deducted.

     

Breakdown of GHG emissions by scope (Market-basis)

graph

Breakdown of Scope 1 by GHG type

graph
  • * GHG types are based on the Greenhouse Gas Emissions Accounting, Reporting, and Disclosure System of the Act on Promotion of Global Warming Countermeasures.

Energy consumption

graph
  • * Sites where energy consumption data were collected: Fujiyama Plant, Joto Pharmaceutical Product Development Center, Yamaguchi Plant (added from FY2018), Minase Research Institute, Fukui Research Institute, Tsukuba Research Institute, Head Office, sales offices and other offices, etc.

Electricity consumption and Renewable energy utilization rate

graph

Initiatives for a decarbonized society

Creating a road map for reduction of GHG emissions

  • Participation in the “FY2019 Model Project for Supporting Development of CO2 Emission Reduction Plans to Achieve SBT” (sponsored by the Ministry of the Environment of Japan)
    As of the end of March 2021, there were only thirty Japanese companies whose GHG reduction targets were classified as the SBTi’s “1.5°C target.” To achieve our challenging GHG reduction targets, we have participated in the “FY2019 Model Project for Supporting Development of CO2 Emission Reduction Plans to Achieve SBT” (sponsored by the Ministry of the Environment of Japan) and created a highly feasible GHG emission reduction road map, incorporating new technologies based on the research and advice of experts.
  • Discussion on GHG emissions reduction policy
    In FY2020, we took a closer look at our GHG emissions reduction policy. Specifically, the priority order of our measures was defined as promotion of energy-saving activities, installation of renewable energy facilities, procurement of carbon-free energy, and credit utilization. Consequently, it was decided to raise the procurement ratio of carbon-free energy as compared to credit utilization based on recent energy market trends, costs, and forecasted fluctuation of emission factors. The Greenhouse Gas Management Hierarchy of IEMA was referred to when making these revisions.

* Source of IEMA's GHG Management Hierarchy: Institute of Environmental Management and Assessment (IEMA) Greenhouse Gas Management Hierarchy, first published in 2009 (updated 2020), www.iema.net

Priorities in ONO’s GHG emission reduction measures
(Source: Prepared by ONO based on materials from ENECHANGE Ltd.)

Promoting energy conservation

  • Introduction of advanced technology
    • -Replacing fluorescent lights with LEDs
    • -Upgrading heat source facility to module-type heat pump chiller
    • -Introduction of ultrahigh efficiency amorphous transformer with extremely low standby power
    • -Low air volume (push/pull type), ultrahigh speed variable air volume (VAV) local ventilation device
    • -Introduction of sterile isolator system that can limit area subject to high-grade washing
  • Improvement of operation
    • -Heat collected from high-temperature waste water to be used as heat source
  • Reviewing and adjusting the operating hours and temperatures of the equipment
  • Implementing the Cool Biz and Warm Biz clothes initiative advocated by the Japanese Ministry of the Environment.
photo
Module-type heat pump chiller (Minase Research Institute)
photo
Low air volume (push/pull type), ultrahigh speed variable air volume (VAV) local ventilation device (exhaust fan output visualized on the operation panel) (Minase Research Institute)

Introducing renewable energy

  • Introducing and operating solar power generation facilities: Head Office building (FY2003), Minase Research Institute (FY2015), Tokyo Building (FY2017)
  • Purchasing electricity under a renewable energy-based electricity menu contract: Minase Research Institute (FY2019)(Switched to fixed-amount contract with tracking information in FY2020 to ensure stable procurement)
  • Purchasing Green Energy Certificates (from FY2018) and J-Credits (from FY2019) We are promoting the use of renewable energy by purchasing certificates for electricity generated by renewable energy (Green Energy Certificates) and J-Credits.
photo
Solar panels (Minase Research Institute)
photo
Solar power monitoring system (Minase Research Institute)
photo
Green Energy Certificate

Fuel conversion

  • Completion of fuel conversion from heavy oil and kerosene to city gas and LNG at all plants and research institutes
    (GHG emissions from the combustion of fuels to produce energy depends on the source of the fuel. GHG emissions from city gas/LNG combustion are less than those from heavy oil/kerosene.)

Power load leveling

  • Shifting and cutting the peak power usage from daytime hours to nighttime through the use of the nighttime heat storage system and cogeneration system
  • Protecting production line during occurrence of instantaneous voltage drop and cutting daytime peak power usage by using large-capacity power storage system (NAS battery system)
photo
Large-capacity power storage system (Yamaguchi Plant)

Environment-friendly office design

  • When planning our new office in the US, we selected a building that received the LEED*9 Gold Certification. Meanwhile in Japan, our company-owned building in Tokyo has been certified as CASBEE*10 Class S. We will further pursue environment-friendly office design.
  • *9 LEED: The Leadership in Energy and Environmental Design (LEED) is a rating system for buildings and site utilization developed and operated by the U.S. Green Building Council (USGBC), which promotes energy-saving and environmental-friendly buildings and site utilization.
  • *10 CASBEE®: The Comprehensive Assessment System for Built Environment Efficiency (CASBEE) is a method for evaluating and rating the environmental performance of buildings. The quality of buildings is evaluated in a comprehensive manner based not only on considerations for the environment including use of energy-saving and environment-friendly materials, but also on the comfort of the indoor environment and considerations for the surrounding landscape. A class S rating is the highest rating in this five-level rating system.

Fluorocarbon Management

In accordance with the Act on Rational Use and Proper Management of Fluorocarbons, we conduct activities such as the identification of equipment subject to the act, simple inspections/periodic inspections, generation of records, and calculations/reporting of leakage. In FY2020, the calculated leakage of fluorocarbons was 88 tons-CO2. We will continue to prevent leakage and promote the introduction of non-CFC (chlorofluorocarbon) and low-GWP (global-warming potential) equipment when updating equipment.

Green sustainable chemistry

We have embraced the concept of “Green Sustainable Chemistry (GSC)” in order to work on the development of more environmentally conscious manufacturing process for active pharmaceutical ingredients (APIs) from the research and development stage. The aim of the GSC concept it to minimize the environmental burden throughout the process from selection of materials to manufacturing and disposal. The concept has become widespread in the pharmaceutical industry since the mid-2000s. In accordance with the GSC concept, we established the GSC Working Group at each site in 2018 and have been working on the development of manufacturing process for APIs while minimizing the waste from the development stage. This initiative has been recognized by TCFD analysis as one of the climate change-related opportunities.

External evaluation of our climate change-related efforts

  • In the survey conducted by the UK-based CDP on climate change, we were selected as an A-List company, the highest rating, for three consecutive years (in FY2018-FY2020).
  • We won an award in the Activity Implementation and Promotion category of the Minister of the Environment’s 2019 Commendation for Global Warming Prevention Activity (the Ministry of the Environment).
  • The Minase Research Institute received the Osaka Governor's Award of the Osaka Stop Global Warming Award for FY2020.
  • Under the Act on the Rational Use of Energy (Energy Conservation Act), we have received the highest S rank for six consecutive years in corporate energy conservation excellence (FY2015-FY2020).
  • We were introduced in a collection of case studies on energy efficiency & conservation (published by the Kansai Bureau of Economy, Trade and Industry) as among specified businesses who have remarkable achievements in various aspects of energy conservation.

GHG Emissions in the Value Chain (Scope 3)

GHG emissions in the value chain (Scope 3) have been divided into 15 categories under the Ministry of the Environment’s guidelines, and calculated for our sites in Japan since FY2014.

Category FY2019 emissions
(kt-CO2)
FY2020
emissions
(kt-CO2)
Calculation method Notes
Cat1 Purchased goods and services 11.5 - GHG emissions(scope 1,2) volume of our raw materials and major materials suppliers (accounting for 80% or more of our raw materials or materials purchase costs) multiplied by the ratio of the sales to ONO out of the total sales of the supplier. Ratios for other business suppliers are assumed to follow the same trend as for major suppliers, and are calculated using the ratio of GHG emissions to the transaction amount at major suppliers. This category is closely associated with our business activities since active pharmaceutical ingredients for manufacturing of drugs, intermediate products and research reagents are included.
-Covers production and research sites
-Figures for FY2020 are not calculated because our major business partners had not published their CSR reports at the time of calculation.
Cat2 Capital goods 26.9 25.8 Amount of capital goods treated as fixed assets (reinforcement of facilities/maintenance investment) excluding land, multiplied by factor Calculated based on capital goods treated as fixed assets. The fixed asses used in this calculation are essential for business activities.
Cat3 Fuel- and energy-related activities not included in scope 1 or scope 2 2.8 2.7 Amount of non-renewable electricity purchased, multiplied by emission factor -
Cat4 Upstream transportation and distribution 0.1 0.1 Transport data on deliveries from ONO production sites and distribution centers to destinations, multiplied by emission factor -
Cat5 Waste generated in operations 0.3 0.3 Weight of each type of waste generated, multiplied by emission factor -
Cat6 Business travel 4.0 0.4 Business trip allowances, multiplied by emission factor Covers travels by airplane or Shinkansen bullet train
Cat7 Employee commuting 0.5 0.4 Employees’ commuting costs, multiplied by emission factor -
Cat8 Upstream leased assets 2.9 2.0 Cost of gasoline for leased company cars, multiplied by emission factor -
Cat9 Downstream transportation and distribution 4.9 - GHG emissions stated in CSR reports on ONO’s major pharmaceutical wholesalers, multiplied by percentage of ONO net sales included in all net sales of major pharmaceutical wholesalers Transportation and distribution are important business activities to control distribution of and to ensure stable supply of drugs.
Figures for FY2020 are not calculated because our major pharmaceutical wholesalers had not published their CSR reports at the time of calculation.
Cat10 Processing of sold products Not relevant Not relevant - ONO makes only finished products
Cat11 Use of sold products Not relevant Not relevant - No energy is consumed during the use of ONO products
Cat12 End-of-life treatment of sold products 0.2 0.2 Weight of each type of ONO product container or packaging disposed of as waste, multiplied by emission factor -
Cat13 Downstream leased assets 0.3 0.3 Floor space of asset (building) owned and rented out categorized by use, multiplied by emission factor -
Cat14 Franchises Not relevant Not relevant - ONO does not operate franchises
Cat15 Investments Not relevant Not relevant - There is no investment involving large amounts of greenhouse gas emissions.
Total 54.4 - - Figures for FY2020 are not calculated because our major pharmaceutical wholesalers had not published their CSR reports at the time of calculation.
  • * The emission factors used for calculation are figures stated in the "Emission Factor Database on Accounting for Greenhouse Gas Emissions throughout the Supply Chain (FY2019, Ver. 3.0; FY2020, Ver. 3.1)," published by the Ministry of the Environment, Government of Japan.
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Toward creating a water recycling-oriented society

The availability of high-quality fresh water is one of the important factors for us in conducting business activities. We are making efforts for reducing water use so as to mitigate the load on limited water resources. As for water risks, the Environmental Management Committee leads and conducts surveys on the risks, and identifies/analyzes/evaluates the business risks. Risk evaluation at important sites that use large volumes of water is conducted using the WRI AQUEDUCT risk assessment tool of the World Resource Institute. As of the end of FY2019, none of our company’s important sites operate or conduct water intake in areas categorized as being at “extremely high risk” for water stress*. We continue to operate in areas where it is possible to use good quality fresh water as needed for business operations, and our business activities are therefore not affected. In FY 2019 and FY 2020, we received an improved rating of “A-” (up from B in FY 2018) in the Water Security survey conducted by CDP, a U.K.-based nonprofit organization.

*Water intake at factories and research institutes accounts for approximately 90% of the total use (FY2020), and for each sites, water stress categories are as follows. Low-medium: Yamaguchi Plant, Minase Research Institute, Fukui Research Institute, Joto Pharmaceutical Product Development Center, Medium to high: Fujiyama Plant, Tsukuba Research Institute.
 Note that ONO Pharma Korea is located in the “high risk” area, but its main business is clinical development and sales, so their water use is mainly domestic water at the business office, not factories and research facilities that use relatively large amounts of water.

Analysis and Evaluation of Water-related Risk and Opportunity

Risk Factors Period Details Impact Management Method
Regulatory
risk
Restrictions on use of good quality fresh water Long-term Use of good quality fresh water becomes impossible, restricting production and research activities. Increase in operating costs
  1. Assurance of pharmaceutical products supplied
  2. Risk diversification due to establishment of new facilities
Risk from physical impact Rationing/shortage of good quality fresh water Long-term Use of good quality fresh water becomes impossible, restricting production and research activities. Increase in operating costs
  1. Assurance of pharmaceutical products supplied
  2. Risk diversification due to establishment of new facilities
Decline in water quality Long-term Use of good quality fresh water becomes impossible, restricting production and research activities. Increase in operating costs
  1. Investment in plant and equipment
  2. Water quality analysis and management
Flooding and/or heavy rain disaster Long-term Facilities are flooded due to flooding or heavy rainfall in the vicinity of a production site. Increase in operating costs
  1. Assurance of pharmaceutical products supplied
  2. Investment in plant and equipment
Other risks Reputation risk Short-term A poor external evaluation of our handling of water exerts an adverse impact on the share price. Decline in share price Appropriate external publicity on the results of our activities
Opportunity Factors Period Details Impact Management Method
Opportunity
from
physical
impact
Water
shortage
Long-term Demand increases for existing pharmaceutical products that can be used without water, or new drug development opportunities lead to positive impact on revenue. Increased demand for existing drugs and services, new drugs and services
  1. Changes in formulation of existing pharmaceutical products
  2. New Drug Development

We have posted details such as the water-related risks and opportunities, water intake and wastewater volumes at CDP Water (Japanese only). They can be confirmed at the CDP website (A CDP ID is required). 

Progress towards a water recycling society

To achieve our medium-term environmental target of the Environmental Vision for the “Realization of a water recycling society” of “Reducing water resource consumption (water intake) per production volume unit by 15% by FY 2030 (compared to FY 2017),” we have set an annual goal to "Reduce water resource consumption (water intake) below that of the previous year" and we are working vigorously to reduce water consumption in business activities. The volume of water intake in FY 2020 was 245.6 km3, a 17.2% reduction (51.1 km3) compared to FY 2019, and we therefore achieved the target for the fiscal year.
Specific initiatives to reduce water consumption include the following: installation of highly airtight doors at the plant and stopping the use of running water traps as insect repellent, reduction of cooling water by adjusting the preset temperature of the heat drain tank, stopping the spraying of water or changing the preset temperature of the spraying water on air-cooling chillers and total heat exchangers in the laboratory. We also install water-saving sanitary equipment when a site is expanded, reconstructed, or renewed. In addition, Fukui Research Institute has installed a water recycling system to reduce water intake.
Incidentally, the water intake per production volume unit in FY 2020 increased by 4.6% compared to FY 2017. This is mainly due to a decrease in the number of boxes produced, which is used as a denominator for calculation. High-dose formulations of main products, which were not available in FY 2017, were added in FY 2018. The number of boxes produced, which is the denominator for calculation, was greatly reduced, because the number of boxes produced was apparently calculated as smaller even with the same amount of production.
 

Water intake (water resource consumption) and water intake per production volume unit

graph
  • * From FY2019, the head office and other domestic offices have been added retroactively to FY2017.

Wastewater

graph
  • * Sites where data on water consumption and wastewater volume were collected: Fujiyama Plant, Joto Pharmaceutical Product Development Center, Yamaguchi Plant (added from FY 2018), Minase Research Institute, Fukui Research Institute, Tsukuba Research Institute, Head Office, sales offices and other offices, etc.
    From FY2019, the head office and other domestic offices have been added retroactively to FY2017.
Water intake and wastewater volume by site (unit: thousand m3)
Site
name
River
in
the
area
Wastewater
drainage
destination
FY2016 FY2017 FY2018 FY2019 FY2020
Water
intake
volume
Waste-
water
volume
Water
intake
volume
Waste-
water
volume
Water
intake
volume
Waste-
water
volume
Water
intake
volume
Waste-
water
volume
Water
intake
volume
Waste-
water
volume
Fujiyama Plant Fuji River River 195.7 128.9 205.6 148.6 240.2 178.4 185.0 145.1 157.8 125.0
Joto Pharmaceutical Product Development Center Yodo River Sewer 7.2 7.2 5.5 5.5 6.0 6.0 5.1 5.1 4.6 4.6
Yamaguchi Plant Fushino River River - - - - 8.2 8.2 18.1 18.1 18.6 17.7
Minase Research Institute Yodo River Sewer 45.2 45.2 51.3 51.3 41.2 41.2 39.1 39.1 33.7 33.7
Fukui Research Institute Kuzuryu River Sewer 39.4 7.5 38.7 5.2 31.3 5.0 27.3 5.7 13.7 2.6
Tsukuba Research Institute Lake Kasumigaura Sewer 10.9 10.9 8.1 8.1 6.0 6.0 7.1 7.1 7.2 7.2
Head Office and other sites in Japan (including tenant locations) Rivers/lake in the areas where major business sites are located*11 Sewer - - 15.9 15.9 15.1 15.1 15.0 15.0 10.0 10.0
total 298.4 199.7 325.1 234.6 348.0 259.9 296.7 235.2 245.6 200.8
  • *11 Rivers/Lake in the areas where major business sites are located: Toyohira River, Okura River, Arakawa River, Sakawa River, Kiso River, Lake Biwa, Yodo River, Ota River, Yoshino River, Naka River
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Toward realization of a resource recycling society

We recognize that the realization of a resource recycling society is one of the important items for our business activities, and the Resource Recycling Subcommittee, which is a sub-organization of the Environmental Management Committee, has led the company-wide efforts. Based on the basic policies of "promotion of 4Rs (refuse, reduce, reuse and recycle)" and "selection of materials with reduced environmental impact," the subcommittee has investigated and analyzed the waste generation processes, and examined and evaluated policies for the realization of a resource-recycling society, and reinforced initiatives for a sustainable society through environmental conservation.

Progress toward realization of a resource recycling society

Please check here for our goals and progress.

Progress toward realization of a resource-recycling society (data)

The final landfill rate of industrial waste in FY2020 was 0.2%, and we have continuously achieved zero emissions*12. The total amount of industrial waste increased by 71.9 t compared with the previous year, and the production volume unit increased by 13.2% compared with the 2017 level, both of which did not meet the respective targets. The increase in emissions was mainly due to the removal of unnecessary items in association with the renovation of Minase Research Institute, an increase in highly active wastewater in association with the increase in the production of highly active pharmaceuticals, and the start of operations at the Yamaguchi Plant. The increase in production volume unit was mainly due to an increase in industrial waste output and a decrease in the number of product packages due to standard change of major products (addition of high-volume products).

  • *12 Zero emissions are defined as the percentage of non-recycled waste (sent for landfill disposal or simple incineration) being 1% or less of the total volume of waste.

Final landfill disposal volume and Final landfill disposal rate of industrial waste

graph
  • * Sites where data on final landfill disposal volume and final landfill disposal rate of industrial waste were collected: Fujiyama Plant, Joto Pharmaceutical Product Development Center, Yamaguchi Plant (Added from FY 2018), Minase Research Institute, Fukui Research Institute, and Tsukuba Research Institute.
  • * Final industrial landfill disposal volume of industrial waste in FY2017 includes the amount of waste (5.8 tons) from renovation of the Joto Pharmaceutical Product Development Center.
Volume of industrial waste per production volume unit (kg/production unit volume)
  FY2017 FY2018 FY2019 FY2020 FY2030
(Target)
Volume of industrial waste per production volume unit 0.197 0.128 0.174 0.223 0.167
  • * The industrial waste volume in FY2017 (25.64 tons) from renovation of the Joto Pharmaceutical Product Development Center was excluded from the calculation

Industrial waste volume and Special management industrial waste volume (hazardous waste volume)

graph
  • * Sites where data on industrial waste volume and special management industrial waste volume (hazardous waste volume) was collected: Fujiyama Plant, Joto Pharmaceutical Product Development Center, Yamaguchi Plant (added from FY2018), Minase Research Institute, Fukui Research Institute, and Tsukuba Research Institute
  • * Special management industrial waste (hazardous waste) is defined under the Waste Management and Public Cleansing Law as waste that has properties of explosiveness, toxicity, infectiousness, and/or possibly causing damage to human health or the living environment. We strive to manage this type of waste properly.

Efforts toward realization of a resource recycling society

We have worked to reduce waste generation across the company by reducing paper documents with digitization. We have sold waste paper and metal waste which are no longer needed at our research institutes and production sites as valuable materials, and experimental equipment that is no longer used at the research institutes. In addition, for industrial waste (including specially controlled industrial waste) generated at the research institutes and production sites, we have selected the intermediate treatment contractors that recycle wastes without landfilling.
In pharmaceutical development, we have also started studies using computer simulation technology, which is expected to lead to a reduction in raw materials (waste).
We continue to promote various initiatives and work to realize a resource-recycling society.

Initiatives to Promote Reduction of Environmental Impact

Approaches to Product Packaging

In terms of product packaging, we promote the reduction of its environmental impact by changing packaging materials and forms.
In an effort to reduce the amount of plastic used, previously plastic compartment materials for packaging of injectable solutions were changed to paper-based materials in FY2019, and began distribution in FY2020. In response to the results of a questionnaire survey on product packaging conducted at medical institutions, we have changed the method of binding Blister package sheets for new products from a bag-type (transparent pillow packaging) to a band-type, thereby reducing the amount of plastic used.
In addition, we have switched the inks to be used to vegetable oil inks, as well as changed paper-based materials for individual packaging boxes to FSC®-certified paper. We also verify the quality to further promote the selection of materials that reduce our environmental impact, such as bioplastics.

Major activities Progress
Changing packaging materials from plastics to paper-based materials Changing packaging materials for parts of products. Started distribution of the products in FY2020.
Reconsideration and changing the method of binding Blister package sheets(Adopting the band-type) Started distribution of 2 products in FY2020.(A total of 7 products as of the end of March 2021)
Switching individual packaging box materials to FSC®-certified paper. Started distribution of 8 products in FY2020.
Selecting vegetable oil inks. Started distribution of 4 products in FY2020.
Efforts to reduce the amount of plastic used
photo
figure
Switching of individual packaging box materials to FSC®-certified paper and selecting vegetable oil ink
photo

In addition, pursuant to the Containers and Packaging Recycling Law, some of the containers and packaging materials for the products we sell are recycled.

FY2020(Unit: tons)
  Container and packaging usage Obligatory recycling amount
Plastic 161.5 35.1
Paper 198.1 1.4
Glass (colorless) 0 0
Glass (brown) 0.2 0
Commissioning fee paid for recycling:1,814 thousand yen

Other efforts

Introduction of paper files

We have introduced paper-based files since January 2020. By switching some plastic files to paper files, we are able to reduce the amount of plastic used.

photo
Use of photocopy paper or purchase of stationary materials

For photocopies, we perform print management, and a cloud storage system "BOX", which was introduced globally in October 2017, promoted paperless storage and reduced the amount of work required to store and share files. As for purchasing, we have indicated in an easy-to-understand manner whether the products listed in the purchasing system are in compliance with the “Act on Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities” and promoted awareness within us so that each employee has environmental awareness.

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Reduction of Environmental Risks

Management of Chemicals

ONO is committed to reducing chemical emissions to the lowest possible level not only in compliance with laws and regulations but also in recognition that these emissions may impact human health and the ecosystem.

Compliance with the PRTR Law

In accordance with the Law concerning “Pollutant Release and Transfer Register (PRTR),” we have appropriately controlled chemical substances that may have a harmful effect on human health and the ecosystem. The amount of PRTR Class 1 designated chemical substances (substances handled in an amount of 1 ton or more per year) reported to the government was 13.0 tons in FY2020, which has been maintained at a low level. In the same fiscal year, the amount released into the air was 0.3 tons, and that into water was 0.0 tons, maintaining low levels. Please refer to the ESG Data for details. We also legally and appropriately manage chemical substances other than those reported. We will continue to work to reduce emissions into the environment through appropriate chemical substance management.

Results for the goals
Target FY2020 results

Reduce the amount of PRTR Class I designated chemical substances released into the environment.

Registered amount of chemical substances released to the air was 0.3 tons, and amount released to water was 0.0 tons; the levels were kept low.
Handling of PCBs

We manages waste polychlorinated biphenyls (PCBs) properly in accordance with the Law Concerning Special Measures for Promotion of Proper Treatment of PCB Waste in Japan. The company submits a report on the storage and disposal of waste PCBs to the Osaka municipal government every year.

Site Status Type Number of 
Joto Pharmaceutical Product Development Center Stored Fluorescent lamp 0
Disposed* Condenser, Fluorescent lamp 559
Minase Research Institute Disposed* Condenser 2
  • Joto Pharmaceutical Product Development Center in FY2007, in FY2019 and in FY2020 and Minase Research Institute in FY2014 delivered PCBs to the Japan Environmental Storage and Safety Corporation, a PCB waste treatment service provider. At Joto Pharmaceutical Product Development Center, a condenser was found during the FY2020 re-inspection, and the disposal was completed during FY2020.
Management of radioisotopes, etc

Management of radioisotopes, etc. is performed appropriately in accordance with the "Act on Prevention of Radiation Hazards due to Radioisotopes, etc." and the results are reported to the Nuclear Regulation Authority as a radiation management status report every fiscal year.

Recombinant organisms, pathogens, etc.

As for genetically modified organisms and pathogens used in drug discovery research and manufacturing activities, we are preventing their spread into the environment and their leakage by complying with in-house regulations based on relevant laws and regulations such as the “Act on the Conservation and Sustainable Use of Biological Diversity through Regulations on the Use of Living Modified Organisms” (Cartagena Act) and the “Act on the Prevention of Infectious Diseases and Medical Care for Patients with Infectious Diseases” (Infectious Diseases Control law). In addition, to promote the appropriate use of these research samples, the In-house Safety Committee continues to provide education and training to laboratory staff and examination of the experimental applications.

Prevention of Air Pollution and Water Pollution

The production sites comply with the Air Pollution Control Act, the Law concerning Pollutant Release and Transfer Register (PRTR), agreements on pollution prevention with local governments, and other related laws and regulations in order to reduce environmental impact. They periodically measure the concentration of exhaust gas and noise from boilers and CGSs as well as wastewater from the plants, in accordance with related laws and other regulations, in order to ensure that levels are within regulatory limits. They also strive to reduce environmental risk. The PDCA cycle is followed in the plants, and employees are provided with the necessary environmental management training in operations in which there is a risk of environmental impact. Emergency drills are also conducted regularly. These drills use scenarios such as high concentrations of soot due to faulty equipment and leakages of oil into the ground, giving employees practice in the necessary preventative and responsive measures for such situations.
In recent years, extreme weather events are occurring as a result of global warming. We have formulated manuals to prepare for accidents and emergency situations caused by such weather, and we organize training sessions to minimize environmental impacts. In particular, to address any accidents and emergency situations that may cause water or soil pollution, we systematically review and implement the backup and reinforcement of relevant equipment.

Results for the goals
Target FY2020 results

Thoroughly comply with emission standards, and continue to make efforts to prevent any environmental accidents or complaints from local communities.

All analyses of air and water pollution revealed that we complied with emission standards. Also, there were no environmentally related complaints from local communities.
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Independent Practitioner's Assurance

As for the categories of sustainability information (environment : GHG emissions, energy consumption, GHG emissions in the value chain (Scope 3) (For Cat1 and Cat9, the previous year's data has been verified in the assurance process.), water intake volume, wastewater volume (including drainage destination), industrial waste volume, special management industrial waste volume (hazardous waste volume), and final landfill disposal volume of industrial waste, society : number of lost-time injuries and frequency rate), each of which is disclosed and indicated with the icon check in our SUSTAINABILITY DATA 2021, we have received independent assurance so as to bolster the reliability of the information. The Independent Assurance Report is reprinted on page 5.

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